Tech Stocks in Motion

Updated from 1:28 p.m. EDT

Shares of QAD(QADI) were among technology's losers Friday, falling 12.7% after the company cut its first-quarter outlook below Wall Street expectations.

When the software company posts results on May 26, it expects to report earnings of 6 cents to 7 cents a share on sales of $55 million to $56 million. That's down from previous earnings guidance of 12 cents to 16 cents a share on sales of $57 million to $60 million. Analysts polled by Thomson First Call were expecting earnings of 14 cents a share. QAD blamed the shortfall on lower-than-expected license and services revenue, which affected total sales and earnings. Earnings were also hurt by a one-time charge of 2 cents a share. For all of fiscal 2006, QAD now expects earnings of 40 cents to 55 cents a share on sales of $227 million to $240 million, down from previous guidance of 50 cents to 70 cents a share in earnings on sales of $235 million to $250 million. Analysts had been expecting earnings of 63 cents a share. Shares traded down $1 to $6.90.

Nvidia(NVDA) rose 11.2% after the maker of graphic chips posted first-quarter results that easily topped forecasts. The company earned $64.4 million, or 36 cents a share, on sales of $583.8 million. Analysts were expecting earnings of 28 cents a share on sales of $581.2 million. A year ago the company earned $21.3 million, or 12 cents a share, on sales of $471.9 million. Nvidia said that gross margin initiatives continue to deliver results ahead of schedule. Indeed, gross margin improved by 450 basis points during the most recent quarter compared with a year ago. Shares traded up $2.54 to $25.33.

Shares of Flextronics(FLEX) rose 3.5% after the company unveiled plans to shed some of its operations and announced a succession plan for its chief executive position. As part of the divesture plan, Flextronics agreed to merge its Flextronics Network Services unit with Telavie, a company owned by private equity firm Altor. Additionally, Flextronics plans to sell all of its Flextronics Semiconductor Design business. Assuming a deal is reached, Flextronics would receive proceeds of about $550 million to $600 million -- plus additional contingent payments -- and retain a 30% ownership stake in the merged Network Services company.

For the fiscal year ended March 31, the Network Services and Semiconductor Design businesses generated sales of $840 million. Finally, in addition to the divestitures, Flextronics announced a further restructuring, which could result in charges of $100 million, or about 16 cents a share. The charges would be taken during fiscal 2006.