Tech Stocks in Motion

Shares of Anteon International(ANT) were among technology's winners Wednesday, jumping 33% after the government technology contractor agreed to be acquired by General Dynamics(GD) for $2.1 billion in cash, or $55.50 a share.

The price represents a 36% premium to Tuesday's closing price of $40.77. The deal, expected to close by the end of the second quarter of 2006, will be immediately accretive to General Dynamics' earnings. Anteon, which has about 9,500 employees, expects to post 2006 sales of $1.72 billion. "This superb company significantly strengthens the ability of our information systems and technology group to provide a broad menu of seamless information technology services to defense, intelligence and homeland security customers," General Dynamics said in a statement. Anteon was trading up $13.24 to $54.01, while shares of General Dynamics fell 11 cents to $111.98.

Digi International(DGII) tumbled 17% after the maker of computer networking equipment slashed its first-quarter forecast. For the quarter ending Dec. 31, the company now sees earnings of 7 cents to 12 cents a share, down from its previous guidance of 12 cents to 17 cents a share. Digi cut its sales forecast to $31.5 million to $34 million from an earlier view of $34 million to $37 million. Analysts polled by Thomson First Call expect earnings of 15 cents a share and sales of $36.5 million. Digi blamed the shortfall on orders that were pushed into subsequent quarters, industry softness across product lines in North America, and new product sales that didn't ramp as quickly as expected.

Despite the first-quarter shortfall, the company left its full-year fiscal 2006 guidance intact. In November, the company projected 2006 earnings of 60 cents to 70 cents a share, excluding stock-based compensation expenses, on sales of $150 million to $160 million. Analysts project earnings of 67 cents a share, with sales of $155.1 million. Digi shares recently were down $2.01 to $9.94.