Today's Tech Winners and Losers

Shares of Mercury Computer Systems(MRCY Quote) were among technology's losers Friday, falling 8% after the digital signal and image-processing systems company posted better-than-expected second-quarter earnings, but warned that third-quarter results would be worse than Wall Street's forecast.

The company earned $1.6 million, or 8 cents a share, on sales of $62.5 million for the December quarter. Excluding items, the company earned $3.9 million, or 18 cents a share. Analysts polled by Thomson First Call expected earnings of 10 cents a share on sales of $62.6 million. During the year-earlier quarter, the company posted adjusted earnings, which excludes items, of $7.3 million, or 30 cents a share, on sales of $59.3 million.

For the third quarter, Mercury Computer expects an adjusted loss of 4 cents to 10 cents a share and sales of $55 million to $58 million. Analysts had projected earnings of 25 cents a share on sales of $69.4 million. For all of fiscal 2006, the company sees an adjusted profit of 50 cents to 70 cents a share. The company predicts sales of $250 million to $260 million, lower than its October forecast of $275 million to $285 million. Mercury blamed the sales shortfall on several defense programs experiencing timing delays. Analysts were projecting earnings of 95 cents a share on sales of $272.8 million. Shares were trading down $1.66 to $19.31.

PortalPlayer(PLAY Quote) jumped 15% after the chipmaker posted fourth-quarter results that easily surpassed expectations and said the first quarter would be stronger-than-expected as well. The company earned $23.8 million, or 92 cents a share, for the fourth quarter; before items, earnings were $15.9 million, or 62 cents a share. Analysts expected earnings of 48 cents a share, excluding items. PortalPlayer, boosted by strength in business from Apple's (AAPL Quote) iPod, recorded sales of $78.2 million, topping Wall Street's estimate of $73.7 million. During the year-earlier quarter, the company reported adjusted earnings of $11.2 million, or 53 cents a share, on sales of $44.7 million.