Today's Tech Winners and Losers

Shares of Applix(APLX Quote) were among technology's biggest losers Friday, tumbling 24% after the software company posted in-line fourth-quarter earnings but issued a 2006 guidance that disappointed investors.

For the fourth quarter, the company earned $2.5 million, or 15 cents a share, on sales of $11.1 million. Analysts polled by Thomson First Call expected earnings of 15 cents a share and sales of $11.6 million. During the year-earlier quarter, the company earned $3.1 million, or 20 cents a share, on sales of $9.4 million.

Looking ahead, Applix sees 2006 earnings of 17 cents to 27 cents a share, including about 12 cents a share in stock-based compensation costs. Analysts expect earnings of 47 cents a share. The company projects sales of $41 million to $44 million, bracketing analysts' average forecast of $43.6 million. Shares were trading down $2 to $6.37.

Rackable Systems(RACK Quote) climbed 19% after the provider of servers and storage products reported better-than-expected fourth-quarter results. The company earned $7.3 million, or 32 cents a share. Excluding items, the company earned $7.6 million, or 33 cents a share, well above Wall Street's target of 24 cents a share. The company posted sales of $83.1 million, compared with analysts' target of $70.6 million. During the year-earlier quarter, the Rackable Systems posted a loss of $14.3 million, or $2.57 a share, on sales of $23 million. Excluding items, the company reported a loss of $513,000, or 9 cents a share, a year ago. Shares were up $6.04 to $37.15.

Shares of SafeNet(SFNT Quote) tumbled 14% after the maker of network security products posted weaker-than-expected fourth-quarter results and projected first-quarter results below Wall Street forecasts. The company earned $7.1 million, or 28 cents a share, on sales of $77.1 million, in the fourth quarter. Excluding items, the company earned $11.7 million, or 45 cents a share. Analysts expected earnings of 55 cents a share on sales of $80 million. During the year-earlier quarter, SafeNet earned $1.2 million, or 5 cents a share, on sales of $63.8 million. Excluding items, the company earned $11 million, or 44 cents a share, a year ago.