Friday's Tech Winners & Losers

Shares of Black Box(BBOX Quote) were among technology's losers Friday, tumbling 19% after the computer-networking equipment company posted disappointing fourth-quarter results and said it recently discovered accounting irregularities in its Italian operations.

For the period ended March 31, the company earned $4.7 million, or 26 cents a share, on revenue of $174.9 million. Excluding charges and other one-time items, the company earned $9.6 million, or 53 cents a share. One analyst polled by Thomson First Call expected earnings of 75 cents a share and revenue of $186.3 million. During the year-earlier quarter, the company earned $34,000, or less than a penny a share, on revenue of $157.2 million. Excluding items, year-earlier earnings were $6.8 million, or 39 cents a share.

Included in the company's most recent fourth-quarter results was a $7.1 million pretax charge, which was related to an adjustment for the years between fiscal 2003 and fiscal 2006 in the company's Italian operations. Specifically, Black Box said the adjustment "resulted from intentional misconduct by certain local operations and financial management of the company's Italian operations acting in collusion with one another for the purpose of overstating local financial results."

Black Box said that all members of the management team have been fired and that it plans to pursue available legal remedies against the individuals. "The company believes that all accounting irregularities have been identified, corrective action taken, and that the Italian operations adjustment captures all necessary corrections," Black Box said.

Looking ahead, Black Box sees fiscal 2007 revenue of about $1 billion. The company predicts earnings of 90 cents to 95 cents a share by the second quarter, with revenue of $265 million to $275 million. One analyst projects second-quarter earnings of 98 cents a share and revenue of $286.3 million. Shares were down $10.43 to $43.50.