Thursday's Tech Winners & Losers

Shares of Tvia(TVIA Quote) were among technology's losers Thursday, plunging 57% after the provider of display processors warned that it would post a significant sequential sales slowdown during the second quarter.

For the period ending Sept. 30, the company sees revenue of $300,000 to $400,000, down significantly from first-quarter revenue of $5.1 million. Two analysts polled by Thomson First Call had an average estimate for revenue of $5.9 million. Tvia blamed the sales slowdown to display and component shortages.

"Tvia attributed the reduction in expected revenues primarily to shortages during the quarter of LCD panels and other key components used to assemble digital TVs and flat-panel displays that has had a major impact on our customers' manufacturing schedules and consequently, their order rate for processors," the company said. Shares were trading down $2 to $1.50.

Shares of Germany's Infineon (IFX Quote) dropped 5% on news that one of the chipmaker's mobile-phone customers may file for insolvency protection. BenQ, Taiwan's biggest phone maker, said it will stop capital injections into its German mobile-phone unit. According to Bloomberg, BenQ currently accounts for about 15% of sales at Infineon's communications unit. Infineon shares were down 60 cents to $11.62 on heavy volume.

Zhone Technologies(ZHNE Quote) tumbled 22% after the network-equipment maker slashed its third-quarter revenue forecast. The company now sees revenue of $41 million to $43 million, well below its previous view of about $54 million. Analysts project revenue of $54.4 million. Gross margins, meanwhile, are now seen at 35% to 36%, below the company's previous guidance of about 38%.

Zhone blamed the revenue shortfall on weakness in its international business. "In particular," the company said, "we experienced the effects of fluctuations in the buying patterns of our largest customers in the Middle East and Latin America and a greater-than-expected seasonal slowdown in Europe." Zhone plans to release its third-quarter results on Oct. 19. Shares recently were down 32 cents to $1.08.