Tuesday's Small-Cap Winners & Losers

Shares of Color Kinetics(CLRK) gained 7.7% Tuesday after the Boston-based lighting-systems maker announced an agreement under which Osram Sylvania will license Color Kinetics' patents.

Under the license, Osram Sylvania, a Massachusetts-based unit of Siemens AG(SI), will create a multicolor light-emitting-diode (LED) system for Gotham. Gotham Architectural Downlighting will market the product, and the global license will apply to sales of the product in all markets covered by Color Kinetics' patent portfolio. Shares were trading up $1.32, or 7.7%, to $18.56.

GigaMedia(GIGM) advanced Tuesday after the Taiwan-based gambling software company said it did not expect any adverse financial impact from the recent passage of the Unlawful Internet Gambling Enforcement Act of 2006, which bars financial-transaction processing connected with the U.S. online-gambling market. The company said it's a pure play international business with no U.S. source revenue. Shares were climbing 44 cents, or 4.5%, to $10.28.

Witness Systems(WITS) lost ground after the Roswell, Ga.-based software company said it acquired two companies -- Demos Solutions Consulting Group and Exametric -- for $29 million in cash plus a potential earn-out of up to $18 million. The company expects the acquisitions to add $13 million to $15 million to its revenue in 2007. Also, the company provided a preliminary estimate of third-quarter 2006 revenue in the range of $50 million to $51 million, excluding hardware revenue of roughly $1 million. Witness Systems said it does not expect to announce further financial results until a review of its stock-option practices and grants is completed. Shares were slipping $1.18, or 6.9%, to $15.87.