Thursday's Tech Winners & Losers

Updated from 12:28 p.m. EDT

Technology stocks moved modestly higher Thursday, but some of the biggest movers were hit hard by earnings warnings and weaker-than-expected reports.

Avici Systems(AVCI Quote) plunged 28.7% after the network-equipment company said that it would halt its core router development and focus on a new product initiative. The company said it would turn its focus to its new Soapstone Networks product and make its final shipments of router products by the end of the year.

"While we were successful in bringing the company to profitability in 2006 and continued to do so in the first quarter of 2007, we recognize that the routing market is under tremendous pressure from alternative technologies, such as Ethernet switching, and we do not believe our focus on core routers and our position as the No. 3 supplier in this market to be a sustainable growth business for the company." Avici said.

The company also posted adjusted earnings of $6.6 million, or 46 cents a share, on revenue of $20.5 million. During the year-earlier quarter, it earned $2 million, or 15 cents a share, on revenue of $20.9 million. Shares were down $3.89 to $9.65.

Elsewhere, Spansion(SPSN Quote) slumped 19.9% after the maker of flash memory posted disappointing first-quarter results. For the quarter ended April 1, the company reported a loss of $75.5 million, or 56 cents a share, on revenue of $627.8 million. Analysts polled by Thomson Financial expected a smaller loss of 24 cents a share on revenue of $678.3 million.

In an effort to reduce expenses, the company said it would sell non-performing assets. The company hopes to cut expenses by $50 million to $100 million in 2007.

Looking ahead, Spansion said it would not provide second-quarter guidance because of an "intensely competitive pricing environment." Shares were down $2.49 to $10.