Friday's Tech Winners & Losers

Technology stocks got a boost Friday after media outlets reported that Microsoft(MSFT Quote) and Yahoo!(YHOO Quote) could hook up in a merger.

Yahoo! soared 18% after the New York Post said that Microsoft asked the Internet giant to enter into formal talks. The Post, citing sources, said that deal could be worth some $50 billion. Microsoft's interest in Yahoo!, the Post said, stems from its failure to acquire DoubleClick, which agreed to be acquired by Google(GOOG Quote). Shares of Yahoo! were recently trading up $5.19 to $33.37. Shares of Microsoft, meanwhile, were trading down 50 cents to $30.47. Google was trading down 87 cents to $472.36.

Elsewhere, Blackbaud(BLKB Quote) jumped 21% after the software company posted better-than-expected first-quarter revenue and boosted its 2007 guidance. The company reported adjusted earnings of $7.1 million, or 16 cents a share, on revenue of $55.3 million. Analysts polled by Thomson Financial expected earnings of 16 cents a share on revenue of $53.6 million. During the year-earlier quarter, the company posted adjusted earnings of $7 million, or 16 cents a share, on revenue of $43.7 million.

Looking ahead, Blackbaud now sees 2007 earnings of 82 cents to 85 cents a share on revenue of $240 million to $248 million. Previously, the company said that it would earn 79 cents to 82 cents a share on revenue of $237 million to $245 million. Analysts project earnings of 81 cents a share on revenue of $240.5 million. Shares were trading up $4.50 to $26.12.

Meanwhile, QLogic(QLGC Quote) fell 7% after the maker of switches and adapters posted fourth-quarter earnings that were shy of expectations. For the quarter ended April 1, the company posted adjusted earnings of $35.2 million, or 22 cents a share, on revenue of $147.1 million. Analysts expected earnings of 23 cents a share on revenue of $150.7 million. During the year-earlier quarter, the company posted adjusted earnings of $34.5 million, or 21 cents a share, on revenue of $130.5 million.

Looking ahead, QLogic sees first-quarter earnings of 19 cents to 21 cents a share on revenue of $140 million to $145 million. Analysts project earnings of 25 cents a share on revenue of $156.9 million. Shares were trading down $1.31 to $16.51.