Wednesday's Tech Winners & Losers

Updated from 12:15 p.m. EDT

Research In Motion(RIMM Quote) helped lead tech stocks higher Wednesday, as the stock traded above its 52-week high attained the day before.

The BlackBerry maker rose 2.3% after Citigroup initiated coverage of the stock with a buy rating. Lehman Brothers also raised its price target. Shares closed up $2.18 to $99.

Sirius Satellite Radio(SIRI Quote) and XM Satellite Radio(XMSR Quote) rose 4.3% and 6.4%, respectively, after a senior Justice Department official told a Congressional committee that the department was moving "as quickly as possible" in its review of a proposed merger, according to Reuters.

The broadcast industry has opposed the deal, but none of the members of Congress at the hearing have expressed objections, Reuters said. Sirius shares closed up 14 cents to $3.42, while XM shares closed up 86 cents to $14.38.

Research In Motion, Sirius and XM are components of the Nasdaq 100, which rose 11.55 points to 2088.38.

NaviSite(NAVI Quote) jumped 16.3% after the IT services provider offered rosy first-quarter and full-year 2008 revenue outlooks. The company, reporting fiscal fourth-quarter earnings after Tuesday's bell, expects recent acquisitions to help push revenue to between $36 million and $37 million for the first quarter. Analysts polled by Thomson Financial expect a fourth-quarter loss of 4 cents a share on revenue of $34.3 million.

The company sees full-year revenue of between $170 million and $180 million. Analysts forecasted revenue of $150.5 million. Shares closed up $1.25 to $8.94.

Red Hat(RHT Quote), which makes Linux open-source software, jumped 5.3%, after reporting a healthy growth in second-quarter profits. The company reported net income of $19.1 million, or 9 cents a share, vs. $12 million, or 5 cents a share, in the year-ago period. Excluding items, the company earned 17 cents a share, in line with the expectations of analysts polled by Thomson Financial.

Revenue was $127.3 million, compared to $99.7 million in the comparable 2006 quarter. Analysts were expecting a top line of $125.1 million. Shares closed up $1 to $19.89.

On the losing side, voice over Internet protocol service Vonage(VG Quote) plummeted 26.2% after a jury sided with Sprint(S Quote) in a patent dispute late on Thursday.

The jury said Vonage should pay $69.5 million in damages and a 5% royalty on future revenue to Sprint. It is the second court loss in recent months for Vonage, which was ordered to pay Verizon(VG Quote) $58 million and 5.5% of revenue. Vonage is appealing that case and said it plans to appeal the Sprint decision. Vonage shares slipped 34 cents to close at 96 cents.

CMGI(CMGI Quote) slumped 13.1% after the supply chain management service provider to the tech industry posted disappointing fiscal fourth-quarter earnings after the prior bell. The company reported non-GAAP operating income of $7.2 million, vs. $7.6 million in the year-ago period. The company reported net revenue of $252.6 million, vs. $261.9 million in the comparable 2006 quarter. The company attributed the revenue decline to discontinued client programs.

The company's board also OK'd a 1 for 10 reverse stock split, previously approved by shareholders, and announced plans to buy back $50 million in stock over the next 18 months. Shares fell 21 cents to close at $1.39.