Wednesday's Small-Cap Winners & Losers

Small-cap stocks joined the broader indices to swing into both positive and negative territory Wednesday.

Irving, Texas-based DG FastChannel (DGIT Quote) saw shares surge 19% to $21.83 after the provider of digital-media delivery services announced last night that it had acquired Level 3's (LVLT Quote) Vyvx advertising business for $129 million in cash, subject to adjustments.

DG FastChannel also raised outlook for 2007 and 2008 pro forma results. The company now expects 2007 revenue to be between $116 million and $118 million, up from previous guidance of $110 million to $113 million and ahead of the mean analyst estimate of $96 million, per Thomson Financial. For 2008, the company predicts $126 million to $130 million in revenue, up from $122 million to $126 million and in line with the Street's mean forecast of $126 million.

Shares of Edge Petroleum (EPEX Quote), meanwhile, jumped 15% to $6.30 as the oil and natural gas company announced it would be pursuing strategic alternatives, which include an outright sale of the company.

On the losing side, Lasdon, S.C.-based Force Protection (FRPT Quote) shares tanked 22% to $4.60 to after rival mine-resistant ambush-protected (MRAP) vehicle makers NaviStar (NAVZ Quote) and BAE Systems took the lion's share of a U.S. military contract yesterday after the close. Force Protection is slated to receive only 14% of the $2.66 billion MRAP order, prompting speculation that the company's reign over the sector may have ended.