Small-Cap Winners & Losers: KongZhong

Small-cap stocks were down Friday, as most of the major individual moves were spurred by quarterly earnings reports. The Russell 2000 gave up 0.8% to , and the S&P SmallCap 600 lost 0.6% to 390.14.

Among the losers, Flagstar Bancorp (FBC - Cramer's Take - Stockpickr) fell to new lows. The Troy, Mich., savings and loan company announced it is raising $100 million in an equity sale to institutional investors. Flagstar is raising the money to strengthen its balance sheet. Shares fell 20% to $4.77.

Shares of KongZhong (KONG - Cramer's Take - Stockpickr), a wireless interactive entertainment company based in Beijing, slipped 12% to $4.55. The company announced first-quarter non-GAAP income of $950,000, or 3 cents a share, vs. $2.1 million, or 6 cents a share, a year ago. Analysts surveyed by Thomson Reuters were expecting earnings of a nickel a share.

Semiconductor company Exar (EXAR - Cramer's Take - Stockpickr) tumbled 13% to $7.86. The Fremont, Calif., company posted a first-quarter non-GAAP loss of $1.7 million, or 4 cents a share, vs. a profit of $2.7 million, or 7 cents a share, a year ago. The Street was looking for a loss of a penny a share.

Some stocks were up on the down day, however. China Precision Steel (CPSL - Cramer's Take - Stockpickr) climbed 30% to $5.64. The Hong Kong-based steel processor announced fiscal third-quarter earnings more than doubled year over year to $4.6 million, or 10 cents a share. One Wall Street analyst had predicted EPS of 5 cents.

Meanwhile, Beijing-based China Finance Online (JRJC - Cramer's Take - Stockpickr), which sells online financial services, tacked on 17.7% to $25.94. The company guided for first-quarter revenue between $10.5 million and $10.8 million. It said it would reap adjusted earnings of $4.5 million to $5 million. Two analysts estimate revenue of $10.4 million and earnings of $3 million.