Small-Cap Winners & Losers: Smart Modular

Small-cap stocks rolled over Monday along with the broader market. The Russell 2000 gave up 0.7% to 733.13, and the S&P SmallCap 600 slipped 0.9% to 387.97.

Among the losers, Fremont, Calif.'s Smart Modular (SMOD Quote) lost 17% to $5.35. The semiconductor company lowered guidance for its fiscal third quarter. Smart Modular now expects revenue between $150 million and $155 million and non-GAAP earnings per share of 5 cents to 7 cents. Analysts surveyed by Thomson Reuters are looking for EPS of 17 cents and revenue of $164.9 million.

Meanwhile, gun maker Smith & Wesson (SWHC Quote) announced it was raising $31.9 million in a public offering. The Springfield, Mass., company said it would use the money to repay bank debt and for general corporate purposes. Shares plummeted 10% to $5.54.

Universal Technical Institute (UTI Quote), a Phoenix, Ariz.-based educator, fell 10% on a Banc of America Securities downgrade to sell from neutral.

Several stocks eked out gains on the down day. Chicago Heights, Ill.'s Esmark (ESMK Quote), a steel services company, rose 16% to $17.82. The company defended its proposed merger with Essar Steel from objections by the United Steelworkers Union, saying it has obeyed conditions set forth in its collective bargaining agreement. Essar had previously offered $17 a share to buy Esmark.

Enova Systems (ENA Quote), which makes digital power management systems, surged 32% to $5.56. The Torrance, Calif.-based firm announced it will supply IC Bus, owned by Navistar, with its Post Transmission Parallel Hybrid Electric drive technology for IC Bus' hybrid school buses. Enova said the deal is worth $120 million.