Wednesday's Early Winners & Losers

Shares of Secure Computing(SCUR Quote) plummeted in late trading Tuesday after the network security-products maker cut its second-quarter projections. The company predicts revenue of $38.5 million to $39 million, down from its May guidance of $43 million to $45 million.

Secure Computing expects to report a loss of $2.3 million to $2.8 million, prior to the recognition of a gain related to a tax-valuation allowance, compared with the company's prior forecast for a profit of $600,000 to $900,000. Excluding items, the company cut its EPS forecast to 5 cents to 6 cents from an earlier projection of 10 cents to 12 cents. Analysts polled by Thomson First Call had forecast earnings of 11 cents a share and revenue of $44.2 million.

Separately, the company said it is buying messaging-security company CipherTrust for $273.6 million. The price consists of $185 million in cash, 10 million Secure Computing shares and a $10 million seller note that is subject to certain performance obligations. CipherTrust shareholders will have a roughly 14% ownership position in Secure Computing. Shares tumbled $3.08, or 38%, to $4.99 after hours. ...