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Friday's Tech Winners & Losers

News of Yahoo!'s and Microsoft's merger talks drove tech stocks higher.

Technology stocks got a boost Friday after media outlets reported that Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report and Yahoo! (YHOO) could hook up in a merger.

Yahoo! soared 18% after the

New York Post

said that Microsoft asked the Internet giant to enter into formal talks. The

Post

, citing sources, said that deal could be worth some $50 billion. Microsoft's interest in Yahoo!, the

Post

said, stems from its failure to acquire DoubleClick, which agreed to be acquired by

Google

(GOOG) - Get Alphabet Inc. Class C Report

. Shares of Yahoo! were recently trading up $5.19 to $33.37. Shares of Microsoft, meanwhile, were trading down 50 cents to $30.47. Google was trading down 87 cents to $472.36.

Elsewhere,

Blackbaud

(BLKB) - Get Blackbaud, Inc. Report

jumped 21% after the software company posted better-than-expected first-quarter revenue and boosted its 2007 guidance. The company reported adjusted earnings of $7.1 million, or 16 cents a share, on revenue of $55.3 million. Analysts polled by Thomson Financial expected earnings of 16 cents a share on revenue of $53.6 million. During the year-earlier quarter, the company posted adjusted earnings of $7 million, or 16 cents a share, on revenue of $43.7 million.

Looking ahead, Blackbaud now sees 2007 earnings of 82 cents to 85 cents a share on revenue of $240 million to $248 million. Previously, the company said that it would earn 79 cents to 82 cents a share on revenue of $237 million to $245 million. Analysts project earnings of 81 cents a share on revenue of $240.5 million. Shares were trading up $4.50 to $26.12.

Meanwhile,

QLogic

(QLGC)

fell 7% after the maker of switches and adapters posted fourth-quarter earnings that were shy of expectations. For the quarter ended April 1, the company posted adjusted earnings of $35.2 million, or 22 cents a share, on revenue of $147.1 million. Analysts expected earnings of 23 cents a share on revenue of $150.7 million. During the year-earlier quarter, the company posted adjusted earnings of $34.5 million, or 21 cents a share, on revenue of $130.5 million.

Looking ahead, QLogic sees first-quarter earnings of 19 cents to 21 cents a share on revenue of $140 million to $145 million. Analysts project earnings of 25 cents a share on revenue of $156.9 million. Shares were trading down $1.31 to $16.51.

Internap Network Services

(INAP) - Get Internap Corporation Report

vaulted 17% after the networking company posted first-quarter results that topped forecasts. The company posted adjusted earnings of $2.7 million, or 6 cents a share, on revenue of $53.5 million. Analysts expected earnings of 2 cents a share on revenue of $52.5 million. During the year-earlier quarter, the company posted adjusted earnings of $2.1 million, or 6 cents a share, on revenue of $42.6 million. Shares were trading up $2.67 to $18.39.

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Finally,

Cray

(CRAY) - Get Cray Inc. Report

plunged 20% after the maker of supercomputers posted disappointing first-quarter results. The company reported a loss of $841,000, or 3 cents a share, on revenue of $47.1 million. Analysts expected a smaller loss of 2 cents a share on revenue of $48.3 million. During the year-earlier quarter, the company posted a loss of $5.3 million, or 24 cents a share, on revenue of $48.5 million.

Looking ahead, Cray sees full-year revenue of about $230 million. Analysts project revenue of $248.3 million. Shares were trading down $2.44 to $9.80.

As for the broader technology sector, the Nasdaq 100 was recently trading up 6 points to 1901.

Other technology movers included

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

, up 9 cents to $5.27;

Intel

(INTC) - Get Intel Corporation (INTC) Report

, up 15 cents to $21.89;

Cisco Systems

(CSCO) - Get Cisco Systems, Inc. Report

, up 26 cents to $27.96;

Level 3 Communications

(LVLT)

, unchanged at $5.62;

Oracle

(ORCL) - Get Oracle Corporation Report

, down 9 cents to $18.93; and

Marvell Technology

(MRVL) - Get Marvell Technology Group Ltd. Report

, up 40 cents to $17.50.