Monday's Tech Winners & Losers - TheStreet

Monday's Tech Winners & Losers

Cryptologic and Optimal Group plunge after passage of a new Internet gambling law.
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Shares of

CryptoLogic

(CRYP)

and

Optimal Group

(OPMR)

were among technology's losers Monday following the passage of a new gambling law that may hurt their businesses.

Over the weekend, Congress passed the Unlawful Internet Gambling Enforcement Act of 2006, which bars financial-transaction processing connected with the U.S. online-gambling market. CryptoLogic said licensees of its WagerLogic licensing unit will no longer take wagers from U.S.-based players. Meanwhile, Optimal said the law will have a "significant negative impact" on the business of FireOne Group, the company's 76%-owned provider of payment-processing services for the online-gaming industry. Shares of Cryptologic recently were down $3.55, or 16%, to $18.49; shares of Optimal tumbled $3.47, or 30%, to $8.29.

Keane

(KEA)

sank 17% after the information technology services company cut its third-quarter projections and said a top-level executive has been fired. The company now sees third-quarter cash earnings of 16 cents to 18 cents a share, with revenue of $230 million to $232 million. Previously, Keane projected earnings of 18 cents to 20 cents a share and revenue of $240 million to $250 million. Analysts polled by Thomson First Call expected earnings of 19 cents a share on revenue of $245.6 million.

Separately, the company said that it fired the president of its North American services and global business lines. Richard Garnick was relieved of his duties because of issues related to compliance with the company's travel-expenses policy and authorized communications that were inconsistent with the company's interests, Keane said. Shares were trading down $2.43 to $11.95.

Shares of

Medialink Worldwide

(MDLK)

vaulted 54% after the company agreed to sell its newswire division for $18 million to $23 million in cash to PR Newswire. The final price will be based on the performance of the unit for the trailing 12-month period ended Sept. 30. "Public-affairs and public-policy professionals regard U.S. Newswire as a vital communications resource renowned for peerless client service and powerful effectiveness in reaching the news media," Medialink said in a press release. Shares were trading up $1.63 to $4.65.

Performance Technologies

(PTIX)

fell 10% after the company cut its third-quarter earnings and revenue projections. The company now predicts that adjusted earnings will be break even to 2 cents a share. Previously, the company forecast earnings of 6 cents to 9 cents a share. Performance Technologies cut its revenue estimate to $11 million from $13 million to $14 million. Analysts project earnings of 8 cents a share and revenue of $13.5 million. "Investments by U.S. wireless carriers in third-generation mobile networks continued to be selective during the third quarter, and this trend impacted the company's revenue," Performance Technologies said. Shares were trading down 71 cents to $6.09.

Other technology movers included

Sun Microsystems

(SUNW) - Get Report

, up 3 cents to $4.98;

Intel

(INTC) - Get Report

, unchanged at $20.57;

Apple Computer

(AAPL) - Get Report

, down $2.29 to $74.69;

Oracle

(ORCL) - Get Report

, up 9 cents to $17.83;

Microsoft

(MSFT) - Get Report

, up 6 cents to $27.41;

Cisco Systems

(CSCO) - Get Report

, up 19 cents to $23.17;

Level 3 Communications

(LVLT)

, down 12 cents to $5.27;

Sirius Satellite Radio

(SIRI) - Get Report

, up 6 cents to $3.98; and

Lucent Technologies

(LU)

, unchanged at $2.34.