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The Day's Winners

Photonic processor manufacturer

Avanex

(AVNX)

was climbing 15% to $2.14 on an upgrade from Needham. The firm moved its rating up to strong buy from hold. Needham believes Avanex's merger with

Oplink

(OPLK)

will reduce the rate at which the company is burning through cash, allowing Avanex to maintain a strong cash position until economic conditions get better. Needham set a price target of $3 on the stock.

Shares of wireless components maker

Celeritek

(CLTK)

were gaining 36% to $9.03 on talk of a potential acquisition by rival

Anaren Microwave

(ANEN)

. Anaren said it bought 6% of Celeritek on the open market and is interested in a merger of the two companies. The company said it will attempt "negotiated acquisition" or seek out other ways to create a merger.

TheStreet Recommends

Dell

(DELL) - Get Dell Technologies Inc Class C Report

tacked on 6% to $25.39 after raising its quarterly guidance and receiving an upgrade from Lehman Brothers. Dell said Thursday after the close that it would earn 19 cents a share on revenue of $8.3 billion, higher than previous forecasts. Dell said it has seen continued market growth in the quarter. Lehman Brothers raised its rating on the stock to buy from market perform on the news, saying it expects an IT demand pickup in 2003. The firm expects this to drive better margins and EPS growth, and set a new price target of $30 on the stock.

Unitedhealth Group

(UNH) - Get UnitedHealth Group Incorporated Report

rose 4% to $92.78 on positive earnings comments from analysts at Salomon Smith Barney. The firm said United should exceed estimates when it reports its quarterly results on July 18.

The Day's Losers

Mentor Corp.

(MNTR)

shed 32% to $23.50 after the chairs of the House Energy and Commerce Committee and its oversight subcommittee asked the Food and Drug Administration for records about Mentor's breast implant studies. Mentor, which makes saline-filled breast implants, told the FDA on Tuesday that studies showed that 25% of women who have the saline implant surgery end up having replacement surgery within five years. The U.S. lawmakers requested copies of the studies "in light of the recent public health concern," and also requested that the FDA notify them if its criminal investigation of Mentor is still ongoing.

Powerwave

(PWAV)

dropped 3% to $7.34 despite posting a quarterly profit and a 45% revenue jump. J.P. Morgan downgraded the stock to long-term buy from buy following the earnings release, citing decreased revenue visibility. The firm also moved its price target to $9. The wireless communications component maker said on Thursday that it earned 7 cents a share, ahead of analysts' estimates of 4 cents to 6 cents, on sales of $113.4 million.

Shares of

Veeco Instruments

(VECO) - Get Veeco Instruments Inc. Report

were plunging 18% to $18.26 after the company said it will acquire

FEI

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for about $1 billion in stock. Veeco will offer 1.355 shares of its stock for each FEI stock, valuing FEI at a 38% premium to Thursday's close. Veeco said the merger will be accretive to earnings on a pro forma basis in 2003 and will result in savings of about $10 million a year, but investors seemed unhappy with the deal, bringing Veeco stock down to a new 52-week low.

Zale

(ZLC)

fell 15% to $29.70 after lowering its fourth-quarter estimates and announcing the resignation of its president and COO. The jewelry retailer said it would earn between 14 cents and 16 cents a share in the quarter, below the consensus estimate of 24 cents. The company cited a challenging retail environment for the disappointing results, and said President Alan Shor will leave to pursue "new interests."