Updated from 12:53 p.m. EDT

Shares of

Conexant Systems

(CNXT) - Get Report

were among the

worst-performing technology stocks Tuesday after the chipmaker warned that third-quarter earnings and sales would fall below previous guidance.

Conexant now expects to earn 2 cents a share on sales of $265 million to $270 million vs. its previous guidance of 3 cents to 5 cents a share on sales of $308 million to $323 million. Analysts polled by Thomson First Call had expected it to earn 5 cents a share on sales of $313 million. The company attributed the earnings and sales shortfall to weaker-than-expected demand for its wireless networking products. Shares of Conexant Systems traded down $1.77, or 43.4%, to $2.31.

Micromuse

( MUSE) fell after it warned that third-quarter sales would fall well short of expectations. Micromuse

blamed the sales shortfall on cautious purchasing by customers, which resulted in longer sales cycles. As a result, the company now expects third-quarter sales of $34.5 million to $35.5 million. Analysts had expected it to report sales of $39.4 million. Shares of Micromuse traded down $1.30, or 20.1%, to $5.17.

Shares of

Veritas Software

(VRTS) - Get Report

got hammered after the software maker warned that second-quarter earnings and sales would fall short of expectations. Citing

weakness in its U.S. enterprise business, the company said it expects to report second-quarter pro forma earnings of 18 cents to 20 cents a share on sales of $475 million to $485 million. Analysts had expected it to earn 24 cents a share on sales of $501 million. Veritas shares traded down $9.55, or 36%, to $17.

Embarcadero Technologies

(EMBT)

fell after the software company warned that second-quarter earnings and sales would fall short of analysts' expectations. Excluding charges, it expects to report earnings of 7 cents a share on sales of $13.7 million to $14 million. Analysts had expected it to earn 9 cents a share on sales of $14.9 million. Embarcadero said it "fell short of the mark," as it failed to close several key deals during the quarter. Shares traded down $3.16, or 26.9%, to $8.60.

Shares of

KVH Industries

(KVHI) - Get Report

slumped after the company warned that second-quarter earnings and sales results would fall short of expectations. It now expects to report a loss of 34 cents to 37 cents a share on sales of $14.2 million to $14.5 million. Lower-than-expected sales of its military navigation products led to the shortfall. Analysts had expected the company to report a profit of 2 cents a share on sales of $18.8 million. The company's shares traded down $2.35, or 18.8%, to $10.15.

Other technology volume leaders included

Microsoft

(MSFT) - Get Report

, down 55 cents to $28.02;

Sun Microsystems

(SUNW) - Get Report

, down 31 cents to $3.88;

Oracle

(ORCL) - Get Report

, down 45 cents to $11.20;

Intel

(INTC) - Get Report

, down 22 cents to $26.11; and

Cisco

(CSCO) - Get Report

, down 58 cents to $22.37;

Nortel Networks

( NT), down 7 cents to $4.49; and

Lucent

( LU), down 5 cents to $3.49.