Updated from 1:24 p.m. EDT

Shares of

InterDigital Communications

(IDCC) - Get Report

were among the worst-performing technology stocks Monday after the company posted weaker-than-expected second-quarter earnings and sales and warned that third- and fourth-quarter sales would fall below expectations.

Excluding items, the wireless technology company posted a profit of 2 cents a share on sales of $29.4 million. Analysts polled by Thomson First Call had expected it to earn 3 cents a share on sales of $29.9 million. Looking ahead, InterDigital said that it expects recurring patent licensing royalties of between $27 million and $30 million during the remainder of 2004. Analysts were looking for third-quarter sales of $31.1 million and fourth-quarter sales of about $34 million. Shares of InterDigital Communications traded down $2.97, or 17%, to $14.47.

Loudeye

(LOUD)

rose after it announced a multiyear deal with

Nokia's

(NOK) - Get Report

multimedia business group to develop a wireless digital music platform. The agreement calls for a multimillion-dollar commitment to Loudeye for development fees. Shares of Loudeye traded up 24 cents, or 23.8%, to $1.25.

Shares of

Charter Communications

(CHTR) - Get Report

traded actively after the company posted second-quarter earnings. The company posted a loss of $1.39 a share on sales of $1.24 billion. The earnings results included a one-time charge of $85 million to cover a lawsuit settlement. Charter also recognized about $200 million in losses that had previously been allocated to minority interest. Shares of Charter Communications traded down a penny, or 0.3%, to $3.07.

Taser International

(TASR)

fell after an analyst at Morgan Keegan issued a cautious note saying that the rising number of deaths from the company's stun guns, along with media attention, was negatively affecting near-term sales and existing deployments. Morgan Keegan said that it knows of several locations that have stopped using the Taser, and said that another police department was investigating the death of a 44-year-old man who was killed by a Taser while in police custody. The firm maintained its third-quarter estimates but said that sales need to pick up during the next two months if they're going to meet Morgan Keegan's targets. Shares of Taser traded down 22 cents, or 0.8%, to $26.63.

Priceline.com

(PCLN)

rose after an analyst at CS First Boston upgraded the company's shares to outperform from neutral. CSFB said that concerns over the competitive landscape, a shift in the off-line/online channel and a third-party distributor value proposition appear overdone. The firm cited an improved risk/reward proposition after a substantial correction in the company's shares, which were driven by weak sentiment in online travel and weaker-than-expected second-half guidance. As such, CSFB slapped a $28 price target on the company. Shares of priceline.com traded up 22 cents, or 1.2%, to $18.62.

Other technology volume leaders included

Microsoft

(MSFT) - Get Report

, up 4 cents to $27.18;

Intel

(INTC) - Get Report

, down 20 cents to $22.57;

Cisco

(CSCO) - Get Report

, up 12 cents to $20.05;

Oracle

(ORCL) - Get Report

, up 18 cents to $10.37;

Sun Microsystems

(SUNW) - Get Report

, down 3 cents to $3.48; and

Lucent

(LU)

, up 3 cents to $2.99.