Updated from 1:15 p.m.

Shares of

August Technology

(AUGT)

were among the worst-performing technology stocks Thursday, falling 15.7% after the company warned that third- and fourth-quarter sales would not match Wall Street expectations.

The semiconductor company now expects third-quarter sales of $15 million, a 25% decline from second-quarter levels. Analysts polled by Thomson First Call were expecting sales of $21.9 million. August Technology had previously forecast a 5% to 15% sequential increase. Looking ahead, the company expects fourth-quarter sales to be near or equal to third-quarter results. Analysts were expecting fourth-quarter sales of $23.4 million. Delays in installations as well as more cautious capital spending by its customers led to the revised outlook. Shares traded down $1.46 to $7.82.

Andrew

(ANDW)

traded actively after the company warned that fourth-quarter results would fall short of expectations. The telecommunication-equipment maker now expects to post a loss of 4 cents to 8 cents a share, including restructuring charges of 10 cents to 11 cents a share. Previously, the company forecast earnings of 4 cents to 7 cents a share, including restructuring charges of 6 cents a share. Sales, meanwhile, are now expected to be $450 million to $470 million, down from its previous forecast of $460 million to $490 million. Analysts were expecting earnings of 12 cents a share on sales of $476.2 million. Despite the warning, shares traded up 75 cents, or 6.7%, to $11.97.

Shares of

Interlink Electronics

(LINK)

fell 4.4% after the company said that it would sell 1.75 million shares at $8.25 apiece, a 4.4% discount to Wednesday's closing price. The technology company said that it would use the $14.4 million in proceeds to fund anticipated growth and for general corporate purposes. Shares traded down 38 cents to $8.25.

Power-One

(PWER)

fell 7.7% after the maker of power-supply equipment cut its third-quarter outlook. The company now expects to post a loss of 5 cents to 6 cents a share, vs. previous guidance of break-even results, plus or minus 1 cent a share. Sales are now expected to be $66 million, down from its previous forecast of $72 million to $74 million. The company said that most of the revision is due to weaker sales in its telecom power systems business in Europe as well as delays in Asian network rollouts. Analysts were expecting earnings of 1 cent a share on sales of $77.4 million. Shares traded down 56 cents to $6.76.

Shares of

Merix

(MERX)

rose 7.5% after the company posted first-quarter results that were better than expected. Excluding items, the circuit-board maker posted a loss of 7 cents a share on sales of $42.1 million. Analysts were expecting a loss of 9 cents a share on sales of $41.8 million. Looking ahead, Merix forecast a second-quarter loss of 4 cents a share to breakeven on sales of $43 million to $47 million. Analysts are expecting a second-quarter loss of 2 cents a share on sales of $44.8 million. Shares traded up 75 cents to $10.82.

Other technology volume leaders included

Intel

(INTC) - Get Report

, up 4 cents to $20.38;

Microsoft

(MSFT) - Get Report

, up 23 cents to $27.35;

Sun Microsystems

(SUNW) - Get Report

, up 2 cents to $4.22;

Cisco

(CSCO) - Get Report

, down 6 cents to $18.90;

Oracle

(ORCL) - Get Report

, down 9 cents to $11.05; and

Lucent

(LU)

, down 4 cents to $3.25.