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Updated from 1:25 p.m. EDT

Shares of

Avici Systems

( AVCI) were among the worst-performing technology stocks Monday, falling 32% after the company warned that third-quarter sales would fall substantially below expectations.

The provider of network routing equipment now expects sales of $3 million to $4 million. As a result, the company does not expect to reach its goal of 20% to 30% sales growth in 2004. Analysts polled by Thomson First Call were expecting sales of $12.7 million. The sales shortfall is due to delays in network buildouts and the timing of expected orders. Shares traded down $3 to $6.37.

8x8

(EGHT) - Get 8x8, Inc. Report

rose 12.2% after the company announced that its Packet8 VoIP products and services are now available at

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

. Products available include the company's DV326 broadband video phone and the DTA broadband phone adapter. Shares of 8x8 traded up 39 cents to $3.59.

Shares of

Perot Systems

(PER) - Get Sandridge Permian Trust Report

rose 7.3% after the company raised its third-quarter outlook. The outsourcing and computer services company now expects earnings of 21 cents to 23 cents a share -- up from its previous guidance of 17 cents to 18 cents a share. Perot projects sales of $448 million to $460 million, which is up from its previous estimate of $430 million to $445 million. Stronger demand and a tax benefit led to the revision. Shares traded up $1 to $14.71.

Persistence Software

TheStreet Recommends

(PRSW)

rose 47.9% after the company agreed to be acquired by

Progress Software

(PRGS) - Get Progress Software Corporation Report

for about $16 million in cash. Progress will pay Persistence shareholders $5.70 for each share they hold. The acquisition price represents a 52% premium over Friday's closing price. Shares traded up $1.79 to $5.53.

Shares of

Zilog

( ZILG) fell 20.8% after the company slashed its third-quarter sales outlook. The microprocessor company now expects sales of $23 million, down from its previous guidance of $25.5 million. Analysts had been expecting sales of $26.4 million. Looking ahead, Zilog forecast fourth-quarter sales of $22 million to $23 million, below analysts' forecasts of $27.4 million. The company said pushed-out sales and weaker Asian sales led to the weaker outlook. Shares traded down $1.59 to $6.05.

Other technology volume leaders included

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

, down 36 cents to $18.04;

Intel

(INTC) - Get Intel Corporation Report

, down 21 cents to $19.92;

Microsoft

(MSFT) - Get Microsoft Corporation Report

, down 10 cents to $27.19;

Oracle

(ORCL) - Get Oracle Corporation Report

, up 15 cents to $11.19;

Sirius Satellite Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report

, down 9 cents to $2.73; and

Lucent

( LU), down 7 cents to $3.11.