Updated from 12:35 p.m. EDT

Shares of

Isonics

(ISON)

were among the best-performing technology stocks Monday after the company said it would launch a homeland security and defense division.

The unit is being created to consolidate all of the semiconductor company's efforts in the homeland security sector. The Isonics Homeland Security and Defense Corporation will also include Isonics' IUT Detection Technologies subsidiary. Shares of Isonics traded up 74 cents, or 43.5%, to $2.44.

Diebold

(DBD) - Get Report

fell 0.7% after the company cut its third-quarter earnings outlook. The maker of automated teller machines now expects third-quarter earnings of 67 cents a share, down from its previous guidance of 70 cents to 74 cents a share. Analysts polled by Thomson First Call had been expecting earnings of 72 cents a share. Diebold cited increased legal costs, product certification costs, and other costs associated with electronic voting machines in California for the reduced earnings outlook. Third-quarter earnings results will be released on Oct. 20. Shares traded down 34 cents to $48.02.

Shares of

BindView

(BVEW)

fell 7.1% after the company lowered its third-quarter earnings and sales guidance. The software provider now expects to post a loss of 4 cents a share, down from its previous guidance of a loss of 1 cent a share. Sales are now expected to be $17.5 million, down from previous guidance of $18 million to $21 million. Analysts had been expecting a profit of 1 cent a share on sales of $19.3 million. BindView blamed the sales shortfall on delays in purchasing decisions by its customers. Shares traded down 28 cents to $3.66.

Global Crossing

(GLBCE)

fell 19.5% after the company said that it is cutting 15% of its workforce and announced that it would need $40 million in financing to make it through the rest of the year. The beleaguered telecom services company is working to refinance a bridge loan facility for short-term needs and is aiming to secure a working capital facility that would allow it to meet its long-term funding requirements. The elimination of 600 jobs, along with a reduction in real estate consolidation costs, is expected to result in savings of about $41 million to $47 million a year. Shares traded down $3.09 to $12.79.

Applied Materials

(AMAT) - Get Report

rose 0.5% after Bear Stearns trimmed its fourth-quarter sales estimate and lowered its year-end price target on the company. Bear Stearns cited a challenging revenue environment and lowered its price target on the stock to $22 from $27. When the company releases earnings results on Nov. 17, analysts polled by Thomson First Call are expecting earnings of 26 cents a share on sales of $2.31 billion. Shares traded up 8 cents to $16.29.

Other technology volume leaders included

Sirius Satellite Radio

(SIRI) - Get Report

, down 18 cents to $3.52;

Intel

(INTC) - Get Report

, up 6 cents to $20.61;

Microsoft

(MSFT) - Get Report

, up 7 cents to $28.06;

Lucent

( LU), up 5 cents to $3.44;

Oracle

(ORCL) - Get Report

, up 3 cents to $12.20; and

Cisco

(CSCO) - Get Report

, up 20 cents to $18.98.