Updated from 2:37 p.m. EDT

Shares of

Network Appliance

(NTAP) - Get Report

were among the best-performing technology stocks Wednesday, rising 18.2% after the company posted second-quarter earnings Tuesday that beat expectations and said third-quarter sales would also be strong.

Excluding items, the vendor of storage networking gear posted a profit of 16 cents a share on sales of $375.2 million. Analysts surveyed by Thomson First Call were expecting earnings of 14 cents a share on sales of $377.3 million. The company attributed the results to strength across all of its product lines, segments and geographies. Looking ahead, the company forecast pro forma earnings of 15 cents to 16 cents a share on sales growth of 35% to 38%, or sales of $401 million to $410 million. Analysts had been expecting earnings of 15 cents a share on sales of $395.2 million. Shares traded up $4.55 to $29.57.

Lightbridge

( LTBG) fell 11.5% after the company warned of a fourth-quarter loss due to less business from

AT&T Wireless

as a result of its recent merger with

Cingular Wireless

. Lightbridge, which provides account services, now expects to post a loss of 2 cents to 8 cents a share on sales of $30 million to $32 million. Previously, it forecast break-even earnings to 4 cents a share on sales of $32 million to $34 million. Shares traded down 58 cents to $4.48.

Shares of

Daktronics

(DAKT) - Get Report

fell 4% after the company posted weak second-quarter results and lowered its full-year sales outlook. The supplier of electronic scoreboards earned 26 cents a share during the second quarter on sales of $59.5 million. Analysts were expecting earnings of 29 cents a share on sales of $64 million. In August, the company forecast second-quarter earnings of 22 cents to 30 cents a share on sales of $60 million to $66 million. Looking ahead, Daktronics forecast fiscal 2005 sales of $230 million to $245 million, down from previous guidance of $235 million to $250 million. Earnings, meanwhile, are expected to improve over last year's 89 cents a share. Analysts are looking for earnings of 97 cents a share on sales of $241.2 million. Shares traded down $1.19 to $28.62.

Brillian

( BRLC) rose 8.3% after the company announced a distribution agreement with Germany-based

Holoeye Photonics

. Under the deal, Holoeye will begin distributing Brillian's microdisplay products in North America and Europe for use in medical, military, commercial and industrial markets. Financial terms were not disclosed. Shares of Brillian traded up 26 cents to $3.38.

Shares of

ScanSoft

(SSFT)

rose 9.5% after the company inked an expanded agreement with

Microsoft

(MSFT) - Get Report

. Under the expanded agreement, Microsoft will deploy ScanSoft's text-to-speech technology in its server application product lines, beginning with Microsoft Speech Server 2004. ScanSoft said the agreement covers ScanSoft's entire portfolio of text-to-speech products. Financial terms of the deal were not disclosed. Shares of ScanSoft traded up 33 cents to $3.81.

Other technology volume leaders included

Sun Microsystems

(SUNW) - Get Report

, up 39 cents to $5.35;

Sirius Satellite Radio

(SIRI) - Get Report

, up 24 cents to $4.95;

Intel

(INTC) - Get Report

, up 48 cents to $24.32;

Applied Materials

(AMAT) - Get Report

, up 58 cents to $17.34;

Lucent

( LU), up 12 cents to $3.95;

Microsoft

(MSFT) - Get Report

, up 5 cents to $27.17; and

Cisco

(CSCO) - Get Report

, up 16 cents to $19.54..54.