Updated from 1:28 p.m. EDT

Shares of

QAD

( QADI) were among technology's losers Friday, falling 12.7% after the company cut its first-quarter outlook below Wall Street expectations.

When the software company posts results on May 26, it expects to report earnings of 6 cents to 7 cents a share on sales of $55 million to $56 million. That's down from previous earnings guidance of 12 cents to 16 cents a share on sales of $57 million to $60 million. Analysts polled by Thomson First Call were expecting earnings of 14 cents a share. QAD blamed the shortfall on lower-than-expected license and services revenue, which affected total sales and earnings. Earnings were also hurt by a one-time charge of 2 cents a share. For all of fiscal 2006, QAD now expects earnings of 40 cents to 55 cents a share on sales of $227 million to $240 million, down from previous guidance of 50 cents to 70 cents a share in earnings on sales of $235 million to $250 million. Analysts had been expecting earnings of 63 cents a share. Shares traded down $1 to $6.90.

Nvidia

(NVDA) - Get Report

rose 11.2% after the maker of graphic chips posted first-quarter results that easily topped forecasts. The company earned $64.4 million, or 36 cents a share, on sales of $583.8 million. Analysts were expecting earnings of 28 cents a share on sales of $581.2 million. A year ago the company earned $21.3 million, or 12 cents a share, on sales of $471.9 million. Nvidia said that gross margin initiatives continue to deliver results ahead of schedule. Indeed, gross margin improved by 450 basis points during the most recent quarter compared with a year ago. Shares traded up $2.54 to $25.33.

Shares of

Flextronics

(FLEX) - Get Report

rose 3.5% after the company unveiled plans to shed some of its operations and announced a succession plan for its chief executive position. As part of the divesture plan, Flextronics agreed to merge its Flextronics Network Services unit with

Telavie

, a company owned by private equity firm Altor. Additionally, Flextronics plans to sell all of its Flextronics Semiconductor Design business. Assuming a deal is reached, Flextronics would receive proceeds of about $550 million to $600 million -- plus additional contingent payments -- and retain a 30% ownership stake in the merged Network Services company.

For the fiscal year ended March 31, the Network Services and Semiconductor Design businesses generated sales of $840 million. Finally, in addition to the divestitures, Flextronics announced a further restructuring, which could result in charges of $100 million, or about 16 cents a share. The charges would be taken during fiscal 2006.

As for the CEO succession plan, the company announced that Michael McNamara, who serves as chief operating officer, would succeed Michael Marks, who plans to retire on Jan. 31, 2006. Upon his retirement, Marks will serve as chairman of the board. Richard Sharp, the company's current chairman, will continue to serve as a board member after January 2006. Shares traded up 42 cents to $12.37.

Sigma Designs

(SIGM)

fell 11.5% after the company warned of a first-quarter earnings and sales shortfall. The digital media processor company said it does not expect to report a profitable first quarter. What's more, sales are expected to be $6 million to $6.5 million. Analysts had been expecting break-even earnings and sales of $8 million. A year ago the company posted a profit of 1 cent on sales of $7.8 million. The company said it was disappointed by the first-quarter sales decline but said it expects sales growth during the second quarter. Shares traded down 88 cents to $6.79.

Shares of

DRS Technologies

( DRS) fell 1.1% after the company posted fourth-quarter results that were better than expected but warned that first-quarter results would fall short of expectations. The maker of military electronics earned $17 million, or 61 cents a share, on sales of $361.2 million. Excluding items, the company would have earned $19.3 million, or 69 cents a share. Analysts were expecting earnings of 61 cents a share on sales of $353.3 million. A year ago the company posted earnings from continuing operations of $15.6 million, or 57 cents a share, on sales of $339.1 million.

Looking ahead, DRS forecast first-quarter earnings of 41 cents to 43 cents a share on sales of $310 million to $320 million. Analysts are expecting earnings of 51 cents a share on sales of $333.3 million. During last year's first quarter, the company earned 40 cents a share on sales of $291.2 million. Shares traded down 50 cents to $46.10.

Other technology movers included

Microsoft

(MSFT) - Get Report

, up 30 cents to $25.30;

Oracle

(ORCL) - Get Report

, up 24 cents to $12.36;

Intel

(INTC) - Get Report

, up 28 cents to $25.12;

Cisco Systems

(CSCO) - Get Report

, up 19 cents to $18.89;

Dell

(DELL) - Get Report

, up $2.72 to $39.33; and

Lucent Technologies

( LU), down 1 cent to $2.80.