Updated from 12:52 p.m. EDT

Shares of

Ditech Communications

(DITC)

were among technology's losers Friday, falling 38.1% after the company posted mixed fourth-quarter results and said that first-quarter sales would be significantly below expectations.

The telecom equipment maker earned $7.6 million, or 23 cents a share, on sales of $23 million. Analysts polled by Thomson First Call were expecting earnings of 22 cents a share on sales of $23.4 million. A year ago, the company earned $8.3 million, or 24 cents a share, on sales of $23.1 million. Looking ahead, Ditech forecast first-quarter sales of $10 million to $11 million. Analysts had been expecting sales of $24 million. Ditech blamed the shortfall on a decline in orders from

Nextel Communications

(NXTL)

, which is completing its merger with

Sprint

. "This unavoidably impacts our short-term outlook," Ditech said. Shares traded down $4.80 to $7.73.

Stratex Networks

(STXN)

fell modestly after the provider of wireless transmission technology reaffirmed its first-quarter outlook. The company expects a loss of 3 cents to 4 cents a share on sales of $47 million to $50 million. Gross margin is expected to be between 22% and 23%. Analysts are expecting a loss of 5 cents a share on sales of $48.5 million. Stratex said that guidance reflects two recent orders totaling $19 million from India and Bangladesh. Shares were traded down 1 cent, or 0.6%, to $1.75.

Shares of

Black Box

(BBOX) - Get Report

fell 6.1% after the company posted fourth-quarter earnings that fell well below expectations. The networking equipment company earned $34,000, or break-even, on sales of $157.2 million. Excluding charges, the company would have earned $6.8 million, or 39 cents a share. Analysts were expecting earnings of 57 cents a share on sales of $145.5 million. A year ago, the company earned $11.5 million, or 61 cents a share, on sales of $129.7 million.

Looking ahead, Black Box forecast fiscal 2006 earnings of $2.90 to $3 a share, which excludes items. Sales, meanwhile, are expected to be about $700 million. Analysts are expecting earnings of $2.59 a share on sales of $630.6 million. Shares traded down $2.22 to $33.97.

CellStar

(CLSTE)

fell 41.6% after the company said it would be unable to file its annual report with the

Securities and Exchange Commission

by May 31. The cellular phone wholesaler said its audit committee needs more time to complete its independent review of certain accounts receivable and sales issues in the Asia Pacific region.

As a result of the delay, CellStar said it expects its shares to be delisted from

Nasdaq

. The delay will also cause the company to be in violation of its secured domestic revolving credit facility. CellStar has requested a waiver from Wells Fargo Foothill but there is no assurance, the company said, that a waiver will be granted. Finally, the company has hired Raymond James to help the company evaluate its financial and strategic alternatives. Shares traded down 92 cents to $1.29.

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Shares of

Zi Corp.

(ZICA)

fell 11% after the wireless software company announced the resignation of its chief executive. Michael Lobsinger, who will serve as CEO on an interim basis, will replace Mike Donnell. "Regrettably, I do not think it is in the best interests of my family to continue the commute from Denver to Calgary," Donnell said in a statement. The company said it would look for a permanent replacement immediately. Shares traded down 34 cents to $2.74.

Other technology movers included

Microsoft

(MSFT) - Get Report

, up 17 cents to $26.07;

Intel

(INTC) - Get Report

, up 2 cents to $27.39;

TiVo

(TIVO) - Get Report

, down 21 cents to $6.93;

Lucent Technologies

(LU)

, up 2 cents to $2.83;

Sirius Satellite Radio

(SIRI) - Get Report

, up 18 cents to $5.97;

Sun Microsystems

(SUNW) - Get Report

, up 5 cents to $3.87;

Cisco Systems

(CSCO) - Get Report

, down 11 cents to $19.79;

Oracle

(ORCL) - Get Report

, down 7 cents to $12.85.