Shares of

Novell

(NOVL)

were among technology's biggest losers Thursday, tumbling 18% after the open-source software company posted in-line second-quarter earnings, but gave a disappointing third-quarter forecast.

For the period ended April 30, the company earned $3.3 million, or a penny a share, on revenue of $278.3 million. Excluding items, Novell earned $10.5 million, or 3 cents a share. Analysts polled by Thomson First Call expected earnings of 3 cents a share on revenue of $278.3 million. During the year-earlier quarter, the company a posted pro forma profit of $2.3 million, or 1 cent a share, on revenue of $297.1 million.

For the current quarter, Novell sees earnings of 3 cents a share, before items, on revenue of $239 million to $247 million. The guidance excludes the company's Celerant business, which was sold on May 24. Analysts project third-quarter earnings of 4 cents a share and revenue of $282.9 million. Shares were trading down $1.41 to $6.32.

Cree

(CREE) - Get Report

fell 7% after the maker of light-emitting diodes announced a $180 million purchase agreement from Sumitomo. The pact, which is for the fiscal year ending in June 2007, represents a 10% increase over Cree's current estimate for fiscal 2006 sales to Sumitomo, the company said. Investors, however, apparently took issue with the fact that the latest agreement represents a 10% drop from the $200 million purchase agreement that Cree announced a year ago. "We believe the agreement reflects the increasing optimism our sales team sees in Japan for increased market share in white mobile applications and new design wins in emerging markets for LED lighting," the company said. Previously, Cree said that sales to Japan were trending below the company's original plan for the year. Shares were down $1.78 to $23.87.

Shares of

M-Systems

(FLSH)

dropped 13% after the flash-memory company delayed a previously announced stock offering because of an internal review into the company's stock-option grants. M-System's review, which comes as a string of tech companies are under investigation for their stock-option grants, was initiated by the company. M-Systems had planned to sell some 8.7 million shares of stock. Shares were down $4.28 to $29.17.

Ciena

(CIEN) - Get Report

shares rose 3% after the company posted better-than-expected second-quarter results and forecast third-quarter revenue ahead of expectations. For the period ended April 30, the company reported a loss of $1.9 million, or less than a penny a share, on revenue of $131.2 million. Excluding items, Ciena earned $3.6 million, or a penny a share. Analysts expected a loss of 1 cent a share on revenue of $129.1 million. A year earlier, the company reported a loss of $74.8 million, or 13 cents a share, on revenue of $103.8 million. Excluding items, the company's year-ago loss totaled $28.4 million, or 5 cents a share.

For the third quarter, Ciena expects sequential revenue growth of 7% to 10%, which would yield revenue of $140.4 million to $144.3 million. Analysts, meanwhile, project revenue of $137.6 million. Shares were trading up 13 cents to $4.43.

Shares of

SunPower

(SPWR) - Get Report

fell 1% after the solar-cell producer priced 7 million shares of stock at $29.50 each, representing a 3% discount to the stock's closing price of $30.39 on Wednesday. SunPower plans to use proceeds from the sale for working capital and general corporate purposes. Credit Suisse and Lehman Brothers are leading the underwriting syndicate. Shares were trading down 35 cents to $30.04.

Other technology movers included

Sun Microsystems

(SUNW) - Get Report

, up 23 cents to $4.40;

Microsoft

(MSFT) - Get Report

, down 1 cent to $22.64;

Intel

(INTC) - Get Report

, down 17 cents to $17.85;

Sirius Satellite Radio

(SIRI) - Get Report

, down 8 cents to $4.42;

Cisco Systems

(CSCO) - Get Report

, up 61 cents to $20.29;

Apple Computer

(AAPL) - Get Report

, up $2.05 to $61.82;

JDSU

(JDSU)

, up 2 cents to $3.05;

Oracle

(ORCL) - Get Report

, down 19 cents to $14.03;

Applied Materials

(AMAT) - Get Report

, up 22 cents to $17.13; and

Lucent Technologies

(LU)

, up 1 cent to $2.56.