Shares of

Zoran

( ZRAN) were among technology's losers Tuesday, slumping 10% after the chipmaker posted lower-than-expected third-quarter revenue and warned that fourth-quarter revenue would be well below current Wall Street forecasts.

The company, which won't report its earnings until it completes a review of its historical stock option practices, said third-quarter revenue rose to $129.4 million from $117.5 million a year earlier. But analysts polled by Thomson First Call expected revenue of $131.6 million, while Zoran's own guidance had called for revenue of $130 million to $134 million.

Looking ahead, Zoran sees fourth-quarter revenue of $95 million to $100 million, compared with analysts' target of $126.2 million. Shares were trading down $1.69 to $14.32.

Travelzoo

(TZOO) - Get Report

shares vaulted 20% after the company's earnings more than doubled, topping Wall Street's expectations. The company, an online publisher of travel discounts, said its third-quarter net income rose to $4.6 million, or 28 cents a share, from $2.3 million, or 13 cents a share, last year. Analysts anticipated earnings of 24 cents a share. Travelzoo's revenue climbed 31% to $17.6 million, slightly shy of analysts' estimate of $18.2 million. Still, shares were up $6.59 to $38.99.

Lucent Technologies

( LU) rose 7% after the telecom-equipment company posted fourth-quarter results that topped forecasts. For the period ended Sept. 30, the company earned $371 million, or 7 cents a share, on revenue of $2.56 billion. Results included a tax gain of a penny a share. Analysts expected earnings of 4 cents a share and revenue of $2.39 billion. During the year-earlier period, the company earned $372 million, or 7 cents a share, on revenue of $2.43 billion. Shares were trading up 16 cents to $2.50. Shares of

Alcatel

( ALA), which is set to buy Lucent, were adding 91 cents, or 7.6%, to $12.94.

Shares of

PowerDsine

( PDSN) jumped 12% after the chip designer agreed to be acquired by

Microsemi

(MSCC)

for $245 million in cash and stock. The deal, which calls for the payment of $8.25 a share in cash and 0.1498 shares of Microsemi stock, values PowerDsine at $11 a share. That price represents a 19% premium over Monday's closing price of $9.28. The transaction is expected to close during Microsemi's second fiscal quarter, which is the first calendar quarter of 2007. Shares of PowerDsine were up $1.12 to $10.40; shares of Microsemi slid $2.08, or 11%, to $16.28.

Shares of

ActivIdentity

( ACTI) surged 14% after the maker of identity-verification products said it received government contracts for its smart-ID-card software. The company said it received a five-year contract from the Department of Defense to help with a move toward more secure access cards. Separately, ActivIdentity said the Department of Homeland Security awarded it a contract to help the Transportation Security Administration authenticate IDs of security personnel. Shares recently changed hands at $5.20, up 66 cents.

DSP Group

(DSPG) - Get Report

fell 6% after the chipmaker posted better-than-expected third-quarter results but said it has reduced its revenue outlook. For the third quarter, the company earned $8.1 million, or 27 cents a share. Excluding items, earnings were $10.9 million, or 37 cents a share. Analysts expected earnings of 33 cents a share, before items. Revenue totaled $63.9 million, short of Wall Street's forecast of $63.8 million. During the year-earlier quarter, DSP earned $10.5 million, or 35 cents a share, on revenue of $55.6 million.

DSP, saying it has a reduced revenue outlook for the fourth quarter, forecast full-year revenue of $213 million to $217 million. Analysts project revenue of $231.7 million. Shares were trading down $1.19 to $20.51.

Shares of

Atheros Communications

( ATHR) rose 6% after the chipmaker posted third-quarter results that topped Wall Street's expectations. The company earned $6.3 million, or 11 cents a share, on revenue of $79.6 million. Excluding stock-based compensation costs, the company earned $10.5 million, or 19 cents a share. Analysts expected earnings of 18 cents a share, before items, on revenue of $79 million. A year earlier, Atheros posted adjusted earnings of $2.6 million, or 5 cents a share, on revenue of $45.8 million. Shares were adding $1.23 to $21.22.

Other technology movers included

Level 3 Communications

(LVLT)

, down 31 cents to $5.47;

Intel

(INTC) - Get Report

, up 31 cents to $21.76;

Microsoft

(MSFT) - Get Report

, down 18 cents to $28.27;

Tellabs

( TLAB), down 91 cents to $10.11;

Sun Microsystems

(SUNW) - Get Report

, up 1 cent to $5.21;

Qualcomm

(QCOM) - Get Report

, down 96 cents to $37.12;

Oracle

(ORCL) - Get Report

, down 10 cents to $19.05;

SanDisk

(SNDK)

, up 84 cents to $48.29; and

Cisco Systems

(CSCO) - Get Report

, down 2 cents to $24.41.