Updated from 12:58 p.m. EDT

Earnings news drove technology stocks modestly lower Wednesday, with

Yahoo!

(YHOO)

leading the way.

Shares in Yahoo! slumped 11.8% after the Internet company posted first-quarter earnings that fell a penny a share short of expectations. The company earned $142.4 million, or 10 cents a share, on revenue of $1.18 billion. Analysts polled by Thomson First Call expected earnings of 11 cents a share on revenue of $1.21 billion. During the year-earlier quarter, the company earned $159.9 million, or 11 cents a share, on revenue of $1.09 billion.

Looking ahead, Yahoo! sees second-quarter revenue of $1.2 billion to $1.3 billion, in line with the $1.28 billion that analysts project. Shares closed down $3.78 to $28.31.

As for the broader technology sector, the Nasdaq 100 was down about 2.5 points to about 1832.

Elsewhere,

IBM

(IBM) - Get Report

slid 2.4% after the IT hardware and services company posted in-line first-quarter earnings. The company earned $1.84 billion, or $1.21 a share, on revenue of $22 billion. Analysts expected earnings of $1.21 a share on revenue of $21.9 billion. During the year-earlier quarter, the company earned $1.71 billion, or $1.08 a share, on revenue of $20.7 billion. Shares closed down $2.32 to $94.8.

Meanwhile, shares of

Seagate Technology

(STX) - Get Report

fell 3.8% after the disk-drive maker posted disappointing third-quarter earnings and warned that fourth-quarter results would be below Wall Street's forecast. The company posted adjusted earnings of $274 million, or 47 cents a share, on revenue of $2.83 billion. Analysts expected earnings of 51 cents a share on revenue of $2.8 billion. During the year-earlier period, the company earned $274 million, or 53 cents a share, on revenue of $2.3 billion. "We are disappointed in our results for the March quarter," the company said. "We clearly miscalculated the market, and in this unusually challenging environment failed to deliver the projected results."

Looking ahead, Seagate sees fourth-quarter adjusted earnings of 34 cents to 38 cents a share on revenue of $2.65 billion to $2.75 billion. Analysts project earnings of 53 cents a share on revenue of $2.78 billion. Shares were down 85 cents to $21.30.

Cognex

(CGNX) - Get Report

was on the losing side as well after the maker of vision sensors posted first-quarter results that fell below expectations and warned that second-quarter results would be below forecasts. The company posted earnings of $4.6 million, or 10 cents a share, on revenue of $50.9 million. It called the results "very disappointing." Analysts expected earnings of 15 cents a share on revenue of $56.8 million. During the year-earlier quarter, the company earned $8.8 million, or 18 cents a share, on revenue of $59 million.

Looking ahead, Cognex sees second-quarter earnings of 7 cents to 12 cents a share on revenue of $50 million to $55 million. Analysts project earnings of 18 cents a share on revenue of $60.9 million. Shares were down $1.26, or 5.5%, to $21.52.

Bucking the trend,

Linear Technology

(LLTC)

jumped 12.2% after the chipmaker posted in-line third-quarter earnings and announced a $3 billion share repurchase plan. For the period ended April 1, the company earned $98.6 million, or 32 cents a share, on revenue of $255 million. Analysts expected earnings of 32 cents a share on revenue of $254 million. During the year-earlier period, the company earned $110.6 million, or 35 cents a share, on revenue of $278.9 million.

Linear Technology said that it would repurchase $3 billion in shares with existing cash and proceeds from a $1.7 billion convertible note offering. The buyback is contingent on completing the note offering. Shares were up $3.92 to $36.04.

Other technology movers included

Intel

(INTC) - Get Report

, up 37 cents to $21.35;

Lawson Software

( LWSN), up 9 cents to $8.99;

Microsoft

(MSFT) - Get Report

, down 25 cents to $28.60;

Sun Microsystems

(SUNW) - Get Report

, down 1 cent to $5.94;

Cisco Systems

(CSCO) - Get Report

, up 3 cents to $26.87; and

Oracle

(ORCL) - Get Report

, down 16 cents to $18.73.