Wednesday's Tech Winners & Losers

Research In Motion, trading above its 52-week high, leads the tech sector higher.
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Updated from 12:15 p.m. EDT

Research In Motion

(RIMM)

helped lead tech stocks higher Wednesday, as the stock traded above its 52-week high attained the day before.

The BlackBerry maker rose 2.3% after Citigroup initiated coverage of the stock with a buy rating. Lehman Brothers also raised its price target. Shares closed up $2.18 to $99.

Sirius Satellite Radio

(SIRI) - Get Report

and

XM Satellite Radio

(XMSR)

rose 4.3% and 6.4%, respectively, after a senior Justice Department official told a Congressional committee that the department was moving "as quickly as possible" in its review of a proposed merger, according to

Reuters

.

The broadcast industry has opposed the deal, but none of the members of Congress at the hearing have expressed objections,

Reuters

said. Sirius shares closed up 14 cents to $3.42, while XM shares closed up 86 cents to $14.38.

Research In Motion, Sirius and XM are components of the Nasdaq 100, which rose 11.55 points to 2088.38.

NaviSite

(NAVI) - Get Report

jumped 16.3% after the IT services provider offered rosy first-quarter and full-year 2008 revenue outlooks. The company, reporting fiscal fourth-quarter earnings after Tuesday's bell, expects recent acquisitions to help push revenue to between $36 million and $37 million for the first quarter. Analysts polled by Thomson Financial expect a fourth-quarter loss of 4 cents a share on revenue of $34.3 million.

The company sees full-year revenue of between $170 million and $180 million. Analysts forecasted revenue of $150.5 million. Shares closed up $1.25 to $8.94.

Red Hat

(RHT) - Get Report

, which makes Linux open-source software, jumped 5.3%, after reporting a

healthy growth in second-quarter profits. The company reported net income of $19.1 million, or 9 cents a share, vs. $12 million, or 5 cents a share, in the year-ago period. Excluding items, the company earned 17 cents a share, in line with the expectations of analysts polled by Thomson Financial.

Revenue was $127.3 million, compared to $99.7 million in the comparable 2006 quarter. Analysts were expecting a top line of $125.1 million. Shares closed up $1 to $19.89.

On the losing side, voice over Internet protocol service

Vonage

(VG) - Get Report

plummeted 26.2% after a jury sided with

Sprint

(S) - Get Report

in a

patent dispute late on Thursday.

The jury said Vonage should pay $69.5 million in damages and a 5% royalty on future revenue to Sprint. It is the second court loss in recent months for Vonage, which was ordered to pay

Verizon

(VG) - Get Report

$58 million and 5.5% of revenue. Vonage is appealing that case and said it plans to appeal the Sprint decision. Vonage shares slipped 34 cents to close at 96 cents.

CMGI

(CMGI)

slumped 13.1% after the supply chain management service provider to the tech industry posted disappointing fiscal fourth-quarter earnings after the prior bell. The company reported non-GAAP operating income of $7.2 million, vs. $7.6 million in the year-ago period. The company reported net revenue of $252.6 million, vs. $261.9 million in the comparable 2006 quarter. The company attributed the revenue decline to discontinued client programs.

The company's board also OK'd a 1 for 10 reverse stock split, previously approved by shareholders, and announced plans to buy back $50 million in stock over the next 18 months. Shares fell 21 cents to close at $1.39.