The most actively traded stocks sank after hours Wednesday as a number of tech names issued disappointing earnings and guidance.

One of the most heavily traded laggards was

LSI

(LSI) - Get Report

, which

slashed its outlook

for the quarter ending June 30 and said it will restructure by cutting 13% of its nonproduction workforce, among other things. The Milpitas, Calif., chipmaker now expects a non-GAAP bottom line of a 3-cent loss to break-even per share vs. the prior break-even to 3-cent per-share earnings. Analysts polled by Thomson Financial are looking for a 2-cent profit. Shares slid 5.6% to $8.16.

Digital River

(DRIV) - Get Report

shares plunged 13.6% to $43.80 after the Minnesota e-commerce business-services firm posted preliminary non-GAAP income of 38 cents to 39 cents a share for the second quarter -- at least 7 cents below Wall Street expectations. Revenue, at about $78 million, should also miss the mean target.

Meanwhile, semiconductor company

Smart Modular Technologies

( SMOD) came in well below fiscal third-quarter revenue estimates, and application-software firm

Red Hat

(RHT) - Get Report

traded lower despite

beating estimates

for the quarter ended May 31.

Smart Modular was down 78 cents, or 5.1%, to $14.49; Red Hat lost 1.7% to $23.79 in recent late trading.

Away from the tech sector, payroll-services firm

Paychex

(PAYX) - Get Report

missed on fourth-quarter revenue with $487.3 million, after which shares slipped 2.3%.

Herman Miller

(MLHR) - Get Report

, an interior-furnishings company, guided at least 4 cents below the mean Street target for the fiscal first quarter, projecting a per-share profit of 47 cents to 53 cents. Shares shed 5.6% to $33.

On the flipside,

Image Entertainment

( DISK), gained 5.5% on word of a sweetened merger deal with BTP Acquisition, a group lead by film financier and producer David Bergstein. The Chatsworth, Calif.-based company, which acquires and distributes content for release on DVD, said shareholders will now retain between 5% and 9% of their shares in the post-transaction company while still receiving the previously announced per-share price of $4.40. Shares were lately trading at that same amount.

Atmel

(ATML)

was also higher in heavy trading after the San Jose, Calif., semiconductor firm swung to a first-quarter profit of $28.9 million, or 6 cents a share, compared with a year-ago loss of 25 cents a share. The company says it is now a current filer, having been previously delayed due to a stock-option-grant investigation. Shares were up 3.2% to $5.89.