Investors were showing their optimism in tech stocks this morning. The

Nasdaq 100

was lately up 54.5 to 3772, about 60 points above fair value, as calculated by


The positive sentiment could be attributed to


(CSCO) - Get Report

, which reported earnings that beat estimates by a penny yesterday. In preopen trading on


, Cisco was lately up 3 1/8 to 68 3/8.

Yesterday, Cisco announced that its executive vice president and No. 2, Don Listwin, was leaving to become CEO of the new company that Internet software companies




are forming. The companies announced they would merge in a stock deal worth $6.8 billion to create a leader in the wireless communications industry. The news boosted 8 1/4 to 116 and 1 7/16 to 79 1/2.


Lernout & Hauspie


, a manufacturer of voice-recognition software, posted second quarter earning of five-cents a share, beating the two-analyst 3-cent prediction but below the year-ago 14-cent earnings. Tuesday morning,

The Wall Street Journal

reported that discrepancies exist for the company's sales figures in Korea. L&H disputed the article, claiming that statements attributed to the company's Korean customers were misquoted or inaccurate and that other information in the article had been distorted. It ended on the downside yesterday, but was lately recovering some of its losses and was up 3 11/16 to 33 1/2.


S&P 500 futures on


lately were up 3.9 to 1495.6, or about 4 points above fair value as calculated by

Prudential Securities


Europe's major indices were doing an about-face from yesterday's negative midsession, with France's

CAC 40

up 1.1%, Germany's

Xetra Dax

up 1.7% and the U.K.'s

FTSE 100

up 1.3% (see today's

European Midday Update for more). Japan's

Nikkei 225

rose 1.4% overnight, while Hong Kong's

Hang Seng

slipped 0.2% (see today's

Asian Markets Update for more).

In preopen



ADC Telecommunication

(ADCT) - Get Report

was up 3/8 to 43 1/2 on 2,000 shares.

Tuesday's After-Hours Trading


Angela Privin

Staff Reporter(

Updated from 7:23 p.m. EDT


You might remember this shy little stock from the nights it spent loitering on the top of


ECN's and


most-active lists.

But for those of you that have missed it, here is a hint ... it rhymes with a lard-based baking product. While Crisco may conjure smiles with the cookies it makes,


(CSCO) - Get Report

spread relief through the tech sector with happy earnings. Nasdaq junkies exhaled collectively as the computer networking giant beat consensus estimates by a penny, plopping 16 shiny ones on the table, right in line with whisper numbers. Fresh-baked smiles proliferated as Cisco rose 1.991, or 38%, to 67.99 on 1.48 million Island shares. It gained 2.32 to 67.82 on Instinet.

But why should Cisco's fiscal fourth quarter be different than any other, when the bellwether boasts a record of never disappointing Wall Street? Tonight's stellar performance was due to strong sales to Internet service provider, cable and telephone companies. The company's strong performance in the enterprise market, or helping corporations build networks, also helped propel its growth.

Despite its pristine track record investors were wary going into tonight's results, pressuring twisted Cisco down 1% before results. For more on Cisco's earnings check out's



But there may be trouble in earnings paradise. Cisco's senior vice president, Don Listwin, announced his resignation tonight.

Robust news from Cisco set off a chain reaction of gains in the networking sector. The Internet traffic business is teaming with healthy demand for equipment routers and competitor

Juniper Networks

(JNPR) - Get Report

is bound to benefit from the boom. The competitor was the second most-active on Island, rallying in concert to the tune of 7.43, or 4.6%, to 166.37.

JDS Uniphase


, along with soon-to-be-subsidiary



, also held front-row seats at the concert. As part of the networking gang, they just sat back and enjoyed the bullish overflow. JDS rose 1.87 to 121.75, while SDL jumped 6.12 to 367.87.

Elsewhere in the sector,

Sycamore Networks


moved up 6.85, or 5%, to 139.50.

During this Cisco-centric session,

VoiceStream Wireless


reported that its second-quarter losses widened even while subscriber growth jumped 365%.

The wireless telephone company, currently being acquired by Germany's

Deutsche Telekom

(DT) - Get Report

, attributed the loss of $2.16 a share to the cost of building its wireless network and expanding its customer base. Total revenue rose to $453.6 million, from $109.1 million a year ago.

Analysts, however, expected a loss of only $1.62, narrowing from last year's loss of $1.39 a share. Downside reaction was muted, with the wireless company dropping only 2, or 1.6%, to 120.25.

Electronic design automation software maker


(SNPS) - Get Report

fell under the weight of a sell recommendation by Michael Murphy, a fund manager and writer of the

California Technology Stock Letter

. It dropped 5.37, or 15.8%, to 28.62, hitting a new 52-week low since the company dipped to 28.87 Aug. 1.

Fiber channel router maker

Crossroads Systems


began its recovery tonight after slicing off a further 20% of its value today following yesterday's announcement of a class-action lawsuit against it. While these types of legal woes are common and don't typically weigh too heavily on share prices, the Austin, Texas-based firm was already in the doldrums after dropping more than 50% July 27 on warnings that third-quarter revenue would come in well below expectations.

Postclose bargain-hunters were kind to the company, lifting its shares 18 cents, or 2%, to 8.81.

Forget New York, Paris and Milan. Everyone knows that Ohio is the center of the fashion universe. And today, Ohio-based clothing retailer

Abercrombie & Fitch


posted better-than-expected second-quarter earnings that reflected a 16% climb in year-over-year sales.

Second-quarter profits were $21.2 million, or 21 cents a share, compared with 17 cents a year ago and above consensus estimates of 19 cents. The company also said it expects to meet analysts' estimates for the rest of the fiscal year.

Despite this well-tailored picture, shares fell 93 cents, or 4.5%, to 19.75 in after-hours trading. The reason could be the same problem that plagued


(GPS) - Get Report

just last week. Same-store sales fell 6%, which translates into more bad news for a stumbling retail apparel sector.

Second quarter didn't go very well for GOJO, which certainly did go ... down.



reported results after the bell that sent the company 1.18, or 17.5%, lower to 5.56.

Second-quarter revenues for the software maker were $1.8 million compared to about $707,000 last year. The net loss was also $1.8 million vs. a loss of $2 million last year. This all translates into a 12-cent hole, which is just over half the 22-cent loss recorded last year. While the stock is not covered by any analysts, the clearest yardstick to measure the performance is the sour reaction that followed.

Telecommunications equipment maker


(WSTL) - Get Report

spiked 1.93, or 11.7%, to 18.50, apparently after a Trading Diary entry by James Cramer on's


site mentioned the stock. After-hours message boards buzzed about the comments.

"Cisco is confirming that the DSL market is red, red hot," wrote Cramer, who is long both Cisco and Westell. "We bought some Westell today. We think it has gone down enough. It is a pretty pure play. They are very, very bullish on DSL at Cisco."

This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EDT.


explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.