Tech-related stocks were attracting the most attention this morning in preopen trading.

On

Instinet

,

Philips Electronics

(PHG) - Get Report

was off 2 3/8 to 50 1/2 despite strong second-quarter earnings. The company also reported it would invest about $1.6 billion to increase chipmaking capacity at its existing production facilities.

Also,

Excite@home

(ATHM) - Get Report

was fetching a bid of 20, up 7/16, on Instinet after it announced that it will merge its international operations with that of

Chello Broadband

, a Dutch Internet service provider. It was up to 20 1/2 on more than 5,700 shares on

Island

.

Qualcomm

(QCOM) - Get Report

was getting a bid of 70 1/4, up from its closing price of 69 13/16. The stock was rallying after patent offices in Japan and Europe said the company could collect royalties on its patented CDMA technology.

The

S&P 500 futures on

Globex

lately were down 0.5 to 1521.5, about 4 points below fair value.

Nasdaq 100

futures were down 18.5 to 4091.5.

Europe's major indices were lower at midday, with France's

CAC 40

down 0.8%, Germany's

Xetra Dax

off 0.1% and the U.K.'s

FTSE 100

down 0.6% (see today's

European Midday Update for more). Japan's

Nikkei 225

lost nearly 2% overnight, while Hong Kong's

Hang Seng

dropped 2.2% (see today's

Asian Markets Update for more).

Elsewhere in preopen Island trading,

eBay

(EBAY) - Get Report

was up to 60 1/4 on 2,000 shares. The stock closed at 60 3/16 yesterday.

Nextel

(NXTL)

was up down 13/16 to 68 on 2,000 shares.

Monday's After-Hours Trading

By Angela Privin
Staff Reporter

Copper Mountain Networks

(CMTN)

is not a music channel partial to John Denver songs, but rather an unusually named technology company. There are no randomly capitalized letters, no X's, no creative, futuristic spelling to distinguish it as a member of the Silicon Valley tribe. The Palo Alto, California-based firm supplies DSL products to telecomm service providers, using existing copper infrastructure to deliver high speed service.

But, there was no more climbing on Copper Mountain. The stock lost 13.625, or more than 11%, to 110.0625 on

Island

after its post-close release of second-quarter earnings. Investors apparently expected bigger things from Copper Mountain when they lifted it to a 52-week high of 123 11/16 today, settling 8 7/16 higher. Though the company managed to top the Street's 23-cent estimate by one penny, investors may have hoped for more.

Go2Net

(GNET)

was a real go-2-getter. The Web site operator rose 5.5 to 63.5 after posting triple-digit pops in both on-year revenue and net income and blowing away consensus estimates of 15 cents with 22 cents per share. The Seattle-based company was no slacker, with an expanding advertising clientele and customer base driving the growth.

This marks the company's sixth consecutive quarter of operating income growth.

Digital Island

(ISLD)

spiced up their financial results with a bonus acquisition. The San Francisco company's shares, though, fell 3.375 to 41.25 after announcing it will buy privately held SoftAware Networks, an Internet hosting provider, for approximately 9.375 million shares of Digital Island common stock and $20 million in cash. The deal is valued at about $450 million.

Digital Island helps companies deliver e-business products on the Internet and also helps stream audio and video over the Internet.

On the earnings front, the company posted a lower-than-expected third-quarter loss of $1.51 a share, ahead of the 11-analyst estimate of a $1.56 loss and the year-ago $3.96 loss. Revenues jumped 42% on the quarter.

So what is the problem? The acquisition of SoftAware adds more than 500 clients and advances Digital Island's penetration into the music and entertainment markets. Regardless of its lucrative prospects, it is common for an acquiring company to initially move lower after announcing a merger.

In the last half-hour of day-session trading,

China Broadband

(CBBC)

said it will acquire 67% of the Century Vision Network in Hong Kong, in a deal worth $1.7 billion

The company initially traded higher on the news before moving 0.2813 lower to 7.3437.

China Broadband, formerly China Prosperity International Holdings, is involved in the Chinese construction industry, with much of its business concentrated in Hong Kong.

It bought 37% and 30% of the cable television network from Best Fortune Capital Limited and Golden Chance Resources, respectively.

While it might a nice excuse to gorge on ice cream, but getting your tonsils out is not very pleasant.

Somnus Medical Technologies

(SOMN)

has created an outpatient treatment for victims of tonsillitis that reduces tonsil size while avoiding the discomfort and long recovery time of traditional surgery.

Tonight, the maker of medical devices for upper airway disorders surged 2.3125, or 78%, to 5.25 on 23,000

Instinet

shares after the

U.S. Food and Drug Administration

approved their Tonsil Somnoplasty procedure.

This is no small deal, although your tonsils are pretty small. More than 500,000 adults and children have their tonsils removed each year.

Going into its earnings

Sagent

(SGNT)

fell almost 5% during the day, then kept slipping after the company met 5-cent second-quarter forecast from the sole analyst that covers the real time e-Business intelligence company. It was recently down 1 or 7.5% to 12.25 on 34,000 Island shares.

Telecommunications component maker,

Advanced Fibre

(AFCI)

did a little "beat the street dance" but the audience didn't like it. But then again, not everything can be Riverdance! The company lost 1.25 to 101. It did a penny better than second-quarter expectations at 11 cents per share compared to 4 cents a year ago. Revenues increased 45%.

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

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

Confused?

TheStreet.com

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