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The Night Watch: Efficient Networks Plunges on Earnings Warning

Author:

(Updated from 7:41 p.m. EST)

For sure, today's trading activity dampened tonight's festivities -- the

Dow Jones Industrial Average closed down 141 points to 10,646 and the

Nasdaq Composite Index finished behind 179 points to 2292.

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But with few bombshell headlines this evening, price movements in the first postclose session of aught-one were mild, with a few notable exceptions.

The exceptions included

Efficient Networks

(EFNT)

, a broadband access provider, which plunged 33.1% to $8.23 on

Instinet

and dropped 35% to $8.13 on

Island

ECN.

After the closing bell, Efficient cautioned that second-quarter revenue would come in between $100 million and $102 million, below earlier predictions, because of a lack of expected orders. Analysts had expected revenue of $151.9 million during the period.

The company said that two key customers did not place expected orders during the second quarter. The broadband provider added that, excluding revenue from these two major customers, revenue from other customers grew more than 25% on a sequential basis for the second quarter. Efficient didn't disclose the names of the two customers.

Moving in the opposite direction, shares of

Abgenix

(ABGX)

, a biopharmaceutical company, gained 7% to $56 on Instinet, albeit on volume of only 2,100 shares. Earlier this evening, Abgenix announced that the

U.S. Patent Office

has issued another patent relating to the company's core antibody technology, XenoMouse.

Also on the rise,

America Online

(AOL)

gained 1.4% to $32.85 on Instinet. The rise followed news that

America Online Latin America's

(AOLA)

TheStreet Recommends

Brazilian unit will provide entertainment and news content to cellular carrier

Alger Telecom Leste's

Internet-ready phones.

Chipmaker

Rambus

(RMBS) - Get Rambus Inc. Report

advanced 7.7% to $36.50 on Island in after-hours trading. Just after the market's close, Rambus announced the signing of a patent license agreement with

Mitsubishi Electric

, a supplier of dynamic random access memory, or DRAM -- the most common kind of memory used in personal computers.

Finally,

General Electric

(GE) - Get General Electric Company (GE) Report

, which tumbled almost 9% during the day, recovered 0.9% to $44.13 in extended trading on Instinet. Today, the blue-chip company confirmed a report that U.S. safety officials were investigating potential problems with the company's aircraft engines.

Wondering how the market will open tomorrow? At last look, the

S&P 500 futures on

Globex

were up 4.7 to 1304.5, about 10 points above

fair value and indicating a positive open for Wednesday's start. The

Nasdaq 100 Securities

were ahead 13 to 2180.5, about 25 points above fair value and suggesting the Nasdaq will see some relief at tomorrow's open.

Attention "Night Watch" readers:

TheStreet.com

is looking for your best after-hours trading stories, from the pitfalls to the windfalls. Please email them to me at diane.hess@thestreet.com.

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. EST.

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.