The Night Watch: More Earnings Warnings Rock More Tech Stocks - TheStreet

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

Chances that investors would escape tonight's session without more profit warnings were razor-thin. After all, this week has been dominated by earnings woes. Tonight's round of confessions comes from the Net corner.

This evening,

Razorfish

(RAZF)

, an Internet consulting firm, cautioned investors that third-quarter revenue and earnings would come in below expectations. Citing a seasonal impact in Europe and a weakness in the euro, Razorfish announced that it expects earnings to be 1 cent to 4 cents a share, compared with Wall Street's target of 8 cents.

In postclose action, Razorfish floundered. On

Island

ECN, shares of the Web designer sank $3.31, or 37.86%, to $5.44, while the stock descended $3.50, or 40%, to $5.25 on

Instinet

.

Unfortunately, Razorfish was not the only company to own up tonight.

Shares of

Marimba

(MRBA)

dropped $4.75, or 43.1%, to $6.25 on

Redibook

ECN, after the close of regular trading. This evening, the Internet-based software firm reported that third-quarter earnings and revenue would miss estimates. The company blamed a failure to conclude sales transactions for the shortfall. Marimba plans to post a 13-cent to 17-cent loss, rather than the 4-cent profit that analysts had predicted.

Data storage and imaging systems manufacturer

Imation's

(IMN)

stock plunged $5.81, or 30.1%, to $13.50 on Instinet, on news that the company's third-quarter revenue and operating income will be below analysts' predictions.

Concord Communications

(CCRD)

fell $7.11, or 33.3%, to $14.27 on Instinet. Tonight, the e-commerce software provider said it expected to list third-quarter earnings between 4 cents to 6 cents, well behind the 17-cent broker estimate. Concord attributes the shortfall to a decrease in spending by telecommunications carriers.

Even though this most recent batch of profit warnings has taken its toll on the companies' stock value tonight, they have not attracted investor attention the way heavyweight

Dell

(DELL) - Get Report

did last night. That may make trading tomorrow less challenging for technology issues than it was today.

In the after-hours earnings spotlight, Web telephony company

Net2Phone

(NTOP)

reported a narrower loss than expected. The company posted a loss of 29 cents a share, beating the analyst estimate by a penny. In addition, the company announced a buyback of up to 5 million outstanding shares. Net2Phone, which popped 5.5% in daytime trading, fell 13 cents, or 0.5%, to $24.88 on Island. The stock decreased 50 cents, or 2%, to $24.50 on Instinet.

Finally,

priceline.com

(PCLN)

, which took on the chin in regular trading, managed to recoup some of its losses in nighttime action. Today, the company announced that its online grocery service,

WebHouse Club

, will shut down. As a result, investors took the stock down $3.56, or 38%, to $5.81. Tonight, investors restored 1.1% on Island and 5.4% on Instinet. (

TheStreet.com

discussed

priceline.com's news in a separate story.)

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.