Updated from 1:10 p.m. EDT

Electronic Data Systems

(EDS)

announced Monday that it may

lower its dividend and issue shares to raise capital. Shares of the Plano, Texas-based firm traded heavily in reaction Tuesday, with more than 12 million shares trading hands. Shares of EDS traded down $1.03, or 5.9%, to $16.48.

In a filing with the

Securities and Exchange Commission

, the company said that it might cut its dividend by two-thirds because it "believes it is beneficial to our competitive position to maintain our investment grade rating and, over the longer term, to return to our historical solid 'A' rating." The company also said that it might issue in excess of $1 billion worth of equity or equity-linked securities to help shore up its balance sheet.

According to

The Wall Street Journal

, EDS has been in discussions with Moody's Investors Service for more than a week over its debt rating, which now stands one level above junk status.

Shares of

Cisco

(CSCO) - Get Report

also traded actively on Tuesday as

Wall Street prepared for the networking giant's earnings.

After the bell, Cisco announced that it earned 19 cents per share on revenue of $5.6 billion. Analysts were looking for the company to earn 18 cents per share on revenue of $5.55 billion. Investors will be listening to the company's conference call for hints that may portend better days ahead for the technology segment in general and for Cisco in particular.

Shares of Cisco traded up 63 cents, or 2.9%, to $22.25 on volume of 86.1 million shares.

Delta Airlines

(DAL) - Get Report

told investors Monday that it may have to file for bankruptcy protection if it doesn't get wage concessions from its pilots. Shares of Delta traded up 6 cents, or 1.3%, to $4.60 on volume of over 15 million shares.

In a SEC filing, the company said "our pilot cost structure is substantially higher than that of our competitors. Although we are currently in discussions with the Air Line Pilots Association, International (ALPA) in an attempt to reduce our pilot cost structure, we cannot predict the outcome of those discussions. If we cannot achieve a competitive cost structure, regain sustained profitability and access the capital markets on acceptable terms, we will need to pursue alternative courses of action...including the possibility of seeing to restructure our costs under Chapter 11 of the U.S. Bankruptcy Code."

In addition to Cisco,

Nasdaq

companies on the high-volume list included

Intel

(INTC) - Get Report

,

Sirius Satellite Radio

(SIRI) - Get Report

and

Microsoft

(MSFT) - Get Report

.

NYSE

high-volume leaders, in addition to EDS, included

Lucent

(LU)

,

Nortel

(NT)

,

General Electric

(GE) - Get Report

and

EMC

(EMC)

.

Looking at Nasdaq price movers,

Linktone

(LTON)

jumped after the company announced strong first-quarter results.

TheStreet Recommends

The Shanghai, China-based company on Tuesday earned 12 cents per share on revenue of $9.4 million. The company also said that it expects to achieve 20% to 25% sequential earnings and revenue growth during the second quarter. Shares of Linktone traded up $2.81, or 35.1%, to $10.81.

Metal Storm Rising, Concord Shudders

Metal Storm Limited

(MTSX)

rose after the company announced that it will play a key role in a U.S. Navy program aimed at protecting U.S. vessels from cruise missiles and small boats containing explosives.

The Arlington, Va.-based company said that as part of the Small Business Innovation Research program award granted by the U.S. Navy, Metal Storm "will work with U.S. engineering and technology company Foster-Miller in a funded program designed to circumvent new and serious threats that are difficult to defeat with existing shipboard weapons and countermeasures." Shares of Metal Storm traded up 75 cents, or 14.7%, to $5.87.

Shares of

Commonwealth Biotechnologies

(CBTE)

rose after the company announced new contracts.

The micro-cap company said the new awards total nearly $1.7 million and are with government-related agencies. Start dates for the contracts are scheduled for the late second and early third quarter. Revenue won't be recognized until the third quarter. The largest contract, worth $1.3 million, is scheduled to run through the third quarter of 2004. Shares of Commonwealth traded up 38 cents, or 6.7%, to $6.04.

Concord Camera

(LENS)

slumped after the company

preannounced weak third-quarter earnings.

The company said that it expects to lose $19 million to $20 million on revenue of $26 million to $28 million. Previously, Concord had guided for a net loss of $3 million to $4 million on revenue of $30 million to $35 million.

The company said that "recent price declines in the digital camera market have negatively impacted the net realizable value of digital camera inventories and, in response to market conditions, the company is re-evaluating its estimates for sales returns and allowances, and the realizability of its deferred-tax assets."

Separately, Concord also announced that it would not be able to file its third-quarter 10-Q filing with the SEC in a timely manner. It has filed for an extension of time. Shares of Concord traded down $1.58, or 34.2%, to $3.04.

Shares of

Sun Healthcare

(SUNH)

got pummeled after the company announced first-quarter results and guidance for the rest of the year.

The company reported a net loss of $10.4 million on revenue of $211.5 million. Sun Healthcare also offered fiscal 2004 earnings guidance as well, saying that it expected to lose $3 million to $5 million on revenue of $840 million to $850 million. Shares of Sun Healthcare traded down $2.79, or 33.4%, to $5.56.

Shares of

Pacific Internet

(PCNTF)

fell after the company delivered weaker-than-expected first-quarter results.

The company earned 4 cents per share on revenue of $25.1 million. The lone analyst following the company was looking for 7 cents per share. Looking ahead, Pacific said that it views "the general economic climate as increasingly positive. However, the company expects continuing competition and pricing pressures to be challenging." Shares of Pacific traded down 21 cents, or 2.3%, to $9.18.

Symbol of Strength

Over on the Big Board, shares of

China Yuchai

(CYD) - Get Report

rose after the company announced strong first-quarter results.

The company earned 67 cents per share on revenue of $190.5 million. The lone analyst following the company expected it to earn 40 cents per share on revenue of $165.8 million. Shares of China Yuchai traded up $3.52, or 21.9%, to $19.62.

Symbol Technologies

(SBL)

rose after the company delivered strong first-quarter earnings and reiterated its outlook for the rest of the year.

Excluding items, the company earned 8 cents per share on revenue of $419.7 million. Analysts were looking for the company to earn 8 cents per share. Symbol said that it expects to earn 9 cents to 10 cents per share during the second quarter. For the year, the company expects to earn 40 cents to 50 cents per share.

Analysts were expecting the company to earn 10 cents per share in the second quarter and earn 44 cents per share for the entire year. Shares of Symbol traded up $1.83, or 14.9%, to $14.08.

Shares of

Krispy Kreme

(KKD)

rose after

two straight losing sessions.

On Friday the company announced its first-ever profit warning as a public company, saying that it would miss first-quarter and full-year earnings estimates. Shares of Krispy Kreme plummeted 29% on huge volume. On Monday, the doughnut maker's shares fell another 9.8%. The stock rebounded Tuesday, finishing up $1.76, or 8.7%, to $22.06.

Shares of

Salton

(SFP)

got peppered Tuesday after the company announced poor third-quarter results and a loan-covenant violation.

The Lake Forest, Ill.-based housewares company said that it lost $5.14 per share on revenue of $191.4 million. What's more, the company's lousy performance led to a breach of one of its financial covenants.

"The company failed to comply with the consolidated fixed charge ratio contained in its senior secured revolving credit facility for the month ended March 27, 2004, and anticipates future near-term non-compliance with certain financial covenants," Salton said in a statement, adding that senior lenders "have agreed to a forbearance of their rights, until June 10, 2004." Shares of Salton traded down $3.34, or 49.9%, to $3.35.

Triton PCS

(TPC) - Get Report

fell after the company delivered a wider-than-expected first-quarter losses.

The company lost 60 cents per share on revenue of $198 million. Analysts were looking for the company to lose 44 cents per share on revenue of $204.6 million. Shares of Triton traded down 44 cents, or 9.8%, to $4.07.