Updated from 12:05 p.m. EDTSaflink ( SFLK) was among the best-performing technology stocks Wednesday after the biometric security software company said it would team up with Microsoft ( MSFT) to develop software for the U.S. Department of Homeland Security. The two companies will develop enterprise solutions geared toward border control and identity management projects based on Microsoft's enterprise software. These efforts are expected to help the Homeland Security office increase security and operational efficiency, while also reducing costs. Shares of Saflink traded up 78 cents, or 28.8%, to $3.49. Secure Computing ( SCUR) fell after warning that second-quarter earnings and sales would fall short of expectations. Citing weakness in its federal government business, it now expects to earn 5 cents to 6 cents a share on sales of $21.7 million to $22 million. Analysts polled by Thomson First Call had expected 9 cents a share on sales of $23.7 million. Secure Computing is scheduled to report earnings July 20. Its shares traded down $3.60, or 36.3%, to $6.33. Shares of FileNet ( FILE) slumped after the software company warned that second-quarter earnings and sales won't meet forecasts. FileNet said missed opportunities during the quarter led to the disappointing expectations. It now expects to report a profit of 3 cents to 5 cents a share on sales of $93 million to $95 million. Analysts had expected it to earn 12 cents a share on sales of $100.1 million. FileNet's shares traded down $4.89, or 17.5%, to $23.04.