Updated from 2:40 p.m. EDT

Shares of Sify Limited ( SIFY) were among the worst-performing technology stocks Monday after the company reported first-quarter earnings and sales that were below the prior quarter.

Sify reported a loss of 3 cents a share during the first quarter ended June 30 on sales of $16.9 million. During the fourth quarter ended March 31, Sify reported a profit of 1 cent a share on sales of $17.9 million. Price reductions in dial-up and softer results in its nonrecurring hardware sales led to the sequential shortfall. Shares of Sify Limited traded down $1.04, or 18.8%, to $4.49.

Ultra Clean Holdings ( UCTT) rose after it announced preliminary second-quarter earnings and sales. The company expects to post a profit of 18 cents a share on sales of $54.5 million. Analysts had expected it to earn 17 cents a share. Shares of Ultra Clean traded up 14 cents, or 2.3%, to $6.16.

Shares of Avanex ( AVNX) fell after the company filed a $100 million shelf offering and also announced that Alcatel ( ALA) and Corning ( GLW) could sell up to 56.8 million shares of Avanex stock on a periodic basis.

Proceeds from the shelf offering will be used for general corporate purposes, working capital and capital expenditures. Avanex said Alcatel and Corning are only permitted to sell an aggregate 5.68 million shares between July 29 and Sept. 30. The remaining 51.16 million shares may be sold from time to time over the next year, in accordance with the schedule outlined in the prospectus. Shares of Avanex traded down 32 cents, or 10.4%, to $2.77.

Lexmark International ( LXK) fell after it reported solid second-quarter financial results but failed to provide a more aggressive third-quarter outlook . It earned $1.02 a share in the second quarter on sales of $1.25 billion.

Analysts had expected it to earn 97 cents a share on sales of $1.27 billion. Looking ahead, it expects to earn between 90 cents a share and $1 on a revenue growth rate of high single digits to low double digits. During the year-ago third-quarter it earned 79 cents a share on sales of $1.16 billion. Analysts are looking for it to earn 97 cents a share on sales of $1.3 billion. Shares of Lexmark traded down $6.38, or 7.1%, to $84.

Other technology volume leaders included Sirius Satellite Radio ( SIRI), down 16 cents to $2.31; Microsoft ( MSFT), up 47 cents to $27.95; Intel ( INTC), up 18 cents to $22.91; Oracle ( ORCL), up 11 cents to $10.33; Sun Microsystems ( SUNW), up 24 cents to $3.94; Cisco ( CSCO), down 17 cents to $21.36; and Lucent ( LU), down 10 cents to $3.24.