Updated from 12:50 p.m. EDT

Shares of Silicon Laboratories ( SLAB) were among the worst-performing technology stocks Tuesday after the company reported solid second-quarter results but warned that third-quarter revenue would be below expectations.

Excluding items, the chipmaker earned 43 cents a share during the second quarter on sales of $126.1 million. Analysts polled by Thomson First Call had expected it to earn 38 cents a share on sales of $121.4 million. Looking ahead, Silicon Labs warned that third-quarter sales would be between $120 million and $123.6 million. Analysts had expected it to report sales of $129.5 million. Shares of Silicon Labs traded down $4.71, or 11.8%, to $35.09.

Cray ( CRAY) fell after it reported a weaker-than-expected second quarter and warned that sales for 2004 and 2005 would be below expectations. The supercomputer maker reported a pro forma loss of 14 cents a share during the second quarter on sales of $21.7 million. Analysts had expected it to post a loss of 4 cents a share on sales of $45.6 million. Looking ahead, it forecast sales of under $200 million during 2004 and sales of about $300 million during 2005. Analysts had been expecting it to report 2004 sales of $257.1 million and 2005 sales of $369.3 million. Shares of Cray traded down $2.02, or 40%, to $3.03.

Shares of Novatel Wireless ( NVTL) rose after the company reported better-than-expected second-quarter financial results and issued an upbeat third-quarter outlook. The wireless broadband access solutions company earned 11 cents a share in the second quarter on sales of $24.1 million. Analysts had expected it to earn 6 cents a share on sales of $20.3 million. Looking ahead, it forecast a third-quarter profit of 13 cents to 14 cents a share on sales of $28 million to $29 million. Analysts had been expecting it to earn 8 cents a share on sales of $24.4 million. Shares of Novatel Wireless traded up $2.90, or 15.5%, to $21.66.

SonicWall ( SNWL) fell after it reported weaker-than-expected second-quarter financial results and said third-quarter results would be in line with analysts' expectations. Excluding items, the network security products company reported a profit of 2 cents a share on sales of $32.4 million. Analysts had expected it to earn 3 cents a share on sales of $32.8 million. Looking ahead, it forecast a pro forma profit of 3 cents to 4 cents a share on sales of $33.5 million to $35 million. Shares of SonicWall traded down $1.30, or 17.5%, to $6.12.

Shares of IPIX Security ( IPIX) rose after the company received an order for its video surveillance products. The $3 million purchase order for CommandView video surveillance cameras by a U.K. distributor will be shipped over the next two quarters. Shares of IPIX Security traded up 79 cents, or 9.1%, to $9.52.

Other technology volume leaders included Nortel Networks ( NT), down 65 cents to $3.42; Intel ( INTC), up 30 cents to $23.27; Microsoft ( MSFT), down 22 cents to $28.44; Cisco ( CSCO), up 17 cents to $20.71; Lucent ( LU), down 7 cents to $3.08; Oracle ( ORCL), up 30 cents to $10.38; and Sun Microsystems ( SUNW), up 8 cents to $3.73.

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