Updated from 1:56 p.m. EDT

Shares of UTStarcom ( UTSI) were among the worst-performing technology stocks Wednesday after the company reported mixed second-quarter earnings and warned that third-quarter results would fall short of expectations.

The Internet networking company earned 32 cents a share during the second quarter on sales of $689.6 million. Analysts polled by Thomson First Call had expected it to earn 33 cents a share on sales of $659.7 million. Weaker-than-anticipated gross margins of 25.4%, pricing pressure in China and supply chain constraints led to the second-quarter shortfall. Looking ahead, the company expects earnings of 34 cents to 35 cents a share on sales of $695 million to $700 million. Analysts were looking for it to earn 50 cents a share on sales of $707 million. Shares of UTStarcom traded down $7.40, or 29.3%, to $17.85.

Zoran ( ZRAN) rose after it reported strong second-quarter results and raised its third-quarter outlook above analysts' expectations. Excluding items, the chipmaker earned 14 cents a share on sales of $103.7 million. Analysts had expected it to earn 10 cents a share on sales of $92.6 million. Looking ahead, it expects to earn 27 cents to 30 cents a share on sales of $128 million to $133 million. Analysts were looking for it to earn 25 cents a share on sales of $109.7 million. Shares of Zoran traded up $2.46, or 17.6%, to $16.41.

Shares of Amkor Technology ( AMKR) fell after the company reported better-than-expected second-quarter results but warned that third-quarter results would fall short of expectations. Excluding items, the contract semiconductor assembly company posted a second-quarter loss of 3 cents a share on sales of $492.5 million. Analysts had expected it to post a loss of 5 cents a share on sales of $491.8 million. Looking ahead, the company expects to report a third-quarter loss of 7 cents to 9 cents a share on sales that are equivalent to second-quarter results. Analysts were looking for it to post a profit of 5 cents a share on sales of $528.2 million. Shares of Amkor Technology traded down 55 cents, or 12.1%, to $3.98.

Cree ( CREE) rose after it reported better-than-expected fourth-quarter results and said its first-quarter financial results would beat expectations. The chipmaker earned 28 cents a share during the fourth quarter on sales of $90.9 million. Analysts had expected it to earn 23 cents a share on sales of $86.9 million. Looking ahead, it forecast first-quarter earnings of 26 cents to 28 cents a share on sales of $95 million to $97 million. Analysts were looking for it to post earnings of 23 cents a share on sales of $90.8 million. Shares of Cree traded up $1.37, or 6.7%, to $21.93.

Shares of Sonus Networks ( SONSE) fell after the company updated the status of its ongoing financial review. The Internet phone services company, which is in the process of restating results for 2001, 2002 and part of 2003, said that it is working diligently to complete the process. As a result of not filing its quarterly financial reports with the Securities and Exchange Commission in a timely manner, however, the company remains out of compliance with Nasdaq market listing requirements. As a result, it is seeking another "brief exception" period from the Nasdaq. Shares of Sonus Networks traded down 20 cents, or 4.4%, to $4.34.

Other technology volume leaders included Intel ( INTC), up 19 cents to $23.46; Microsoft ( MSFT), up 14 cents to $28.58; Cisco ( CSCO), down 21 cents to $20.50; Lucent ( LU), down 1 cent to $3.07; Nortel Networks ( NT), up 8 cents to $3.50; Oracle ( ORCL), down 13 cents to $10.25; and Sun Microsystems ( SUNW), down 8 cents to $3.65.

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