Updated from 1:12 p.m.

Shares of Conolog ( CNLG) were among the best-performing technology stocks Friday, rising 22.3% after the company rolled out its new digital signal transceiver and announced that its PDR2000 protection system was selected by a Canadian utility.

The maker of digital signal processing equipment said the new transceiver would be used to expand the PDR2000 system. "Being selected by a major Canadian utility will have a positive impact" on our marketing efforts to other utilities, the company said. The company predicted that total sales could exceed $10 million over the next seven years. Shares traded up $1.07 to $5.87.

Electro Scientific Industries ( ESIO) fell 21.9% after it posted first-quarter results that fell short of expectations. The semiconductor-equipment manufacturer posted a first-quarter profit of 36 cents a share on sales of $72.6 million. Analysts polled by Thomson First Call were expecting earnings of 46 cents a share on sales of $85.6 million. Looking ahead, the company forecast second-quarter sales of $60 million to $70 million. Analysts had been expecting sales of $86.8 million. Shares traded down $4.93 to $17.58.

Shares of PalmSource ( PSRC) fell 17.8% after the company posted solid first-quarter financial results but warned that second-quarter sales would fall short of expectations. Excluding items, the software maker earned 5 cents a share on sales of $18.2 million. Analysts were expecting a loss of 2 cents a share on sales of $17.9 million. Looking ahead, the company said that it expects earnings of up to 13 cents a share on sales of $17.1 million to $18.9 million. Analysts had expected second-quarter earnings of 5 cents a share on sales of $19.1 million. Shares traded down $4.47 to $20.59.

InterVoice ( INTV) rose 8.8% after the company posted second-quarter earnings that beat expectations. The speech technology company earned 13 cents a share on sales of $44.3 million. Analysts were expecting earnings of 10 cents a share on sales of $44.5 million. Looking ahead, InterVoice forecast third-quarter sales of $44 million to $48 million. Analysts had been expecting sales of $46 million. Shares traded up 85 cents to $10.55.

Shares of Applied Micro Circuits ( AMCC) fell 3% after the company warned that second-quarter sales would not meet expectations. The chipmaker now expects sales of $61 million to $62 million. Analysts had expected sales of $72.7 million. The company blamed order weakness from key customers and softness in Asian sales. Shares traded down 10 cents to $3.23.

Other technology volume leaders included Cisco ( CSCO), down 50 cents to $18.40; Intel ( INTC), down 25 cents to $20.13; Microsoft ( MSFT), down 6 cents to $27.29; Sun Microsystems ( SUNW), down 9 cents to $4.13; and Applied Materials ( AMAT), down 51 cents to $16.65; and Lucent ( LU), down 7 cents to $3.18.