Tech Stocks in Motion

Updated from 12:31 p.m. EDT

Shares of SigmaTel ( SGTL) were among the best-performing technology stocks Wednesday, rising 20.5% after the company posted third-quarter earnings and sales that easily outpaced expectations.

Excluding items, the chipmaker earned 37 cents a share on sales of $48.1 million. Analysts polled by Thomson First Call were expecting earnings of 29 cents on sales of $43.8 million. New product introductions and strong gains in the portable digital audio and portable PC markets led to the strong sales results. Looking ahead, the company expects earnings of 35 cents to 40 cents a share on sales of $55 million to $60 million. Analysts had been expecting earnings of 30 cents a share on sales of $44.9 million. Shares traded up $4.80 to $28.23.

Electronic Arts ( ERTS) fell 4% after the company missed second-quarter earnings expectations and warned that third-quarter results would fall short of expectations as well. The video-game publisher earned 31 cents a share on sales of $715.7 million. Analysts were expecting earnings of 35 cents a share on sales of $714.1 million. Looking ahead, the company forecast earnings of $1.16 to $1.26 a share on sales of $1.4 billion and $1.475 billion. Analysts had been expecting earnings of $1.28 a share on sales of $1.5 billion. Shares traded down $1.87 to $44.79.

Shares of Jakks Pacific ( JAKK) fell 31.1% after World Wrestling Entertainment ( WWE) sued the company in a district court of New York. The 14-count complaint alleges that Jakks, two foreign subsidiaries of Jakks, THQ ( THQI), a joint venture involving Jakks and THQ, Stanley Shenker & Associates and Bell Licensing committed numerous violations of the Racketeer Influenced and Corrupt Organization Act and violated anti-bribery provisions of the Robinson-Patman Act. WWE is seeking punitive and other damages as well as a declaration that the license with the joint venture and a related amendment to the toy license with Jakks is void and unenforceable. Jakks released a statement saying it "denies any allegations of wrongdoing and believes that it will be completely vindicated in the litigation." Shares of Jakks traded down $5.85 to $12.96.

Linktone ( LTON) fell 13% after the company warned that third-quarter earnings and sales would come in below its previous guidance. The wireless company now expects earnings of $2.7 million to $2.9 million, or 10 cents to 11 cents a share, which is down from previous guidance of $4 million to $4.2 million, or about 15 cents a share. Sales are now expected to come in at $13.1 million to $13.4 million, down from previous guidance of $13.7 million to $14.3 million. Linktone said that sales results were impacted by lower-than-anticipated sales of short messaging services. Shares traded down $1.17 to $7.85.

Shares of Lucent ( LU) rose 3% after the company posted in-line fourth-quarter earnings on a 19% jump in sales. Excluding items, the telecom equipment maker earned 4 cents a share on sales of $2.4 billion. Analysts were expecting earnings of 4 cents a share on sales of $2.3 billion. A year ago, the company earned 2 cents a share on sales of $2.03 billion. Shares of Lucent traded up 10 cents to $3.48.

Other technology volume leaders included Intel ( INTC), up 65 cents to $21.45; Isonics ( ISON), up $1.19 to $5.50; Microsoft ( MSFT), up 52 cents to $28.70; Cisco ( CSCO), down 25 cents to $18.45; and Oracle ( ORCL), up 11 cents to $12.42.

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