Updated from 2:16 p.m. EDT

Shares of Ditech Communications were among the worst-performing technology stocks Thursday, falling 25.5% after the company warned that second- and third-quarter sales would fall short of expectations.

The telecommunications-equipment maker now expects sales of about $24 million, down significantly from the $27.5 million to $28.1 million it previously forecast. Analysts polled by Thomson First Call had been expecting sales of $27.8 million. The company expects pre-tax income of 28 cents to 29 cents a share. Analysts are expecting earnings of 29 cents a share. Ditech said a delay in shipping a major order to an Asian customer and softening demand for wireless products in North America contributed to the second-quarter shortfall. For the third quarter, Ditech expects sales to be in line with second-quarter results of $24 million. Analysts had been expecting sales of $29 million. Shares traded down $5.69 to $16.60.

Business Objects fell 16.6% after the company posted solid third-quarter results but warned that fourth-quarter earnings and sales would fall short of Wall Street expectations. Excluding items, the software vendor earned 19 cents a share during the third quarter on sales of $219.5 million. Analysts were expecting earnings of 18 cents a share on sales of $219 million. Looking ahead, Business Objects forecast fourth-quarter earnings of 14 cents to 20 cents a share on sales of $230 million to $240 million. Analysts had been expecting earnings of 34 cents a share on sales of $251 million. Business Objects said customers were holding off purchasing software until the company releases its newest version of its flagship software. Shares traded down $4.19 to $21.07.

Shares of Axcelis Technologies ( ACLS - Get Report) fell 17.3% after the company missed third-quarter earnings and sales expectations by a wide margin and warned that fourth-quarter earnings and sales would miss the mark as well. The semiconductor solutions company posted a profit of 19 cents a share on sales of $127.9 million. Analysts were expecting earnings of 32 cents a share on sales of $162 million. Looking ahead to the fourth quarter, Axcelis forecast earnings of 5 cents to 9 cents a share on sales of $95 million to $105 million. Analysts had been expecting earnings of 31 cents a share on sales of $164.9 million. Shares traded down $1.48 to $7.10.

iPayment fell 9.5% after the company posted solid third-quarter results but warned that fourth-quarter earnings would fall short of expectations. The credit card processing services company earned 36 cents a share during the third quarter on sales of $93.4 million. Analysts were expecting earnings of 34 cents a share on sales of $90.8 million. Looking ahead, iPayment forecast fourth-quarter earnings of 38 cents to 40 cents a share on sales of $95 million to $97 million. Analysts had been expecting earnings of 41 cents a share on sales of $96.2 million. Shares traded down $4.24 to $40.40.

Shares of Qualcomm ( QCOM - Get Report) fell 4.5% after the company posted in-line fourth-quarter financial results but warned that first-quarter results would fall short of expectations. Excluding items, the wireless technology company earned 29 cents a share on sales of $1.4 billion, in line with expectations. Looking ahead, Qualcomm forecast a first-quarter profit of 24 cents to 26 cents a share on sales of $1.3 billion to $1.4 billion. Analysts had been expecting earnings of 31 cents a share on sales of $1.5 billion. Shares traded down $1.80 to $38.07.

Other technology volume leaders included Microsoft ( MSFT), up 53 cents to $29; Intel ( INTC), up 21 cents to $22.88; Lucent , down 3 cents to $3.58; Cisco ( CSCO), up 24 cents to $19.52; Sun Microsystems ( SUNW), up 14 cents to $4.62; and Applied Materials ( AMAT), up 12 cents to $16.24.