Updated from 1:19 p.m.

Shares of Cree ( CREE) were among technology's losers Friday, falling 26.2% after the company turned in lackluster second-quarter financial results and warned that third-quarter results would miss the mark as well.

The semiconductor products company earned 32 cents a share on sales of $97.5 million. About 5 cents came from adjustments. Analysts polled by Thomson First Call were expecting earnings of 32 cents a share on sales of $100.2 million. Looking ahead, Cree expects third-quarter earnings of 24 cents to 27 cents a share on sales of $94 million to $98 million. Analysts had been expecting earnings of 32 cents a share on sales of $103.5 million. Shares of Cree traded down $9.19 to $25.88.

LookSmart ( LOOK) fell 17.1% after the company cut its fourth-quarter outlook. The Web search solutions company now expects a loss of $1.4 million to $1.7 million on sales of $16.5 million to $17 million. Analysts had been expecting a loss of 1 cent a share on sales of $19.4 million. In October, LookSmart said it would post a loss of less than $1 million on sales of $18 million to $20 million. "The company did not sufficiently deploy sales resources against new advertisers to achieve the projections issued in late October," the company said. Shares traded down 31 cents to $1.50.

Shares of Extended Systems ( XTNDE) jumped 38.3% after the company lifted its second-quarter sales projections and said it would be profitable during the quarter. The provider of mobile application products now expects sales of $9.5 million, up from previous guidance of $7.5 million to $8.5 million. Previously, the company expected a loss of 4 cents a share to a profit of 1 cent a share. Extended Systems attributed the sales revision to better sales of its enterprise mobility software products and increased sales from its professional services organization. Full second-quarter results will be announced on Jan. 25. Shares traded up 90 cents to $3.25.

Sun Microsystems ( SUNW) fell 7.9% after the company posted in-line earnings results on sales that were weaker than expected. Excluding items, Sun posted earnings of $28 million, or 1 cent a share, on sales of $2.84 billion. Analysts had been expecting earnings of 1 cent a share on sales of $2.93 billion. A year ago the company posted a loss of $99 million, or 3 cents a share, on sales of $2.89 billion. The company did not offer third-quarter financial guidance. Analysts are expecting third-quarter earnings of 1 cent a share on sales of $2.79 billion. Shares traded down 36 cents to $4.22.

Shares of Wireless Facilities ( WFII) rose 4.3% after the company received a follow-on contract worth $7 million. The additional contract, which now brings the total value of the deal to $17 million, calls for the company to enhance a national wireless carrier's wireless network in Southern California by providing turnkey site identification, acquisition and deployment services. Wireless Facilities didn't disclose the name of the customer. Shares traded up 36 cents to $8.58.

Other technology movers included Microsoft ( MSFT), down 15 cents to $26.12; Intel ( INTC), up 20 cents to $23.02; Cisco ( CSCO), up 10 cents to $18.88; Applied Materials ( AMAT), up 28 cents to $16.53; Sirius Satellite Radio ( SIRI), down 1 cent to $6.45; Oracle ( ORCL), up 15 cents to $13.63; and Lucent ( LU), up 8 cents to $3.51.

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