Updated from 2:58 p.m. EDTShares of Silicon Image ( SIMG) were among technology's losers Tuesday, falling 13.3% after the company posted disappointing fourth-quarter numbers and announced the resignation of its CEO. The semiconductor solutions company posted pro forma earnings of $10.3 million, or 12 cents a share, on sales of $46.1 million. Analysts polled by Thomson First Call were expecting earnings of 13 cents a share on sales of $48.5 million. A year ago the company posted earnings of $2.3 million, or 3 cents a share, on sales of $30.3 million. Separately, Silicon Image announced the resignation of CEO Steven Laub, who was hired just 10 weeks ago. Laub resigned because of "issues related to the scope of his role and responsibilities," the company said. Silicon Image said that Steve Tirado would take over as the company's CEO. Tirado most recently served as a president of the company's storage division. Shares traded down $1.88 to $12.26. Silicon Labs ( SLAB) rose 14.5% after the company posted fourth-quarter numbers that beat expectations. Excluding items, the chipmaker earned $13.8 million, or 25 cents a share, on sales of $95.5 million. A year ago the company earned $23.8 million, or 44 cents a share, on sales of $109.6 million. Despite the significant decline in earnings and sales on a year-over-year basis, the results still outpaced analysts' earnings expectations of 21 cents a share on sales of $95.5 million. Looking ahead, Silicon Labs expects first-quarter sales of $101 million to $105 million, ahead of the $99.7 million that analysts had been expecting. Shares traded up $3.96 to $31.19. Shares of Netflix ( NFLX) rose 1.7% after the DVD rental company's fourth quarter outpaced expectations. The company, excluding items, posted earnings of $9.2 million, or 14 cents a share, on sales of $143.9 million. Analysts were expecting earnings of 10 cents a share on sales of $139.4 million. Churn during the quarter fell to 4.4% from 4.8% a year ago. Meanwhile, the company ended the year with 2.6 million subscribers, up from 1.49 million a year ago. Looking ahead, Netflix forecast first-quarter sales of $149 million to $154 million. Analysts had been expecting sales of $146.2 million. The company also expects to post a loss of $16 million to $19 million on a generally accepted accounting principles basis, while ending the quarter with 2.85 million to 3.05 million subscribers. Shares traded up 19 cents to $11.33. palmOne ( PLMO) fell 9.1% after the company announced the resignation of Todd Bradley, its CEO. Bradley will quit Feb. 25, at the end of the company's third quarter. After that, Bradley will remain with the company until the end of the fiscal year, which ends in May. President Ed Colligan will serve as interim CEO until the company finds a full-time replacement. Shares traded down $2.42 to $24.17.
Shares of Corio ( CRIO) surged 35.6% after the company agreed to be acquired by IBM ( IBM) for $182 million in cash. IBM will pay Corio shareholders $2.82 a share, representing a premium of almost 38% based on Corio's closing price of $2.05 on Monday. The acquisition, which should close within 60 days, is expected to strengthen IBM's application services portfolio, IBM said. Shares of Corio traded up 73 cents to $2.78. IBM traded up 40 cents to $92.19. Other technology movers included Intel ( INTC), up 27 cents to $22.26; Lucent ( LU), down 8 cents to $3.13; Cisco ( CSCO), down 24 cents to $17.51; Sirius Satellite Radio ( SIRI), up 15 cents to $6.24; Microsoft ( MSFT), up 35 cents to $26.02; Oracle ( ORCL), up 35 cents to $13.59; and Applied Materials ( AMAT), up 48 cents to $15.65.