Updated from 1:11 p.m. EDTShares of Boston Communications Group ( BCGI) were among technology's losers Monday, falling 63.6% after a jury ordered the company and other co-defendants to pay $128 million in damages to Freedom Wireless in a patent-infringement suit. The jury found that Boston and other co-defendants infringed on two patents held by Freedom. The jury also found that Boston willfully infringed the patents, which could result in the company paying three times the amount of damages awarded and attorneys' fees. Co-defendants in the case have claimed that Boston is obligated to indemnify them for any damages they incur as a result of any infringement by the company's technology. Before a final judgment is rendered in the case, a Massachusetts court is expected to act on posttrial motions and hear a separate, nonjury trial regarding an unenforceability defense by Boston and co-defendants. The motions are expected to be filed and the trial is slated to begin on June 7; the trial is expected to take between one and two weeks. If Boston loses the nonjury trial, Freedom could enjoin the company from providing its prepaid wireless and real-time billing service bureau in the U.S. During the first quarter, sales from prepaid wireless services represented about 90% of Boston's total sales. Were the company unable to provide the prepaid wireless or real-time billing service bureau as currently offered in the U.S., "the company may not be able to continue its ongoing operations or may need to seek protections under the bankruptcy code," Boston warned. Shares traded down $3.06 to $1.75. PalmSource ( PSRC) fell 1.3% after the company announced the resignation of its chief executive, David Nagel. Patrick McVeigh will serve as interim CEO until a permanent replacement is found. Nagel, who did not offer a reason for his departure, will remain with the company in an advisory role through the middle of July. Shares traded down 12 cents to $8.89.
Shares of BMC Software ( BMC) fell 1.9% after the company reaffirmed its fourth-quarter guidance. The software company expects pro forma earnings of 8 cents to 12 cents a share on sales of $388 million to $400 million. Analysts polled by Thomson First Call are expecting earnings of 10 cents a share on sales of $393.2 million. Looking ahead, BMC said it is comfortable with analysts' expectations of first-quarter earnings of 13 cents a share on sales of about $340 million. For all of fiscal 2006, the company expects pro forma earnings of 86 cents to 92 cents a share on sales of $1.48 billion to $1.5 billion. Analysts are expecting earnings of 81 cents a share on sales of $1.51 billion. Shares traded down 34 cents to $17.45. InterDigital Communications ( IDCC - Get Report) rose 8.1% after the company forecast second-quarter sales above expectations. The wireless technology company said that it expects sales from current licensees and General Dynamics ( GD) to be between $37.2 million and $38.5 million. Analysts are expecting sales of $34.7 million. Patent licensing royalty revenue is expected to be between $32.5 million and $33 million. Work related to its agreement with General Dynamics is likely to be equal to or higher than the first quarter, when InterDigital recorded sales of $4.7 million. Shares traded up $1.35 to $18.07. Shares of McData ( MCDTA) rose 1.7% after the company posted first-quarter earnings that were better than expected. The network storage company posted adjusted earnings of $3 million, or 3 cents a share, on sales of $98.9 million. Analysts were expecting earnings of 2 cents a share, on sales of $99.1 million. Including items, the company posted a loss of $2.9 million, or 2 cents a share. A year ago, the company posted a loss of $9.8 million, or 9 cents a share, on sales of $97.2 million. Excluding items, the company would have posted earnings of $1.1 million, or 1 cent a share, a year ago. Shares traded up 6 cents to $3.58. Other technology movers included Microsoft ( MSFT), up 11 cents to $25.85; Intel ( INTC), up 15 cents to $26.50; Cisco Systems ( CSCO - Get Report), up 8 cents to $19.55; Oracle ( ORCL), up 15 cents to $12.70; Sirius Satellite Radio ( SIRI - Get Report), up 2 cents to $5.67; Apple Computer ( AAPL), up $2.21 to $39.76; Applied Materials ( AMAT), up 18 cents to $16.03; and Lucent Technologies ( LU), down 3 cents to $2.89.