Shares of i2 Technologies ( ITWO) were among technology's losers Tuesday, plunging 31% after the software company posted third-quarter results that were below Wall Street expectations. The company reported net income to common shareholders, which excludes dividends paid out to preferred shareholders, of $8.6 million, or 33 cents a share, on sales of $69.2 million. Analysts polled by Thomson First Call expected earnings of 38 cents a share and sales of $85.1 million. A year earlier, the company earned $17.1 million, or 75 cents a share, on sales of $111.1 million. Shares were trading down $6.46 to $14.44. Shares of SonicWall ( SNWL) rose 12% after the maker of network security devices posted third-quarter results that came in ahead of expectations. The company earned $2.6 million, or 4 cents a share, on sales of $34 million. Excluding items, the company would have earned $4.5 million, or 7 cents a share. Analysts projected earnings of 4 cents a share, before items, on sales of $33.7 million. A year earlier, the company earned $1.1 million, or 1 cent a share, before items, on sales of $29.4 million. SonicWall forecast fourth-quarter pro forma earnings of 5 cents to 6 cents a share on sales of $34.5 million to $36 million. The forecast is in line with analysts' expectations for earnings of 5 cents a share and sales of $36 million. Shares recently rose 72 cents to $6.72. PortalPlayer ( PLAY) tumbled after the company said that it would sell 4.5 million shares in a stock offering. News of the stock sale came after the company posted better-than-expected third-quarter results. The maker of chips for personal media players earned $10.3 million, or 40 cents a share, on sales of $57.9 million. Earnings included stock-based compensation charges of $699,000. Analysts were expecting earnings of 35 cents a share on sales of $56.3 million. A year earlier, the company earned $3.2 million, or 18 cents a share, on sales of $25.6 million. Last year's results included stock-based compensation charges of $1.4 million.
Looking ahead, PortalPlayer forecast fourth-quarter earnings of 34 cents to 43 cents a share on sales of $65 million to $75 million. The forecast includes the additional shares that are part of its stock offering. Stock-based compensation charges are expected to be $600,000 to $800,000. Analysts see earnings of 43 cents a share on sales of $67.1 million. Shares were down $6.01, or 22%, to $21.85. Shares of Texas Instruments ( TXN) fell 7% after the chipmaker posted third-quarter results that topped forecasts, but issued a fourth-quarter sales projection that disappointed investors. The company earned $631 million, or 38 cents a share, for the third quarter. Excluding a stock-based compensation charge of 3 cents a share, the company would have earned 41 cents a share, a penny ahead of expectations. Sales were $3.59 billion, above Wall Street's estimate of $3.55 billion. A year earlier, the company earned $563 million, or 32 cents a share, on sales of $3.25 billion. Texas Instruments forecast fourth-quarter earnings of 36 cents to 40 cents a share on sales of $3.43 billion to $3.72 billion. The forecast includes 3 cents a share in stock-based compensation costs. Analysts' projections call for earnings of 41 cents a share and sales of $3.63 billion. TI shares sank $2.26 to $28.66. Lexmark ( LXK) fell 6% after the printer company posted better-than-anticipated third-quarter earnings but warned that fourth-quarter earnings would fall below expectations. The company earned $70.2 million, or 59 cents a share, on sales of $1.22 billion. The results included a gain of 5 cents a share, related to a lower tax rate, which was offset by a charge of 5 cents a share related to a previously announced workforce reduction. Analysts were expecting earnings of 47 cents a share and sales of $1.21 billion, following the company's lowered forecast on Oct. 4. A year earlier, Lexmark earned $156.1 million, or $1.17 a share, on sales of $1.27 billion. Excluding a tax benefit, the company would have earned $1.02 a share, in the year-ago quarter.
For the fourth quarter, Lexmark forecast earnings of 40 cents to 50 cents a share, worse than analysts' forecast of 65 cents a share. The company expects sales to fall by the high-single to low-double-digit percentage from a year earlier. Analysts see sales of $1.43 billion. Shares traded down $2.49 to $39.97. Other technology movers included Lucent Technologies ( LU), down 1 cent to $3.15; Oracle ( ORCL), up 19 cents to $13.01; Intel ( INTC), down 1 cent to $23.09; eBay ( EBAY), down $1.63 to $37.79; Microsoft ( MSFT), down 5 cents to $25.05; Cisco ( CSCO), down 11 cents to $17.05; Sun Microsystems ( SUNW), down 6 cents to $3.97; Altera ( ALTR), down $1.31 to $16.42; Sirius Satellite Radio ( SIRI), down 2 cents to $6.04; and Apple Computer ( AAPL), down 73 cents to $56.06.