Shares of Faro Technologies ( FARO) were among technology's losers Thursday, tumbling 18% after the software maker delayed the filing of its annual report because of "suspicious payments" associated with foreign sales activities in China. "Faro is working diligently to complete its internal investigation and to file its annual report on form 10-K as soon as possible," the company said. "Improper payments or other violations of law will not be tolerated and Faro intends to cooperate with the DOJ and SEC so this matter can be resolved as quickly as possible." The company said it voluntarily notified both the Securities and Exchange Commission and the Department of Justice about its internal investigation into the possible financial irregularities. As a result of the investigation, the company said it would be "prudent" to withdraw its previous financial guidance for 2006. In February, Faro projected sales growth of 20% to 25% and predicted that earnings would represent about 6% to 10% of sales. Faro's shares were trading down $2.96 to $13.45. Shares of Pacific Internet ( PCNTF) rose 6% after the company said it hired a financial adviser to help it explore options. The move comes about two weeks after the company said MediaRing, a voice-over-Internet-protocol services company, planned to make an unsolicited acquisition offer of $8.25 a share in cash. "The board of directors of PacNet believes that in addition to evaluating the preconditional voluntary general offer by MediaRing, it is in the best interests of all shareholders for the company to also explore other options to maximize shareholder value," Pacific Internet said in a statement Thursday morning. The company hired BNP Paribas Peregrine as its adviser. Pacific Internet said it expects to make further announcements by May 31, after it evaluates BNP's recommendations. Shares were trading up 51 cents to $8.60.
Leap Wireless ( LEAP) rose modestly after the company posted mixed fourth-quarter results. The wireless communications company earned $5 million, or 8 cents a share, on revenue of $228.9 million. Analysts surveyed by Thomson First Call expected earnings of 5 cents a share and higher revenue of $238.6 million. During the year-earlier period, the company reported a loss of $6.6 million, or 11 cents a share, on revenue of $206.6 million. "The company had another successful quarter, reflecting continued execution of the strategic growth plans we have established for our business," Leap said. Shares were up 34 cents to $43.34. Cbeyond Communications ( CBEY) rose 8% after the telecom services company posted better-than-expected fourth-quarter results. The company earned $4.2 million, or 20 cents a share, on revenue of $44.3 million. Analysts expected earnings of 10 cents a share on revenue of $43.9 million. During the year-earlier period, the company recorded a loss of $5.2 million, or $39.59 a share, on revenue of $32.1 million. The company had about 26 million shares outstanding at the end December, up from just 131,000 shares during the year-earlier period. Cbeyond forecast 2006 revenue of at least $206 million. Analysts project revenue of $205.7 million. Shares recently changed hands at $14.35, up $1.05. Shares of Input/Output ( IO) jumped 10% after the maker of seismic survey systems said it swung to a fourth-quarter profit. The company earned $17.4 million, or 19 cents a share, on revenue of $131.3 million. The results included gains related to the restatement of prior results. Excluding these items, the company earned $12.4 million, or 14 cents a share, on revenue of $122.1 million. During the year-earlier period, the company reported a loss of $2.7 million, or 3 cents a share, on revenue of $65.3 million. For 2006, Input/Output sees earnings of 20 cents to 35 cents a share and revenue of $410 million to $450 million. Shares were trading up 87 cents to $9.26.
Other technology movers included Avanex ( AVNX), up 13 cents to $3.36; JDSU ( JDSU), down 4 cents to $3.99; Lucent Technologies ( LU), down 4 cents to $2.92; Microsoft ( MSFT), up 2 cents to $27.38; Cisco Systems ( CSCO), up 10 cents to $21.54; Oracle ( ORCL), up 11 cents to $13.35; Intel ( INTC), down 5 cents to $19.87; Sun Microsystems ( SUNW), up 2 cents to $4.88; Ciena ( CIEN), down 10 cents to $5.25; Finisar ( FNSR), up 2 cents to $5.09; and Sirius Satellite Radio ( SIRI), up 3 cents to $4.51.