Shares of Sanmina-SCI ( SANM - Get Report) were among technology's losers Tuesday, slumping 15% after the electronics-manufacturing services company cut its third-quarter earnings and revenue projections. For the period ended July 1, the company now sees adjusted earnings of 6 cents to 7 cents a share, down from an earlier forecast of 8 cents to 10 cents a share. The company projects revenue of $2.71 billion, at the low end of its previous guidance of $2.7 billion to $2.8 billion. Analysts polled by Thomson First Call project earnings of 9 cents a share on revenue of $2.75 billion. Sanmina blamed the shortfall on a less-favorable product mix, lower-than-expected profitability in its computing business and slower-than-anticipated improvement in its enclosure business. "While we are disappointed that our financial results for the fiscal third quarter fell short of our expectations, we believe that we have taken the steps necessary to improve on our execution," Sanmina said. Shares were trading down 63 cents to $3.64. Network Appliance shares rose 2% after the maker of networking gear backed its first-quarter guidance. For the three months ending July 31, the company continues to forecast earnings of 23 cents to 24 cents a share, excluding stock-based compensation costs and amortization of intangible assets. Network Appliance sees sequential revenue growth of 2% to 4%. Analysts project earnings of 24 cents a share and revenue of $615.6 million, or sequential revenue growth of about 3%. Shares were trading up 57 cents to $27.66. Shares of China TechFaith ( CNTF) plunged 24% after the handset-software company slashed its second-quarter earnings and revenue projections. The company expects to post earnings of $4 million, down substantially from its previous view of $8.5 million. The company now projects revenue of $22.5 million, below its earlier forecast of $24 million. Analysts project earnings of $8.5 million, or 19 cents a share, on revenue of $24.1 million. "While we expected the transition period in our business would be confined to the first quarter, it extended into the second quarter," China TechFaith said. "We are now adding three to four months onto our internal forecasts to reflect the lengthier approval and testing process required by the international carriers for Smartphone and the required quality-testing process of the new international customers for the Handset Design projects." Shares were trading at $9.74, down $2.88.
Nortel ( NT) shares rose 5% after the networking gearmaker announced an alliance with Microsoft ( MSFT - Get Report). The four-year agreement calls for Nortel to be Microsoft's strategic partner for advanced unified communications systems and systems integration, and the companies will deploy each other's technologies in their enterprise networks. "From this transaction, we believe we can capture well beyond $1 billion in new revenue, ramping up with increased momentum through 2009 via professional services, voice products and applications, as well as data pull-through in the enterprise," Nortel CEO Mike Zafirovski said in a statement. Nortel shares were up 10 cents to $2.06. Microsoft was trading at $22.68, up 20 cents. SimpleTech ( STEC) jumped 17% after the chipmaker boosted its second-quarter estimates. The company expects to report earnings of 9 cents to 10 cents a share, up from an earlier view of 5 cents a share. SimpleTech now projects revenue of $78 million to $79 million, up from an earlier forecast of $67 million to $70 million. Analysts predict earnings of 5 cents a share and revenue of $69 million. "During the second quarter, the company experienced stronger-than expected demand in every major product category; in particular, sales of its customized flash memory to OEMs," the company said. SimpleTech plans to release its second-quarter results Aug. 9. Shares were trading up 66 cents to $4.51. Shares of Digi International ( DGII - Get Report) tumbled 10% after the company posted mixed third-quarter results and offered a disappointing fourth-quarter outlook. For the period ended June 30, the networking-equipment company earned $3.3 million, or 14 cents a share, on revenue of $35.9 million. Excluding stock-based compensation costs, the company earned 16 cents a share. Analysts expected earnings of 14 cents a share and revenue of $36.4 million. A year earlier, Digi earned $2.5 million, or 11 cents a share, on revenue of $30.2 million. For the fourth quarter, Digi projects earnings, excluding stock-based compensation costs, of 11 cents to 18 cents a share. The company anticipates fourth-quarter revenue of $34.5 million to $39.5 million. Analysts project earnings of 17 cents a share, with revenue of $40.1 million. Shares were down $1.18 to $10.42. Other technology movers included Lucent Technologies , down 1 cent to $2.03; Finisar ( FNSR), down 32 cents to $2.68; Intel ( INTC), down 8 cents to $17.76; Cisco Systems ( CSCO - Get Report), down 29 cents to $17.68; Oracle ( ORCL), up 24 cents to $14.66; JDSU ( JDSU), down 2 cents to $2.03; Apple Computer ( AAPL), up 39 cents to $52.76; and Dell ( DELL), down 50 cents to $21.07.