Friday's Tech Winners & Losers

Shares of Rackable Systems (RACK) were among the top losers in Friday's tech trading, tanking 38.7% after the company gave light guidance for the third quarter.

The server and storage product maker said net income for the second quarter grew to $5.3 million, or 18 cents a share, from $1.2 million, or 7 cents a share, a year earlier. Excluding items, Rackable earned $8.1 million or 28 cents a share, beating the Thomson First Call survey estimate of 28 cents a share. Sales rose 5% to $88.6 million, beating First Call's estimate of $84.3 million.

Briefing.com reported that the company said on its conference call that it expects to post third-quarter revenue of $80 million to $85 million, below First Call's projection of $84.3 million. For the full year, Rackable expects revenue of $345 million to $355 million, according to Briefing. First Call was expecting revenue of $345.1 million. The stock sheared off $13.51 to $21.40 in recent trading.

Conexant ( CNXT) also fared poorly, dropping 12.5% after posting a wider third-quarter loss, and a disappointing outlook for the current quarter.

The semiconductor company reported a loss of $67.1 million, or 14 cents a share, ballooning from a loss of $32.2 million, or 2 cents a share, in the year-ago quarter. Excluding items, the company made $18.6 million, or 4 cents a share, reversing a loss of $17.6 million, or 4 cents a share in the same period last year, beating the First Call consensus by a penny. Sales were $251.6 million, rising from $197.5 million a year ago.

"The overall semiconductor market has clearly weakened over the past couple of months, and our outlook for the current quarter is not as strong as we expected it would be a quarter ago," Conexant CEO Dwight Decker said in a statement.

The company's core net income will range from 3 cents to 4 cents for the fourth quarter. Weakness in the PC market should drive a sequential decline in PC modem and PC video product revenue ranging between $4 million and $6 million, the company said. Its wireless networking segment will see a $3 million to $5 million sequential decline in revenue. Revenue for the quarter will range from $244.1 million to $254.1 million. Thomson analysts are looking for 4 cents on sales of $261.9 million. Shares were off 24 cents to $1.69.

Shares of Genesis Microchip ( GNSS) popped 17.6% on bullish top-line guidance. For the second quarter, Genesis forecast revenue of $67 million to $72 million and gross margins in the range of 42% to 44%. Wall Street's consensus top-line forecast was $67.3 million.

The company, a maker of technology that improves image quality for TVs and DVD players, earned $1.4 million, or 4 cents a share, for the first quarter, down from $2.1 million and 6 cents a share last year. Excluding items, Genesis would have earned 11 cents in the latest quarter. Total revenue fell to $55.9 million from $59.8 million in the prior year's quarter. Analysts expected Genesis to break even and have revenue of $57.9 million. The stock added $1.97 to $13.18.

Likewise, shares of FormFactor ( FORM) climbed 19.9% after exceeding estimates for its second quarter on both the top and bottom line.

The chip equipment company said sales totaled $92.4 million in the three months ended July 1, an increase of 77% from the same time a year ago. Net income was $15.3 million, or 32 cents a share. Analysts polled by Thomson Financial were expecting FormFactor to earn 28 cents a share on $87.9 million in sales. The stock recently added $7.05 to $42.45.

Other Friday movers included Intel ( INTC), adding 60 cents to $18.07; Microsoft ( MSFT), up 29 cents to $24.16; Sun Microsystems ( SUNW), off a penny to $4.25; JDSU ( JDSU), adding 3 cents to $2.10; Dell ( DELL), bumping up 52 cents to $22.07; Cisco Systems ( CSCO), adding 31 cents to $18; Sirius Satellite Radio ( SIRI), up 3 cents to $4; Applied Materials ( AMAT), up 59 cents to $15.69; and Apple Computer ( AAPL), up $1.49 to $64.89.

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