A weak guidance from cell phone giant Motorola ( MOT) sent the company's shares down 7% Friday and weighed on other technology stocks. Late Thursday, Motorola estimated fourth-quarter earnings of 13 cents to 16 cents a share. Excluding certain items, the company projects earnings of 23 cents to 26 cents a share. Thomson First Call analysts' consensus called for earnings of 39 cents a share. Motorola projects sales of $11.6 billion to $11.7 billion, compared with a $12 billion Wall Street target. Shares were trading down $1.44 to $19.11. The news sent shares of Nokia ( NOK), the world's top mobile-phone maker, down $1.12, or 5.4%, to $19.80 in recent trading. Meanwhile, Skyworks Solutions ( SWKS), Silicon Labs ( SLAB) and RF Micro Devices ( RFMD), which are suppliers to Motorola, also tumbled. Deutsche Bank downgraded the companies, saying that Motorola and Nokia may be shifting toward lower-priced, lower-margin products. Skyworks was down 56 cents, or 7.6%, to $6.78; Silicon Labs fell $2.26, or 6.4%, at $33.08; and RF Micro dropped 49 cents, or 6.9%, to $6.60. Elsewhere, Micrel ( MCRL) dropped 9% after the chipmaker lowered its fourth-quarter projections, citing weakness in demand in the last two weeks of December. The company now expects to report earnings of 9 cents to 10 cents a share, down from its October projection of 11 cents to 13 cents. The company cut its revenue estimate to a range of $64 million to $65 million from a prior view of $67 million to $70.5 million. Shares were down 93 cents to $9.87.
Among tech's winners was XM Satellite Radio ( XMSR), which rose 2% even though the company's year-end subscriber numbers missed targets. XM said it added more than 1.695 million new subscribers in 2006, ending the year with more than 7.625 million subscribers. That's shy of the 7.7 million to 7.9 million target the company set in July, when it slashed its user-growth target for the second time in 2006. Still, the company noted that it achieved positive cash flow from operations during the fourth quarter. Shares recently changed hands at $15.30, up 32 cents. Other actively traded tech stocks Friday included Intel ( INTC), down 24 cents to $20.93; Cisco ( CSCO), down 14 cents to $28.32; Sun Microsystems ( SUNW), down 6 cents to $5.63; Level 3 Communications ( LVLT), up 22 cents to $5.79; Sirius Satellite Radio ( SIRI), up 6 cents to $3.83; Yahoo! ( YHOO), up 89 cents to $27.73; and Dell ( DELL), down 3 cents to $26.21.