Shares of Rackable Systems ( RACK) were among technology's losers Wednesday, plunging 35% after the server and storage company warned that fourth-quarter earnings would be well below expectations.

The company expects to post adjusted earnings of 17 cents to 18 cents a share, with revenue of $105.5 million to $106.8 million. Analysts polled by Thomson First Call expect earnings of 27 cents a share and revenue of $106.1 million. Rackable said it didn't meet its gross margin goals for the quarter. Shares were trading down $11.50 to $20.92.

Blackbaud ( BLKB) slid 12% after the software company announced an acquisition and gave a revenue projection that was short of Wall Street's forecast. The company agreed to purchase privately held Target Software and Target Analysis Group for $60 million. The acquisition, financed by a combination of cash and debt, is expected to shave 3 cents to 6 cents off of 2007 earnings.

Separately, Blackbaud said it expects to post fourth-quarter adjusted operating income of $14.1 million to $14.2 million on revenue of $49.5 million to $49.6 million. Analysts project earnings of 19 cents a share and revenue of $50.3 million. Shares were trading down $3.09 to $21.81.

Shares of Intel ( INTC) fell 5% after the chipmaker's fourth-quarter gross margin figures disappointed investors. The company earned $1.5 billion, or 26 cents a share, on revenue of $9.69 billion. Analysts expected earnings of 25 cents a share and revenue of $9.44 billion. Gross margin, meanwhile, fell to 49.6%, down significantly from a year-ago level of 61.8%. During the year-earlier quarter, the company posted earnings of $2.45 billion, or 40 cents a share, on revenue of $10.2 billion.

Intel projected a first-quarter gross margin of around 49%, give or take a couple of points. For the full year, gross margin is expected to be about 50%. The company also forecast first-quarter revenue of $8.7 billion to $9.3 billion. Analysts had forecast revenue of $8.93 billion. Shares were trading at $21.08, down $1.22.

Linear Technology ( LLTC) slipped 1% after the chipmaker posted weaker-than-expected second-quarter earnings and issued a soft guidance. For the period ended Dec. 31, the company earned $105 million, or 34 cents a share, on revenue of $267.9 million. Analysts expected earnings of 35 cents a share on revenue of $275.4 million. During the year-earlier period, the company earned $103.3 million, or 33 cents a share, on revenue of $265.2 million.

For the third quarter, Linear expects revenue to fall 4% to 7% while it expects profit to fall even more. "It is likely that improvements in Europe and the USA may be offset by slowness in Asia, particularly in consumer related markets," the company said. Analysts project earnings of 36 cents a share and revenue of $284.8 million. Shares were down 35 cents to $31.36.

Shares of Wipro ( WIT) rose 4% after the IT services company posted better-than-expected third-quarter results. The company earned $169 million, or 12 cents a share, on revenue of $899 million. The earnings were up 40% over last year's results, while revenue jumped 43%. Analysts expected earnings of 10 cents a share, with revenue of $803.2 million. Shares were trading up 67 cents to $17.75.

Other technology movers included Level 3 Communications ( LVLT), down 28 cents to $6.33; Cisco Systems ( CSCO), down 37 cents to $27.67; Sun Microsystems ( SUNW), down 3 cents to $6.03; Microsoft ( MSFT), up 18 cents to $31.34; Symantec ( SYMC), up 23 cents to $18.02; Apple ( AAPL), down $1.02 to $96.08; Applied Materials ( AMAT), up 1 cent to $19.49; and Sirius Satellite Radio ( SIRI), down 3 cents to $4.12.

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