Rackable Systems ( RACK) plummeted more than 33% after the computer-server maker predicted earnings between $4.8 million and $5.3 million, or 17 cents to 18 cents a share, widely missing the 27-cents consensus according to Thomson Financial.

Last year the California-based company earned $7.3 million, or 32 cents a share. Revenue should range between $105.5 million and $106.8 million -- up from $83.1 million in 2005 and covering the $106.1 million target. But shares were falling $10.83, or 33.4%, to $21.59.

Bridgford Foods ( BRID) shares catapulted 25% after the Anaheim, Calif.-based distributor swung to a profit for both the quarter and year ended Nov. 3. Fiscal fourth-quarter earnings totaled $1.1 million, or 11 cents a share, compared with a loss of $340,000, or 3 cents a share, a year ago, and sales edged up 3.2% to $43.2 million. Full-year profits came to $1.2 million, or 13 cents a share, up from a $943,000 loss, or 9 cents a share, in 2005. Shares were gaining $1.56 to $7.80.

Sterling Construction ( STRL) jumped after two analysts -- Ferris Baker Watts and Morgan Joseph -- upgraded the stock to a buy. On Tuesday, the Houston-based company predicted 2007 income of between $1.13 and $1.26 a share, at least 2 cents below two analysts' predictions. Its sales range between $285 million and $310 million, however, was in line with the consensus. Shares were up $2.27, or 11.8%, to $21.50.

Stewart Enterprises ( STEI) climbed after the funeral-home operator saw growing profits and beat Wall Street projections. Excluding items, the company had a profit of $9.2 million in the quarter ended Oct. 31, or 9 cents a share, compared with last year's $3.8 million, or 4 cents a share. Full-year profits totaled $39.8 million, or 37 cents a share, compared with $33.6 million, or 31 cents a share, a year ago. Analysts were looking for fourth-quarter and full-year income of 6 cents and 31 cents, respectively. The New Orleans-based company was rising 51 cents, or 8.1%, to $6.78.

New York's Zanett ( ZANE) an information-technology company, boosted its fourth-quarter service-revenue guidance to a range between $11.6 million and $11.8 million from its prior $11 million estimate. Shares were adding 10 cents, or 7.2%, to $1.47.

Encore Acquisition ( EAC) gained after the Fort Worth, Texas, company said it will buy Wyoming properties containing about 20 million barrels of total proved oil-equivalent reserves (according to internal Encore engineers) for $400 million from Anadarko Petroleum ( APC). Encore shares were up $1.14, or 5.1%, to $23.56. Anadarko shares were edging up 28 cents to $41.74.

Cortex Pharmaceuticals ( COR) plunged on word the Irvine, Calif., drugmaker will sell company shares and warrants worth about $5.6 million to institutional investors. The transaction is expected to close Jan. 22. Shares were down 27 cents, or 20.3%, to $1.06.

Blackbaud ( BLKB) slid after the Charleston, S.C.-based company, which sells software and services to nonprofits, bought sister companies Target Software and Target Analysis Group for about $60 million, plus $2.4 million more under a one-year earn-out arrangement. The company says the acquisitions will improve its services related to fundraising and direct marketing. Shares were falling $3.53, or 14.2%, to $21.37.

OmniVision Technologies ( OVTI) slipped after a JPMorgan Chase analyst cut the Sunnyvale, Calif., chipmaker's rating to neutral from overweight. Shares were off 36 cents, or 2.9%, to $12.03.