Small-cap stocks got pummeled Wednesday, trading mostly under the broad market's volatile gallop into the red.

Taking particularly heavy losses was Matrix Service ( MTRX) after predicting that cost overruns will partially impact fourth-quarter results. The Tulsa, Okla., construction company also reiterated its prior fiscal 2007 revenue guidance, the higher end of which is just shy of Wall Street expectations, and issued an in-line fiscal 2008 sales outlook. Shares were plunging 16.1% to $24.43.

Technology Research ( TRCI) gave up 13.5% after posting a fourth-quarter loss of $495,000, or 8 cents a share, to reverse a year-ago per-share profit of 18 cents. Revenue plunged some 41% to $8.9 million. Shares of the Clearwater, Fla., company, which designs electrical-safety products, recently traded at $4.50.

Also hurting on poor financials was Inphonic ( INPC), which sells online wireless services. The Washington, D.C., company widened its first-quarter continuing-operations loss to 72 cents a share from 12 cents a year ago. Analysts polled by Thomson Financial were seeking a 34-cent loss. Shares were off 11.5%, or 87 cents, to $6.73.

Matrix and Inphonic helped to drag down the Russell 2000, which was lately sliding 0.8% to 841.49. The S&P SmallCap Index performed only marginally better as it shed 0.7% to 437.75.

Illinois-based Fuel-Tech ( FTEK), however, was among today's small-cap winners, leaping 18.3% to $33.95 after striking a deal with a Hong Kong-based Itochu subsidiary. The two companies agreed to work together on Fuel Tech's Fuel Chem program, which incorporates proprietary energy-efficient technology, and may additionally form a joint-venture company after a yearlong exclusivity period.

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