The small-cap sector plodded downward along with the major indices Monday despite a number of high-riding tech stocks. Among these was Phazar , which rocketed some 38% in an explosion of trading after the communications equipment maker swung to a fiscal first-quarter profit of $176,000, or 8 cents a share, compared with a year-ago loss of 4 cents a share. Revenue hiked up 69.2% to $1.9 million. Shares of the Texas-based company gained $2.88 to $10.45. China's Telestone Technologies ( TSTC) bounced after China Mobile ( CHL) said the company's WFDS (wireless fiber distribution system) technology "reached and exceeded the performance standards" required by TD-SCDMA networks -- a 3G standard in China -- based on recent testing. China Mobile added that the technology "holds an obvious advantage over traditional 2G indoor wireless coverage systems" in a number of areas. Shares of Telestone ramped up 10.5% to $7.76. Lumera jumped 11.3% to $4.23 after the Bothell, Wash., company launched its 40 Gbps (gigabits per second) polymer modulator for optical transmission systems, which the company says it will market as a "superior and reliable alternative to crystalline materials." Fellow Washington-based company InfoSpace ( INSP - Get Report), meanwhile, agreed to sell its mobile-services business to Motricity for $135 million in cash. A "significant" chunk of this is planned for a special dividend after the deal closes, which will probably be within the next three months. Shares added $1.22, or 6.7%, to $19.35.
Out of the tech sector, BioFuel Energy ( BIOF) vaulted 23.3% to $5.50 after the Denver-based ethanol producer said it will buy back up to $7.5 million of its shares. Among the small-cap decliners was Beacon Power , which fell more than 13% on word Arete Power filed a patent-infringement claim against the Wilmington, Mass., company last week in a U.S. District Court in California. Shares of Beacon, which makes flywheel devices to support electricity grid operations, dropped 31 cents to $2.01. Primedia , a publisher of free consumer guides, fell on slashed full-year guidance. Adjusted earnings before interest, taxes, depreciation and amortization are now expected to be about flat with last year's $21.7 million, whereas growth was previously projected in the mid-single-digit percentage range. Revenue might also come in below the prior forecast for a low-single-digit percentage increase. Shares of the Norcross, Ga., company tumbled 14.5% to $11.30. Finally, fitness equipment maker Nautilus ( NLS - Get Report) fell 10.3% on Friday's postclose announcement that it will lay off some 140 employees, or around 9% of its workforce. The Vancouver, Wash., company says this will cut annual expenses by more than $10 million. Shares were off 80 cents at $6.98. That helped weigh down the S&P SmallCap 600, which lately lost 5.4 points, or 1.2%, to 433.28. The Russell 2000, which harbors both Nautilus and Primedia, gave up 1.6% to 828.15.