Updated from 2:07 p.m. EST with new stock pricesSmall-cap stocks fell hard Thursday, making the major indices' losses look mild by comparison. The Russell 2000 shed 3% to 773.52. Lowered guidance hurt several companies on the down day. Shares of Fremont, Calif.-based Avanex ( AVNX), which makes fiber-optic products, took a 28.9% hit to 97 cents as the company announced that revenue for its fiscal second-quarter would be between $51 million and $53 million, which falls below the low end of previous guidance of $56 million to $58 million. Avanex is filing an arbitration complaint against French optical modules maker 3S Photonics for prematurely ending its exclusive distribution agreement with the company. Shares of Sterling Financial ( STSA), meanwhile, slipped 10.9% to $17.44 on lowered fourth-quarter guidance. Thanks to an increased charge for credit costs, the Spokane, Wash., bank now expects fourth-quarter EPS of 31 cents to 34 cents and full-year EPS of $1.84 to $1.87. Analysts polled by Thomson Financial forecast income of 53 cents a share for the quarter and $2.09 for the year.
Despite the overall gloom, several stocks reaped huge gains. Shares of American Dental Partners ( ADPI) blasted 84.8% higher to $10.20. The Wakefield, Mass.-based provider of services to dental group practices settled a lawsuit with PDG, a client to its Minnesota subsidiary, PDHC. PDHC will transfer leases and associated tangible assets of 25 of 31 Park Dental facilities to PDG and forgive about $3 million in accounts due from PDG. PDHC will keep six facilities and the resource group office, which includes a support team of about 35 people, and PDG will pay PDHC a management fee of some $19 million. Document Sciences ( DOCX) also took a giant 76% leap to $14.49 on news that tech giant EMC ( EMC) would buy the Carlsbad, Calif.-based maker of content publishing software. EMC will shell out $85 million, or $14.75 a share, in cash for the company, subject to approval. The purchase is expected to close in the first quarter of 2008. Shares of EMC lost 2.4% to $18.50. Also posting a solid gain was Chinese telecom Qiao Xing Universal Telephone ( XING). The company raised guidance for the fourth quarter of 2007 on improved sales of its CECT- and COSUN-brand mobile phones. Qiao Xing forecast positive earnings per share for the fourth quarter and record EPS for the full year in 2007. Shares jumped 17.6% to $8.97.