Small-cap stocks sold off early Monday but weren't hit as hard as the major indices, which broadly stumbled on news that Microsoft ( MSFT) backed away from its bid to buy Yahoo! ( YHOO). Among the losers, HMS Holdings ( HMSY), a provider of cost containment and payment accuracy services, slid 28% to $18.85. The New York company announced first-quarter income of $3.2 million, or 12 cents a share, vs. $3 million, or 11 cents a share, a year ago. Analysts polled by Thomson Financial were expecting 13 cents a share. HMS Holdings also reaffirmed 2008 revenue guidance for $170 million, slightly below the Street's estimate of $170.5 million. Meanwhile, shares of RRsat Global ( RRST), a provider of end-to-end content distribution and management services, tumbled 19% to $11.99 despite in-line earnings. The company posted adjusted first-quarter earnings of $3.4 million, or 20 cents a share, a 26% increase from the year-ago quarter. Analysts were looking for 20 cents a share. Zoltek ( ZOLT), a St. Louis, Mo., maker of carbon fibers and technical fibers, dropped 14% to $23.63. The company announced that there were errors in its previous financial statements dating back to Sept. 30, 2007, and in the quarter and year ended Dec. 31, 2007. Chief Financial Officer Kevin Schott resigned effective last Friday, May 2, the company said. Chairman and chief executive Zsolt Rumy will serve as interim CFO. PeopleSupport ( PSPT) gave up 9.3% to $9.47. JMP Securities downgraded the Los Angeles-based business process outsourcing company to market perform from market outperform. On the winning side, flash memory and DRAM chipmaker Stec ( STEC) climbed 15% to $10.71. The company posted non-GAAP income of 7 cents a share, up from 5 cents a share a year ago. The Street was looking for 3 cents a share.