The Dow Jones, S&P 500 and the Nasdaq was in negative territory before rallying again. On the other hand, The Russell 2000 and the S&P 600 were trading near the highs of the day but are now trading relatively flat. The Russell 2000 is trading at 687.79, up 0.15%, and the S&P 600 Small Cap at 359.81, up 0.12%. Shares of Catalyst Semiconductor ( CATS) surged 56% to $6.35 after agreeing to be bought out by On Semiconductor ( ONNN). The California-based semiconductor accepted On Semiconductor's offer to be bought out for $115 million in stock. Catalyst's shareholders still have to approve the deal, even though the board of both companies agreed to the deal. It is expected to close in the fourth quarter. Shares of LookSmart ( LOOK) fell sharply by 20% to $2.75 after reporting preliminary revenue results for its second-quarter will be between $17.0 million and $17.1 million, below analysts' estimates of $18.2 million. Ted West, President and CEO of LookSmart, had this to say to explain the reasoning for the firm's lower-than-expected financial performance: "Our second quarter revenue results were impacted by an unanticipated softening in search advertising demand," commented Ted West, President and Chief Executive Officer. "We remain confident in LookSmart's business outlook and our ability to create value through the execution of our long-term business opportunities." Shares of ValueClick ( VCLK) fell by 19% to $11.23 after it lowered its profit and revenue forecast for its fiscal year 2008. The online advertiser now projects to earn 69 cents to 71 cents a share and revenue to be between $655 million and $675 million for the fiscal year. Analysts expected earnings to be 79 cents a share on revenue of $739 million. The company contributed to the cause due to weak advertising spending.
Shares of Polycom ( PLCM) dropped by 15% to $20.75 after the company reported second-quarter earnings below analysts' expectations. The Pleasanton, Calif.- based company for the second-quarter earned $17.8 million, or 20 cents a share vs. $10.1 million, or 11 cents a share, earned last year. Stripping out one-time items, the company earned $30.7 million, or 35 cents a share, missing analysts' forecasts by a penny. The earnings release was followed by a downgrade in rating to hold by Scott Sutherland, Securities Analyst from Wedbush Morgan. Shares of Misonix ( MSON) rose by 22% to $3.16 after receiving FDA approval of Second Sonatherm Soft Tissue Ablation System. The medical equipment firm will now be allowed to market its Sonatherm in the United States to ablate certain soft tissue lesions in general surgery.