QLogic Tumbles On Warning

Shares of QLogic tumbled 23% Wednesday on an earnings warning.

The company said it expects March quarter earnings of 36 cents a share on revenues of $128 million, below analysts’ estimates of 38 cents and $140 million.

The company blamed the shortfall on weak demand from two OEMs for its host bus adapters. Analysts said they believe Sun Microsystems was the main reason for the shortfall.

HBA competitor Emulex and Dot Hill , which does storage business with Sun, both lost 7%.

The broader market slipped on weaker than expected factors orders and Chicago manufacturing reports.

The Nasdaq lost 6 to 1994, the S&P 500 slipped 1 to 1126, and the Dow gave back 24 to 10,357. Volume rose to 1.48 billion shares on the NYSE, and 1.88 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 17-14 on the Nasdaq. Upside volume was 56% on the NYSE, and 38% on the Nasdaq. New highs-new lows were 258-6 on the NYSE, and 152-21 on the Nasdaq.

After the close, Manugistics missed estimates.

During the day, Rediff.com soared 33% on a deal with Yahoo .

PalmOne surged 12% after JP Morgan said the stock is significantly undervalued.

Monster Worldwide gained 4% amid optimism ahead of Friday’s unemployment report.

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