TECH STOCKS: Zynga Execs Resign, Apple Extends Gains

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks put in a mostly downbeat performance Wednesday, but it was a big executive shake-up at online social-gaming company Zynga Inc., and gains from Apple Inc. and Brocade Communications Systems Inc. that claimed much of the sector's attention during the day.

Zynga (ZNGA) edged up 6 cents a share, or 2%, to $2.97, after Chief Executive Don Mattrick said David Ko, the company's chief operating officer, had resigned. Mattrick wrote in a memo to Zynga's employees that Chief Technology Officer Cadir Lee and Chief People Officer Colleen McCreary are also leaving the troubled gaming company.

It was the latest in a string of management shake-ups at Zynga over the past year, but the first for Mattrick, who became CEO in July after running the division at Microsoft Corp. (MSFT) responsible for the Xbox videogame console and other gaming products.

Apple (AAPL) shares climbed almost 2%, to close at $498.50 after earlier climbing above the $500-a-share mark for the first time since Jan. 23. On Tuesday, Apple's stock rose 5% after activist investor Carl Icahn after he tweeted he had taken a "large position" in Apple, and that he believes the company should expand its stock buyback plan.

Brocade (BRCD) shares surged almost 16%, to $7.99, after the networking-technology company reported a surge in its third-quarter results late Tuesday. Brocade said it earned $118.7 million, or 26 cents a share, on revenue of $536.6 million.

Excluding one-time items, Brocade said it would have earned 19 cents a share, while Wall Street analysts had forecast the company to earn 12 cents a share on $519 million in sales.

Other gains came from Netflix Inc. (NFLX), eBay Inc. (EBAY) and Oracle Corp. (ORCL).

But enough decliners emerged to drag the tech-heavy Nasdaq Composite Index (RIXF) down by 15 points to close at 3,669 and the Philadelphia Semiconductor Index (SOX) gave up 1.6%.

Cree Inc. (CREE) put in one of the tech sector's largest percentage declines, falling more than 22% to $58.83 On Tuesday, the LED lighting technology products company gave a weaker-than-expected forecast for its fiscal first quarter, saying it expects to earn 36 cents to 41 cents a share on revenue between $380 million and $400 million. Analysts had forecast Cree to earn 43 cents a share on $398.4 million in sales for the quarter.

JDS Uniphase Corp. (JDSUD) fell almost 4%, to close at $14.23, after the optical-networking equipment company on Tuesday reported sales that fell from a year ago due to weak demand for optical components from telecom customers.

Cisco Systems Inc. (CSCO), which reported quarterly results after the close of trading, rose 6 cents a share to end the day at $26.18.

Sector leaders also in the red included Google Inc. (GOOG) Hewlett-Packard Co. (HPQ), Microsoft Corp. (MSFT), Yahoo Inc. (YHOO) and Pandora Media Inc. (P).

(ORCL)

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