It was a mixed day for technology shares yesterday as investors shifted focus from strong results posted by Yahoo and Intel late on Tuesday to conflicting results posted by smaller firms.

Shares in the telecoms equipment firm Avaya, which employs more than 200 people in Dublin, lost almost a quarter of their value on the Nasdaq exchange in early trading.

Avaya reported second-quarter revenue of $1.22 billion, (€916 million) short of Wall Street expectations for revenue of $1.29 billion. Analysts warned that Avaya's inability to replenish its distribution channel may hurt future results.

Tellabs, which in 2002 closed a manufacturing plant in Shannon, posted earnings of $700,000, or zero per share, for the first quarter ended 1st April, compared with $13.4 million, or 3 cents a share, in the year-earlier period. However, the results were ahead of analysts' forecasts.

Yahoo, which posted its first quarter results late on Tuesday, said that it earned $204.6 million, or 14 cents per share, in the three months to the end of March.

That compared with net income of $101.2 million, or 7 cents per share last year.

Revenue for the period totalled $1.17 billion, a 55 per cent increase from $757.8 million last year. After subtracting the commissions paid to other websites in Yahoo's growing advertising network, the company's revenue totalled $821 million, a 49 per cent improvement from last year.

Yahoo also raised its financial outlook for the year. It now expects 2005 revenue, excluding ad commissions, to range as high as $3.7 billion - an increase of 4 per cent, or $150 million, from its forecast three months ago. - (Additional reporting, Reuters, AP)