NEW YORK (CNNfn) - Covad Communications, which provides high-speed digital communications over traditional telephone wires, tumbled in before-hours trading Friday after it said it has agreed to buy BlueStar Communications Inc.
Covad (COVD: Research, Estimates) tumbled 5-1/2 to 19-3/4 on the Island electronic trading network. The offer for Blue Star, provider of broadband and Internet services for small and medium-sized businesses throughout the Southeastern United States, is for stock valued at around $202 million.
Xerox Corp. (XRX: Research, Estimates) slid 3-11/16 to 21-5/8 according to Instinet in New York, after it warned that it would post a disappointing quarterly profit, continuing a trend that led it to change leadership.
 The company blamed a shortfall in the sales of high-end printing and publishing products, which it said would reduce profit margins.
RedHat (RHAT: Research, Estimates) rose 2-1/4 to 25-5/8 on the Island electronic trading system after it reported a smaller-than-expected fiscal first-quarter operating loss on sales that rose 95 percent from the same period last year.
Adobe Systems Inc., (ADBE: Research, Estimates) the graphic design software company, slipped 2-3/4 to 122 on Island despite reporting first-quarter net income that beat analysts' estimates as its revenue rose 24 percent.
Also on Island, Microsoft Corp. (MSFT: Research, Estimates) edged up 1/2 to 72-7/8. The software maker faces a new legal headache as the Financial Times reported Friday that a suit filed in Maryland seeks to combine 170 cases that charge the company overcharged consumers. The report says the case is seeking billions in damages.
Qualcomm Inc. (QCOM: Research, Estimates) advanced 1/2 to 61-15/16 on Island as investors looked to "bottom fish" the depressed stock, a Madoff trader said. Qualcomm fell 9-1/16 during regular trading Thursday to near seven-month lows, on growing concern about its profit outlook.
Netro Corp. (NTRO: Research, Estimates) lost 1/8 to 50 on Island after Finnish telecom equipment maker Nokia (NOK: Research, Estimates) said Friday it is not in talks to buy the U.S. wireless telecommunications equipment firm, quashing rumors of a buyout. 
-- compiled by Antoinette Coulton from staff and wire reports
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