STOCKS TO WATCH: Avanex, Dallas Semi, Gateway, Juniper Networks and Sun

Avanex should recover some of its losses Friday after beating Street estimates by 3 cents a share in its first quarter as a publicly traded company.

Avenex, which makes a variety of fiber-optic products, posted a loss of $2.9 million, or 8 cents a share, on sales of $10.5 million.

In the year-ago quarter, it lost $1.8 million, or 80 cents a share.

Avenex shares closed off 11 5/16, or 13 percent, to 76 3/16 ahead of the earnings report.

Dallas Semiconductor figures to move higher Friday after beating Street estimates in its first quarter with a profit of $21.7 million, or 34 cents a share, on sales of $118.1 million.

First Call consensus expected it to earn 32 cents a share in the quarter.

Its shares closed up 1 15/16 to 35 1/8 Thursday.

The $118.1 million in sales represents a 33 percent improvement from the year-ago quarter when it earned $15.2 million, or 25 cents a share, on sales of $88.6 million.

"As we begin the second quarter, we're starting with a record 90-day backlog of $70 million, up $10 million compared to the first quarter," said CEO Vin Prothro in a prepared release. "As a result, we are optimistic for continued growth in the near-term"

Dallas Semiconductor shares hit a 52-week high of 49 in March, shortly after announcing a 2-for-1 stock split. It bottomed out at 20 3/16 last April.

Gateway could go either way Friday after meeting analysts' estimates in its first quarter despite the fact that its business PC sales fell 19 percent from the year-ago quarter.

In the quarter, Gateway pulled in $136 million, or 41 cents a share, on sales of $2.34 billion.

First Call consensus expected the PC manufacturer to earn 41 cents a share in the quarter.

Its shares closed off 4 1/8 to 51 1/8.

The $2.34 billion in sales represents an 11 percent improvement from the year-ago quarter when it raked in $99.5 million, or 31 cents a share, on sales of $2.1 billion.

However, company officials said a "sales slump" for most of quarter pushed business unit sales down 19 percent from the year-ago quarter.

Gateway said growth in its telephone sales and online orders helped push consumer PC sales up 27 percent from the year-ago quarter. The company credited increased availability of mid-range microprocessors and motherboards for the its ability to meet increased demand.

Juniper shares should take off Friday after posting better-than-expected earnings in its first quarter and setting a 2-for-1 stock split.

The network-equipment maker posted a profit of $10.5 million, or 6 cents a share, on sales of $63.9 million.

First Call consensus expected it to earn 4 cents a share in the quarter.

Ahead of the earnings report, Juniper shares plunged 29 1/8, or 14 percent, to 175.

Including a handful of one-time items, Juniper earned of $8.1 million, or 5 cents a share, in the quarter.

Company officials said the 2-for-1 stock split will take effect on June 16.

Sun should move higher Friday after easily topping analysts' estimates in its third quarter, raking in $436.2 million, or 26 cents a share, on record sales of $4 billion.

First Call consensus expected it to earn 23 cents a share in the quarter.

Ahead of the earnings report, Sun shares closed off 2 1/4 to 77 3/4.

The $4 billion in sales marks a 35 percent jump from the year-ago quarter when it earned $292 million, or 18 cents a share, on sales of $2.95 billion.

Including a variety of special items and acquisition charges, Sun pocketed $508.1 million, or 30 cents a share, in the quarter.