Synoptics Communications ignited the selloff with its second-quarter report, which showed earnings in line with analysts' expectations but a 2 percentage-point decline in gross profit margin.

Synoptics Communications, a maker of equipment and software for computer networks, saw its shares fall 2 5/8, to 17, in part because a Kidder, Peabody analyst cut his recommendation to "hold" from "outperform."

Wall Street's high-tech myopia was seen last week in the savaging of the stocks of Synoptics Communications and Apple Computer.

Intel and Synoptics Communications entered a technology exchange and joint marketing agreement.

Wellfleet Communications and Synoptics Communications plan to merge in a deal valued at about $2.7 billion, creating a leading participant in computer networking equipment.

Synoptics Communications lost 3 5/8, to finish at 28 5/8.

In 1991 and 1992, Synoptics Communications' revenue grew 57 percent, while its profits grew 58 percent.

But an investor might just as reasonably have chosen Wellfleet Communications or Synoptics Communications instead.

Wellfleet Communications and Synoptics Communications said today that they would merge in a stock transaction worth about $2.7 billion, creating a powerful new player in one of computing's fastest-growing markets.

It fell 11/16 to 61, despite the announcement of new products from its recent alliance with Synoptics Communications, the computer-networking company.