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3 of the Week's Biggest Surprises

Say what you want about the tech sector, but it's never boring. Any given week will keep tech investors flooded with product announcements, earnings surprises, and crazy strategy shifts that absolutely nobody saw coming.

These are three of the most shocking pieces of tech news this week.

Surprise, surprise! Image source: Flickr user Benson Kua.

1. Cisco takes down VirnetX
Shares of mobile security firm VirnetX (NYSEMKT: VHC  ) plunged 38% in two days as its litigation strategy hit a major roadblock.

Cisco Systems (NASDAQ: CSCO  ) walked away from VirnetX's patent infringement lawsuit without as much as a slap on the wrist, because the jury found Cisco not infringing on any of the licensing company's inventions.

VirnetX investors had plenty of reason to hope for a very different outcome. The same batch of patents had already extracted a $200 million settlement from Microsoft (NASDAQ: MSFT  ) and a $368 million damage award from Apple (NASDAQ: AAPL  ) . The Apple decision was reaffirmed in February -- by the same judge who managed the Cisco case. And this suit was filed in the Eastern district of Texas, where patent plaintiffs go to win.

But this jury broke with the district's tradition and found Cisco blameless on all counts. VirnetX must be mulling an appeal right now, but its legal strategy has obviously taken a big hit. The Microsoft and Apple outcomes seemed to pave the way to unlimited riches, as anyone involved in secure networking would have to pay their bills. With the Cisco decision in hand, the road ahead just filled up with potholes and speed bumps.

2. Google won South by Southwest
South by Southwest isn't a technology showcase. It's a music fest that turns Austin upside down for a week every year. You might call it the most intense "battle of the bands" in the known world. Nobody expects major tech news out of the street party, though.

That's why you might raise an eyebrow when fellow Fool Tim Beyers declares Google (NASDAQ: GOOGL  ) the winner of SXSW.

Big G set up a display for the festival, shining a spotlight on two interesting consumer devices. A hands-on demonstration of the Google Glass wearable computing tool was followed by 12 pairs of chip-equipped shoes. These devices may not score big on store shelves anytime soon, but they won the tech battle by default in Austin because Apple didn't give us as much as a leak. The long-predicted Apple TV set seems more distant than ever, and recent rumors of a watch-like Apple gadget weren't exploited at this show.

Google didn't stop there. The company also sent a platoon of high-level speakers to the event, exploring topics such as mobile search, developing software for Google Glass, and taking moonshots at very hard problems. The moonshot project got extra attention, as the keynote on the topic was followed by a five-member, two-hour panel discussion. A few other companies held multiple presentations, but I dare you to find one that matched Google's visionary content. These were no mere product launches, but a mission statement in the Jerry Maguire vein.

3. BlackBerry sold a million phones
BlackBerry (NASDAQ: BBRY  ) desperately needs its recently launched BB10 platform to turn heads and empty wallets. This is perhaps the company's last shot at staying relevant in today's rapidly evolving mobile industry. But the launch left much to be desired, and we've seen reports that the new Z10 devices isn't doing well in the wild.

That's why a rare bit of good news came as a shock this week. BlackBerry shares jumped as much as 14% on Wednesday when the company disclosed a massive Z10 order.

An "established partner" has ordered 1 million BlackBerry smartphones, marking "the largest ever single purchase order in BlackBerry's history." No word on who the large customer is, or indeed whether BB10 devices accounted for the entire order. It's also unclear whether these devices are going straight to the buyer's employees or into wireless store inventories. Still, it's big news for a struggling vendor.

The good feeling faded fast, and BlackBerry ended the week just 5% higher. The company reports earnings in less than two weeks, giving us the first glimpse of actual BB10 sales figures. Add BlackBerry to your Foolish watchlist and stay tuned.

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Read/Post Comments (4) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 17, 2013, at 3:10 PM, Arthur1111 wrote:

    You claim to be surprised with a 5% increase in BlackBerry stock. If I tell you it is actually 15%, are you going to be shocked? Have heart attack?

    I know you bash BlackBerry, but I did not know you lie like Shaw Wu of Sterne Agee. That guy is a pathetic liar. Hands down. You need to do a better job to beat him.

  • Report this Comment On March 17, 2013, at 4:28 PM, Oril wrote:

    First of all my shares in Blackberry ended the week 15 percent higher not 5 percent as you claim.

    You also seem to be casting aspirations on Blackberry claim to have received an order for one million smartphone devices when they clearly stated that the order was for a million BB10 devices with deliveries to start immediately.

    You have deliberately posted misinformation as well as implied that Blackberry management is deceiving the public with their press releases.

    I hope that you as well as the people at motley fool who allow you to print such misleading garbage have deep pockets and good lawyers because I am sure that Blackberry does and management as well as their investors have evidence of such libel to take you down.

  • Report this Comment On March 17, 2013, at 5:21 PM, eidsonb wrote:

    And why is every "analyst" keep reporting the one report about bad numbers for the Z10....One,,,,everyone else is happy with the numbers...

    Also do you think Thorsten would go out and make all the positive statements he has made before the earnings call if sales were anything but great....better than expected....

    Fools worship at the Apple alter....

  • Report this Comment On March 18, 2013, at 7:24 AM, CZZZZZZ wrote:

    The Fool Shorted BBRY and was long APPL since October....the result couldnt happen to a more deserving bunch.

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