Top Tech

 | Jul 19, 2013 | 11:00 AM EDT
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The start to earnings season for the technology sector has been disappointing so far. eBay (EBAY) got hit Thursday after reporting earnings that were just in line with estimates. Unfortunately, revenue was a bit light and the company issued some tepid guidance as well. The shares fell about 7% in trading as a result. Intel (INTC) missed both earnings and revenue expectations and made some disparaging remarks during its conference call, which caused the stock to sell off 4% in yesterday's trading.

After the bell Thursday, both Google (GOOG) and Microsoft MSFT reported results that missed both on the top and the bottom lines and the shares are getting pushed down by disappointed investors in pre-market trading today. Both misses could be significant headwinds for the Nasdaq and the market on Friday. Even IBM (IBM), which rose decently after earnings Thursday, reported yet another quarter of declining revenues.

Earnings seem to be coming in better for the non mega-cap technology names. Let's take a look at two technology firms that managed to provide results that exceeded investors' expectations and delivered confident outlooks as well.

Mobile power amplifier provider Skyworks Solutions (SWKS) delivered quarterly results that gave investors lots of reasons to be positive on this technology stock. The company slightly beat on the top and the bottom lines while providing guidance for the next quarter that was above consensus. The company also announced a $250 million stock repurchase plan.

Skyworks has now slightly beat on consensus earnings estimates for six straight quarters. Analysts also expect double digit revenue growth from the company in both fiscal 2013 fiscal  2014. They also were generous with positive ratings on the company in the second quarter. Several firms, including Topeka Capital, Lazard Capital and B. Riley, either upgraded or initiated coverage on the shares with a Buy rating in the just completed quarter. The median price target on the stock right now is $30 a share. The stock is still cheap, trading at around 9x forward earnings, and the company has more than $400 million in net cash on its balance sheet.

Cyprus Semiconductor (CY) is another part of the tech community that provided a pleasant surprise when it released earnings Thursday morning. The company posted a profit of $0.14 a share for the quarter, which doubled consensus estimates. The company also beat consensus revenue estimates by more than 5%. As important, its management stated the earnings and revenue leverage will continue into the next quarter.

T.J. Rodgers, the outspoken CEO of this semiconductor maker, is no stranger to viewers of "Mad Money" where he has been bullish on the company's prospects recently. For income investors, the shares yield just under 4%. I would look for analysts to raise their estimates and price targets on Cypress in the next week or two on this robust quarter.

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