This week, the second quarter earnings season starts to heats up. Along with it, a number of technology bellwether firms will be reporting their most recent results. Mergers and acquisitions activity in the technology distribution space also remains high, and credit rating firm Moody's has recently weighed in with its opinion on a couple of recently announced deals.

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Tech-Related Developments
Recently, computer wholesaler and distributor Tech Data (Nasdaq:TECD) announced it would be acquiring a portion of the joint venture it owns with Brightstar Corp. in Europe. This follows the announcement that technology distribution Ingram Micro (NYSE:IM) would be acquiring Brightstar's rival Brightpoint (Nasdaq:CELL) to build out its global scale and clout.

Moody's had a favorable take on the Ingram and Brightpoint deal and also announced it was similarly positive on the Tech Data purchase. It detailed that picking up additional customers and full control of the joint venture was a credit positive, as was the ability to respond to Ingram Micro's increased scale in the tech space.

Moody's also announced a positive stance on chip giant Intel's (Nasdaq:INTC) announcement to invest $3.1 billion for a 15% ownership position in chip equipment rival ASML Holdings (Nasdaq:ASML). ASML is based in Europe and represents a way to buy into a beaten-down competitor to secure exposure to the next generation of 450 mm wafer semiconductor manufacturing equipment.

SEE: Understanding The Income Statement

Upcoming Earnings
Intel is also on deck to announce its second quarter earnings results on Jul. 17, 2012. Analysts expect earnings of 52 cents per share on sales of nearly $13.6 billion. For the full year, analysts project sales growth of nearly 5%, total sales of almost $57 billion and earnings of $2.44 per share.

Tech titan Microsoft (Nasdaq:MSFT) is also on deck this week and will announce its fourth quarter results on Jul. 19, 2012. Analysts are calling for earnings of 62 cents per share on sales of $18.1 billion. For the full year they expect sales growth of 5.5%, total sales of almost $74 billion and earnings of $2.68 per share. Microsoft also recently announced it would be acquiring social media site Yammer for $1.2 billion in cash.

SEE: A Primer On Investing In The Tech Industry

The Bottom Line
The largest players in the technology space should continue to post modest top-line growth and decent profit expansion. The smaller players look to be relying in acquiring market share, and though that has also been a strategy for the industry leaders, their high installed base of annual sales means purchases make a smaller impact on their overall results.

At the time of writing Ryan C. Fuhrmann was long in shares of Microsoft since 2007.

Tickers in this Article: INTC, MSFT, TECD, CELL

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