Updated from 11:35 a.m. EDT

The broader technology market rose Monday as tech investors keyed on earnings news and analyst upgrades.

Photon Dynamics ( PHTN) jumped 16.5% after the maker of flat-panel production equipment issued fourth-quarter revenue guidance above Wall Street's forecast. The company sees revenue of $20 million to $25 million. Analysts polled by Thomson Financial project revenue of $15.1 million. "Photon Dynamics is executing on our plan to expand the company's market share, to improve gross margin and to reduce operating expense," the company said. "The company is also leveraging its core technology to expand into adjacent markets, as evidenced by the recently announced acquisition of Salvador Imaging." Shares closed up $1.42 to $10.01.

Elsewhere, BEA Systems ( BEAS) rose 3.2% after upgrades from UBS and Bear Stearns. UBS upgraded the stock to buy from neutral, citing a favorable valuation. The firm also said that the company will have easier year-over-year comps beginning during the second half of 2007. UBS has a $14 price target on shares of the company.

Bear Stearns upgraded the stock to outperform from peer perform. The firm, which also cited valuation for the upgrade, slapped a $15 price tag on shares of the stock and said that it sees improving markets in China. Shares of BEA Systems closed up 36 cents to $11.77.

Meanwhile, shares of Borland Software ( BORL) continued to fall on Monday. On Friday, shares fell nearly 12% after the software company reported disappointing second-quarter results and lowered its full-year revenue guidance. Shares closed down 28 cents, or 5.7%, to $4.64.

Websense ( WBSN) jumped 4.5% after Deutsche Bank upgraded the software company to buy from hold. The broker said that Websense's Surf Control acquisition, which is nearly completed, should add significantly to Websense's earnings. The firm has a $24 price tag on the shares. Shares closed up 90 cents to $20.73.

Finally, Applied Micro Circuits ( AMCC) rose 2.1% after Morgan Stanley upgraded shares of the chipmaker to equalweight from underweight. The firm also gave the company a $3.50 price target. Shares closed up 6 cents to $2.92.

As for the broader technology sector, the Nasdaq 100 was up more than 9 points to about 1934.