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NEW YORK (TheStreet) -- Every night, Jim Cramer sits down with CEOs and executives on his "Mad Money" show to discuss their business, the economy, politics and more. Today we look back at his recent interviews with Moshe Gavrielov, president and CEO of Xilinx (XLNX - Get Report), and Rick Hamada, CEO of Avnet (AVT - Get Report), two executives with their fingers on the pulse of the tech sector.
These are excerpts from Cramer's 'Mad Money' Recap, originally published on Jan. 22 and Jan. 24, 2014.
Executive Decision: Moshe GavrielovFor his "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx, an Action Alerts PLUS holding that's proven Cramer's rule of never trading on the headline. After shares plummeted on a penny-a-share earnings beat with weaker guidance, they quickly rebounded up 2.2% as savvy investors looked at the key metric, Xilinx' new 28-nanometer chip sales, which were up 79% year over year. Gavrielov said that while Xilinx was only able to deliver at the low end of its revenue range for the quarter, its other metrics came out just fine. He said the company is still on track for 2% to 6% growth for the early and still in the early innings of the new 28 nanometer rollout. When asked why 28 nanometers is so important, Gavrielov explained these new, smaller chips are necessary to bring features like video to cellphones. Video is very demanding on both phones and infrastructure, he noted, which is why we're seeing a surge in spending to keep wireless customers happy around the globe. Turning to the topic of gross margins, Gavrielov said that while margins came in lighter this quarter, he fully expects Xilinx other, higher margin businesses to catch up later in 2014, returning their margins to traditional levels. Cramer said pointedly that shares of Xilinx are headed higher. Executive Decision: Rick Hamada For his "Executive Decision" segment, Cramer once again checked in with Rick Hamada, CEO of Avnet, which just delivered a six-cents-a-share earnings beat on better-than-expected revenue and upside guidance. Despite the upbeat news, shares are now trading more than $2 less than when the company reported, thanks to the overall market weakness. Hamada had many positive things to say, noting that last quarter saw record revenue for Avnet and the company continues to do the right things over time and deliver for shareholders. Hamada noted that Avnet's component business, which had seen strong growth last year, saw double-digit increases this quarter. He said solutions, offering hardware, software and services as a package deal to customers, continue to be a driver in its business. Finally, Hamada said Avnet still has a lot of room left on its share repurchase authorization, so the company will be taking advantage of weakness in the shares to buy back more stock. Cramer reminded viewers that sometimes good companies go down through no fault of their own, and Avnet is one of those companies.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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