Cramer's 'Mad Money' Recap: Banks, Other Laggards Are Leaders (Final)
Executive DecisionFor a closer read on the technology sector, Cramer once again spoke with Rick Hamada, CEO of Avnet (AVT) , in the "Executive Decision" segment. Avnet just posted a 4-cent-a-share earnings beat on inline revenue.
Hamada cited some challenges at Avnet. He said his company's component business is in the midst of a sizable inventory adjustment, while its IT services business is seeing modest growth. So while both businesses were running according to expectations, the company's year-over-year revenue growth was essentially flat.
Turning to specific sectors, Hamada said that servers and storage remain a strong business at Avnet. Other areas such as analog parts and micro controllers are also growing. Hamada also noted that the flooding in Thailand is still disrupting the supply of disk drives worldwide, which is in part to blame for the inventory corrections in other areas.
When asked about innovation and how that plays into Avnet's business, Hamada explained that every advance in making chips smaller or more powerful, while not a game changer immediately, creates new possibilities and eventually flows down into the larger tech arena.