[Beginning of Cramer's verbatim comments for this segment...]

Jim:        Ladies and gents, we have got a genuine upside surprise on our hands tonight… and if you have been listening to my endless promotion of the mobile internet tsunami… you might be benefiting tomorrow morning from the news… that Skyworks Solutions Inc. (SWKS) sees business as much better than expected.. .which is pretty darn good considering that we have been expecting a lot from this company… Skyworks, you see, is ground zero for the Smartphone tsunami… this is why I have been… let’s call me a broken record… I do not mind, about the mobile internet revolution… the creation of game changing devices that can connect to the web anywhere… giving you voice, data, video, storage… all in one nifty little device like Apple’s iPhone… Research In Motion’s Blackberry.

I have said that this is the biggest product cycle… the biggest secular growth trend in technology since the recognition that the regular internet was the next big thing in the late ’90’s… or even the mass rollout of the personal computer in the early ’90’s… one that should allow you to rack up huge multi year gains if you own the right stock… remember, I come out here to teach you… when I was at my hedge fund, those were the two major trends that I played that made me the most money… I look for major trends, this is it… I will not shut up about this trend… because quite simply… it is right… I need you in it… which is why I keep hammering away at the theme… and now we have the data to proof it.

Back on August 11th we created the mobile internet index… there are 21 stocks that represent every facet of this trend.. from straight up internet plays and device makers to network, connectivity plays… to wireless infrastructure plays… and component makers… since we created the mobile internet index… the stocks are up an average of 9.1%… the S&P 500 is up just 3.9%… now I have got to tell you, anytime that you can double the S&P that is fantastic out performance.

Now I am expecting the index will pop once again tomorrow… because Skyworks is a key driver of the mobile internet… and one that I have talked about for the last nine months, when I first discerned this fantastic secular growth trend… Skyworks is up 16% since the creation of the index on August 11th… when it was at $11.04... but it is up an incredible 189% since I got behind on December 12th, when it was at $4.41... and you know what, I do not think that it is finished going higher… something else that I have repeated endlessly… but why get off an inexpensive horse that keeps on winning.

Skyworks Solutions Inc. (SWKS) makes semi-conductors… mainly filters, power amplifiers for mobile phone… which strengthens the cellular signal, allowing for, of course, that is how you get all the downloads of data, web content, videos… it also has its paws in broadband infrastructure, smart power meters… the company is a great smart phone play… they require more power amplifiers than ordinary phones… it now supplies all of the leading, all of the leading smart phone makers… now this has been a great day for Skyworks… because this afternoon Skyworks increased its financial outlook for the fourth quarter… it boosted its sales and earnings forecast… because of broad based improvements in demand… the company is seeing increased momentum from high inventors… Apple… it has been in every iPhone so far… Research In Motion, where it is over half of its devices… LG, you know Lucky G, Samsung… as well as the low end of the handset market thru its relationship with an outfit called Media Tech.

Skyworks is on track to potentially triple its market share at Nokia… this company produces the guts of the devices that make the mobile internet possible… no wonder it is doing so well… yesterday, Hoffenheimer raised its 2010 handset shipment estimate by over 8%… 1.23b handsets… it upped its smart phone shipment by 27%, to 256m from 201m… boy that is a lot of additional filters and power amplifiers for Skyworks to sale… and with Skyworks upping its earnings outlook today… something which, by the way, is a somewhat similar company, Texas Instruments, also did after the close… I think the trading in Skyworks, well, I just think that the story is looking better and better… so much better that I want to talk to the companies great CEO, friend of Mad Money, David Aldrich… about the incredible things happening with the mobile internet and his business…

Jim:      Mr. Aldridge, welcome back to Mad Money...

David:   Thanks, Jim. Thanks for having me.

Jim:      Every time I see you we make money for our viewers, so thank you for coming on. How do you report a much better than expected quarter this early in the quarter? And how did you realize that this was not just a de-stocking, restocking inventory situation… like somebody told me, when I recommended your stock last time.

David:     Well, there are a few things. You mentioned a couple in your opening comments. One, we have seen an improvement in demand. Across the board. Smart phone as well as low end. Net books as well as infrastructure. We have begun to see some real upside in some of the secular trends that you talked about. We are an early adopter, an early participant in smart phone, in some net books technologies, and ebooks, and some of the infrastructure that is causing it all to be facilitated with high speed data access. So it is a combination of those things, that improved our order flow. Our outlook has gotten much better and so we communicated that today.

Jim:         You said something that again, I think that people don’t believe in.. you called yourself an early adopter… people think that we are already in the eighth or ninth inning on these smart phones… totally untrue… the game just started, right?

David:     Absolutely. Well, if you think about it, today the applications are very well understood. We are not waiting for future applications. But the applications are relatively recent. One is Twitter, and Facebook, social networking. Email access, high speed internet access. Cameras and so on. And so all of that technology is being facilitated by a whole host of devices. Whether it is a net book, whether it is an ultra slim, ultra mini PC, whether it is a smart phone. But the beauty is that the carrriers love it. Don’t like it, love it. Because for every smart phone consumer, is having a multiple of subscriber revenue than a 2G subscriber.

Jim:     So what they are doing is propagating your business, right… I mean the more that they want to get people into a sticky application… I mean the more business for Skyworks?

David:     Absolutely. They see the traffic on the network. They are willing to invest. They are willing to underwrite the cost for some of these devices, so the devices are cheap. The demand is there. The infrastructure is in place. That all combines to create what we think is a terrific secular long term trend.

Jim:     I mean, everybody tells me how do I make money off of Facebook… and I say, it is Skyworks… you cannot own Facebook, but you can allow the technology that allows it to work on your handset.

David:     In order to, people become so enamored with those various networking sites that they want to be on all the time. And the only way to be connected all the time is that you have to have y-fy internet connect ability, local area, wireless. You need to have wide area networking, that is 3G, coming 4G. And the carriers need to facilitate all of that. That all spells more semi-conductor content. More stickiness to this overall trend.

Jim:     Alright, now I do not want to over exaggerate smart phones… you have got a lot of other businesses you are in… they have got to be doing well enough too, or you would not be able to blow out the numbers like this.

David:     Well, they are doing well. We have got a big play now with smart grid technology. We added last quarter.

Jim:     You have got to tell people what that is… smart grid.

David:     Well, think of the wireless meter in your home. And all the infrastructure that is being, some of the stimulus dollar is going towards being able to prevent brown outs. To being able to manage the grid. And then the wireless meters….

Jim:     Cisco is in that too?

David:     Precisely, and then that is facilitating in the home how do you look at a thermostat? How do you know what, how does the consumer know what the consumption is going to be? Y-fy, there is 400m imbedded y-fy devices this year. That is expected to grow by 25% to 30%. We announced last quarter that we have a situation know with Intel, where we partnered on their latest chip set. Our position with Broadcom is strong. We are in 3 of the top 4 net book OEM’s today.

Jim:     Now, one of the things that everybody says is that Nokia has to catch up… Nokia is the biggest but they are not the best… now you have a great relationship with Nokia… should we be thinking Apple, Research In Motion, Palm, Nokia… is that what we will be doing next year at this time?

David:     I think we will be thinking about all of the above. I think clearly the smart phone sector created some new participants. It created a new business model, in fact. That we did not know, many of us did not know existed. Which is very high revenue for subscriber, mobile internet access. There are going to be net book devices, ultra mini PC’s, high end and mid tier 3G phones, that will allow for some of that functionality. All of that is load up the network. So I think that you are going to see PC manufacturers as well as traditional phone OEM’s.

Jim:     See what I have been saying is, to wrap things up… what I have been saying is look, that you could get on an individual horse… and I happen to like Apple very much… but it is better to play the field… and you guys pretty much are the field… because you are pretty much in everybody’s devices.

David:     Well, that is right. A couple of years ago we were heavily concentrated with a couple of OEM’s. We have done a lot of work to try to fix that situation. Our newest customer in cellular space for us is Nokia, believe it or not. So, we are now in all of the top tier cellular OEM’s. Virtually all of the smart phones. And with Intel and Broadcom, we are in pretty good shape with the network PC’s. So we are pretty happy with that position.

Jim:     Alright, the stock is Skyworks Solutions Inc. (SWKS)… it is breaking out above $13... now you know the great secular story run by David Aldrich… great to see you again… thank you again for making all of our viewers so much money.

David:     Thank you, appreciate it.

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Jim's comments AFTER the interview:     (Jim did not have a further comment - cut to commercial)

[verbatim recap]

[end of segment]

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