Mindspeed Technologies Inc. (NASDAQ: MSPD ) is the best tech stock to buy in
2011 . MSPD stock is up 39% since January 1 and going strong. I recommend
investors continue to buy this fabless semiconductor stock, since these gains
are only the beginning. Mindspeed recently reported strong earnings that beat
analysts' estimates, earning $0.01 vs. estimates for break-even, and also
trounced revenue expectations, with sales of $38.6 million, compared with
analysts' forecasts of $37.99 million. Here are some of the highlights of the
company's fiscal second quarter: Product revenue increased 1% compared with
last years quarter and was higher than estimated. Non-GAAP gross margin
increased to 63.1% from 62.6%. Non-GAAP diluted earnings per share came in at
$0.01, better than expected. Cash and cash equivalents were healthy at $44.9
million at the end of the quarter. Although the industry cleaned out excess
inventory, which put a damper on new production, MSPD managed to perform better
than the estimates for both revenues and profits. And Mindspeed sees continued
improvement, particularly in optical access, optical transport, optical
infrastructure and 4G wireless markets, forecasting third-quarter revenue
between $41.3 million and $42.8 million, higher than analysts estimates of $40.5
million. And I have to tell you that the markets were very pleased with this
report, giving the shares a boost, which was supported by an upgrade to buy by
analysts at Needham & Company. Needham said it made the upgrade, based on
strength in the WAN Communications business (which makes optical communication
products), and greater demand from China. In other Mindspeed news, the company
announced that its Chief Financial officer (CFO) Bret Johnsen resigned effective
May 6. MSPD appointed Kristen Schmidt, executive director, finance, as its
interim CFO and now is beginning an immediate search for a permanent
replacement. Johnsen is going to work as CFO for a private company outside of
the semiconductor industry. I see no reason to be concerned with this
announcement; this is most likely just a better opportunity for Johnsen. The
company is progressing very nicely toward our goal, and this quarter's numbers
reflect a very positive trend for Mindspeed's sector. Check out the other FREE
stock picks that make up InvestorPlace.com's Top 10 Stocks for 2011. As of
this writing, Nancy Zambell was recommending Mindspeed to subscribers of her
Buried Treasures Under $10 stock newsletter.
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