Some would invest in Skyworks Solutions
But Skyworks is actually better than just an alternative to Apple. The stock has jumped by 120% over the past 12 months, running neck-and-neck with my own favorite tech stock for 2010, Tibco Software, and far ahead of Apple itself, thanks to a broad portfolio of outperforming products.
The just-reported fourth quarter saw sales soaring by 37% year-over-year. Non-GAAP earnings jumped from $0.24 per share to $0.43 per share. Investors had expected a great report, so the market largely took the news in stride by boosting share prices by about 1% on a generally flat market day.
Management gave credit for the strong performance to its diversified strategy and backed it up by shining the spotlight on a number of market opportunities in the pipeline:
- A close partnership with Broadcom
(Nasdaq: BRCM) is putting Skyworks chips inside everything from Blu-ray players and gaming consoles to smartphones and notebooks. -
Motorola
(NYSE: MOT) is using the company's products in head-end distribution systems, meaning the master connection where the cable company receives and redistributes its TV signals. - Staying within the broadcasting market, Cisco Systems
(Nasdaq: CSCO) likes Skyworks' solutions inside its fiber-based distribution systems and set-top boxes.
As you can see, Skyworks hardly lives and dies by Apple alone. That might be a weakness as long as the Cupertino gang is doing alright, but it never hurts to be prepared for a downturn.
