Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of mixed-signal chip designer Cirrus Logic
So what: It's another stellar earnings report; Cirrus beat both Street expectations and its own forecasts thanks to tremendous sales of its high-quality audio chips for portable devices. The gravy train should keep rolling as management sees the first quarter rising above typical trends of negative seasonality.
Now what: Cirrus started its powerful audio sales by designing chips to Apple specifications, and is now leveraging that account into design wins with other handset and audio player vendors. If all goes well, management hopes to repeat that trick in the market for power controllers, which is a less sexy but very large market. Cirrus' stock has now gained 173% over the last year and a staggering 718% in two years, mostly thanks to beating expectations in eight of the last 10 quarters.
Interested in more info on Cirrus Logic? Add it to your watchlist.
