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: Cirrus Logic (Nasdaq: CRUS) dropped 14% in intraday trading today after announcing gross margin for the March quarter will come in below expectations.

So what: Management now expects gross margin of about 50% for the quarter, below previously issued guidance of 54% to 56%, because of "a production issue with a new audio device that entered high volume production in March 2011." Revenue and operating expenses are expected to be in line with prior guidance.

Now what: The gross margin disappoint is likely to cause EPS to miss the consensus estimate of $0.30 by about a nickel. Management expects the problem to drag down gross margins for the June and September quarters as well, albeit by a smaller amount. The company should provide more detail when it releases earnings the morning of April 28.

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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.