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 audio codec specialist Cirrus Logic (NASDAQ:CRUS) got crushed today by as much as 16%, after the company reported earnings.

So what: Revenue soared by 91% to $194 million, resulting in non-GAAP earnings per share of $0.79. Core audio product revenue more than doubled, to $177.9 million, inevitably driven by strong sales into Apple (NASDAQ:AAPL) iDevices, where Cirrus continues to hold down its audio codec spot.

Now what: Next quarter's guidance calls for revenue between $270 million and $300 million. The company has even earned numerous analyst upgrades today in the wake of the results. The bears are likely focusing on declining margins. Gross margin next quarter is expected in the range of 50% to 52%, and CEO Jason Rhode predicts gross margins in this range may be here to stay. Don't miss fellow Fool Eric Bleeker's full breakdown of the results.

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