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What: Shares of Cirrus Logic (NASDAQ:CRUS) have gotten totally crushed today, down by as much as 17%, after the company released preliminary results last night.

So what: Revenue last quarter is expected to be approximately $206.9 million, shy of the Street forecast of $210.2 million. The company also said it would record a net inventory reserve of $23.3 million, including $20.7 million related to a decreased forecast of high volume products as Apple transitions toward newer components.

Now what: Gross margin will fall dramatically in the quarter due to the inventory reserve, and is expected to come in around 40.4%. Profitability should recover next quarter back to 50% to 52%. Needham has downgraded the stock from "strong buy" to "buy," while reducing its price target from $45 to $30. The analyst notes near-term weakness from Apple, but remains positive overall of Cirrus Logic's prospects as investors head into the latter half of the year.

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Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. 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.