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 chip maker Cirrus Logic (NASDAQ:CRUS) sank 14% today after its quarterly results and outlook missed Wall Street expectations.

So what: The stock has been crushed over the past year on weakness from its largest customer, tech giant Apple, and today's first-quarter results -- revenue jumped 57% to $155.1 million but it missed consensus of $160 million -- coupled with downbeat guidance only reinforce that trend. Additionally, gross margin for the quarter fell to 51.2% from 66% in the year-ago period, suggesting that Cirrus' competitive position is weakening, as well.

Now what: Management now sees second-quarter revenue of $170 million-$190 million -- below the average analyst estimate for $190 million -- and expects gross margin decrease from to 46%-48% from 51%. "We're presently selling products into several additional mobile phone manufacturers and are in discussions with multiple others," said CEO Dr. Jason Rhode in a conference call with analysts. "Design activity remains healthy in LED lighting particularly with our newest single stage LED controller as we continue to ramp with our existing customers and engage other OEMs. We believe innovation in these target markets is in the earlier stages and we continue to work with an expanding list of market leaders in order to capitalize on our revenue growth opportunities." With the stock now down about 60% from its 52-week highs and trading at a cheapish forward P/E of 10, Foolish bargain-hunters might even want to consider buying into that optimism.     

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.