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What: Shares of integrated circuit developer Cirrus Logic (NASDAQ:CRUS) surged on Thursday after the company easily beat analyst estimates when it reported its first-quarter earnings on Wednesday. At 12:30 p.m., the stock was up about 20%.

So what: Cirrus reported an extremely strong quarter. Revenue grew by 85.3% year-over-year to $282.6 million, driven by demand for its portable audio products. This beat the average analyst estimate by about $22 million.

The company reported non-GAAP EPS of $0.54, well above the average analyst estimate of $0.43. Non-GAAP EPS grew by 46% year-over-year, driven by higher revenue and a rising operating margin. Gross margin declined year-over-year, but was within the company's previous guidance.

Cirrus expects revenue between $290 million and $310 million during the second quarter, with gross margin expected to be between 45% and 47%. This revenue guidance is well above analyst expectations of just $274.2 million.

Now what: With Cirrus' largest customer, Apple, providing weak guidance earlier in the week, Cirrus' stock, along with the stock of other major Apple suppliers, were hit hard. That drop was more than reversed for Cirrus today, and the stock is now nearing its 52-week high.

Apple accounted for 62% of Cirrus' revenue during the quarter, so the company's fortunes are still ultimately tied to the continued success of the iPhone. However, Cirrus is currently sampling its first smart codec for mid-tier devices, and the company expects Android OEMs to increasingly adopt features that require its products. This could further diversify Cirrus' revenue going forward.

Cirrus reported an extremely strong quarter, and was able to provide guidance well above analyst expectations, despite the disappointment surrounding Apple's results. Cirrus' performance has been volatile in the past, with revenue declining as recently as fiscal 2014, so the sustainability of this growth is an open question. But for now, investors are being rewarded for a massive earnings beat.

Timothy Green has no position in any stocks mentioned. The Motley Fool recommends Apple and Cirrus Logic. The Motley Fool owns shares of Apple. 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.