Sax, nothing the management could've told you is in the realm of confidentiality. That would be illegal so I call the BS.
I went to CRUS's website. They have 8 job openings of which 6 are for testing (that reads quality control).
Also you think that the next big market for CRUS (from your newsletter) is LED lighting you have no idea a) how engineering companies work b) the state of the LED lighting sector.
CRUS is a chip designer. They specialize in DAC/ADC conversion and audio chips. They have a small power business on the side that's about 30% of their sales. LED is a totally different animal and requires a completely new fab set up. Furthermore, LED is already outdated with technologies like quantum dots. The big push for LEDs to go into TVs and peripheral devices (kindle, ipad etc) has not materialized as better technologies (electropheretic) are available. There is a reason why CREE is at a 52 week low.
As to iPhone 5, the answer is simply who knows. I think the chance of CRUS being in iPhone is about 51%. The 1% comes from the fact that Apple has already worked out all the bugs that can come with CRUS chips. CRUS just needs to make sure that quality control issues are a thing of the past.
I love how you state nobody knows whether CRUS will be in the next Iphone yet you in the next sentence hand out a percentage. Considering CRUS's relationship, new DSP endeavours, and the upbeat guidance going forward from management in addition to their continued buying of stock, I am betting that it is a much higher likelihood that AAPL continues its relationship with CRUS that benefits both parties tremendously.
saxangle-thank you posting what appears to be an informative, useful, and real piece on the state of affairs at CRUS. I have recently spoken with management but did not uncover as much information as posted here. I have just signed up for your newsletter. With all the nonsense that I have read over the years on message boards, it is great to read something that is as meaningful as your post. Thanks again.
You had me at IPhone 5. I also predicted TXN would buy CRUS. As the company's market cap declines, it goes on sale for a potential acquirer. I don't see Apple throwing CRUS in the trash after all these years. I just don't see it.
Hiring engineers huh? Sounds like hey're gearing up for something. IPhone 5 maybe?