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Cirrus Logic Inc. Message Board

  • johnmarch13 johnmarch13 Sep 5, 2013 7:41 PM Flag

    Cirrus: An Apple Supplier With A Conservative 40% Upside

    Cirrus: An Apple Supplier With A Conservative 40% Upside
    Sep 4 2013, 01:50 by: Matthew Frankel | about: CRUS, includes: AAPL, CHL BOOKMARKED / READ LATERBookmarked
    Added to your bookmarks on the Seeking Alpha homepage

    Remove BookmarkDisclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

    About a year ago, Cirrus Logic (CRUS) was trading for about $45 per share and looked fairly valued for a high-growth semiconductor company. Now, with shares at about half of that due to both general weakness in the sector and some less-than-stellar revenue numbers, the company is looking like an absolute steal at the current levels. This manufacturer of specialized integrated circuits (ICs) could rebound tremendously if the company's products and customers, especially top customer Apple (AAPL) perform well in the year ahead.

    About Cirrus

    Cirrus Logic is one of the biggest suppliers of analog and digital signal processing components to the audio and energy markets. On the audio side, their audio processors and converters are in a wide variety of products such as smartphones, portable music players, car audio systems, home theater equipment, and televisions, just to name a few. The company also manufactures energy measurement chips used in digital utility meters as well as other converter chips for energy applications. Audio products are Cirrus's bread and butter, and generate about 85% of the company's revenue, and energy products make up the rest.

    Customers (Yes, there is more than one)

    While many tech followers simply recognize Cirrus as an Apple supplier, the company has over 2,500 customers representing a diverse mix of end markets. Other customers include such well-known electronics giants as LG (LGEAF.PK), Philips (PHG), Samsung, and Sony (SNE). Other customers include auto companies like Ford (F) and smaller electronics manufacturer Avnet (AVT), which is actually Cirrus's biggest customer aside from Apple, accounting for about 13% of the company's sales.

    Sentiment: Strong Buy

23.35-0.74(-3.07%)Jul 25 4:00 PMEDT

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