Williams Financial Comments on Cirrus Logic (CRUS) Success After Management Discussion
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
5 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Analysts at Williams Financial Research commented on Cirrus Logic (Nasdaq: CRUS) following the company's participation in their Quarterly Management Discussion Series. As would be expected, the focus was on the Apple (Nasdaq: AAPL) relationship.
The firm notes that while Apple was not mentioned specifically it makes up over 60% of Cirrus Logic's revenue and the company is working to double its inventory to service the iPhone 5 launch. "It looks as though this effort is progressing well and that there should not be any supply constraints," the firm notes.
Cirrus has set expectations of 5-10 million LED controllers units delivered this year, up from 500,000 delivered last quarter.
Outside of its strong portable audio demand and its LED controller ramp, the company is seeing a fairly sluggish market for the remainder of its portfolio, the firm notes.
Concluding, the firm notes "We believe CRUS is very well positioned with its entrenched position as the exclusive provider of audio solutions to all of Apple’s products and that its custom solution approach makes it unlikely that competitors will be able to dislodge CRUS anytime soon. The company also has a significant opportunity in LED controllers, which is a 400 million unit market today and growing rapidly with the falling prices of LEDs. The risk is the company’s customer concentration, largely because of its design approach. However, at least for the near-term Apple's success isn’t an issue."
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The firm notes that while Apple was not mentioned specifically it makes up over 60% of Cirrus Logic's revenue and the company is working to double its inventory to service the iPhone 5 launch. "It looks as though this effort is progressing well and that there should not be any supply constraints," the firm notes.
Cirrus has set expectations of 5-10 million LED controllers units delivered this year, up from 500,000 delivered last quarter.
Outside of its strong portable audio demand and its LED controller ramp, the company is seeing a fairly sluggish market for the remainder of its portfolio, the firm notes.
Concluding, the firm notes "We believe CRUS is very well positioned with its entrenched position as the exclusive provider of audio solutions to all of Apple’s products and that its custom solution approach makes it unlikely that competitors will be able to dislodge CRUS anytime soon. The company also has a significant opportunity in LED controllers, which is a 400 million unit market today and growing rapidly with the falling prices of LEDs. The risk is the company’s customer concentration, largely because of its design approach. However, at least for the near-term Apple's success isn’t an issue."
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