Cirrus Logic (NASDAQ:CRUS) is a leading developer of mixed signal and analog ICs for a range of consumer and industrial markets. The vast majority of the company's revenue base is levered to the performance of Apple (NASDAQ:AAPL) iPhone and iPad products (>80% in the MRQ), for which Cirrus develops custom audio codec integrated circuits ("ICs"). While such leverage to Apple's key product lines makes the firm susceptible to longer term margin pressure, it is my belief that as the firm has already guided down its long-term gross margin and operating margin ranges to mid-40% and 20%, respectively, that the gross margin reset is largely baked in and the focus going forward will be on product cycles...
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