“Apple (AAPL) investors just got a reason to expect great news in the next earnings report,” Anders Bylund reports for The Motley Fool. “Audio-chip specialist Cirrus Logic (CRUS) makes the sound-processing circuits for every kind of Apple gadgetry. So Apple accounts for about half of Cirrus’ sales today, and that percentage is only growing. When a parts supplier is this committed to a single customer, the supplier becomes a great barometer of demand for its dearest client.”
Bylund reports, “Cirrus’ shares opened 12% higher today thanks to a tremendous business update. Two weeks ahead of its full quarterly report, Rhode felt compelled to tell us that third-quarter sales will land at roughly $122 million — far ahead of the $105 million analyst consensus.”
“Energy products will account for $17 million of those sales, down from $18 million in the previous quarter. All the rest is audio sales. That’s a 25% boost to that division from one quarter to the next,” Bylund reports. “Let’s put that number into a seasonal perspective: In 2010, Cirrus’ sales fell 5% between the second and third quarters. And that performance was good enough to nearly double Cirrus’ share price between the two reports.”
Bylund reports, “I’ll read the tea leaves for you: Apple’s sales will be terrifying in their holiday-fueled glory.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “David E.” and “Touch” for the heads up.]