Tomahawk, WI 01/30/2014 (BasicsMedia) – Cirrus Logic, Inc. (NASDAQ:CRUS) recently published its third quarter financial results for 2013. Cirrus used to supply Apple Inc with its integrated circuits, both analog and mixed-signal. Apple was not its only client, bearing in mind that it serves a wide range of both consumer and industrial markets. However, when Apple announced that it would be looking elsewhere for such solutions, it was only a matter of time before CRUS started feeling the pinch. If investors hoped that they had more time before they felt the effect of Apple’s departure, they would be let down.

Cirrus saw a 39 percent drop in its net income during the third quarter of 2013. Consequently, the US chipmaker believes that it will not post good news to investors in terms of net income between January and March 2014. Although its products are still in great demand across a wide variety of smartphones, and tablets, a well as myriad other devices, the loss of Apple will probably hit CRUS harder than it has been willing to admit up to this point. The company now expects its sales to range between $130 and $150 million.

Analysts had predicted that CRUS would make sales of up to $173.8 million during the current quarter, which appears to have been far-fetched. As a result of this piece of news, CRUS has seen its stock fall massively in the last few days, a trend that is likely to continue for quite some time. The company had no good news to share with its investors pertaining to profit. From a previous total of $67.9 million it posted in the same period in 2012, the current amount that CRUS collected is $41.5 million.

Cirrus Logic Inc did not fare any better in terms of revenue collected during this period. While analysts had predicted that the company’s revenue would fall to $213.3, CRUS reported a different amount of $218.9 million. CRUS seems to have performed dismally in many aspects, and whether this will change in the immediate period, is something that no one can tell with accuracy. With the departure of Apple, CRUS expects to lose up to $150 million, which it has been obtaining from this global brand, and this would deal a massive blow to its finances.

Cirrus hoped that Apple would hire it to supply the latter with its IC solutions for its brand new iPad Air. However, when the product s launched and it became evident that none of Cirrus’ solutions was included in this new Apple product, analysts everywhere were convinced that something was amiss. What this means is that if iPad Air works relatively well, without major complaints from clients, Apple would not feel obliged to return to Cirrus and use its amplifier socket. Consequently, future iPads and iPhones will not have any of Cirrus’ solutions.

The main challenge for Cirrus right now is to find a way of compensating the impending loss of Apple’s business. It has to find ways of plugging the hole that the loss of Apple’s $150 million would create during each financial year.

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