Audience (ADNC, Financial) is believed to extremely well-positioned for integrating every element such as hub connectivity, motion and voice processing, codec and context consciousness to deliver unique customer solutions.
The initial product leveraging the always-on technology is employing the es704 voice processor with its nonstop voice and voice wakeup ability. Audience is releasing this solution in the market with another major launch in the third quarter, available for China Mobile (CHL, Financial), the ZTE Star 1 smartphones, China Unicom (CHU, Financial) and several other mobile operators across Asia. It also entered into a Smart Voice Alliance with other key players of China like AutoNavi, Baidu (BIDU, Financial), ZTE and Nuance (NUAN, Financial).
Audience is also working closely with China Mobile for delivering voice quality specification for voice over LTE or VoLTE. In the third quarter, several 3G midrange phone manufacturers and 4G product developers in China have contacted Audience for supporting and implementing both the forthcoming China Mobile VoLTE requirement and the HD voice specs.
In other markets, Audience is witnessing solid interest in internet of things products, PCs and TV remote controls.
Fundamentals
The PEG ratio of 1.10, above 1 indicates slower growth and comparable to the industry’s average of 1.04. The profit margin of -23.99% is disappointing and represent no profit but loss. The revenue per share and diluted EPS of 5.77 and -0.78 respectively depicts loss in investor earnings. The quarterly revenue growth of -34.30% is disappointing compared to the industry’s average of 15.00%.
The current ratio of 6.24 signifies the robustness of the company’s balance sheet. Finally, the investors are advised to wait and watch until a major turnaround occurs and the company returns to profitability looking at the poor long-term growth prospects indicated by the CAGR for the next five years per annum of -3.30% compared to the solid industry’s average of 16.07%.
