“Audience Inc. [ADNC], which makes chips used in Apple Inc’s iPhones, said its top customer is unlikely to use its technology for the latest iPhone, sending its shares down 58 percent in after-hours trading,” Aurindom Mukherjee reports for Reuters.
“Audience’s chips, which improve voice quality in mobile devices by filtering out background noise, are supplied to contract Apple manufacturers including Foxconn and Protek Ltd.,” Mukherjee reports. “The Mountain View, California, company also sells processors and licenses its processor intellectual property to Apple and some of its units.”
Mukherjee reports, “Although Audience did not specify why Apple would no longer use its technology, it noted in a conference call with analysts that the iPhone maker has built up its own audio team. For Audience, Apple’s licensing of its filtering technology accounted for 37 percent of total revenue for both the three months and six months ended on June 30. The company expects to continue to get royalty income from earlier iPhone models that use its technology.”
“Shares of the company, which went public in May, fell to $7.99 in trading after the regular market close, knocking $200 million off its market value,” Mukherjee reports. “The stock closed at $18.86 on Nasdaq on Thursday.”
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MacDailyNews Take: So far, 57.58% of Audience’s value just evaporated. Ouch!