This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Can Audience Block Out the Doubters?

Stocks in this article: ADNC AAPL QCOM GOOG

However, Apple ending the relationship in its "i-Devices" leaves many questions as to the value of Audience's technology.

The first and obvious question is: If Apple, which unlike any other company values the user experience, no longer sees the need to further the Audience relationship, will other companies see Audience's technology as a viable solution in their smartphones and tablets?

This opens several doors to competitors of Audience, and even Qualcomm (QCOM), which does not directly compete. But Qualcomm has similar technology that does noise suppression in a software platform.

In other words, although Audience's third-quarter and possibly its fourth-quarter numbers may not reflect Apple's defection, it is certain to be a major blow going forward and the impact will be felt likely in the first two quarters of 2013.

On the other hand, current investors may find comfort in knowing that Audience still has major relationships with both Samsung and Google (GOOG).

Still the challenge for the company is trying to convince new and existing customers why its technology deserves slots in their hardware. After all, if having Siri, which relies of voice quality and noise suppression, could not keep Apple interested, it might be quite a challenge going forward.

Bottom Line

Since reaching a low of $5.51 the shares of Audience have rebounded nicely by over 42%. Investors want to know if the stock has reached bottom.

Though the shares look cheap, I worry the adverse impact of Apple's lost relationship might not be over. The recent stock rebound is nothing more than a knee-jerk reaction to what was an overreaction. Staying on the sidelines still looks like the best play.

At the time of publication, the author had a position in AAPL.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs