This Day On The Street
Continue to site
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

Audience (the Company) Deserves a Standing Ovation

Audience still has some prominent customers including Google (GOOG) and Samsung. So it's not as if Audience was left without a "program." The company still had a revenue plan.

Although Audience has recovered quicker and much better than expected, Apple was still responsible for 40% of the company's overall revenue, making the loss of Apple as a customer significant.

Apple still provides 33% of Audience's revenue, and Audience management expects that percentage to continue to decline as Apple rolls out new products that won't include Audience's technology.

However, this brings up an interesting question. With Apple's reputation for having a strong emphasis and focus on the user experience, what does it say about Audience's technology that Apple feels it can do without it?

Although Qualcomm (QCOM), which has a great relationship with Apple, has its own noise-canceling technology, it's not nearly as advanced as what Audience offers. Plus, it's merely software-based.

For that matter, as component suppliers are concerned, Audience is beginning to gain ground on not only Qualcomm, but also popular chipmakers such as Texas Instruments (TXN).

Bottom Line

Although I'm not ready to proclaim that Audience investors should settle into their seats and get comfortable, the company's management deserves a standing ovation for having steered this ship as well as it has.

Going forward, Audience will need to figure out how to secure more business and convince new and existing customers why its technology belongs in their hardware. To the extent that it can do this well, the stock should work in the long term. A couple of more quarters like this and shares could reach $20 in the second half of the year.

At the time of publication, the author was long 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

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
AAPL $125.42 0.72%
ADNC $4.89 -0.41%
FB $85.76 -0.04%
GOOG $520.51 -0.19%
TSLA $268.26 2.38%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.12 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs