Audience -18.6% AH on light guidance, smartphone trends blamed

|By:, SA News Editor

Audience (ADNC) expects Q3 revenue of $31M-$34M and EPS of -$0.09 to -$0.13, well below a consensus of $44.9M and $0.15.

The audio processing chip/IP developer says it sees "shifting trends in the smartphone market that will present both challenges and opportunities."

As with Atmel's guidance, Samsung's Galaxy S4 production cuts could be responsible. An Audience processor is found inside Samsung's flagship device.

Beyond the S4, there has been a demand shift towards low-end/mid-range phones, where Audience's voice-enhancing processors are sometimes a tougher sell to OEMs.

Q2 R&D spend +30% to $10.3M, SG&A +32% to $10.8M. Rev. growth was 36%.

Q2 results, PR