Loading...
Loading...
Credit Suisse lowered its rating on Audience
ADNC from Outperform to Underperform and reduced its price target from $22.50 to $6.80.
Credit Suisse noted, "ADNC IP Not Expected In iPhone 5. ADNC issued a press release and hosted a conference call to intimate that the company's Voice Isolation/Noise Reduction IP is not likely to be in the iPhone 5 platform as previously expected. While ADNC does not expect the iPhone 5 decision to impact the royalty revenue tail for iPhone 4S (expect $2-3m/quarter for 2013), we are lowering our 2013 royalty revenue estimate from $44.4m to $10.0m (-77%) and total revenue estimate to $160.0m from $175.0m (-9%). While the net impact to revenue is not as severe as one might fear, it results in a 75% ($0.67) reduction to EPS, as royalty GMs of 95% compare to product GM of 40-50%."
Audience closed at $18.86 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
We simplify the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in