IPOPlaybook Editor Tom Taulli, Audience
Voice and audio solutions firm Audience (NASDAQ:ADNC) is on the verge of a major shift in mobile toward an audio-based interface.
Audience came public at $17 in early May and has since moved to about $20. From 2000 to 2008, the company focused on building processors to improve the voice quality on mobile devices, building a team of world-class auditory neuroscientists.
From 2009 to 2011, revenues soared from $5.7 million to $97.7 million. The company also is profitable, logging $4.2 million in profits for Q1 2011 on revenues of $31.1 million. In all, Audience has sold over 160 million processors.
Audience is getting an enormous boost thanks to its largest customer, Apple, whose Siri program uses ADNC’s noise filtering technology. Other customers include HTC, LG, Sony (NYSE:SNE) and Samsung, and the well should only get deeper as more customers demand voice-command capabilities.
Audience has a strong portfolio of intellectual property — seven issued U.S. patents and 87 pending — that involve critical areas like audio algorithms, audio codecs and amplifiers.
And best of all, the valuation looks fairly cheap right now, too. Deutsche Bank (NYSE:DB) analyst Brian Modoff forecasts the full-year revenues at $131 million and profits of $3.64, which would put a forward P/E of a mere 5 on ADNC’s shares!