Audience, Inc., a provider of intelligent voice and audio solutions, has released an outlook on the prospects for use of its processor IP “in the next generation mobile phone release of a large OEM customer,” as well as on its entire business in the near-future.
Audience is known to have created a voice-processing chip for the iPhone 4 in 2010. Apple eventually took the technology and embedded it into the A5 chip
powering the iPhone 4S.
A press release from the Mountain View-based provider of voice and audio solutions ambiguously states
that Apple isn’t likely to use its technology in the iPhone 5, despite a signed agreement that granted the Cupertino giant access to its IP.
The text reads, “Audience sells processors and licenses its processor IP to Apple Inc. and certain of its subsidiaries (collectively, OEM) for inclusion in the OEM's mobile phones pursuant to a Master Development and Supply Agreement (MDSA).”
“Pursuant to a statement of work under the MDSA, amended in March 2012, Audience developed and licensed a new generation of processor IP for use in the OEM's devices. However, the OEM is not obligated to use Audience's processor IP,” said Audience.
The report then specifically outlines that Audience’s latest breakthroughs in voice and audio processing are likely not a part of the next-generation iPhone (the iPhone 5) from Apple.
“Audience now believes that it is unlikely that the OEM will enable Audience's processor IP in its next generation mobile phone. Audience is not aware of any intended changes by this OEM to its use of Audience's processors or processor IP in prior generations of the OEM's mobile phones.”
On Thursday, September 6, the company said it did not expect any negative impact on its business outlook for the third fiscal quarter of this year, as a result of this situation.
Audience's stock was down 40% in after-hours trading following the announcement.
The company’s bottom lines for Q4 2012 and so forth are also likely to take a hit.