Besides, Qualcomm and Cirrus ... now Audience gets to compete with DSP too. One product spec comment that is noteworthy is the following : ""We are the only company that has technology to cancel noise when using speaker phone, in a hands-free mode," he added, noting the other technologies can only be used in normal conversation mode." - DSP (read more: google or yahoo search "New chip to compete with Audience, Cirrus Logic and DSP") You can also find this article in yahoo finance in headlines for ADNC. One thing that I learned a long time ago, beware of too crowded of markets and heavy competition as technology is changing as fast as monthly. How you invest around that reality is beyond me. When you choose wrongly, you get persecuted .... ADNC is a perfect example of how a stock gets destroyed by 80% overnight, as demonstrated in 2012 just for losing Apple as it's customer. And, an insider here or there trying to "show support" for their own shares doesn't change anything. The above notes are deadly important. What traders forget is that insiders also buy their stocks shares just prior to bad news about to be made public, like "secondary offerings for example, new debt facilities, and dilution of earnings".
The problem with the big companies is that they sell chips, say thank you very much and see you next time.
That means that companies building phones have to have engineers on staff year round to handle 2 to 3 weeks worth of work a year. Very expensive overhead. Or worse, they have to take engineers trained to to something else and ask them to perform voice chip integration for two weeks which isn't exactly their specialty without knowing where the carriers are going technologically.
Audience takes your phone and recommends options for every aspect of the design. They work with the carriers so your phone performs with their requirements. Then they perform the integration work after the company has chosen a chip and tweak performance with engineers that is all they do, handing you back a superior product to one you could do yourself. They will even work with the assemblers for you to ensure better communication and outcomes.
That's the real difference and also the margin enhancing one to. Plus, they have a much better handle on chip requirements so that they or the building company doesn't end up with excess inventory that goes out of date.
DSP is lying about the speaker noise reduction. ADNC's processor works with a speaker phone. DSP is desperate. Why would ADNC need a secondary offering when they have a buttload of cash and are cash positive? This company will beat earning yet again Q1 because most people just don't understand how far ahead ADNC is technologically. I'm happy to keep taking the cheap shares that get sold. A lot of shorts got burnt today. :)