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Audience shares fall on weak 3Q forecast

NEW YORK (AP) -- Audience's stock slid Friday as the voice technology company provided a third-quarter forecast below Wall Street's expectations.

THE SPARK: Audience Inc. said Thursday that it foresees a third-quarter adjusted loss of 9 cents to 13 cents per share on revenue in a range of $31 million to $34 million. Analysts polled by FactSet expected earnings of 16 cents per share on revenue of $45.2 million.

For the second quarter, Audience posted adjusted earnings of 24 cents per share on revenue of $45.3 million. Wall Street expected earnings of 17 cents per share on revenue of $44.6 million.

Audience, based in Mountain View, Calif., sells voice technology for a variety of smartphones and tablet computers, including devices made by Samsung, Google Inc. and its Motorola Mobility subsidiary.

THE ANALYSIS: Benchmark's Gary Mobley said in a client note that part of the reason that Audience is facing a tough third quarter is because of the volatility that surrounds Samsung, which comprised 66 percent of its total second-quarter revenue. Since Samsung's Galaxy S IV launched in June, Mobley said it is likely that there will be a big dropoff in sales in the third quarter. This tends to happen when a technology company launches a new device, as many consumers rush out to buy it when it first debuts and then demand levels off.

The analyst maintained a "Hold" rating and lowered Audience's price target to $12 from $15.

A representative for Audience did not immediately respond to an email seeking comment.

SHARE ACTION: Down $2.61, or 20.7 percent, to $9.98 in afternoon trading. The stock has traded in a 52-week range of $5.51 to $19.94. Year to date, the share are up 21 percent.