IPO Preview: Audience

By IPOdesktop:

Based in Mountain View, California, Audience (ADNC) scheduled a $79 million IPO with a market capitalization of $290 million at a price range mid-point of $15 for Thursday, May 10, 2012. [S-1]

ADNC is one of 12 IPOs scheduled for the week of May 7 (Full IPO calendar here).

Manager, Joint Managers: J.P. Morgan; Credit Suisse; Deutsche.

SUMMARY

• ADNC provides intelligent voice and audio solutions that improve voice quality and the user experience in mobile devices.
• Apple is the largest customer. In the March 2012 quarter ADNC shifted to licensing the product to Apple and received $19mm in revenue.
• On page 11 in the S-1 fling ADNC said “For the new generation processor IP, the royalty this OEM is required to pay us is subject to a lifetime maximum.” S-1, page 11
• But the ‘lifetime maximum’ is not specified in the SEC filing. It could be low or high relative

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