Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-43

When you say will the 'audio' need to be decompressed, that's outside the scope of the chip. This chip does not decompress data, it simply takes a feed of digital audio in some specific format expected by the chip, and produces audible sound. So yes, obviously an MP3 would need to be processed by some kind of device to stream the required data into the AKP chip itself - but that is also the case for an analogue speaker.