InvenSense Moves Beyond Mobile And Apple
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Esekla • 48 Comments
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Esekla • 86 Comments
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Esekla • 47 Comments
Mon, May 9, 4:55 PM
- InvenSense (INVN -4.3%) has tumbled 7.1% after hours, caught up in an iPhone shortfall as it posted its first Y/Y sales decline in fiscal Q4 earnings and guided well below consensus for the out quarter.
- Net revenue was down 20% Y/Y to $79.5M, lower even than consensus expectations for declines in sales of 20% and an 83% drop in EPS.
- Gross margin (non-GAAP basis) was 45%, up from Q3's 44%. On a GAAP basis, gross margin of 41% was flat sequentially.
- Management expressed hopes that Internet of Things revenue would help make up for shortfalls at Apple and in Korea: "Our market-leading solutions continued to gain traction in emerging IoT platforms such as drones, virtual and augmented reality, wearables, smart home, and industrial applications."
- On its call, the company guided to fiscal Q1 revenues of $58M-$62M (below consensus for $84.8M) and non-GAAP EPS of -$0.05 to -$0.07, vs. an expected $0.04 profit per share.
- Updated 5:02 p.m.: With the call still under way, shares are now down 9.7% after hours.
- Conference call link
- Press Release
Mon, May 9, 4:15 PM
Sun, May 8, 5:35 PM
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Fri, Jan. 29, 3:27 PM
- Several Apple suppliers are seeing major gains after iPhone power amplifier supplier Skyworks (SWKS +5.5%) and iPhone LCD driver IC supplier Synaptics (SYNA +10.6%) delivered their calendar Q4 reports yesterday afternoon - Skyworks beat estimates, while Synaptics (initially lower) missed on sales and beat on EPS.
- Both companies provided soft Q1 guidance (I, II) - Synaptics also suggested it's seeing weakness at multiple top smartphone OEMs . But with nearly every other iPhone supplier to have reported (not to mention Apple itself) having also guided light, shares are rallying nonetheless.
- Big gainers include mobile DRAM supplier Micron (MU +11.1%), microphone supplier Knowles (KN +11.2%), motion sensor supplier InvenSense (INVN +7.5%), audio codec chip supplier Cirrus Logic (CRUS +6.6%), NFC chip/motion co-processor supplier NXP (NXPI +5.9%), and RF chip suppliers/Skyworks rivals Qorvo (QRVO +6.8%) and Avago (AVGO +5.6%). The Nasdaq is up 1.8%.
- Micron could also be getting a lift from the market-pleasing reports delivered by hard drive giants Seagate and Western Digital, given Micron is exposed to many of the same end-markets as Seagate/Western.
Cirrus Logic is adding to the big Thursday gains seen after the company provided encouraging FY17 comments in its FQ3 earnings call. InvenSense has more than recovered the Thursday losses seen after the company provided soft FQ4 guidance and suggested it had lost share at Samsung.
- Possibly helping Synaptics out: When asked about M&A reports on the earnings call, CEO Rick Bergman didn't quite shoot them down. "[W]e're not going to comment on rumors or market speculation ... at the end of the day it is our job to maximize shareholder value so we'll listen to any great ideas that can do that and evaluate them appropriately."
Meanwhile, Bergman asserted Synaptics' TDDI (integrated touch controller/display driver) sales are due to ramp strongly thanks to numerous design wins at top LCD panel makers, and that its ClearForce pressure-response tech will be "a significant differentiator" for Synaptics' TDDI offerings.
Wed, Jan. 27, 5:19 PM
- Though InvenSense (NYSE:INVN) beat FQ3 sales estimates and posted in-line EPS, the company has guided on its earnings call for FQ4 EPS of $0.00-$0.02, below a $0.12 consensus.
- The outlook comes a day after top client Apple issued soft calendar Q1 guidance. Qualcomm and Cirrus Logic have also provided light Q1 outlooks this afternoon.
- InvenSense has dropped to $7.35 after hours. The 52-week low is $6.96.
- InvenSense's FQ3 results, earnings release
Wed, Jan. 27, 4:20 PM
- InvenSense (NYSE:INVN): FQ3 EPS of $0.18 in-line.
- Revenue of $120M (+3.6% Y/Y) beats by $2.29M.
Tue, Jan. 26, 5:35 PM| Tue, Jan. 26, 5:35 PM | 26 Comments
Oct. 29, 2015, 12:29 PM
- Down on Monday following Dialog Semi's Q3 report and up yesterday in the wake of Apple's results/guidance, chip stocks are selling off again (SOXX -2.5%) after leading microcontroller vendor NXP (NXPI -18.2%) posted mixed Q3 results and (more importantly) guided for Q4 revenue to be down by a "low to upper-teens" % Q/Q. The Nasdaq is down 0.3%.
- Also: 1) NXP rival and fellow European chipmaker STMicroelectronics (STM -5.8%) slightly missed Q3 revenue estimates and has guided for Q4 revenue to be down 6% (+/- 3.5%) Q/Q. 2) Network processor vendor Cavium (CAVM -5%) issued light Q4 guidance, while blaming a distribution model change at its biggest data center customer. 3) Microcontroller maker Atmel (ATML -2.4%, set to be acquired by Dialog) missed Q3 revenue estimates and guided for Q4 revenue of $266M-$286M, below a $296.1M consensus.
- On the bright side, Apple-dependent Cirrus Logic (CRUS -5.7%) beat FQ2 EPS estimates (revenue was in-line) and provided solid FQ3 guidance, and fellow Apple/Samsung supplier InvenSense (INVN +14.3%) beat FQ2 estimates and issued in-line FQ3 guidance. Cirrus is nonetheless selling off; the earnings call (transcript) was generally upbeat, with management talking up FY16/FY17 growth opportunities related to smart codec and boosted amplifier sales.
- NXP merger partner Freescale (FSL -15.4%) is naturally seeing big losses. Other decliners include RF chipmakers Skyworks (SWKS -3.1%), Avago (AVGO -6%), and Qorvo (QRVO -2.6%), analog/mixed-signal chipmakers Texas Instruments (TXN -3%), ON Semi (ON -5.9%), MagnaChip (MX -6.8%), Fairchild (FCS -4.3%), Maxim (MXIM -3.1%), and IDT (IDTI -5.2%), and smart TV SoC vendor/STMicro rival Sigma Designs (SIGM -3.2%).
- Like NXP, Cirrus, and InvenSense, Skyworks, Avago, Qorvo, TI, and Fairchild are Apple suppliers. Fairchild and Maxim have recently benefited from M&A reports (I, II).
- Both NXP and STMicro reported seeing conditions deteriorate as Q3 progressed. NXP added lower-than-expected chip sell-through led to higher channel inventories, and STMicro stated "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive." NXP has added 20M shares to its buyback in an attempt to soften the blow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 28, 2015, 6:07 PM
- InvenSense (NYSE:INVN) has guided on its FQ2 earnings call for FQ3 revenue of $115M-$120M and EPS of $0.17-$0.19 vs. a consensus of $116.8M and $0.18. Shares have risen to $10.95 after hours; they rose 4.1% in regular trading with the help of Apple's results/guidance.
- FQ2 gross margin (non-GAAP) was 43.9%, down from 44.6% in FQ1 and up from the year-ago period's depressed 37.3% (guidance was at 44%-45%). FQ3 GM is expected to be at 44% (+/- 0.5%).
- Operating expenses rose 15% Y/Y to $31.3M. InvenSense ended FQ3 with $273.4M in cash, and $147M in long-term debt.
- FQ2 results, PR
Oct. 28, 2015, 4:23 PM
- InvenSense (NYSE:INVN): FQ2 EPS of $0.16 beats by $0.01.
- Revenue of $111.55M (+23.7% Y/Y) beats by $0.71M.
- Shares +4.4%.
Oct. 27, 2015, 5:35 PM
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Oct. 22, 2015, 12:24 PM
- The Philadelphia Semi Index (SOXX +3%) has risen above $90 for the first time since July on a day the Nasdaq is up 1.5%. Helping out: Texas Instruments (TXN +10.4%) soundly beat Q3 estimates, reported positive growth for its analog and embedded processing (DSP/microcontroller) units in spite of a customer inventory correction, and (with the help of iPhone content gains) provided mostly above-consensus Q4 guidance.
- Meanwhile, Cypress Semi (up 4.1%) is rallying in spite of posting mixed Q3 results and issuing light Q4 guidance. A new $450M buyback is helping.
- TI/Cypress microcontroller peers NXP (NXPI +4.2%), Freescale (FSL +3.5%), STMicroelectronics (STM +2.5%), and Microchip (MCHP +2.9%) are among the gainers. As are TI analog/mixed-signal peers ON Semi (ON +5%), Intersil (ISIL +3.2%), IDT (IDTI +3.6%), Monolithic (MPWR +3.3%), and Silicon Labs (SLAB +2.6%).
- Other notable gainers include InvenSense (INVN +2.6%), Nvidia (NVDA +3.5%), Cavium (CAVM +4.4%), Knowles (KN +3.6%), and Lattice Semi (LSCC +7%).
- On its earnings call (transcript), TI mentioned automotive chip demand (boosted by growing chip content in various systems) was strong. Industrial sales were roughly flat (better than expected), and personal electronics benefited from "demand from one customer" (likely Apple). Wireless infrastructure fell 30% Y/Y (Chinese weakness), but rose Q/Q.
- Chip stocks also outperformed yesterday after Western Digital announced it's buying SanDisk, Lam Research announced it's buying KLA-Tencor, and CPU core giant ARM (ARMH +2.7%) beat Q3 revenue estimates (EPS slightly missed) with the help of a 20% Y/Y increase in ARM chip shipments to 3.6B, and stated it expects 2015 revenue to be in-line with market expectations.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Aug. 5, 2015, 1:54 PM
- Up modestly AH yesterday after providing soft FQ2 guidance to go with an FQ1 beat, InvenSense (NYSE:INVN) has sold off to new 52-week lows today. Barrington Research and Northland have both downgraded to neutral ratings. Northland upgraded to Outperform less than two months ago.
- During the Q&A session of its FQ1 call (transcript), InvenSense received several questions about Chinese demand - other chipmakers with strong mobile exposure have reported seeing high Chinese inventories, and macro concerns are easy to find. CFO Mark Dentinger: "There is nothing indicating that there are major macro problems coming out of China yet, but we're trying to be cautious about how strong the consumer sentiment is going to be there."
- CEO Behrooz Abdi suggested InvenSense is gaining share at Apple, and that demand from its biggest customer remains healthy. "[W]ith regards to new customers, quite frankly in North America, the share continues to increase ... In terms of the seasonality of the market ... product launches and all that, obviously I can't comment to any particular platforms or customers other than, we don't see a marked difference versus last year."
- He admitted InvenSense's top customers (i.e. Apple and Samsung) are less interested in value-added software features than smaller rivals. "[W]hen it comes to software and products such as FireFly, for example, where you have more of the SoC, it applies mostly to the emerging markets who want to compete against the larger OEMs. The larger OEMs, what they want is raw performance, for the most part."
- Dentinger forecast InvenSense's gross margin, which has been pressured by discounts given to Apple/Samsung, will be similar in FQ3 to an expected FQ2 level of 44%-45%, and be in the mid-40% range for the whole of FY16 (ends March '16).
Aug. 4, 2015, 7:00 PM
- Though it beat FQ1 estimates, InvenSense (NYSE:INVN) guided on its earnings call (webcast) for FQ2 revenue of $106M-$114M and EPS of $0.13-$0.15, below a consensus of $115.5M and $0.17. However, a soft outlook was expected by many, given the light calendar Q3 guidance provided by a slew of other chipmakers.
- Gross margin (affected by Apple/Samsung pricing) remained under pressure in FQ1, dropping to 44.6% from FQ4's 46% and the year-ago period's 49.6%, and slightly missing guidance of 45%-46%. FQ2 GM guidance is at 44%-45%. Operating expenses rose 32% Y/Y to $32M (compares with 59% revenue growth).
- Apple and Samsung respectively accounted for 38% and 23% of FQ1 revenue, and a third company (presumably a Chinese OEM) 10%. The U.S. was responsible for 41% of sales, Korea 27%, and China 23%. Smartphones/tablet motion sensor sales made up 72% of revenue, OIS gyroscopes 15%, and other end-markets 12%.
- INVN +0.5% AH to $12.82. Shares fell 6.6% in regular trading ahead of earnings, following other Apple suppliers lower.
- FQ1 results, PR
Aug. 4, 2015, 4:23 PM
- InvenSense (NYSE:INVN): FQ1 EPS of $0.14 beats by $0.02.
- Revenue of $106.29M (+59.4% Y/Y) beats by $3.85M.
- Shares +4.82%.
InvenSense, Inc. designs, develops, markets and sells micro-electro-mechanical system gyroscopes for motion tracking devices in consumer electronics. It targets applications in smart phones, tablet devices, console and portable video gaming devices, digital still and video cameras, smart TVs, 3D... More
Industry: Semiconductor Equipment & Materials
Country: United States
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