Thu, Jan. 29, 6:05 PM
- InvenSense (NYSE:INVN) has guided on its FQ3 CC (webcast) for FQ4 revenue of $95M-$98M and EPS of $0.11-$0.13. The former is above a $92.2M consensus, and the latter in-line with a $0.12 consensus.
- FQ3 gross margin (non-GAAP) was 45.7%, up from FQ2's 37.2% (hurt by an ~800 bps inventory charge) but down from 50.9% a year ago and unfavorable to guidance of ~46%-47%. FQ4 GM guidance is also at ~46%-47%;
- InvenSense says it sees a flat to slightly improving GM environment over the next 2-3 quarters. Margin worries also contributed to last October's post-earnings plunge.
- Smartphones/tablets were 81% of revenue in FQ3, gaming 3%, and optical image stabilization/other 16%. InvenSense's top two customers (presumably Apple and Samsung) made up 69% of revenue (specifically, 45% and 24%) vs. 55% in FQ2.
- Shares are down to $13.90 in AH trading.
- FQ3 results, PR
Thu, Jan. 29, 4:36 PM
Wed, Jan. 28, 5:35 PM
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Oct. 29, 2014, 2:32 PM
- "Despite having secured a dominant position at Apple and Samsung, indeed, 100% share, InvenSense (INVN -24.8%) executed poorly in what was anticipated to be one of the strongest quarters in the company’s history," writes Pac Crest's John Vinh, downgrading to Sector Perform.
- Vinh adds "price pressures from Apple and Samsung and the acknowledgment of potential second-sourcing significantly reduce our confidence that InvenSense will be able to sustain growth and avoid multiple compression." He also notes InvenSense suggested price pressure is expected to continue for the next several quarters.
- Piper has downgraded to Neutral, and respectively slashed its FY15 and FY16 EPS estimates to $0.42 and $0.75 from $0.80 and $1.12. Northland has cut shares to Market Perform.
- Roth's Krishna Shankar is still a believer. "We believe that customer diversification, higher value-add SoC chips with software and algorithms, high-end platforms such as 7-axis and 9-axis platforms, together with new applications such as health and fitness, wearables, new gaming consoles, and smart TV remote controls will likely help gross margin improvements longer-term."
- Shankar still respectively forecasts 44% and 30% FY15 and FY16 revenue growth, and expects share gains at LG and Chinese Android OEMs to offset Samsung weakness.
- FQ2 results, guidance/details
Oct. 28, 2014, 5:07 PM
- InvenSense (NYSE:INVN) guides on its FQ2 CC (webcast) for FQ3 revenue of $108M-$115M and EPS of $0.17-$0.21, below a consensus of $116.3M and $0.30.
- FQ2 gross margin was 37.2%, down sharply from 49.6% in FQ1 and 51.9% a year ago.
- The company states an inventory charge (largely related to older products) had an ~800 bps GM impact, and that "a shift in revenue mix towards lower margin, high volume customers" had a ~500 bps impact. The latter could be a reference to Apple, which is well-known for striking hard bargains with suppliers.
- FQ3 GM is expected to be in a 46%-47% range; the inventory issues will be gone, but InvenSense expects the pricing/mix challenges it saw in FQ2 to remain.
- GAAP opex rose 71% Y/Y in FQ2 to $26.2M, mostly thanks to a 120% increase in R&D spend to $21.6M. Spending is expected to remain elevated in FQ3.
- Management spent much time on the CC talking up growth opportunities in areas such as wearables, smartphone camera OIS modules (expected to make a "meaningful contribution" to FY15 results), smart TV remotes, and mobile sensor hubs featuring proprietary algorithms (one was announced today).
- FQ2 results, PR
Oct. 28, 2014, 4:14 PM
Oct. 27, 2014, 5:35 PM
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Jul. 29, 2014, 5:54 PM
- InvenSense (NYSE:INVN) guides on its FQ1 CC for FQ2 revenue of $86M-$91M and EPS of $0.15-$0.16. The former is above an $83.3M consensus, while the latter is below a $0.19 consensus.
- Nonetheless, the company is raising its FY15 (ends March '15) EPS guidance to $0.80 from a prior $0.70-$0.75; consensus is at $0.71.
- Shares +1.2% AH.
- FQ1 results, PR
Jul. 29, 2014, 4:25 PM
Jul. 28, 2014, 5:35 PM
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Jul. 18, 2014, 2:51 PM
- "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
- Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
- 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
- On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
- RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
May. 2, 2014, 3:03 PM
- "We think the tone is similar to [modem maker] USRobotics many years ago when an inventory build into a major production ramp polarized investors ... while the longs were talking about this new online 'internet.' We don’t want to draw a shameless parallel here with sensor proliferation and contextual awareness, but we will," writes Needham's Vernon Essi, diving into ancient tech history to defend InvenSense (INVN -6.5%) following its soft FQ1 guidance.
- Pac Crest's John Vinh is also defending, albeit while cutting his PT by $5 to $22. “Despite a disappointing outlook due to weak order trends at Samsung (47% of revenues in FQ4 vs. 35% of revenues in FQ1), we remain confident that INVN is on track to ultimately penetrate Apple this year."
- On the FQ4 CC (transcript), CEO Behrooz Abdi stated 6-axis MotionTracking sensors will continue accounting for over 70% of units and revenue in FQ1. He also talked up the potential of a 7-axis sensor (includes a pressure sensor) and ultra low-power sensors.
- Vinh questioned Abdi about the pace of image stabilization (OIS) design wins; Abdi insisted InvenSense has seen "quite a bit of adoption," but added tier-1 OEM wins could take a year or two.
- While FY15 revenue guidance was reiterated, FY15 EPS guidance has been set at $0.70-$0.75, below an $0.83 consensus. LG and Xiaomi are expected to join Samsung as 10%+ FQ1 customers.
May. 1, 2014, 5:38 PM
- InvenSense (INVN) guides on its FQ4 CC for FQ1 revenue of $63M-$66M and EPS of $0.07-$0.08, below a consensus of $69.1M and $0.16. Top customer Samsung is expected to continue accounting for a mid-30s % of sales.
- The company still expects 25%-35% FY15 (ends March '15) revenue growth; the consensus is at 29.2%.
- The outlook comes after InvenSense posted mixed FQ4 results. Oppenheimer downgraded shares a month ago, citing competition and the timing of image stabilization/wearable design win ramps.
May. 1, 2014, 4:49 PM
Apr. 30, 2014, 5:35 PM
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Feb. 26, 2014, 11:24 AM
- Chip stocks are outperforming (SOXX +1.1%) after Avago (AVGO +5.1%) posted an FQ1 beat and strong margin numbers (albeit while guiding light, as many expected), and STMicroelectronics (STM +3.9%) exec Paul Grimme states his company's European sales are stabilizing, with Germany leading the way.
- Notable winners: AMBA +5.4%. AMCC +5.2%. CRUS +3.3%. SWKS +3%. QUIK +4.1%. INVN +2.7%. RFMD +3.5%. TQNT +3%. SIMO +2.7%. CAVM +3.6%. Nearly all of the aforementioned names have strong mobile and/or telecom equipment exposure.
- RBC has hiked its Avago PT to $66 from $64, and says the chipmaker remains its "top play on China and global LTE deployments." With LSI in tow, the firm thinks FY15 (ends Oct. '15) EPS will top $5.
- Morgan Stanley ($68 PT) is confident Avago can raise LSI's op. margin to 30% from 17% over the next few years, much as the company has doubled its own op. margin to 30% post-LBO.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
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