Thu, Oct. 29, 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
Wed, Oct. 28, 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
Wed, Oct. 28, 4:23 PM
Tue, Oct. 27, 5:35 PM
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Thu, Oct. 22, 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
Wed, Aug. 5, 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).
Tue, Aug. 4, 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
Tue, Aug. 4, 4:23 PM
Mon, Aug. 3, 5:35 PM
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Tue, May 5, 1:50 PM
- Just as it beat FQ4 revenue estimates while posting in-line EPS, InvenSense (NYSE:INVN) guided on its CC (transcript) for FQ1 revenue of $100M-$105M (above a $98.4M consensus) and EPS of $0.11-$0.13 (in-line with a $0.12 consensus). Shares are lower amid a 1.4% drop for the Nasdaq.
- Weighing on FQ4 EPS: Gross margin (non-GAAP) was 46%, flat Q/Q, down from 50% a year ago, and at the low end of a 46%-47% guidance range. FQ1 GM guidance is at 45%-46%. In addition, CFO Mark Dentinger stated he sees a "mid-40s profile" for gross margins through the middle of FY16, with optical image stabilization (OIS) gyroscopes possibly providing a lift.
- Citing margin concerns and a lack of visibility into improvement, Craig-Hallum has downgraded InvenSense to Hold. Worries about the margin impact of discounts given to Apple and Samsung to secure major design wins has been around for a while. Dentinger noted during the Q&A share gains by Chinese OEMs would likely provide a margin boost.
- Apple/Samsung made up 61% of FQ4 revenue (32% and 29%) vs. 69% (45% and 24%) in FQ3. 71% of revenue was from smartphone/tablet motion sensors vs. 81% in FQ3; OIS rose to 18% of revenue 10% (a Galaxy S6 design win likely helped), and all other markets rose to 11% from 9%.
- FQ4 results, PR
Mon, May 4, 4:26 PM
- InvenSense (NYSE:INVN) has slipped 5.5% in late trading after posting in-line earnings results for its fourth quarter, and revenue that was up 68% Y/Y but down 14% sequentially.
- Adjusted EPS of $0.12 was in-line; a break-even GAAP result was $0.02 better than expected.
- Gross margin was 43% in GAAP terms. Excluding stock-based compensation/taxes and amortization, gross margin was 46%.
- Net cash from operations was $51.8M, compared to -$23.1M a year ago. Combined with investing/financing activities, net increase in cash and equivalents was $20.6M to bring its total to $85.64M.
- Conference call at 4:30 p.m. ET.
- Press release
Mon, May 4, 4:14 PM
Sun, May 3, 5:35 PM
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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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