InvenSense Moves Beyond Mobile And Apple
Esekla • 48 Comments
Esekla • 48 Comments
The Pros, Cons, And Questions From The InvenSense Report
Esekla • 86 Comments
Esekla • 86 Comments
InvenSense, Apple, Google, And The Game Of IoThrones
Esekla • 47 Comments
Esekla • 47 Comments
Thu, Jun. 2, 5:35 PM
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
Tue, Feb. 2, 2:42 PM
- On a day the Nasdaq is down 2.1%, many chip stocks are seeing outsized losses (SOXX -3.1%) after IDT (IDTI -28.3%), a mixed-signal chipmaker selling into the server, networking/telecom infrastructure, and wireless charging markets (among others), offered soft FQ4 (calendar Q1) guidance to go with an FQ3 sales beat.
- Major decliners include diversified European chipmakers NXP (NXPI -4.7%) and STMicroelectronics (STM -7%), microcontroller maker Cypress Semi (CY -6.9%), RF chipmaker Qorvo (QRVO -6.4%), motion sensor developer InvenSense (INVN -6%), chip packaging/testing firm Amkor (AMKR -6.1%), and analog/mixed-signal chipmakers MagnaChip (MX -9.8%), Inphi (IPHI -9.1%), Silicon Labs (SLAB -5%), Microsemi (MSCC -4.4%), Semtech (SMTC -5.4%), and Power Integrations (POWI -5.5%). Previously covered: Pixelworks, ON Semi.
- IDT reported Chinese telecom infrastructure demand is "normalizing to slightly less than the peak levels seen in late calendar 2014," that data center customer growth rates have slowed slightly, and that consumer demand has been affected by increased "customer smartphone shipment volatility." Both Apple and Samsung's sales have been under pressure.
- BofA/Merrill has downgraded IDT to Neutral, while Wedbush's Betsy Van Hees has gone contrarian and upgraded to Outperform. Van Hees argues IDT is still positioned to see strong FY17 growth, aided by the ramp of LRDIMM DRAM chipsets for Intel's Broadwell server CPU launch and the ramp of wireless charging IC programs at tier-1 OEMs.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
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.
Thu, Jan. 28, 9:23 AM
- Gainers: NEOS +59%. DNR +17%. BCEI +16%. UA +16%. FB +14%. INO +13%. ATHX +12%. PBR +12%. WLL +11%. MRO +10%. [[PBR-A]] +10%. TRXC +9%. CHK +9%. MLNX +9%. LINE +9%. MT +9%. SDRL +8%. HOG +8%. ETE +8%. STO +8%. CRUS 7%. KMI 7%. BBL 6%. HCA 6%. MJN 6%. CJES 6%. PYPL 6%.
- Losers: NOW -22%. OSIS -22%. EBAY -11%. INVN -10%. URI -10%. INCY -9%. JNPR -10%. OAS -7%.
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, 11:43 AM
- InvenSense (INVN -3.9%) and Knowles (KN -2.1%) are among the iPhone suppliers trading lower after Apple slightly missed FQ1 (calendar Q4) revenue estimates, reported roughly in-line iPhone sales of 74.8M, and (most importantly) offered below-consensus FQ2 sales guidance.
- Other decliners include RF chipmakers Skyworks, Qorvo, and Avago; the Nasdaq is down 0.5%. InvenSense reports this afternoon, and Knowles (hiked Q4 guidance two weeks ago) on the afternoon of Feb. 11.
Fri, Jan. 15, 2:53 PM
- In Wall Street's latest bloodletting, the Nasdaq is down 3.1% and the S&P 2.4%. The decline comes amid tumbling energy prices (crude is below $30/barrel), soft macro data, and disappointing earnings reports from the likes of Intel and Citigroup.
- Tech companies seeing outsized losses amid the carnage include chipmakers NXP (NXPI -8.1%), Qorvo (QRVO -8.9%), InvenSense (INVN -3.7%), IDT (IDTI -6.4%), Sigma Designs (SIGM -6.5%), and Knowles (KN -6.6%), as well as solar plays Trina (TSL -9.3%), ReneSola (SOL -11.5%), JinkoSolar (JKS -10.7%), Enphase (ENPH -8.5%), and Canadian Solar (CSIQ -8.4%).
- Also off sharply: Action camera leader GoPro (GPRO -8.7%), 3D printer maker 3D Systems (DDD -7.5%), daily deals leader Groupon (GRPN -6.4%), server interconnect provider Mellanox (MLNX -8.5%), OLED materials/IP provider Universal Display (OLED -10.3%), Latin American online marketplace MercadoLibre (MELI -7.2%), data management software firm Varonis (VRNS -8.3%), ad tech firm Rocket Fuel (FUEL -7.1%), Chinese online retailers Vipshop (VIPS -6.9%) and Jumei (JMEI -12.7%), and home automation system provider Control4 (CTRL -7.8%).
- GoPro is down 22% since issuing a Q4 warning on Wednesday afternoon. Trina has been downgraded to Neutral by Goldman. IDT and Mellanox could be affected by the weaker-than-expected Q4 sales reported for Intel's server CPU division (DCG).
- Previously covered: Chip equipment makers, Yandex/Qiwi, Intel, Textura, PC industry firms, Rackspace, CommVault, Ericsson
- Wednesday's notable decliners
Fri, Jan. 8, 1:54 PM
- Shortly after fellow iPhone suppliers Qorvo and Cirrus Logic issued sales warnings, Rosenblatt Securities' Jun Zhang has downgraded InvenSense (NYSE:INVN) to Neutral, and set a $10 target.
- Zhang sees share loss at Samsung and growing OIS gyroscope competition, and is also worried about Apple weakness and non-OIS gyroscope price pressure. The iPhone 7 launch is still seen as a positive 2016 catalyst.
- Meanwhile, InvenSense has once more been busy unveiling products at CES. The company has announced: 1) A 3rd-gen, 9-axis, motion sensor declared to have industry-leading power consumption. 2) A 2-axis OIS gyroscope said to have both industry-leading performance and and an unmatched height of 0.5mm. 3) A 6-axis motion sensor (accelerometer + gyroscope) aimed at drones, heads-up displays, and IoT devices. 4) An SoC for wearable/fitness devices featuring a 6-axis sensor, a low-power CPU, and digital motion processor blocks.
- Intel (NASDAQ:INTC), for its part, has announced its button-sized Curie module for embedded/wearable devices (announced last year) will ship in Q1, and cost less than $10. Curie contains a low-power Quark CPU, a 6-axis motion sensor, a DSP sensor hub, a Bluetooth radio, and flash memory, and ships with a software kit containing algorithms and device software (among other things).
Thu, Jan. 7, 4:22 PM
- Qorvo and Cirrus Logic have both issued calendar Q4 warnings after the bell, and indicated calendar Q1 sales will also be soft. The warnings come in the wake of reports indicating Apple has cut iPhone production and component orders.
- Fellow iPhone suppliers are selling off in response. Skyworks (NASDAQ:SWKS) -4% after hours. Avago (NASDAQ:AVGO) -4.3%. NXP (NASDAQ:NXPI) -1.6%. InvenSense (NYSE:INVN) -2.5%. Broadcom (BRCM - set to be acquired by Avago) -1.3%. Synaptics (NASDAQ:SYNA) -1.7%. Jabil (NYSE:JBL) -0.7%.
- Many of the aforementioned names had already seen steep losses in regular trading, as the Nasdaq fell 3% amid a broad market selloff.
Tue, Jan. 5, 12:32 PM
- Citing several parts suppliers, Japan's Nikkei reports Apple (AAPL -2.1%) is "expected to reduce output of the iPhone 6s and 6s Plus by around 30% in the January-March quarter compared with its original plans."
- The paper adds Apple initially told component suppliers to keep production even with that seen for the iPhone 6/6+ a year ago, but has seen 6S/6S+ inventories pile up "at retailers in markets ranging from China and Japan to Europe and the U.S."
- In December, Apple sold off after long-time bull Morgan Stanley forecast (in response to checks) iPhone unit sales will drop 6% in FY16 (ends in September), and added to its losses after Dialog Semi (gets over half its sales from Apple) issued a Q4 warning. In November, Credit Suisse reported of component order cuts.
- Apple is trading near $103 following the Nikkei's report. Suppliers Cirrus Logic (CRUS -4.6%), Skyworks (SWKS -5.2%), Qorvo (QRVO -4.8%), Avago (AVGO -1.9%), and InvenSense (INVN -2.7%) are also under pressure.
- Update: Morgan Stanley reacts to the Nikkei's report by noting a 30% production cut is more than the ~20% it was modeling. (source: Notable Calls)
Dec. 15, 2015, 11:24 AM
- InvenSense (INVN -5.2%) and Cirrus Logic (CRUS -4.7%) have been hit hard after U.K. power management chipmaker Dialog Semi, which gets over half its sales from Apple, cut its Q4 revenue guidance to $390M-$400M from $430M-$460M.
- The revision comes less than two months after Dialog plunged (and took Apple and its suppliers lower with it) in response to a Q3 miss and weak Q4 guidance. It also comes a day after Apple and various suppliers slumped in the wake of Morgan Stanley iPhone estimate cuts.
- Cirrus received 63% of its calendar Q3 revenue from Apple, and 18% from Samsung. InvenSense received 34% from Apple and 19% from Samsung.
Dec. 14, 2015, 1:06 PM
- Apple suppliers Skyworks (SWKS -5.3%), Qorvo (QRVO -6.2%), and InvenSense (INVN -4.4%) are off sharply after Morgan Stanley's Katy Huberty (a long-time Apple bull) forecast iPhone unit sales will drop 3% in calendar 2016 (and 6% in FY16, which ends in September) in response to recent checks. She also respectively cut her calendar Q4 and Q1 iPhone shipment forecasts by 5M and 9M to 74M and 52M. Apple (NASDAQ:AAPL) itself is down 1.6%.
- Huberty blames smartphone saturation in developed markets and (presumably due to forex) higher iPhone prices in emerging markets. Her remarks come amid news Apple has cut the price of the iPhone 5S by 43% in India to Rs 24,999 ($370). The company may be looking to clear inventory ahead of the launch of a 4" iPhone 6C.
- Other suppliers such as Qualcomm, Cirrus Logic, Avago, NXP, and Synaptics are seeing more moderate declines; the Nasdaq is nearly flat. iPhone suppliers also sold off last month after Credit Suisse reported of iPhone component order cuts.
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%.
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
Other News & PR