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InvenSense (INVN)

  • 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
  • Tue, May 5, 9:17 AM
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  • Mon, May 4, 5:36 PM
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  • 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
  • Tue, Apr. 14, 10:26 AM
    • Rosenblatt Securities has upgraded InvenSense (NYSE:INVN) to Buy, and hiked its target by $5 to $20.
    • The upgrade comes ahead of InvenSense's May 4 FQ4 report. 23.2M shares (a third of the float) were shorted as of March 31.
  • Fri, Mar. 27, 4:54 PM
    • After falling hard on Wednesday amid cautious remarks from TSMC (TSM -1.1%), and falling again (to a lesser extent) on Thursday in the wake of SanDisk's warning, chip stocks rallied during the final 30 minutes of trading (SOXX +2.8%) in response to a WSJ report stating Intel is in talks to buy FPGA vendor Altera. A deal would be among the biggest in the chip industry's non-stop consolidation wave, rivaled only by NXP/Freescale.
    • In addition to Altera rivals Xilinx and Lattice (previously covered), chipmakers catching a bid included Avago (AVGO +2.8%), InvenSense (INVN +2.6%), Cirrus Logic (CRUS +2.5%), Synaptics (SYNA +1.9%), Analog Devices (ADI +2.5%), QuickLogic (QUIK +3.8%) (a smaller FPGA maker), and Fairchild (FCS +3.2%).
    • InvenSense has occasionally been the subject of speculation Intel or Qualcomm could make a bid. Acquisition-hungry Avago, meanwhile, is reportedly on the hunt for new deals after bidding for Freescale.
    • More than a few analysts have defended chip stocks following the TSMC remarks. Jefferies and Susquehanna have argued TSMC's issues are due to share loss to Samsung (partly for Apple/Qualcomm orders), and BMO notes Nvidia (a major TSMC client) recently disclosed adding Samsung as a foundry partner. It's a fan of Synaptics and Maxim (MXIM +2.2%) due to their Galaxy S6 exposure.
    • BofA/Merrill reports seeing pockets of excess chip inventory (for PCs and emerging markets smartphones) during a Taiwanese trip, but thinks Apple and Samsung phone-related orders are healthy, as are auto, industrial, and data center chip demand.
    • Credit Suisse: "Our cyclical and structural call on Semis remains unchanged – cycle-to-date has been well behaved, Semi rev to global GDP is poised to inflect higher and Semis relative valuation still attractive – growing top/bottom line faster than SPX, twice the margin profile, essentially same dividend yield trading at a two turn discount."
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  • Wed, Mar. 11, 2:32 PM
    • Down 3.2% yesterday thanks to a broad market selloff, InvenSense (NYSE:INVN) has more thane erased its losses today. Volume is fairly light - 645K shares vs. a 3-month daily average of 1.82M.
    • In a column published yesterday evening, SA author Eskela highlights the launch of two new products (previous) at last week's Mobile World Congress - a 6-axis SoC that improves power consumption, and a software library meant to improve location-tracking in areas where GPS signals are weak/unreliable.
    • The author also argues recent sales data provided by Apple/Samsung bodes well for InvenSense - Apple stated on Monday it has cumulatively sold 700M iPhones (implies 35M sales since the end of 2014), and Samsung has announced Galaxy S6 pre-orders have topped 20M.
    • He doesn't think an expected Apple Watch gyroscope win will move the needle much, given limited early volumes relative to major smartphone wins, but (like some on the sell-side) is upbeat about InvenSense's long-term wearables opportunity. "I think the truly killer design in wearables will be the combination of gesture recognition with always-on microphones, as featured by the Apple Watch. InvenSense is the obvious provider for these solutions..."
    • The motion sensor maker had 23.1M shares shorted as of Feb. 27 - that's down from 30.4M on Oct. 15, but still equal to 1/3 of the float.
  • Mon, Mar. 2, 1:41 PM
    • The Philadelphia Semi Index (SOXX +2.4%) has rallied to new highs after NXP announced it's buying microcontroller, network processor, and RF amplifier supplier Freescale for $16.7B after factoring net cash/debt, the biggest deal yet in the chip industry's ongoing consolidation wave. The Nasdaq is up 0.5%.
    • Microcontroller makers are among today's big gainers - NXP/Freescale assert they'll be the world's biggest supplier of general-purpose microcontrollers. Standouts include Atmel (ATML +6%) and STMicroelectronics (STM +3.4%), as well as Cypress (CY +3.1%) and merger partner Spansion (CODE +3.2%).
    • Other notable gainers include InvenSense (INVN +3.4%), Ambarella (AMBA +6.3%), Audience (ADNC +5.5%), Cirrus Logic (CRUS +3.7%), Cavium (CAVM +4.2%), ON Semi (ONNN +3.5%), Silicon Motion (SIMO +3.5%), InPhi (IPHI +3.8%), and TowerJazz (TSEM +5.5%).
    • With the Mobile World Congress as a backdrop, InvenSense has unveiled a 6-axis SoC that pairs a gyroscope and acceleromoter with a motion processor and related software/algorithms; the company claims 25%-50% better power consumption than rival solutions. It has also launched a software library meant to "provide sensor-assisted positioning in places where GNSS alone cannot provide desired accuracy."
    • Cavium has announced its OCTEON Fusion-M processor line for mobile base stations. The chips support up to 16 custom CPU cores running at 2GHz., and are declared by Cavium to enable "Smart Radio Heads" that can adapt to network conditions. They begin sampling in Q3.
    • Previously: Chip product launches: ARMH, EZCH, BRCM, NXPI, XLNX, IDTI
  • Mon, Feb. 23, 11:38 AM
    • "InvenSense (INVN +2.5%) has content opportunities in OIS, algorithm and software content, multi-core hub, pressure sensors, and microphones, which combined should drive a more than doubling of their served available market in the coming years from nearly $1.00 in content per smartphone today," writes Barrington Research's Ted Moreau Jr., launching coverage with an Outperform rating and $20 target.
    • Moreau is also upbeat about InvenSense's IoT/wearables opportunities, and (like others) sees a mix shift towards IoT/wearables (and away from smartphones/tablets) boosting the motion sensor maker's margins and cash flow.
    • Shares are close to where they traded before InvenSense offered in-line FQ4 EPS guidance (due to margin pressure) to go with above-consensus sales guidance (due to strong iPhone-related orders) on Jan. 29. They're down 43% from a 52-week high of $26.78, and go for 3.2x estimated FY16 (ends March '16) sales.
  • Fri, Jan. 30, 6:27 PM
    • InvenSense (NYSE:INVN) pared the steep AH losses it saw yesterday due to the margin concerns that accompanied its FQ3 results and FQ4 guidance, but nonetheless closed down 6.6%.
    • Rosenblatt's Brian Blair (Neutral) spells out the margin concerns weighing on shares:  "The lack of EPS upside and the gross margin softness speaks to the aggressive pricing that we believe has been necessary for InvenSense to win/maintain designs with Apple and creates a continued overhang for the stock." He also believes more FQ3 upside was expected given Apple's strong calendar Q4 iPhone sales.
    • Canaccord's Matt Ramsay (Buy) expects gross margin to remain "well-below the low-50s target range" in the near-term. However, he thinks 4th-gen 6-axis motion sensors and integrated DSP/microcontroller sensors can lift margins in 2016, and sees plenty of room for growth. "Long term, wearables and the IoT present a diverse set of opportunities, where growth will likely ramp more slowly but with more attractive ASP and margin profiles versus mobile."
    • Ascendiant's Cody Acree (Buy): "[W]e expect a likely conservative 21% revenue growth next year (FY16), with 57% earnings growth ... As the company continues to improve product and customer diversification, expand its sensor portfolio and system footprint to include more processing and software content, and participate as sensors become more pervasive outside of mobile applications, we expect INVN’s gross margins to move sustainably above its 50% target."
  • Fri, Jan. 30, 9:12 AM
  • 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, 5:35 PM
  • Tue, Jan. 27, 7:27 PM
    • Micron (NASDAQ:MU), SanDisk (NASDAQ:SNDK), and InvenSense (NYSE:INVN) have joined Cirrus Logic, NXP, and several RF chipmakers in rising AH in response to Apple's FQ1 beat and stronger-than-expected iPhone sales print (74.5M units, +46% Y/Y).
    • Micron became an iDevice mobile DRAM supplier through the Elpida acquisition. SanDisk has been both an iPhone NAND flash and MacBook SSD supplier, but there have been reports the company's recent woes are partly due to losing Apple as an SSD client. InvenSense's motion sensors were designed into the iPhone 6/6 Plus.
    • MU +1.3% AH to $30.02. SNDK +1.3% to $79.99. INVN +1.7% to $15.19. InvenSense reports on Thursday. Micron was hit hard earlier today by Microsoft's FQ2 Windows figures and related commentary.
  • Thu, Jan. 22, 5:36 PM
  • Fri, Jan. 16, 1:29 PM
    • Usama Fayyad, Barclays' chief data officer and a managing director, is joining InvenSense's (NYSE:INVN) board, thus increasing its size to nine. CEO Behrooz Abdi praises "Usama`s experience in business applications related to data mining, data science and cloud strategy across multiple industries."
    • Shares are up strongly a day after falling 4.6% during a broad tech selloff. Today's gains might have more to do with a market rally and Friday short-covering - InvenSense had 24.9M shares (35% of its float) shorted as of Dec. 31 - than the board appointment.
    • InvenSense sold off late last week in spite of a flurry of CES product announcements. Concerns about the launch of Intel's wearables-focused Curie module, a button-sized product that integrates a 6-axis accelerometer/gyroscope, a Quark CPU, flash memory, a sensor hub, and a Bluetooth radio, may have been a factor.
    • FQ3 results arrive on Jan. 29.
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Company Description
InvenSense Inc designs, develops, markets and sells Micro-Electro-Mechanical Systems sensors, including accelerometers, gyroscopes and microphones for consumer electronics.