Stock Update (NYSE:INVN): InvenSense Inc Announces First Quarter Of Fiscal Year 2016 Results


InvenSense Inc (NYSE:INVN), the leading provider of intelligent sensor system on chip (SoC) for Motion and Sound, today announced results for its first quarter of fiscal year 2016, ended June 28, 2015.

Net revenue for the first quarter of fiscal 2016 was $106.3 million, up 7 percent from $99.3 million for the fourth quarter of fiscal 2015, and up 59 percent from $66.7 million for the first quarter of fiscal 2015.

Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 42 percent for the first quarter of fiscal 2016, slightly down from 43 percent for the fourth quarter of fiscal 2015. GAAP gross margin for first quarter of fiscal 2016 included stock-based compensation and related payroll taxes, and amortization of acquisition intangibles. Excluding these items, non-GAAP gross margin was 45 percent for the first quarter of fiscal 2016, slightly down from 46 percent for the fourth quarter of fiscal 2015.

GAAP net loss for the first quarter of fiscal 2016 was $5.8 million, or 6 cents per diluted share. By comparison, GAAP net income was $0.4 million, or 0 cents per diluted share for the fourth quarter of fiscal 2015. GAAP net income for the first quarter of fiscal 2016 included stock-based compensation and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition intangibles, certain legal and litigation expenses, contingent consideration adjustment and the income tax effect of non-GAAP adjustments. Excluding these items, non-GAAP net income for the first quarter of fiscal 2016 was $12.6 million, or 14 cents per diluted share, compared with $11.4 million, or 12 cents per diluted share, for the fourth quarter of fiscal 2015.

The reconciliation between GAAP and non-GAAP financial results for all referenced periods is provided in a table immediately following the Unaudited GAAP Condensed Consolidated Statements of Operations below.

Management Qualitative Comments
“This was a solid quarter for us with both revenue and profits slightly higher than expected,” said Behrooz Abdi, president and CEO. “Our performance reflects strong market position in our core motion products across the majority of mobile OEMs, as well as the continued adoption of gyro-enabled optical image stabilization technology by major OEMs worldwide. In addition, we continue to gain traction with our new motion, audio and software solutions, building a design win portfolio that we expect will contribute to revenue later this fiscal year.” (Original Source)

Following the earnings release, shares of InvenSense are trading at $12.88, down $0.89 or 6.46%. INVN has a 1-year high of $26.20 and a 1-year low of $12.51. The stock’s 50-day moving average is $14.25 and its 200-day moving average is $15.09.

On the ratings front, InvenSens has been the subject of a number of recent research reports. In a report released today, Roth Capital analyst Krishna Shankar reiterated a Buy rating on INVN, with a price target of $20, which represents a potential upside of 45.0% from where the stock is currently trading. Separately, on June 9, Oppenheimer’s Andrew Uerkwitz reiterated a Hold rating on the stock .

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Krishna Shankar and Andrew Uerkwitz have a total average return of 4.4% and 2.8% respectively. Shankar has a success rate of 47.5% and is ranked #1146 out of 3724 analysts, while Uerkwitz has a success rate of 54.7% and is ranked #1333.

The street is mostly Bullish on INVN stock. Out of 6 analysts who cover the stock, 4 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $19.67, which represents a potential upside of 42.6% from where the stock is currently trading.

InvenSense Inc designs, develops, markets and sells Micro-Electro-Mechanical Systems sensors, including accelerometers, gyroscopes and microphones for consumer electronics.