Company Update (NYSE:INVN): InvenSense Inc Announces Third Quarter Of Fiscal Year 2016 Results


InvenSense Inc (NYSE:INVN), a leading provider of MEMS sensor platforms, today announced results for its third quarter of fiscal 2016, ended December 27, 2015.

Net revenue for the third quarter of fiscal 2016 was $120.0 million, up 7 percent from $112.5 million for the second quarter of fiscal 2016, and up 4 percent from $115.9 million for the third quarter of fiscal 2015.

Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 41 percent for the third quarter of fiscal 2016, consistent with 41 percent for the second quarter of fiscal 2016. GAAP gross margin for the third 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 44 percent for the third quarter of fiscal 2016, consistent with 44 percent for the second quarter of fiscal 2016.

GAAP net income for the third quarter of fiscal 2016 was $1.9 million, or 2 cents per diluted share. By comparison, GAAP net income was $5.7 million, or 6 cents per diluted share for the second quarter of fiscal 2016. GAAP net income for the third quarter of fiscal 2016 included stock-based compensation and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition intangibles, business acquisition costs, other adjustments, the income tax effect of non-GAAP adjustments, and other discrete tax adjustments. Excluding these items, non-GAAP net income for the third quarter of fiscal 2016 was $16.7 million, or 18 cents per diluted share, compared with $14.9 million, or 16 cents per diluted share, for the second quarter of fiscal 2016.

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

“Amidst the backdrop of a tumultuous business and financial environment, InvenSense posted a solid quarter,” said Behrooz Abdi, president and chief executive officer. “We maintained careful adherence to our business model, while continuing a rapid pace of innovation across our product portfolio. We also executed well to our plan of diversification, growing our revenues in a wide range of Internet of Things applications, while continuing to drive our strategic value and competitive differentiation within our mobile customer base.” (Original Source)

Shares of InvenSense are up 7.5% to $8.40 in after-hours trading. INVN has a 1-year high of $17.56 and a 1-year low of $6.96. The stock’s 50-day moving average is $9.63 and its 200-day moving average is $10.69.

On the ratings front, InvenSense has been the subject of a number of recent research reports. In a report issued on January 13, The Benchmark Company analyst Gary Mobley initiated coverage with a Hold rating on INVN and a price target of $9, which implies an upside of 11.5% from current levels. Separately, on January 8, Rosenblatt Securities’ Jun Zhang downgraded the stock to Hold and has a price target of $10.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gary Mobley and Jun Zhang have a total average return of 1.3% and -23.4% respectively. Mobley has a success rate of 50.0% and is ranked #1377 out of 3607 analysts, while Zhang has a success rate of 15.4% and is ranked #3372.

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