InvenSense Inc (NYSE:INVN) announced results for its second quarter of fiscal year 2017, ended October 2, 2016.
Net revenue for the second quarter of fiscal 2017 was $79.8 million, up 32 percent from $60.6 million for the first quarter of fiscal 2017 and down 29 percent from $112.5 million for the second quarter of fiscal 2016.
Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 42 percent for the second quarter of fiscal 2017, up from 41 percent for the first quarter of fiscal 2017. GAAP gross margin for the second quarter of fiscal 2017 included stock-based compensation expense and related payroll taxes and amortization of acquisition-related intangibles. Excluding these items, non-GAAP gross margin was 46 percent for the second quarter of fiscal 2017, consistent with the non-GAAP gross margin for the first quarter of fiscal 2017.
GAAP net loss for the second quarter of fiscal 2017 was $12.5 million, or $.13 per share. By comparison, GAAP net loss was $20.2 million, or $.22 per share, for the first quarter of fiscal 2017. GAAP net loss for the second quarter of fiscal 2017 included stock-based compensation expense and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition-related intangibles, business acquisition costs and litigation-related expenses. Excluding these items and the income tax effect of the excluded items as well as other discrete tax items, non-GAAP net income for the second quarter of fiscal 2017 was $1.7 million, or $.02 per diluted share (based on the weighted average shares outstanding of 94.6 million) compared with non-GAAP net loss of $4.9 million, or $.05 per share, for the first quarter of fiscal 2017.
The reconciliation between GAAP and non-GAAP financial results for all referenced periods is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Operations below.
Management Qualitative Comments
“The InvenSense team delivered solid results in the second fiscal quarter. We are encouraged that our R&D investments are beginning to pay off with new design wins which we anticipate will allow us to penetrate new markets,” said Behrooz Abdi, president and CEO. “While the consumer and mobile markets were and remain soft, we believe this design win activity will position us for strong top line growth in fiscal 2018 as we strive to diversify our business.” (Original Source)
Shares of InvenSense closed today at $7.28, down $0.10 or -1.36%. INVN has a 1-year high of $12.66 and a 1-year low of $5.42. The stock’s 50-day moving average is $7.43 and its 200-day moving average is $6.93.
On the ratings front, InvenSense has been the subject of a number of recent research reports. In a report issued on October 31, Roth Capital analyst Sujeeva De Silva reiterated a Buy rating on INVN, with a price target of $9.00, which implies an upside of 20% from current levels. Separately, on October 3, Pacific Crest’s John Vinh maintained a Buy rating on the stock and has a price target of $9.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Sujeeva De Silva and John Vinh have a yearly average return of 13.1% and 4.1% respectively. Silva has a success rate of 53% and is ranked #164 out of 4165 analysts, while Vinh has a success rate of 48% and is ranked #713.
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 mice, wearable health and fitness monitors and portable navigation devices.