InvenSense Inc (NYSE:INVN), the leading provider of MEMS sensor platforms, announced results for its second quarter of fiscal 2016, ended September 27, 2015.
Net revenue for the second quarter of fiscal 2016 was $112.5 million, up 6 percent from $106.3 million for the first quarter of fiscal 2016, and up 25 percent from $90.2 million for the second quarter of fiscal 2015.
Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 41 percent for the second quarter of fiscal 2016, slightly down from 42 percent for the first quarter of fiscal 2016. GAAP gross margin for second 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 second quarter of fiscal 2016, slightly down from 45 percent for the first quarter of fiscal 2016.
GAAP net income for the second quarter of fiscal 2016 was $5.7 million, or 6 cents per diluted share. By comparison, GAAP net loss was $5.8 million, or 6 cents per diluted share for the first quarter of fiscal 2016. GAAP net income for the second 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 and the income tax effect of non-GAAP adjustments. Excluding these items, non-GAAP net income for the second quarter of fiscal 2016 was $14.9 million, or 16 cents per diluted share, compared with $12.6 million, or 14 cents per diluted share, for the first 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
“Q2 was a solid quarter in which revenue came in within our expectations, and we outperformed our bottom line guidance,” said Behrooz Abdi, president and CEO. “We continue to expand our software-enabled sensor platform and are delivering high-value IoT use cases that provide strategic differentiation and tangible end-user experience enhancements. This is allowing us to drive more content into our current customer base, and also to solidify our 6-axis customer wins. With our success in proving out real use cases in mobile, we are poised to expand meaningfully to applications spanning a number of vertical markets that offer significant new opportunity for growth and diversification.” (Original Source)
Shares of InvenSense shares are up 4.42% to $11.10 in after-hours trading. INVN has a 1-year high of $21.60 and a 1-year low of $8.46. The stock’s 50-day moving average is $9.99 and its 200-day moving average is $12.66.
On the ratings front, InvenSense has been the subject of a number of recent research reports. In a report issued on October 23, Roth Capital analyst Krishna Shankar reiterated a Buy rating on INVN, with a price target of $19, which implies an upside of 82.5% from current levels. Separately, on October 13, Rosenblatt Securities’ Brian Blair assigned a Buy rating to the stock and has a price target of $15.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Krishna Shankar and Brian Blair have a total average return of 2.9% and -3.1% respectively. Shankar has a success rate of 51.7% and is ranked #1155 out of 3804 analysts, while Blair has a success rate of 42.9% and is ranked #2904.
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 $18.00, which implies an upside of 73% from current levels.
InvenSense Inc designs, develops, markets and sells Micro-Electro-Mechanical Systems sensors, including accelerometers, gyroscopes and microphones for consumer electronics.