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pre-earnings notes & press releases +4

10:04 28-Oct-15

A subscriber writes:

Maybe they will work with Apple in the Automative market or Alphabet ???

Perhaps, but these products are applicable to all cars, and I would hope for some nearer-term sales.

I think it's not up because the stock price has dropped a lot after the last few earnings releases. 

That's true, and as I said, understandable.  However, market data leads me to look for a more straightforward earnings reaction this time around, as discussed here.

Another subscriber asks for a projection on InvenSense quarterly numbers based on last night's Apple report.

Apple sold 48M iPhones.  Sales of other devices including InvenSense were fairly unimportant volumes.  Past analysis has indicated that Apple is paying InvenSense for something other than parts and/or that the terms of supply change over time.  Consequently, management guidance has proven a better indicator of revenue than calculations based of off Apple unit sales.  In light of that, I'm no longer doing the latter.

InvenSense has issued two press releases this morning.  The first introduces an innovative new manufacturing capability whose first use will be for a fingerprint sensor that can be integrated directly into the glass of mobile devices.  So far as I know, this is a real coup to bring this developing technology to market first, though production is not expected to ramp until 2017.

The second press release announces solutions for the automotive market.  That is certainly a potentially high volume market, but we will have to see how InvenSense manages to penetrate it.  I do think that the company's positioning library for better on-board navigation systems could be a major differentiator.

I'm surprised that InvenSense is not up more this morning.  Some caution before earnings is understandable, but I see these announcements as material.

Topics:

• Drones