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Asian cooperation and competition for InvenSense ?2

10:13 09-May-16


InvenSense has issued a pair of news releases ahead of earnings tonight, both about partnerships in China and demonstrations at CES-Asia this weekend. 

The first is with New Century Robot.  Despite the name, the demonstration seems to focus on personal transportation.  Both personal transport and robots could eventually be a volume markets, but its hard to see this as having much immediate impact.  It is yet another example of InvenSense technology driving innovation, though.

IoT seems to be a somewhat nearer term opportunity and InvenSense is partnering with ARM to accelerate Chinese development of the segment. 

I've also noticed a news item out of Korea which indicates that InvenSense may be competing with LG, as  well as Qualcomm, on new fingerprint sensors.  As a reminder, InvenSense expected to bring its technology in this area to market in 2017.

In the month since the earnings call was scheduled, average EPS expectations have come down by a penny, to 3 cents per share, which is still above management's break-even guidance.  Apple sales are almost certainly the culprit.  Make or miss, I think guidance will be more important for the short term, and of course, diversification is what matters for the long term.