--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


IFA, InvenSense and software +2

14:02 31-Aug-16


The IFA electronics show starts next week, but pre-announcements are the norm there.  What we can tell so far is that the wearables market is continuing to expand.  The broad array of makers and innovation in specialty niches is good for InvenSense.  Of particular interest this year is improved heart rate monitoring. I've already documented how older devices failed miserably at this task, and how InvenSense offered software to amend the situation.  Consequently, we might see some positive press for the company in the next week or so, but I would be wary.

The timing is about right for InvenSense to start seeing material benefit. Its solution applies to PPG sensors, which are the most common type.  However, both FitBit and Apple have patents in this space, though the Apple solution seems poor in that it requires a duplicate sensor.  Personally, I probably won't be satisfied until InvenSense can start breaking out revenue from software licensing.  The company should report again at the end of October, when I'll be taking a very hard look at guidance. I think there is plenty of time for INVN to retest the lows around $6 in the interim.