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InvenSense 2Q17 results ?3

17:07 03-Nov-16

The InvenSense conference call is still underway.  It has been stated that there will no discussion of buyout or partnership options. 

Management guides for sales of $77-83M, with increasing OpEx, which translates to earnings of 2-3 cents per share.  Both figures miss expectations pretty severely.

Management reported that UltraPrint is on schedule.  Other than that, Apple continues to dominate the business, at 58% of sales, despite a broader spate of design wins.    By contrast Korea was 6%, and a customer in China came in at 11%.  InvenSense should continue to benefit from iPhone sales in the current quarter, but overall, the next two quarters may be slow, with 2018 expected to be better. 

Management went on about future opportunities, but shares are down 5%.  I see that as pullback from the buyout speculation, but also, the very first question in Q&A was about how they waxed poetic about AR driven by Pokemon Go, yet it seems to have fizzled, as I had predicted.

I'm going to move on to the UDC call, as I doubt there will be much of importance to report here.

InvenSense has reported on its fiscal second quarter of 2017:

• earnings of 2 cents per share miss by a penny
• on sales of $79.8M, which beat by $100K

There's nothing in the statement that looks like it should really move the stock much.  We'll see how guidance and other comments come in during the call.

Topics:

• Drones