InvenSense Announces First Quarter Of Fiscal Year 2016 Results
SAN JOSE, California, August 4, 2015 - InvenSense, Inc. (NYSE: INVN) the leading provider of intelligent sensor system on chip (SoC) for Motion and Sound, today announced results for its first quarter of fiscal year 2016, ended June 28, 2015.
Net revenue for the first quarter of fiscal 2016 was $106.3 million, up 7 percent from $99.3 million for the fourth quarter of fiscal 2015, and up 59 percent from $66.7 million for the first quarter of fiscal 2015.
Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 42 percent for the first quarter of fiscal 2016, slightly down from 43 percent for the fourth quarter of fiscal 2015. GAAP gross margin for first 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 45 percent for the first quarter of fiscal 2016, slightly down from 46 percent for the fourth quarter of fiscal 2015.
GAAP net loss for the first quarter of fiscal 2016 was $5.8 million, or 6 cents per diluted share. By comparison, GAAP net income was $0.4 million, or 0 cents per diluted share for the fourth quarter of fiscal 2015. GAAP net income for the first 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, contingent consideration adjustment and the income tax effect of non-GAAP adjustments. Excluding these items, non-GAAP net income for the first quarter of fiscal 2016 was $12.6 million, or 14 cents per diluted share, compared with $11.4 million, or 12 cents per diluted share, for the fourth quarter of fiscal 2015.
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
"This was a solid quarter for us with both revenue and profits slightly higher than expected," said Behrooz Abdi, president and CEO. "Our performance reflects strong market position in our core motion products across the majority of mobile OEMs, as well as the continued adoption of gyro-enabled optical image stabilization technology by major OEMs worldwide. In addition, we continue to gain traction with our new motion, audio and software solutions, building a design win portfolio that we expect will contribute to revenue later this fiscal year."
First Quarter of Fiscal Year 2016 Earnings Conference Call
A conference call will be held today at 1:30 p.m. Pacific Time to discuss the quarter's results and management's current business outlook. To listen to the conference call, please dial (800) 591-6942 ten minutes prior to the start of the call, using the passcode 21147390. International callers, please dial (617) 614-4909. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for two days. To access the replay, please dial (888) 286-8010 and enter passcode 11798326. International callers please dial (617) 801-6888. The conference call will be available via a live webcast on the investor relations section of InvenSense`s web site at www.invensense.com/ir. An archived webcast replay will be available on the web site for three months.
Note Regarding Use of Non-GAAP Financial Measures
As discussed above, in addition to the company's condensed consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes, stock-based compensation expense, certain legal and litigation expenses, business acquisition costs, contingent consideration adjustment, amortization of fair value write-up of acquired inventory, amortization of acquisition-related intangible assets, accreting interest expense on convertible notes and other adjustments. The company uses these non-GAAP measures in its own financial and operational decision-making processes. Further, the company believes that these non-GAAP measures offer an important analytical tool to help investors understand the company's core operating results and trends and facilitate comparability with the operating results of other companies that provide similar non-GAAP measures. These non-GAAP measures have certain limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company's compensation mix and will continue to result in significant expenses in the company's GAAP results for the foreseeable future, but it is not reflected in our non-GAAP measures. Also, other companies, including companies in the company's industry, may calculate non-GAAP financial measures differently, limiting their usefulness as comparative measures.
Statements in this press release that are not historical are "forward-looking statements" as the term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or preceded by words such as "will," "expects," "anticipates," or other words that imply or predict a future state. Forward-looking statements include any projection of revenue, gross margin, expense, earnings, stockholder return or other financial items discussed in this press release, including the strength of our competitive positioning, the strength of design activity , increased demand for our products, and design wins contributing to revenue. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, intense competition in our industry; our achievement of design wins; our dependence on a limited number of customers for a substantial portion of our revenues; the continued adoption of motion tracking and motion sensing as an interface in consumer electronics products; decreases in average selling prices for our products; our lack of long-term supply contracts and dependence on limited sources of supply; consumer acceptance of our customers' products that incorporate our solutions and our ability to continue to develop and introduce new and enhanced products on a timely basis; as well as changes in economic conditions in our markets and other risk factors discussed in InvenSense's Annual Report on Form 10-K for the year ended March 29, 2015, and other documents filed by us with the Securities and Exchange Commission (SEC) from time to time. Copies of InvenSense's SEC filings are posted on the company's website and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.
InvenSense, Inc. (NYSE: INVN) is the world's leading provider of intelligent sensor system on chip (SoC) for Motion and Sound in consumer electronic devices. The company's patented InvenSense Fabrication Platform and MotionFusion® technology address the emerging needs of many mass-market consumer applications via improved performance, accuracy, and intuitive motion-, gesture- and sound-based interfaces. InvenSense technology can be found in Mobile, Wearables, Smart Home, Industrial, and Automotive products. InvenSense is headquartered in San Jose, California and has offices in Boston, China, Taiwan, Korea, Japan, France, Canada, Slovakia and Italy. More information can be found at www.invensense.com or follow us on Twitter at @InvenSense.
©2015 InvenSense, Inc. All rights reserved. InvenSense, Sensing Everything, FireFly, MotionTracking, MotionProcessing, MotionProcessor, MotionFusion, MotionApps, DMP, AAR, and the InvenSense logo are trademarks of InvenSense, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.
# # #
For Investor Inquiries, Contact:
Green Communications Consulting, LLC
For Press Inquiries, Contact:
Marketing and Communications
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(In thousands, except per share amounts)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS