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Exhibit 99.1

INVENSENSE® ANNOUNCES THIRD QUARTER OF FISCAL YEAR 2016 RESULTS

SAN JOSE, California, January 27, 2016 – InvenSense Inc. (NYSE: INVN), a leading provider of MEMS sensor platforms, today announced results for its third quarter of fiscal 2016, ended December 27, 2015.

Net revenue for the third quarter of fiscal 2016 was $120.0 million, up 7 percent from $112.5 million for the second quarter of fiscal 2016, and up 4 percent from $115.9 million for the third quarter of fiscal 2015.

Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 41 percent for the third quarter of fiscal 2016, consistent with 41 percent for the second quarter of fiscal 2016. GAAP gross margin for the third 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 44 percent for the third quarter of fiscal 2016, consistent with 44 percent for the second quarter of fiscal 2016.

GAAP net income for the third quarter of fiscal 2016 was $1.9 million, or 2 cents per diluted share. By comparison, GAAP net income was $5.7 million, or 6 cents per diluted share for the second quarter of fiscal 2016. GAAP net income for the third quarter of fiscal 2016 included stock-based compensation and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition intangibles, business acquisition costs, other adjustments, the income tax effect of non-GAAP adjustments, and other discrete tax adjustments. Excluding these items, non-GAAP net income for the third quarter of fiscal 2016 was $16.7 million, or 18 cents per diluted share, compared with $14.9 million, or 16 cents per diluted share, for the second quarter of fiscal 2016.

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

“Amidst the backdrop of a tumultuous business and financial environment, InvenSense posted a solid quarter,” said Behrooz Abdi, president and chief executive officer. “We maintained careful adherence to our business model, while continuing a rapid pace of innovation across our product portfolio. We also executed well to our plan of diversification, growing our revenues in a wide range of Internet of Things applications, while continuing to drive our strategic value and competitive differentiation within our mobile customer base.”

Third 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 (530) 379-4724 ten minutes prior to the start of the call, using the passcode 24973303. International callers, please dial (877) 788-4691. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (404) 537-3406 and enter passcode 24973303. International callers please dial (855) 859-2056. 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, 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.

Forward-Looking Statements

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 ability to execute on our plan of diversification and our success in growing our revenues in the Internet of Things applications; 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, subsequent quarterly reports on Form 10-Q, recent current reports on Form 8-K, 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.


About InvenSense

InvenSense, Inc. (NYSE: INVN) is the world’s leading provider of MEMS sensor platforms. The company’s patented InvenSense Fabrication Platform, MotionFusion® technology, and location software and services addresses the emerging need 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 and http://www.coursaretail.com/ follow us on Twitter at @InvenSense.

©2016 InvenSense, Inc. All rights reserved. InvenSense, Sensing Everything, FireFly, SensorStudio, TrustedSensor, Coursa, Coursa Sports, Coursa Retail, UltraPrint, MotionTracking, MotionProcessing, MotionProcessor, MotionFusion, MotionApps, InvenSenseTV, 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:

Leslie Green

Green Communications Consulting, LLC

650.312.9060

leslie@greencommunicationsllc.com

ir@invensense.com

For Press Inquiries, Contact:

David Almoslino

Senior Director

Corporate Marketing

InvenSense, Inc.

408.501.2278

pr@invensense.com


INVENSENSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended  
     December 27,
2015
    September 27,
2015
    December 28,
2014
 

Net revenue

   $ 120,029      $ 112,545      $ 115,864   

Costs of revenue

     70,228        65,974        65,468   
  

 

 

   

 

 

   

 

 

 

Gross profit

     49,801        46,571        50,396   

Operating expenses:

      

Research and development

     25,690        24,991        24,391   

Selling, general and administrative

     14,295        15,186        15,551   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     39,985        40,177        39,942   
  

 

 

   

 

 

   

 

 

 

Income from operations

     9,816        6,394        10,454   

Interest (expense)

     (2,798     (2,765     (2,690

Other income, net

     (35     104        (281
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     6,983        3,733        7,483   

Income tax provision (benefit)

     5,093        (1,960     (2,738
  

 

 

   

 

 

   

 

 

 

Net income

   $ 1,890      $ 5,693      $ 10,221   
  

 

 

   

 

 

   

 

 

 

Net income per share:

      

Basic

   $ 0.02      $ 0.06      $ 0.11   
  

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.02      $ 0.06      $ 0.11   
  

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding used in computing net income per share:

      

Basic

     91,957        91,574        89,779   
  

 

 

   

 

 

   

 

 

 

Diluted

     92,922        92,569        92,336   
  

 

 

   

 

 

   

 

 

 


INVENSENSE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended  
     December 27,
2015
    September 27,
2015
    December 28,
2014
 

GAAP net income

   $ 1,890      $ 5,693      $ 10,221   

Adjustments:

      

Stock based compensation expense

     8,198        9,249        8,309   

Convertible note accretion interest expense

     2,034        1,999        1,886   

Amortization of acquisition-related intangible assets

     2,200        2,254        2,034   

Business acquisition costs

     198        —          1,160   

Patent litigation legal expense, net

     (138     144        1,187   

Income tax effect of pretax non-GAAP adjustments and other discrete tax items

     2,288        (4,476     (5,519
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 16,670      $ 14,863      $ 19,278   
  

 

 

   

 

 

   

 

 

 

GAAP net income per share of common stock, diluted

   $ 0.02      $ 0.06      $ 0.11   
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income per share of common stock, diluted

   $ 0.18      $ 0.16      $ 0.21   
  

 

 

   

 

 

   

 

 

 

GAAP Gross profit

   $ 49,801      $ 46,571      $ 50,396   

Adjustments:

      

Stock based compensation expense

     628        587        591   

Amortization of acquisition-related intangible assets

     2,144        2,198        1,978   
  

 

 

   

 

 

   

 

 

 

Non-GAAP Gross profit

   $ 52,573      $ 49,356      $ 52,965   
  

 

 

   

 

 

   

 

 

 

GAAP Operating Expense

   $ 39,985      $ 40,177      $ 39,942   

Adjustments:

      

Stock based compensation expense

     7,570        8,662        7,718   

Amortization of acquisition-related intangible assets

     56        56        56   

Business acquisition costs

     198        —          1,160   

Patent litigation legal expense, net

     (138     144        1,187   
  

 

 

   

 

 

   

 

 

 

Non-GAAP Operating Expense

   $ 32,299      $ 31,315      $ 29,821   
  

 

 

   

 

 

   

 

 

 


INVENSENSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

 

     December 27,
2015
    March 29,
2015
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 43,877      $ 85,637   

Short-term investments

     253,342        129,919   

Accounts receivable

     42,529        44,522   

Inventories

     61,666        75,105   

Prepaid expenses and other current assets

     13,098        14,950   
  

 

 

   

 

 

 

Total current assets

     414,512        350,133   

Property and equipment, net

     37,730        41,849   

Intangible assets, net

     38,710        45,508   

Goodwill

     139,175        139,175   

Other assets

     9,290        9,019   
  

 

 

   

 

 

 

Total assets

   $ 639,417      $ 585,684   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 44,153      $ 23,130   

Accrued liabilities

     29,425        31,991   
  

 

 

   

 

 

 

Total current liabilities

     73,578        55,121   

Long-term debt

     148,801        142,810   

Other long-term liabilities

     26,548        28,252   
  

 

 

   

 

 

 

Total liabilities

     248,927        226,183   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred stock:

    

Preferred stock, $0.001 par value — 20,000 shares authorized, no shares issued and outstanding at December 27, 2015 and March 29, 2015

     —          —     

Common stock:

    

Common stock, $0.001 par value — 750,000 shares authorized, 92,320 shares issued and outstanding at December 27, 2015, 90,894 shares issued and outstanding at March 29, 2015

     292,288        262,677   

Accumulated other comprehensive (loss)

     (362     (4

Retained earnings

     98,564        96,828   
  

 

 

   

 

 

 

Total stockholders’ equity

     390,490        359,501   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 639,417      $ 585,684   
  

 

 

   

 

 

 


INVENSENSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended  
     December 27,
2015
    September 27,
2015
    December 28,
2014
 

Cash flows from operating activities:

      

Net income

   $ 1,890      $ 5,693      $ 10,221   

Adjustments to reconcile net income to net cash provided by operating activities:

      

Depreciation

     3,303        3,195        3,047   

Amortization of intangible assets

     2,295        2,361        2,034   

Non cash interest expense

     2,033        2,000        1,907   

Loss on disposal of property and equipment

     —          —          131   

Stock-based compensation expense

     8,193        9,048        8,300   

Deferred income tax assets

     5,113        (1,674     (5,237

Tax effect of employee benefit plans

     (118     (457     42   

Changes in operating assets and liabilities:

      

Accounts receivable

     7,905        (47     (7,010

Inventories

     18        2,807        7,210   

Prepaid expenses and other current assets

     104        1,154        946   

Other assets

     52        (1,715     940   

Accounts payable

     9,313        8,253        (4,771

Accrued liabilities

     (12,856     2,897        94   
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     27,245        33,515        17,854   
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

      

Purchase of property and equipment

     (2,280     (1,611     (7,665

Sale and maturities of available-for-sale investments

     43,081        56,478        14,200   

Purchase of available-for-sale investments

     (93,553     (91,305     —     

Acquisitions, net of cash acquired

     —          —          120   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (52,752     (36,438     6,655   
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

      

Proceeds from exercise of common stock

     1,130        226        2,124   

Payments contingent consideration

     (1,908     —          —     
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (778     226        2,124   
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (26,285     (2,697     26,633   

Cash and cash equivalents:

      

Beginning of period

     70,162        72,859        38,424   
  

 

 

   

 

 

   

 

 

 

End of period

   $ 43,877      $ 70,162      $ 65,057