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Exhibit 99.1

INVENSENSE® ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2016 RESULTS

SAN JOSE, California, May 9, 2016 – InvenSense Inc. (NYSE: INVN), a leading provider of MEMS sensor platforms, today announced results for its fourth quarter and fiscal year 2016, ended April 3, 2016.

Net revenue for the fourth quarter of fiscal 2016 was $79.5 million, down 34 percent from $120.0 million for the third quarter of fiscal 2016, and down 20 percent from $99.3 million for the fourth quarter of fiscal 2015.

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

GAAP net loss for the fourth quarter of fiscal 2016 was $22.9 million, or $0.25 per share. By comparison, GAAP net income was $1.9 million, or $0.02 per diluted share, for the third quarter of fiscal 2016. GAAP net loss for the fourth quarter of fiscal 2016 included stock-based compensation and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition intangibles and other adjustments. Excluding these items and the income tax effect of the excluded items as well as other discrete tax items, non-GAAP net income for the fourth quarter of fiscal 2016 was $1.5 million, or $0.02 per diluted share, compared with net income of $16.7 million, or $0.18 per diluted share, for the third 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 Condensed Consolidated Statements of Operations below.

Fiscal Year 2016 Results

Net revenue for the fiscal year 2016 was $418.4 million, up $46.4 million, or 12% from $372.0 million for the fiscal year 2015.

GAAP net loss for the fiscal year 2016 was $21.2 million, or $0.23 per share, compared with net loss of $1.1 million, or $0.01 per share for the fiscal year 2015. On a non-GAAP basis, net income for the fiscal year 2016 was $45.6 million, or $0.49 per diluted share. This compares with non-GAAP net income of $42.7 million, or $0.46 per diluted share for the fiscal year 2015.

Management Qualitative Comments

“Q4 was a solid quarter, capping off a productive year for InvenSense,” said Behrooz Abdi, president and CEO. “Throughout fiscal 2016, we drove significant technology advancement in key use cases that are fueling sensor adoption today. These use cases can be applied across a variety of vertical markets and applications, which we believe will enable us to maximize our R&D investments and drive significant TAM expansion. Our market-leading solutions continued to gain traction in emerging Internet of Things (IoT) platforms such as drones, virtual and augmented reality, wearables, smart home, and industrial applications. We believe that the broad applicability of our portfolio positions us for continued diversification and growth in these exciting markets.”    

Fourth 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 and annual results and management’s current business outlook.

To listen to the conference call, please dial (877) 788-4691 ten minutes prior to the start of the call, using the passcode 86096939. International callers, please dial (530) 379-4724. 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 (855) 859-2056 and enter passcode 86096939. International callers please dial (404) 537-3406. 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, accreting interest expense on convertible notes, amortization of acquisition-related intangible assets, certain legal and litigation expenses, contingent consideration adjustment, legal settlement expense, 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 other companies in our 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 technology advantage and the benefits thereof, increased demand for our products, our traction of IoT market and our prospects for growth and diversifications. 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 leading provider of MEMS sensor platforms. InvenSense’s vision of Sensing Everything targets the consumer electronics and industrial markets with integrated Motion and Sound solutions. Our solutions combine MEMS (micro electrical mechanical systems) sensors, such as accelerometers, gyroscopes, compasses, and microphones with proprietary algorithms and firmware that intelligently process, synthesize, and calibrate the output of sensors, maximizing performance and accuracy. InvenSense’s motion tracking, audio and location platforms, and services can be found in Mobile, Wearables, Smart Home, Industrial, Automotive, and IoT products. InvenSense is headquartered in San Jose, California and has offices worldwide. For more information, go to www.invensense.com and http://www.coursaretail.com.

©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     Fiscal Years Ended  
     April 3,
2016
    December 27,
2015
    March 29,
2015
    April 3,
2016
    March 29,
2015
 

Net revenue

   $ 79,525      $ 120,029      $ 99,279      $ 418,395      $ 372,019   

Costs of revenue

     46,590        70,228        56,333        244,257        216,160   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     32,935        49,801        42,946        174,138        155,859   

Operating expenses:

          

Research and development

     26,432        25,690        25,231        97,368        90,623   

Selling, general and administrative

     16,860        14,295        15,325        62,165        59,386   

Legal settlement accrual

     —          —          —          11,708        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     43,292        39,985        40,556        171,241        150,009   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (10,357     9,816        2,390        2,897        5,850   

Interest (expense)

     (3,071     (2,798     (2,659     (11,358     (10,553

Other income, net

     262        (35     269        392        1,368   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (13,166     6,983        —          (8,069     (3,335

Income tax provision (benefit)

     9,780        5,093        (399     13,141        (2,255
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (22,946   $ 1,890      $ 399      $ (21,210   $ (1,080
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

          

Basic

   $ (0.25   $ 0.02      $ 0.00      $ (0.23   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.25   $ 0.02      $ 0.00      $ (0.23   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

          

Basic

     92,487        91,957        90,359        91,787        89,359   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     92,487        92,922        92,619        91,787        89,359   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


INVENSENSE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Fiscal Years Ended  
     April 3,
2016
    December 27,
2015
    March 29,
2015
    April 3,
2016
    March 29,
2015
 

GAAP net income (loss)

   $ (22,946   $ 1,890      $ 399      $ (21,210   $ (1,080

Adjustments:

          

Stock based compensation expense and related payroll taxes

     9,517        8,198        7,954        35,813        31,140   

Convertible note accretion interest expense

     2,237        2,034        1,926        8,228        7,484   

Amortization of acquisition-related intangible assets

     2,199        2,200        2,034        8,687        6,940   

Amortization of fair value write-up of acquired inventory

     —          —            —          146   

Business acquisition costs

     —          198        119        198        3,388   

Legal settlement

     —          —          —          11,708        —     

Patent litigation legal expense, net

     120        (138     905        1,236        3,304   

Gain on equity investment

     —          —          —          —          (890

Write-off of in-process research and development

     —          —          —          —          770   

Contingent consideration adjustment

     —          —          —          (5,307     —     

Other

     —          —          —          —          68   

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

     10,358        2,288        (1,896     6,247        (8,607
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 1,485      $ 16,670      $ 11,441      $ 45,600      $ 42,663   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income (loss) per share of common stock, diluted

     (0.25   $ 0.02      $ 0.00      $ (0.23   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     0.02      $ 0.18      $ 0.12      $ 0.49      $ 0.46   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Gross profit

   $ 32,935      $ 49,801      $ 42,946      $ 174,138      $ 155,859   

Adjustments:

          

Stock based compensation expense and related payroll taxes

     669        628        621        2,493        2,431   

Amortization of acquisition-related intangible assets

     2,143        2,144        1,978        8,463        6,716   

Amortization of fair value write-up of acquired inventory

     —          —          —          —          146   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross profit

   $ 35,747      $ 52,573      $ 45,545      $ 185,094      $ 165,152   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Operating Expense

   $ 43,292      $ 39,985      $ 40,556      $ 171,241      $ 150,009   

Adjustments:

          

Stock based compensation expense and related payroll taxes

     8,848        7,570        7,333        33,320        28,709   

Amortization of acquisition-related intangible assets

     56        56        56        224        224   

Business acquisition costs

     —          198        119        198        3,388   

Legal settlement accrual

     —          —          —          11,708        —     

Patent litigation legal expense, net

     120        (138     905        1,236        3,304   

Write-off of in-process research and development

     —          —          —          —          770   

Contingent consideration adjustment

     —          —          —          (5,307     —     

Other

     —          —          —          —          68   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Operating Expense

   $ 34,268      $ 32,299      $ 32,143      $ 129,862      $ 113,546   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


INVENSENSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

 

     April 3,
2016
    March 29,
2015
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 41,105      $ 85,637   

Short-term investments

     243,755        129,919   

Accounts receivable

     41,447        44,522   

Inventories

     62,297        75,105   

Prepaid expenses and other current assets

     9,250        14,950   
  

 

 

   

 

 

 

Total current assets

     397,854        350,133   

Property and equipment, net

     36,271        41,849   

Intangible assets, net

     43,169        45,508   

Goodwill

     139,175        139,175   

Other assets

     5,992        9,019   
  

 

 

   

 

 

 

Total assets

   $ 622,461      $ 585,684   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 35,200      $ 23,130   

Accrued liabilities

     30,248        31,991   
  

 

 

   

 

 

 

Total current liabilities

     65,448        55,121   

Long-term debt

     151,038        142,810   

Other long-term liabilities

     27,230        28,252   
  

 

 

   

 

 

 

Total liabilities

     243,716        226,183   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred stock:

    

Preferred stock, $0.001 par value — 20,000 shares authorized, no shares issued and outstanding and outstanding at April 3, 2016 and March 29, 2015

     —          —     

Common stock:

    

Common stock, $0.001 par value — 750,000 shares authorized, 93,010 shares issued and outstanding at April 3, 2016, 90,894 shares issued and outstanding at March 29, 2015

     303,153        262,677   

Accumulated other comprehensive (loss)

     (26     (4

Retained earnings

     75,618        96,828   
  

 

 

   

 

 

 

Total stockholders’ equity

     378,745        359,501   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 622,461      $ 585,684   
  

 

 

   

 

 

 


INVENSENSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended     Fiscal Years Ended  
     April 3,
2016
    December 27,
2015
    March 29,
2015
    April 3,
2016
    March 29,
2015
 

Cash flows from operating activities:

          

Net income (loss)

   $ (22,946   $ 1,890      $ 399      $ (21,210   $ (1,080

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

          

Depreciation

     3,221        3,303        2,847        12,769        10,203   

Amortization of intangible assets

     2,290        2,295        2,074        9,088        7,003   

Non cash interest expense

     2,237        2,033        1,926        8,228        7,505   

Write-off of in-process research and development

     —          —          —          —          770   

Loss on disposal of property and equipment

     —          —          95        —          552   

Loss (gain) on other investments

     525        —          —          525        (890

Stock-based compensation expense

     9,003        8,193        7,566        34,879        30,504   

Contingent consideration adjustment

     —          —          —          (5,307     —     

Deferred income tax assets

     8,809        5,113        (272     10,424        (5,484

Tax effect of employee benefit plans

     876        (118     —          —          42   

Excess tax benefit from stock-based compensation

     (876     —            —          (42

Changes in operating assets and liabilities:

          

Accounts receivable

     1,082        7,905        29,413        3,075        (4,895

Inventories

     (631     18        (7,304     12,808        (2,072

Prepaid expenses and other current assets

     (610     104        7,778        1,607        8,778   

Other assets

     (498     52        25        (2,279     (135

Accounts payable

     (9,118     9,313        2,494        12,639        3,122   

Accrued liabilities

     2,776        (12,856     4,737        5,792        12,961   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (3,860     27,245        51,778        83,038        66,842   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

          

Purchase of property and equipment

     (1,538     (2,280     (2,031     (7,771     (27,315

Sale and maturities of available-for-sale investments

     55,064        43,081        33,252        169,988        145,974   

Purchase of available-for-sale investments

     (45,249     (93,553     (55,845     (284,534     (55,845

Other non-marketable investments

     (850     —          —          (850  

Purchase of intangible assets

     —          —          (2,120     —          (2,120

Acquisitions, net of cash acquired

     (6,700     —          —          (6,700     (71,326
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     727        (52,752     (26,744     (129,867     (10,632
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

          

Proceeds from exercise of common stock

     865        1,130        2,602        5,586        10,425   

Payments of long-term debt and capital lease obligations

     —          —          —          —          (9

Payments of acquisition holdback

     (1,380     —          —          (1,380     —     

Payments contingent consideration

     —          (1,908     (7,056     (1,909     (7,056

Excess tax benefit from stock-based compensation

     876        —          —          —          42   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     361        (778     (4,454     2,297        3,402   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (2,772     (26,285     20,580        (44,532     59,612   

Cash and cash equivalents:

          

Beginning of period

     43,877        70,162        65,057        85,637        26,025   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $ 41,105      $ 43,877      $ 85,637      $ 41,105      $ 85,637