InvenSense
Announces First Quarter Fiscal Year 2015 Results
- First Quarter Fiscal 2015
Net Revenues: $66.7 Million
- First Quarter Fiscal 2015
GAAP Diluted Earnings (loss) Per
Share: $(0.05) and Non-GAAP Diluted Earnings Per Share:
$0.08
SAN JOSE, California, July
29, 2014 - InvenSense, Inc. (NYSE: INVN) the leading
provider of intelligent sensor solutions, today announced its first
quarter fiscal year 2015 results.
Net revenue for the first quarter fiscal 2015 was
$66.7 million, up from $55.9 million for the first quarter fiscal
2014.
Net loss for the first quarter fiscal 2015 was
$4.8 million, compared to net income of $10.3 million for the first
quarter fiscal 2014.
Diluted earnings (loss) per share for the first
quarter fiscal 2015 was $(0.05) compared to $0.12 for the first
quarter fiscal 2014.
InvenSense ended the first quarter fiscal 2015
with $246.2 million in cash, cash equivalents and investments,
compared to $246.1 million at the end of fiscal year 2014.
Management Qualitative
Comments
"This is an exciting and promising time for
InvenSense," said Behrooz Abdi, president and CEO. "Our design win
portfolio continues to grow, positioning us for strong market share
increases in the coming quarters as new designs ramp into volume
production. We continue to transition to a platform solution
company, underscored by our announcement earlier this quarter of
our intention to acquire two leading sensor algorithm and software
companies. These highly strategic acquisitions allow us to scale
our research and development efforts in this area and deliver
higher value solutions to our customers. In total, our expanding
presence in key geographic markets, additional content
opportunities within the mobile device market and new applications
for motion and audio sensors, such as wearables, provide healthy
growth drivers through the current fiscal year and beyond."
Financial
Highlights
Management believes that certain other financial
information is useful when evaluating business results and provides
supplemental information on a non-GAAP (generally accepted
accounting principles) basis. Non-GAAP net income for the first
quarter fiscal 2015 was $7.0 million, or $0.08 per diluted
share. This compares to non-GAAP net income of $12.7 million,
or $0.14 per diluted share for the first quarter fiscal
2014. Non-GAAP adjustments for the first quarter fiscal 2015
totaling $11.9 million, primarily included $7.7 million of
stock-based compensation expense, $0.7 million of litigation
expenses, $1.8 million of accretion interest expense on convertible
notes, $0.1 million amortization of acquired inventory fair value
write-up, $1.2 million amortization of acquisition intangibles in
connection with the Company's acquisition of the microphone
business line of Analog Devices, Inc. in fiscal 2014, and $1.0
million of expenses related to the recently announced acquisitions
(Movea and Trusted Positioning Inc.) partially offset by the
related income tax effect of the Non-GAAP adjustments of $0.9
million. The reconciliation between GAAP and non-GAAP net income
(loss) for all referenced periods is provided in a table
immediately following the Unaudited GAAP Condensed Consolidated
Statements of Operations below.
First Quarter Fiscal Year
2015 Earnings Conference Call
A conference call will be held today at 1:30 p.m.
Pacific Standard Time to discuss the quarter's results and
management's current business outlook. To listen to the
conference call, please dial (877) 703-6105 ten minutes prior to
the start of the call, using the passcode
49776606. International callers, please dial (857)
244-7304. A taped replay will be made available approximately
two hours after the conclusion of the call and will remain
available for 2 days. To access the replay, please dial (888)
286-8010 and enter passcode 3607693. 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,
litigation expense, business acquisition costs, amortization
of fair value write-up of acquired inventory, amortization of
acquisition-related intangible assets, accretion interest expense
on convertible notes and other non-GAAP financial 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 to 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 is not reflected in the non-GAAP measures. Also, other
companies, including companies in InvenSense'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 or other financial items discussed in this press
release, including the strength of our competitive positioning, the
strength of design activity across all of our multi-axis products ,
the differentiation of our products from those of our competitors,
the emergence of new opportunities for our products in the mobile
and imaging markets that focus on accuracy and performance, the
suitability of our products for these opportunities and our ability
to capitalize on then. 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 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 intelligent sensor solutions for consumer
electronic devices. The company's
patented InvenSense Fabrication Platform and
patent-pending MotionFusion(TM) 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 consumer electronic products including smartphones,
tablets, wearables, gaming devices, optical image stabilization,
and remote controls for Smart TVs. The company's MotionTracking
products are also being integrated into a number of industrial
applications. InvenSense is headquartered in San Jose, California
and has offices in China, Taiwan, Korea, Japan, France, Slovakia,
and Wilmington, MA. More information can be found
at www.invensense.com or follow us on Twitter at
@InvenSense.
©2014
InvenSense, Inc. All rights reserved. InvenSense, 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:
Leslie Green
Green Communications Consulting, LLC
650.312.9060
ir@invensense.com
For Press Inquiries,
Contact:
David Almoslino
Senior Director
Marketing and Communications
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 |
|
|
|
|
June 29, |
|
June 30, |
|
|
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
Net revenue |
|
|
$66,681 |
|
$55,910 |
Cost of revenue |
|
35,505 |
|
26,591 |
Gross profit |
|
|
$31,176 |
|
$29,319 |
Operating expenses: |
|
|
|
|
|
Research and development |
|
19,408 |
|
8,114 |
|
Selling, general and
administrative |
|
13,918 |
|
9,155 |
|
|
Total
operating expenses |
|
33,326 |
|
17,269 |
|
|
|
|
|
|
|
Income (loss) from operations |
|
(2,150) |
|
12,050 |
|
Interest (expense) |
|
(2,584) |
|
0 |
|
Other income, net |
|
181 |
|
80 |
Other income (expense), net |
|
(2,403) |
|
80 |
Income (loss) before income taxes |
|
(4,553) |
|
12,130 |
Income tax provision |
|
279 |
|
1,808 |
Net income (loss) |
|
(4,832) |
|
$10,322 |
|
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
Basic |
|
($0.05) |
|
$0.12 |
|
|
|
|
|
|
|
|
Diluted |
|
($0.05) |
|
$0.12 |
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing net
income (loss) per share: |
|
|
|
|
|
Basic |
|
88,302 |
|
85,038 |
|
|
|
|
|
|
|
|
Diluted |
|
88,302 |
|
87,914 |
INVENSENSE,
INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
NON-GAAP NET INCOME
(In thousands, except per share
amounts)
(Unaudited)
|
|
Three Months Ended |
|
|
June 29, |
|
June 30, |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
($4,832) |
|
$10,322 |
Items
reconciling GAAP net income (loss) to non-GAAP net income, |
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense |
|
7,741 |
|
2,818 |
Convertible
note accretion interest expense |
|
1,816 |
|
- |
Amortization of fair value write-up of acquired inventory |
|
146 |
|
- |
Amortization of acquisition-related intangible assets |
|
1,244 |
|
- |
Litigation
costs |
|
735 |
|
- |
Acquisition
expenses |
|
1,049 |
|
- |
Others |
|
68 |
|
- |
Income tax
effect of Pretax Non-GAAP adjustments |
|
(925) |
|
(484) |
Non-GAAP
net income |
|
$7,042 |
|
$12,656 |
|
|
|
|
|
Basic |
|
$0.08 |
|
$0.15 |
|
|
|
|
|
Diluted |
|
$0.08 |
|
$0.14 |
INVENSENSE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except par
value)
(Unaudited)
|
June 29, |
|
March 30, |
|
2014 |
|
2014 |
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$36,426 |
|
$26,025 |
Short-term investments |
110,034 |
|
91,307 |
Accounts receivable |
36,358 |
|
39,009 |
Inventories |
77,513 |
|
73,032 |
Prepaid expenses and other current assets |
17,773 |
|
19,587 |
Total current assets |
278,104 |
|
248,960 |
Property and equipment, net |
31,786 |
|
25,239 |
Intangible assets, net |
34,093 |
|
35,360 |
Goodwill |
50,952 |
|
50,952 |
Long-term investments |
99,778 |
|
128,755 |
Other assets |
6,148 |
|
5,469 |
Total assets |
$500,861 |
|
$494,735 |
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$18,568 |
|
$18,964 |
Accrued liabilities |
13,563 |
|
14,985 |
Total current liabilities |
32,131 |
|
33,949 |
Long-term debt |
137,387 |
|
135,583 |
Other long-term liabilities |
12,851 |
|
11,375 |
Total liabilities |
182,369 |
|
180,907 |
|
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock: |
|
|
|
Preferred stock, $0.001 par value - 20,000 shares
authorized, no shares issued and outstanding at June 29, 2014
and March 30, 2014 |
- |
|
- |
Common stock: |
|
|
|
Common stock, $0.001 par value - 750,000 shares
authorized, 88,764 shares issued and outstanding at June 29, 2014,
88,332 shares issued and outstanding at March 30, 2014 |
225,363 |
|
215,958 |
Accumulated other comprehensive income (loss) |
53 |
|
(38) |
Retained earnings |
93,076 |
|
97,908 |
Total stockholders' equity |
318,492 |
|
313,828 |
Total liabilities and stockholders' equity |
$500,861 |
|
$494,735 |
|
|
|
|
INVENSENSE,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
June 29, |
|
June 30, |
|
|
|
|
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net income(loss) |
|
$ (4,832) |
|
$ 10,322 |
Adjustments to reconcile net income(loss) to net cash
provided by (used in) operating activities: |
|
|
|
|
|
Depreciation and
amortization |
|
3,015 |
|
675 |
|
Loss (gain) on disposal of property and equipment |
|
- |
|
1 |
|
Stock-based compensation
expense |
|
7,635 |
|
2,818 |
|
Deferred income tax assets |
|
(2) |
|
(52) |
|
Tax effect of employee benefit
plans |
|
- |
|
2,724 |
|
Excess tax benefit from stock-based compensation |
|
- |
|
(2,724) |
|
Non cash interest expense |
|
1,816 |
|
- |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
2,651 |
|
(1,803) |
|
|
|
Inventories |
|
(4,480) |
|
(9,953) |
|
|
|
Prepaid expenses and other current assets |
|
1,781 |
|
(2,301) |
|
|
|
Other assets |
|
(688) |
|
(500) |
|
|
|
Accounts payable |
|
(230) |
|
6,758 |
|
|
|
Accrued liabilities |
|
20 |
|
428 |
|
|
|
|
Net
cash provided by operating activities |
|
6,686 |
|
6,393 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property and
equipment |
|
(8,424) |
|
(3,954) |
|
Proceeds from the sale of property and equipment |
|
- |
|
1 |
|
Sales and maturities of
available-for-sale investments |
|
10,387 |
|
28,526 |
|
Purchase of available-for-sale investments |
|
- |
|
(27,514) |
|
|
|
|
Net cash provided by (used in) investing
activities |
|
1,963 |
|
(2,941) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from exercise of common stock |
|
1,755 |
|
3,208 |
|
Payments of long-term debt and
capital lease obligations |
|
(3) |
|
(3) |
|
Excess tax benefit from stock-based compensation |
|
- |
|
2,724 |
|
|
|
Net cash provided by financing
activities |
|
1,752 |
|
5,929 |
|
|
|
|
|
|
|
|
|
Net Increase in cash and cash equivalents |
|
10,401 |
|
9,381 |
Cash and cash equivalents: |
|
|
|
|
Beginning of period |
|
$ 26,025 |
|
$ 100,843 |
|
|
|
|
|
|
|
|
|
End of period |
|
|
$ 36,426 |
|
$ 110,224 |
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
Cash paid for income taxes |
|
$ 93 |
|
$ 87 |
Cash paid for Interest |
|
$ 1,429 |
|
$ - |
|
|
|
|
|
|
|
|
|
Noncash investing and financing activities: |
|
|
|
|
|
Unpaid purchases of property
and equipment |
|
$ 1,641 |
|
$ 1,555 |
|
Unrealized gain (loss) from available-for-sale
investments |
|
$ 81 |
|
$ (95) |
|
Proceeds from exercise of common stock not received |
|
$ 78 |
|
$ 1,366 |
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Source: InvenSense, Inc. via Globenewswire
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