||Third Quarter Fiscal 2013 Net Revenues: $58.9 Million
||Third Quarter Fiscal 2013 Net Income: $16.8 Million
||Third Quarter Fiscal 2013 Diluted Earnings Per Share: $0.19
SUNNYVALE, California, January 23, 2013 – InvenSense, Inc. (INVN), the leading provider of MotionTracking(TM) devices, today announced its 2013 fiscal third quarter results.
Net revenue for the third fiscal quarter of 2013 was $58.9 million, up from $41.2 million for the third fiscal quarter of 2012. Net revenue for the first nine months of fiscal 2013 was $153.4 million, up from $119.9 million for the first nine months of fiscal 2012.
Net income for the third fiscal quarter of 2013 was $16.8 million up from $10.6 million for the third fiscal quarter of 2012. Net income for the first nine months of fiscal 2013 was $38.1 million, up from $31.1 million for the first nine months of fiscal 2012.
Diluted earnings per share for the third fiscal quarter of 2013 was $0.19. Diluted earnings per share for the first nine months of fiscal 2013 was $0.44. Diluted earnings per share for the third fiscal quarter of 2012 was $0.10. Diluted earnings per share for the first nine months of fiscal 2012 was $0.34.
InvenSense ended the third fiscal quarter of 2013 with $192.6 million in cash, cash equivalents and investments, compared to $157.8 million at the end of fiscal 2012.
Management also believes that certain other financial information is useful when evaluating business results and supplementally provides that on a non-GAAP (generally accepted accounting principles) basis, net income for the third quarter of fiscal 2013 was $16.9 million, or $0.19 per diluted share. This compares to non-GAAP net income of $11.2 million, or $0.14 per diluted pro forma share for the third quarter of fiscal 2012. Non-GAAP adjustments for the third quarter of fiscal 2013, net of tax included; $2.1 million in non-cash stock-based compensation expense and $0.9 million in executive separation costs offset by $2.9 million of income tax discrete and other benefits, net, associated primarily with an increase in our foreign based income as well as the recent enactment of the R&D tax credit. Non-GAAP net income for the first nine months of fiscal 2013 was $41.1 million, or $0.47 per diluted share. This compares to non-GAAP net income of $32.8 million, or $0.43 per diluted pro forma share for the first nine months of fiscal 2012. Non-GAAP adjustments for the first nine months of fiscal 2013, net of tax included $4.4 million in non-cash stock-based compensation expense and $0.9 million in executive separation costs offset by $2.4 million of income tax discrete and other benefits, net. The reconciliation between GAAP and non-GAAP net income for all referenced periods is provided in a table immediately following the GAAP Condensed Consolidated Statements of Income below.
Management Qualitative Comments
The third quarter of our fiscal 2013 was a record quarter for InvenSense,” said Behrooz Abdi, president and CEO. “In addition to achieving record levels of revenue and unit shipments, we saw significant design activity across our multi-axis MotionTracking products, including our newly announced, second generation 9-axis products, which include an integrated gyroscope and accelerometer together with a compass solution inside an industry leading 3x3x1mm package. The advanced capability of our innovative MotionTracking solutions is ideally suited for multiple market trends in the mobile and gaming markets as the demand for contextually aware consumer products drive the need for higher accuracy and performance.
Third Quarter Fiscal 2013 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 (866) 730.5769 ten minutes prior to the start of the call, using the passcode 13916881. International callers, please dial (857) 350.1593. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for one week. To access the replay, please dial (888) 286.8010 and enter passcode 57952066. 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 https://invensense.tdk.com. An archived webcast replay will be available on the web site for three months.
Note Regarding Use of Non-GAAP Financial Measures
As 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 expenses, net of tax, recorded under Accounting Standard Codification 718-10 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.
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 potential for an increase in the attach rates of our motion-processing technology in our markets and the potential for rapid and broad adoption of our fully integrated 6-axis gyroscope and accelerometer and 9-axis products by customers. 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, the continued adoption of motion tracking and motion sensing as an interface in consumer electronics products, our achievement of design wins, consumer acceptance of our customers’ products that incorporate our solutions, intense competition in our industry; our dependence on a limited number of customers for a substantial portion of our revenues; our lack of long-term supply contracts and dependence on limited sources of supply; our ability to continue to develop and introduce new and enhanced products on a timely basis; and potential decreases in average selling prices for our products, 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.
InvenSense Inc. (INVN) is the world’s leading provider of MotionTracking(TM) solutions for consumer electronic devices. The company’s patented Nasiri-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- and gesture-based interfaces. InvenSense technology can be found in consumer electronic products including smartphones, tablets, 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 Sunnyvale, California and has offices in China, Taiwan, Korea, Japan, and Dubai. More information can be found at www.invensense.com.
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