Company Generates Record Revenue of $115.9 Million
SAN JOSE, California, Jan. 29, 2015 – InvenSense, Inc. (NYSE: INVN), the leading provider of intelligent sensor system on chip (SoC) for Motion and Sound, today announced results for its third quarter of fiscal year 2015 ended December 28, 2014.
Net revenue for the third quarter of fiscal 2015 was $115.9 million, up 28 percent from $90.2 million for the second quarter of fiscal 2015, and up 74 percent from $66.7 million for the third quarter of fiscal 2014.
Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2015 was 43 percent, compared with 35 percent for the second quarter of fiscal 2015. GAAP gross margin for the third quarter of fiscal 2015 included stock-based compensation and related payroll taxes, and amortization of acquisition intangibles. Excluding these items, non-GAAP gross margin for the third quarter of fiscal 2015 was 46 percent, compared with 37 percent for the second quarter of fiscal 2015. In addition, InvenSense generated $17.8 million in operating cash flow in the third 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
“We achieved the highest revenue in our company’s history in the third quarter, successfully ramping a number of key design wins for our second and third generation 6-axis devices as well as our optical image stabilization solution,” said Behrooz Abdi, President and CEO. “We continue to hold sizeable market share, including our share at top customers, and are building a design win portfolio that positions us well for continuing market leadership. As we enter the new calendar year, we are excited to bring to market a host of new, highly-differentiated motion and audio products that are expected to more than double our current content opportunity, allowing us to drive deeper customer engagement, as well as market diversification in the coming year and beyond.”
Third Quarter Fiscal Year 2015 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) 515-2909 ten minutes prior to the start of the call, using the passcode 25145057. International callers, please dial (617) 399-5123. 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 99229909. 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 litigation expenses, business acquisition costs, 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, growth opportunities and our ability to capitalize on them. 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.
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.