InvenSense -26.2% AH on FQ2 miss, guidance, GM drop
Oct 28 2014, 17:07 ET | About: InvenSense (INVN) | By: Eric Jhonsa, SA News Editor Contact this editor with comments or a news tip
InvenSense (NYSE:INVN) guides on its FQ2 CC (webcast) for FQ3 revenue of $108M-$115M and EPS of $0.17-$0.21, below a consensus of $116.3M and $0.30.FQ2 gross margin was 37.2%, down sharply from 49.6% in FQ1 and 51.9% a year ago.The company states an inventory charge (largely related to older products) had an ~800 bps GM impact, and that "a shift in revenue mix towards lower margin, high volume customers" had a ~500 bps impact. The latter could be a reference to Apple, which is well-known for striking hard bargains with suppliers.FQ3 GM is expected to be in a 46%-47% range; the inventory issues will be gone, but InvenSense expects the pricing/mix challenges it saw in FQ2 to remain.GAAP opex rose 71% Y/Y in FQ2 to $26.2M, mostly thanks to a 120% increase in R&D spend to $21.6M. Spending is expected to remain elevated in FQ3.Management spent much time on the CC talking up growth opportunities in areas such as wearables, smartphone camera OIS modules (expected to make a "meaningful contribution" to FY15 results), smart TV remotes, and mobile sensor hubs featuring proprietary algorithms (one was announced today)
To follow my postings on ihub use this link : Ihub person mark
Feedback is allways appreciated, as are other (annotated) picks
