InvenSense, Inc. : INVENSENSE® ANNOUNCES THIRD QUARTER FISCAL 2013 RESULTS

  InvenSense, Inc. : INVENSENSE® ANNOUNCES THIRD QUARTER FISCAL 2013 RESULTS

 ·  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, January23, 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 of2013 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 acompass 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) 730.5769ten 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 athttp://www.invensense.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.

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 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.



About InvenSense

InvenSense Inc. (INVN) is the world's leading provider
ofMotionTracking^(TM)solutions for consumer electronic devices. The
company's patentedNasiri-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 atwww.invensense.com.

Investor Inquiries, Contact:
Alan Krock
Chief Financial Officer
ir@invensense.com

For Press Inquiries, Contact:
David Almoslino
408.988.7339 x285
dalmoslino@invensense.com

©2013 InvenSense, Inc. All rights reserved. InvenSense, MotionTracking,
MotionProcessing, MotionProcessor, MotionFusion, MotionApps, DMP, 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.



                               INVENSENSE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME   
                   (In thousands, except per share amounts)
                                 (Unaudited)

                            ThreeMonthsEnded          Nine MonthsEnded
                         December30,   January 1,   December30,   January 1,
                             2012          2012          2012          2012
Net revenue                            $   
                       $    58,929 41,229   $                  $ 
                                                153,424        119,890
Cost of revenue                           
                                        18,538  
                              27,723              70,284           52,919
Gross profit                              
                                        22,691  
                              31,206              83,140           66,971
Operating expenses:
Research and
development                      6,712       4,758  18,285           14,099
Selling, general and
administrative                   8,428       4,427  21,887           12,836
Total operating                            
expenses                               9,185  
                              15,140              40,172           26,935
Income from operations
                                16,066      13,506  42,968           40,036
Other income (expense)
net                                 98        (43)  188                 166
Income before income
taxes                           16,164      13,463  43,156           40,202
Income tax (benefit)
provision                        (654)       2,887  5,023             9,147
Net income                   16,818       10,576  38,133           31,055
Net income allocable
to convertible
preferred stockholders
                                -        5,157  -              20,618
Net income allocable                    $   
to common stockholders                  5,419                    $   
                          $  16,818             $  38,133     10,437
Basic                                  $   
                             $  0.20  0.11    $  0.46       $  0.36 
Diluted *                              $   
                             $  0.19  0.10    $  0.44       $  0.34 
Weighted average
shares outstanding in
computing net income
per share allocable to
common stockholders:
Basic                        83,218       49,890  82,280        28,770 
Diluted                      87,350       55,294  87,232        33,591 
Pro forma  net  income 
per  share  of  common 
stock
   Basic                            $                       $    
                             $  0.20  0.14        $  0.46       0.44
   Diluted**                        $                       $    
                             $  0.19  0.13        $  0.44       0.41
Weighted average
shares outstanding pro
forma
   Basic                  83,218       74,541  82,280           70,976
   Diluted                87,350       80,387  87,232           76,679



*  Diluted net income per share attributable to common stockholders in the
   three and nine months ended January1, 2012 is computed by dividing net
** income attributable to common stockholders, calculated as net income less
   income allocable to the rights of Series A, Series B and Series C
   convertible preferred stock holders for the period prior to their
   conversion upon our initial public offering, by the weighted average number
   of common shares outstanding, including unvested restricted stock, and
   potential dilutive common shares assuming the dilutive effect of
   outstanding stock options using the treasury stock method.

   Pro forma diluted net income per share in the three and nine months ended
   January 1, 2012 was computed to give effect to the conversion of the Series
   A, Series B, and Series C convertible preferred shares and certain
   preferred stock warrants both using the as-if converted method into common
   shares as if the conversion had occurred as of the beginning of each period
   presented.





                               INVENSENSE, INC.
           RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
                   (In thousands, except per share amounts)
                                 (Unaudited)

                            ThreeMonthsEnded              
                         NineMonthsEnded
                      December 30,     January1,     December 30,  January1,
                          2012            2012            2012         2012
GAAP net income          $    16,818       $   10,576    $   38,133   $ 31,055
Items reconciling
GAAP net income to
non-GAAP net
income, net of tax; 
    Stock-based
compensation
expense                      2,050              633         4,384      1,761
Executive
separation costs                 930                -           930          -
Income tax -
discrete and other
benefits, net                (2,930)                -       (2,391)          -
Non-GAAP net income         16,868           11,209        41,056     32,816
Non-GAAP net income
allocable to
convertible
preferred
stockholders                       -            5,453             -     21,749
Non-GAAP net income
allocable to common
stockholders             $    16,868       $    5,756    $   41,056   $ 11,067
Basic                    $      0.20       $     0.12    $     0.50   $   0.38
Diluted*               $      0.19       $     0.11    $     0.47   $   0.36
Weighted average
shares outstanding
in computing
non-GAAP net income
per share allocable
to common
stockholders:
Basic                         83,218           49,890        82,280     28,770
Diluted                       87,350           55,294        87,232     33,591
Non-GAAP pro forma
net income per
share of common
stock
         
  Basic                $      0.20       $     0.15    $     0.50   $   0.46
         
  Diluted**            $      0.19       $     0.14    $     0.47   $   0.43
                    
Weighted average
shares outstanding
non-GAAP pro forma
         
  Basic                     83,218           74,541        82,280     70,976
         
  Diluted                   87,350           80,387        87,232     76,679

* and ** same method s as described in condensed consolidated statements of
income footnotes.



                               INVENSENSE, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                       (In thousands, except par value)
                                 (Unaudited)

                                         December30,          April1,
                                              2012                 2012
Assets
Current assets:
Cash and cash equivalents           $    94,039    $  153,643 
Short-term investments                              65,227  4,129 
Accounts receivable                                 24,524  11,931 
Inventories                                         18,800  12,240 
Prepaid expenses and other current
assets                                               8,027  4,188 
Total current assets                               210,617  186,131 
Property and equipment, net                          6,705  4,011 
Long-term investments                               33,308  - 
Other assets                                                   3,176  
                                                      1,226 
Total assets                                 $  251,856  $  193,318 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                               $  8,392  $  5,446 
Accrued liabilities                                            7,754  
                                                      8,279 
Total current liabilities                        16,671   13,200 
     Long-term liabilities  
                                                     5,678              3,241
Total liabilities                                22,349   16,441 
Commitments and contingencies
Stockholders' equity:
Preferred stock:
Preferred stock, $0.001 par value -
20,000 shares authorized, no shares
issued and outstanding at
December30, 2012 and April1, 2012
                                                    -   - 
Common stock:
Common stock, $0.001 par value -
750,000 shares authorized, 83,858
shares issued and outstanding at
December30, 2012, 80,890 shares
issued and outstanding at April1,
2012                                               151,227  136,792 
Accumulated other comprehensive
income                                                  62  1 
Retained earnings                                   78,218  40,084 
Total stockholders' equity              229,507     176,877 
Total liabilities and stockholders'
equity                                       $  251,856  $  193,318 




                               INVENSENSE, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In thousands)
                                 (Unaudited)

                                                   Nine MonthsEnded
                                               December30,       January 1,
                                                   2012              2012
Cash flows from operating activities:
Net income                               $       38,133    $  31,055 
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization                             1,480         1,465
Gain on disposal of property and
equipment                                                    -         (160)
Stock-based compensation expense                          6,449         2,507
Deferred income tax assets                                  114         175
Tax effect of employee benefit plans                      3,818       -
Excess tax benefit from stock-based
compensation                                            (3,818)           -
Changes in operating assets and
liabilities:
Accounts receivable                                    (12,593)         (536)
Inventories                                             (6,560)         (851)
Prepaid expenses and other current assets
                                                        (3,911)         (585)
Other assets                                              1,871       (1,603)
Accounts payable                                          2,933       (2,297)
Accrued liabilities                                       3,391         4,393
Net cash provided by operating activities
                                                         31,307       33,563
Cash flows from investing activities:
Purchase of property and equipment                      (4,071)       (1,669)
Proceeds from the sale of property and
equipment                                                    -           188
Sale of available-for-sale investments                   10,509         7,793
Purchase of available-for-sale
investments                                           (104,820)       (8,025)
Net cash used in investing activities                  (98,382)      (1,713)
Cash flows from financing activities:
Proceeds from initial public offering,
net of underwriting commissions                              -        69,750
Net proceeds from exercise of warrants
and preferred stock                                          81           499
Proceeds from issuance of common stock                    4,064           969
Offering costs                                            (471)       (1,717)
Payments of long-term debt and capital
lease obligations                                          (21)          (19)
Excess tax benefit from stock-based
compensation                                              3,818             -
Net cash provided by financing activities
                                                          7,471       69,482
Net (decrease) increase in cash and cash
equivalents                                            (59,604)       101,332
Cash and cash equivalents:
Beginning of period                      $      153,643           28,795
End of period                            $       94,039   $  130,127 
Supplemental disclosures of cash flow
information:
Cash paid for interest                   $          
                                          2                            $  22
Cash paid for income taxes               $         
                                          31                      $  6,586 
Noncash investing and financing
activities:
Unpaid accounts payable for property and
equipment purchased                      $         371     $  204 
Unrealized gain from available-for-sale   $         
investments                              62                          $  5 
Net exercise of warrants                 $         
                                          70                        $  - 
Fixed assets acquired under capital
leases                                   $          -      $  40 
Unpaid offering costs                    $          -     $  357 

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