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 firstname.lastname@example.org For Press Inquiries, Contact: David Almoslino 408.988.7339 x285 email@example.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 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: InvenSense, Inc. via Thomson Reuters ONE HUG#1672587
InvenSense, Inc. : INVENSENSE® ANNOUNCES THIRD QUARTER FISCAL 2013 RESULTS
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