3 Things You Need to Know

InvenSense at Mid-Year

1) Disappointing Wall Street

What Wall Street Expected

Analysts were expecting revenue of $57.4 million.

Analysts were expecting earnings per share of $0.10.

Revenue came in at $59 million, ahead of estimates, and 7% ahead of the same time last year.

But earnings disappointed, coming in at $0.07 per share, and less than half of what the company pulled in last year.

Disappointing Wall StreetWhat Wall Street Got

2) But It Wasn’t Really That Bad

The reasons for the profit miss wasn’t because the company lost pricing power or because input costs rose.

As CEO Behrooz Abdi said on the company’s conference call, the profit miss came from an increase in research and development to, “enable us to make sizable market share gains in our core mobile market and to open up exciting business opportunities in emerging applications, such as wearables.”

Abdi also said the company built up inventory to, “prepare for multiple significant customer ramps.”

Things Weren’t As Bad as They Seemed

3) What to Watch: A First-Mover in Wearables?

Strong Second-HalfFor the past two quarters,

Abdi has said that the second-half of 2014 would be a strong one. The company needs to meet expectations if Abdi is to be taken seriously.

For the third quarter, analysts expect EPS of $0.19 on $84 million in revenue.

For the fourth quarter, analysts expect EPS of $0.24 on revenue of $93 million.

The movement towards wearable technology and the “Internet of Things” is in its infancy. Companies that develop relationships with manufacturers now stand to reap huge benefits in the future.

Pay attention to the companies and devices using InvenSense’s technology for wearable computing and technology.

What to WatchFirst Mover in Wearables

Several sources are claiming that Apple’s newest gadget will trump all of its previous ones combined. And it will be a form of wearable computing. Will that technology come from InvenSense, or the competition? To find out, get your copy of the special free report:

Leaked: Apple’s Next Smart Device Could Be Powered By…

Wearable Technology at Its Best