Why InvenSense Shares Got Crushed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of InvenSense (NYS: INVN) are getting crushed today by as much as 25% after the technology company reported earnings and cut its outlook.
So what: Results in the fourth quarter were mostly in line with expectations, with revenue of $33.1 million and net income of $5.9 million, or $0.07 per share. CEO Steven Nasiri said he's encouraged by the continued adoption of the company's Motion Interface in smartphones and tablets, but InvenSense still had to reduce its guidance.
Now what: Next quarter was originally expected to see revenue in the range of $38 million-$42 million, and InvenSense is ratcheting down the high end of that forecast to $40 million. Nasiri said some important customers were surprised by temporary component shortages in new LTE smartphones, which forced some delays in product releases. Piper Jaffray analyst Gus Richard said the delays stemmed from Qualcomm's yield issues with its new baseband chip, which were discussed during that company's recent earnings release.
Interested in more info on InvenSense? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Qualcomm and InvenSense. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.