More about InvenSense (INVN):
Shares of sensor maker InvenSense (INVN) are down $57 cents, or 7%, at $7.25, after the company this afternoon reported fiscal Q3 revenue that topped analysts’ expectations, but forecast this quarter’s revenue and profit substantially below consensus, citing share loss at one of its large customers, like Samsung Electronics (005930KS).
Revenue in the three months ended in December rose 4%, year over year, and 7% from Q2’s level, to $120 million, yielding EPS of 18 cents a share, excluding some costs.
Analysts had been modeling $117 million and 18 cents a share.
InvenSense’s gross profit margin was 44%, on a non-GAAP basis, it said, the same as the prior quarter.
CEO Behrooz Abdi called it a “solid” quarter amidst a backdrop of a “tumultuous business and financial environment.”
On a conference call, the company forecast revenue this quarter in a range of$77 million to $83 million, and earnings per share of 9 cents to 11 cents. That compares to the average estimate on the Street of $103.5 million and earnings in a range from “breakeven” to 2 cents per share.
CFO Mark Dentinger was asked about “share loss” in Korea with respect to business with a customer there.
Dentinger remarked that the percentage of revenue it gets from “our second-largest customer” is going to “slip to single digits” during the current quarter, something that was “incorporated into our thought process.”
Analysts have expected that the company was losing some business with Samsung, according to reports from the Street this week.
Perhaps the selling is somewhat overdone considering the enormous slide in the shares and the fact that Q4 profits are guided well above expectations..