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 (NYSE: 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 by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Qualcomm and InvenSense. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (3) | Recommend This Article (6)

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  • Report this Comment On May 04, 2012, at 2:29 PM, k9isadog wrote:

    can you say motion sickness, huge t/o hope the shares found strong hands. they didn't dispute that samsung sells more iphones than AAple. Invn is a supplier to samsung.

  • Report this Comment On May 04, 2012, at 2:34 PM, catoismymotor wrote:

    I have been watchin INVN for a few weeks. I decided last week I'd buy some shares once the price came down. And come down it has. This correction is rediculous. There's blood on this street, it's time to buy!

  • Report this Comment On May 18, 2012, at 3:17 AM, SellAnnoyed wrote:

    In the curious (okay PSYCHOTIC) case of INVN is now a good time to sell to take a nearly 50% loss and then buy back in after 31 days? It's clearly not going back to 20 in the next 30 days... Sell Annoyed says it may be time to do just that.

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