What: Shares of InvenSense Inc (NYSE:INVN) were up 11.6% as of 1:30 p.m. Thursday after the motion sensor chip specialist released better-than-expected fiscal-second -uarter 2016 results. 

So what: Quarterly revenue rose 25% year over year to $112.5 million, near the high end of InvenSense's guidance, which called for revenue of $106 million to $114 million. Adjusted net income rose 18.3% year over year to $14.9 million, and 14.3% on a per-share basis to $0.16, above the high end of InvenSense's adjusted EPS guidance range of $0.13 to $0.15.

Similarly, InvenSense's results also outpaced analysts' optimistic models, which called for revenue of $110.8 million and adjusted earnings of $0.15 per share.

"We continue to expand our software-enabled sensor platform and are delivering high-value IoT use cases that provide strategic differentiation and tangible end-user experience enhancements," added InvenSense CEO Behrooz Abdi. "This is allowing us to drive more content into our current customer base, and also to solidify our 6-axis customer wins."

Now what: During the subsequent conference call, Abdi elaborated that during the quarter, InvenSense "successfully ramped high-volume production of a new six-axis MotionTracking devices for a major North American customer that further differentiates our performance and quality from competing solutions."

InvenSense also enjoyed traction in a number of vertical market outside its core mobile and motion tracking device businesses, including increased interest in multi-camera optical image stabilization, advanced 3-D photography, sensor-assisted navigation, audio solutions, and automotive applications. In addition, InvenSense began to ramp volume production of its FireFly system-on-a-chip for a key wearable device application, and is enjoying early design traction for the promising platform in several other applications, including drones.

For the current quarter, InvenSense expects revenue to be in the range of $115 million to $120 million, which should translate to adjusted earnings per share of $0.17 to $0.19. Both ranges sit above analysts' consensus estimates, which called for fiscal Q3 2016 revenue of $116.8 million, and earnings of $0.18 per share.

All things considered, I can't find anything not to like about InvenSense's latest report, from its solid top- and bottom-line beat, to traction in new growth initiatives and encouraging guidance. With shares still down more than 25% so far in 2015, I suspect InvenSense stock has plenty of room to rise from here.

Steve Symington owns shares of InvenSense. The Motley Fool owns shares of and recommends InvenSense. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.