rexo - Invensense just had a pretty good CC. Pretty good in that it didn't crash by a double digit percentage in the after market. I picked up AMBA in the mid 20's, sold half my position at 80 and picked up some shares at 55. I would love for this to get down to the 30's. The body cam market is going to be huge. You are going to see dash cam video cameras as standard equipment too in autos soon. Its holding the 50 support level but if it breaks 40 isn't far fetched. That's when I will pick up more shares. Even if you reduce earnings by say 20 percent for a gopro slowdown that's still only about forward P/E of 10 (after carving out cash) which I think is cheap.
The company has no moat around it to protect it from competition and the CEO is in over his head at this level. If you are going to wait for an apple to buy them out good luck. Apples improvements in smartphone camera technology makes a gopro buyout unlikely.
This was the first CC I have listened to and I was half expecting Woodman to say to the analysts "Dudes I can totally fix this. My dad has a bi chen set of tools." I am soooooo glad I chose not to jump on the gopro bandwagon. How many minutes of the CC was spent by woodman telling analysts about how he used a gopro to film his kids carving a pumpkin and how cool gopro is?? Amazing. You gopro shareholders had better get rid of him and get someone who cant talk wall street instead of just surfer.
I believe last year prior to the 2nd quarter CC the short float was around 30 percent. I think most of them have covered and moved on. I think we have turned the corner and like the announcements about fingerprint sensor, medical and auto. The big complaint (paranoia) was that INVN was selling commodity products. As we can see, that's not the case and their decision to go to SoC and concentrate on software with acquisitions like Movea and the mems microphone business from ADI is paying off.
I have not listened to the call but it must be an at least solid CC given the reaction in the after market. Its refreshing to not have the stock crash by a double digit percentage in the after market after a CC. It appears many of the shorts have gone on to greener pastures (given the lack of negative commentary compared to previous earnings.)
So in other words they said last quarter it would be 2 or 3 quarters before improvement and that has not changed. No wonder things are quiet.
I cant listen to the CC (yet) so I have to assume whatever is being said is fairly solid like the numbers. Yes gross margin did go down about 8 tenths of a point, but the drop in gross margin was more than made up in sales gains. No surprise legal accrual which I think some were afraid of. Pretty solid report. Generated about 33 million or 36 cents a share in cash from operations and now have about 3 dollars a share on hand in cash and short term securities. Overall I think this was a solid report, no surprises and given the market reaction the CC must be ok too.
" On the conference call, management forecast revenue this quarter of $95 million to $98 million, and EPS of 11 cents to 13 cents, compared to the average Street estimate for $92 million and 12 cents. The company sees non-GAAP gross margin staying about the same, at a range of 46% to 47%.
Following that forecast, the shares have deepened their decline, down $1.86, or almost 12%, at $13.95."