Boston, MA 05/02/2014 (wallstreetpr) – The sensor maker company InvenSense Inc (NYSE:INVN) failed to live up to expectation in its Q42014 reporting. Although revenue column behaved, shareholders had much interest in the bottom-line that eventually fell short of the Street view. However, the company downplayed the impact on its earnings and instead said the future was more important. About the future, the company expects to generate higher revenue and improve the bottom-line.
In the current fiscal year, the company remarked that things were already unfolding nicely and the roll out of new products should support revenue growth. Moreover, the company said fiscal 2015 will benefit from more orders from existing customers such as Samsung Electronics as the demand for high-performance mobile devices escalates. In addition to keeping existing customers, the company looks to attracting new customers and its eyes are on players in the mobile industry where the market continues to demand more sensory solutions.
Q4 in numbers
InvenSense Inc (NYSE:INVN) reported revenue of $59 million, suggesting improvement of 7 percent over the same quarter a year earlier. Earnings in the quarter were 7 cents per share. However, Wall Street was looking for earnings of 10 cents per share on revenue of $57.4 million.
Damage control
Following the weak Q4 earnings, the company sought to allay fears over weakening operations by forecasting revenue between $63 and $66 million for the current quarter. It expects earnings in the quarter to come between 7 and 8 cents per share. In the current quarter, InvenSense expects to its revenue column to gain a great deal from supplies to Samsung. Therefore, the company expects business with Samsung to make up about 30 percent of its total revenue in Q12015.
For the full-year, InvenSense Inc (NYSE:INVN) has its eyes on revenue going up in the range of 25 to 35 percent at a time when Wall Street expects revenue to increase by 29 percent.
In conclusion
The February legal settlement between InvenSense Inc (NYSE:INVN) and STMicroelectronics marked an important milestone. In addition to the settlement being able to save InevenSense about $5 million every quarter in legal fees, the company has also gained the peace of mind to focus on its growth.
As the company looks to add more OEM to its customer listing, internal improvements to curb expenses should also lead to support to the bottom –line.
