Boston, MA 10/31/2013 (wallstreetpr) – InvenSense Inc (NYSE:INVN) 3rd quarter guidance for 2013 has resulted in its shares slumping in the market with the company forecasting not so good results. The company forecasts a net income of 16 to 18 cents per share for the third quarter with revenues hanging around in the margins of $65million and $68 million. Analysts had predicted income in the margin of 22 cents a share translating to total revenue of $76.6 million. InvenSense which manufactures motion chips for smartphone sand tablets reported a net income of 15 cents per share for the second quarter. The revenue for the second quarter increased by 28% to stand at a high of $70.9 million Analysts had earlier predicted a net income of 19 cents per share and $69.2 million worth of revenue.
InvenSense slumped even further on Monday after an analyst report claimed the company’s products had not been included in the new iPad mini with retina display. The company expects its new venture Analog devices Inc. which it bought for $100 million to expand its audio business in the coming years. The deal was not included in the 3rd quarter guidance as InvenSense does not expect it to have a major impact in the current financial year. The company 3rd quarter guidance fell below analysts’ expectation thus the reason for the decline in the stock prices.
Weaknesses in the gaming and tablet market continue to greatly affect InvenSense in its operation and its continuing lower sales to Samsung Electronics. The company still expects Samsung to continue contributing to 30% of its total revenue through sales of the chips. With new applications such as microphones and smartphone optical image stabilization expected to roll into the market, the company expects to get the much needed lift it highly needs.
