After InvenSense Inc (NYSE:INVN) gave out its 3rd quarter guidance for the year, the prices of its shares fell in the markets as the company has predicted that it will not be good results. The company has forecasted a net income of 16 to 18 cents a share for the period and its revenues being in the region of $65million and $68 million.
As per the analysts’ predictions the company was expected to earn an income of 22 cents a share which meant that it would earn a total income of $76.6 million. The company is in the business of manufacturing motion chips used in smart phones and tablets, reported a total income of 15 cents a share in the second quarter and its revenue for the period rose by 28 per cent to reach a high of $70.9 million Analysts had predicted earlier that the company would post a net income of 19 cents per share and $69.2 million of revenue.
On Monday the company shares feel further when a report by an analyst claimed that its products were not being used in the new iPad mini with retina display. The company is expecting that its new division Analog devices Inc. which it purchased for $100 million to grow its audio business in the coming years. The buy was not reflected in the guidance issued by the company for the third quarter as it does not think that the same will have a major effect in the present financial year.
As the weakness in the gaming and tablet segment continues to affect the company and its ongoing lower sales to Samsung. It continues to expect that Samsung will add 30 per cent to its revenues via sales of its chips. The introduction of latest applications in the microphones and smart phones optical image optimization, the company expects that its revenues will get the lift they need.
