InvenSense's (INVN) Doesn't Appear to Have iPhone 6 (AAPL) Win
InvenSense's (INVN) Doesn't Appear to Have iPhone 6 (AAPL) Win, Needham & Company Says
8:56 AM 3/14/2014 - StreetInsider
InvenSense (NYSE: INVN) is on watch Friday after Needham & Company analyst Vernon Essi, Jr. said, following meetings with the CEO and CFO this week, "we did not get the impression that OIS was likely in the iPhone 6," . He added while suppliers are under strict NDA and there was no official comment, "this appears to have been nothing more than speculation," he added.
Essi also noted, "it appears that OIS has been more commonly found in midrange or specialty offerings as opposed to the higher-end marquee smartphone offerings such as the iPhone."
On the inventory build that occurred in December quarter, the analyst said in retrospect it appears to be "covered" given the likely ramp with Samsung as well as the Android K OS through 2014. He also notes MEMS microphone development is ongoing and we anticipate revenue in 2015 as a result.
Essi continue to struggle with valuation and wait for upward earnings revisions and possibly a lower share price before we can get constructive on the stock. He maintained a hold rating.