Company Overview
| Company Name |
INVENSENSE INC |
| Company Address |
1197 BORREGAS AVENUE
SUNNYVALE, CA 94089 |
| Company Phone |
650) 493-9300 |
| Company Website |
www.invensense.com |
| CEO |
Steven Nasiri |
| Employees (as of 10/2/2011) |
243 |
| State of Inc |
DE |
| Fiscal Year End |
3/31 |
| Status |
Priced (11/16/2011) |
| Proposed Symbol |
INVN |
| Exchange |
New York Stock Exchange |
| Share Price |
$7.50 |
| Shares Offered |
10,000,000 |
| Offer Amount |
$75,000,000.00 |
| Total Expenses |
$3,496,000.00 |
| Shares Over Alloted |
0 |
| Shareholder Shares Offered |
-- |
| Shares Outstanding |
79,322,687 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
5/14/2012 |
| Quiet Period Expiration |
12/26/2011 |
| CIK |
0001294924 |
We estimate that the net proceeds we will receive from this offering will be
$66,254,000 million, at an initial public offering price of $7.50 per share,
after deducting underwriting discounts and commissions and estimated offering
expenses paid or payable by us. We will not receive any proceeds from the
shares of common stock sold by the selling stockholders if the underwriters
exercise their option to purchase additional shares, although we will pay
the expenses, other than underwriting discounts and commissions, associated
with the sale of those shares.
We intend to use the net proceeds from this offering for working capital,
capital expenditures and other general corporate purposes. We may also use
a portion of the net proceeds to acquire complementary businesses, products
or technologies. However, we do not have negotiations underway, agreements
reached or commitments made for any specific acquisitions at this time.
Pending any use, as described above, we plan to invest the net proceeds in
a variety of capital preservation instruments, including short- and
long-term interest-bearing investments, direct or guaranteed obligations of
the U.S. government, certificates of deposit and money market funds.
We compete with companies that may have substantially greater financial and
other resources with which to pursue engineering, manufacturing, marketing
and distribution of their products. We currently compete with the following:
Analog Devices, Inc., Epson Toyocom Corporation, Freescale Semiconductor,
Inc., Kionix, Inc. (a wholly owned subsidiary of Rohm Co., Ltd.), MEMSIC,
Inc., Murata Manufacturing Co., Ltd., Panasonic Corporation, Robert Bosch
GmbH, Sensor Dynamics, Inc., Sony Corporation, STMicroelectronics N.V.
(STMicro) and VTI Technologies, Inc. Currently, we believe STMicro is our
primary competitor in the consumer motion sensing market. Over time, we
expect continued competition from motion sensor competitors as well as
competition from new entrants into the motion processing market.
Our ability to compete successfully in the rapidly evolving area of motion
processing technology depends on many factors, including:
. our success in designing and manufacturing new products that anticipate
the motion processing and integration needs of our customers’ next generation
products and applications;
. our ability to scale our operations to meet the volume and timing demands
of our customers;
. our ability to continue to reduce our manufacturing and operating cost
structure;
. our success in identifying new and emerging markets, applications and
technologies and developing products for these markets;
. our products’ performance and cost effectiveness relative to that of our
competitors’ products;
. the pricing policies of our competitors;
. our ability to recruit and retain qualified employees;
. our ability to protect our processes, trade secrets, and know-how;
. our ability to maintain high product quality, reliability, and customer
support;
. our financial stability; and
. our manufacturing, distribution and marketing capability.
We believe that we are competitive with respect to these factors,
particularly because our products are typically smaller in size, are highly
integrated, and achieve high performance specifications at lower price
points than competitive products. However, we cannot ensure that our products
will continue to compete favorably or that we will be successful in the face
of increasing competition from new products and enhancements introduced by
existing competitors or new companies entering this market.
Company Description
We are the pioneer and a global market leader in intelligent motion processing
solutions. We define motion processing as the ability to detect, measure,
synthesize, analyze and digitize an object’s motion in three-dimensional
space. Our MotionProcessing solution is comprised of our proprietary
MotionProcessor and MotionApps platform. Our single-chip MotionProcessor
combines micro-electro-mechanical system, or MEMS, based motion sensors,
such as accelerometers and gyroscopes, with mixed-signal integrated circuits
(ICs) to deliver the world’s first integrated MotionProcessing solution. Our
MotionProcessors incorporate proprietary algorithms and firmware that
intelligently process and synthesize sensor output for use by software
applications. Our MotionApps platform, which consists of application
programming interfaces (APIs) and calibration algorithms, helps accelerate
the development of motion-based applications using our products. Our
MotionProcessing solution is differentiated by its small form factor, high
level of integration, performance, reliability and cost effectiveness. While
our solutions have broad applicability across consumer, industrial, military
and other industry verticals, we currently target consumer electronics
within a variety of end markets that we believe demand a more intuitive and
immersive user experience, such as console and portable video gaming devices,
smartphones, tablet devices, digital still and video cameras, smart TVs
(including digital set-top boxes, televisions and multi-media hard disk
drives (HDDs)), 3D mice, navigation devices, toys, and health and fitness
accessories. As of October 2, 2011 (the end of our second quarter of fiscal
year 2012), we had shipped over 157 million units of our products. Our net
revenue was $29.0 million, $79.6 million and $96.5 million for fiscal years
2009, 2010 and 2011, respectively, and our net income was $0.2 million,
$15.1 million and $9.3 million for these periods, respectively. Our net
revenue was $43.0 million and $78.7 million for the three and six months
ended October 2, 2011, respectively, and our net income was $11.5 million
and $20.5 million for these periods, respectively.
Historically, the incorporation of motion sensors in consumer electronics
was limited primarily to accelerometers that provided basic motion sensing
capabilities, such as tilt-sensing and changing screen orientation from
portrait to landscape mode in smartphones. Devices incorporating these
early motion sensors experienced strong demand, as they provided consumers
with applications that included a more intuitive user interface. As
consumers have become increasingly accustomed to motion-based applications,
they have created a demand for applications that require more robust,
intelligent motion processing solutions. Until recently, there have been
a number of challenges that inhibited the development of such solutions.
These challenges include accurately detecting complex motion across multiple
axes with an integrated, small scale, cost-effective, single-chip component,
and synthesizing and processing motion data into meaningful information for
use in applications.
We believe our MotionProcessing solution addresses these challenges by
integrating industry leading die size, cost effectiveness and performance
while facilitating rapid application development and faster time-to-market.
Just as microprocessors provide a platform for building computing
applications and graphics processors enable visually rich applications, we
believe there is an opportunity to deliver advanced, intelligent motion
processing solutions that enable broader development and adoption of
motion-based applications.
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We were incorporated in the State of California in June 2003 and reincorporated
in the State of Delaware in October 2004.
Our principal executive offices are located at 1197 Borregas Avenue, Sunnyvale,
CA 94089. Our telephone number is (408) 988-7339. Our website is
www.invensense.com