InvenSense 8-K Invensense® Announces Fourth Quarter and Fiscal Year 2015 Results

Exhibit 99.1

INVENSENSE^® ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2015 RESULTS

SAN JOSE, California, May 4, 2015 – InvenSense, Inc. (NYSE: INVN) the leading provider of intelligent sensor system on chip (SoC) for motion and sound, today announced results for its fourth quarter and fiscal year ended March 29, 2015.

Net revenue for the fourth quarter of fiscal 2015 was $99.3 million, down 14 percent from $115.9 million for the third quarter of fiscal 2015, and up 68 percent from $59.0 million for the fourth quarter of fiscal 2014.

Gross margin determined in accordance with U.S. generally accepted accounting principles (GAAP) was 43 percent for the fourth quarter of fiscal 2015, consistent with the third quarter of fiscal 2015. GAAP gross margin for fourth quarter of fiscal 2015 included stock-based compensation and related payroll taxes, and amortization of acquisition intangibles. Excluding these items, non-GAAP gross margin was 46 percent for the fourth quarter of fiscal 2015, consistent with the third quarter of fiscal 2015.

GAAP net income for the fourth quarter of fiscal 2015 was $0.4 million, or zero cents per diluted share. By comparison, GAAP net income was $10.2 million, or 11 cents per diluted share for the third quarter of fiscal 2015. GAAP net income for the fourth quarter of fiscal 2015 included stock-based compensation and related payroll taxes, accreting interest expense on convertible notes, amortization of acquisition intangibles, business acquisition costs, certain legal expenses and the income tax effect of non-GAAP adjustments. Excluding these items, non-GAAP net income for the fourth quarter of fiscal 2015 was $11.4 million, or 12 cents per diluted share, compared with $19.3 million, or 21 cents per diluted share, for the third quarter of fiscal 2015.

The reconciliation between GAAP and non-GAAP financial results for all referenced periods is provided in a table immediately following the Unaudited GAAP Condensed Consolidated Statements of Operations below.

Fiscal Year 2015 Results

Net revenue for the fiscal year 2015 was $372.0 million, up $119.5 million, or 47% from $252.5 million for the fiscal year 2014.

GAAP net loss for the fiscal year 2015 was $1.1 million, compared with net income of $6.1 million for the fiscal year 2014. On a non-GAAP basis, net income for the fiscal year 2015 was $42.7 million, or $0.46 per diluted share. This compares with non-GAAP net income of $52.3 million, or $0.58 per diluted share for the fiscal year 2014.

GAAP diluted net loss per share for the fiscal year 2015 was one cent, compared with diluted net income per share of seven cents for the fiscal year 2014.

Management Qualitative Comments

“Fiscal 2015 was a significant year for InvenSense,” said Behrooz Abdi, president and CEO. “We achieved the highest revenue in company history, driven by strong market share gains and several high-volume customer wins. We also brought to market a record number of new products across our motion sensor, software and microphone portfolio intended to open up incremental revenue growth opportunities over the coming quarters. Our success in mobile in fiscal 2015 laid important groundwork for our continued achievement in the coming year, while the advancement of our platform strategy provides us with multiple entry points into verticals beyond mobile where our technology can provide significant value in the years to come.”

Fourth Quarter and Fiscal Year 2015 Earnings Conference Call

A conference call will be held today at 1:30 p.m. Pacific Time to discuss the quarter and fiscal year’s results and management’s current business outlook. To listen to the conference call, please dial (866) 202-3048 ten minutes prior to the start of the call, using the passcode 76139380. International callers, please dial (617) 213-8843. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for two days. To access the replay, please dial (888) 286-8010 and enter passcode 99966713. International callers please dial (617) 801-6888. The conference call will be available via a live webcast on the investor relations section of InvenSense`s web site at www.invensense.com/ir. An archived webcast replay will be available on the web site for three months.

Note Regarding Use of Non-GAAP Financial Measures

As discussed above, in addition to the company’s condensed consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes, stock-based compensation expense and related payroll taxes, certain legal expenses, business acquisition costs, amortization of fair value write-up of acquired inventory, amortization of acquisition intangibles, accreting interest expense on convertible notes, other adjustments and the income tax effect of non-GAAP adjustments. The company uses these non-GAAP measures in its own financial and operational decision-making processes. Further, the company believes that these non-GAAP measures offer an important analytical tool to help investors understand the company’s core operating results and trends and facilitate comparability with the operating results of other companies that provide similar non-GAAP measures. These non-GAAP measures have certain limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future, but it is not reflected in our non-GAAP measures. Also, other companies, including companies in the company’s industry, may calculate non-GAAP financial measures differently, limiting their usefulness as comparative measures.

Forward-Looking Statements

Statements in this press release that are not historical are “forward-looking statements” as the term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or preceded by words such as “will,” “expects,” “anticipates,” or other words that imply or predict a future state. Forward-looking statements include any projection of revenue, gross margin, expense, earnings, stockholder return or other financial items discussed in this press release, including the strength of our competitive positioning, growth opportunities and our ability to capitalize on them, and our ability to enter verticals beyond mobile. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, intense competition in our industry; our achievement of design wins; our dependence on a limited number of customers for a substantial portion of our revenues; the continued adoption of motion tracking and motion sensing as an interface in consumer electronics products; decreases in average selling prices for our products; our lack of long-term supply contracts and dependence on limited sources of supply; consumer acceptance of our customers’ products that incorporate our solutions and our ability to continue to develop and introduce new and enhanced products on a timely basis; as well as changes in economic conditions in our markets and other risk factors discussed in InvenSense’s Annual Report on Form 10-K for the year ended March 30, 2014, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other documents filed by us with the Securities and Exchange Commission (SEC) from time to time. Copies of InvenSense’s SEC filings are posted on the company’s website and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

About InvenSense

InvenSense, Inc. (NYSE: INVN) is the world’s leading provider of intelligent sensor system on chip (SoC) for Motion and Sound in consumer electronic devices. The company’s patented InvenSense Fabrication Platform and MotionFusion^® technology address the emerging needs of many mass-market consumer applications via improved performance, accuracy, and intuitive motion-, gesture- and sound-based interfaces. InvenSense technology can be found in Mobile, Wearables, Smart Home, Industrial, and Automotive products. InvenSense is headquartered in San Jose, California and has offices in Boston, China, Taiwan, Korea, Japan, France, Canada, Slovakia and Italy. More information can be found at www.invensense.com or follow us on Twitter at @InvenSense.

©2015 InvenSense, Inc. All rights reserved. InvenSense, Sensing Everything, FireFly, MotionTracking, MotionProcessing, MotionProcessor, MotionFusion, MotionApps, DMP, AAR, and the InvenSense logo are trademarks of InvenSense, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.

For Investor Inquiries, Contact:

Leslie Green

Green Communications Consulting, LLC

650.312.9060

ir@invensense.com

For Press Inquiries, Contact:

David Almoslino

Senior Director

Marketing and Communications

InvenSense, Inc.

408.501.2278

pr@invensense.com

INVENSENSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Fiscal Years Ended
	March 29, 2015			December 28, 2014			March 30, 2014			March 29, 2015			March 30, 2014
Net revenue	$	99,279		$	115,864		$	58,998		$	372,019		$	252,533
Costs of revenue		56,333			65,468			31,675			216,160			127,724
Gross profit		42,946			50,396			27,323			155,859			124,809
Operating expenses:
Research and development		25,231			24,391			15,985			90,623			48,431
Selling, general and administrative		15,325			15,551			15,102			59,386			51,344
Litigation settlement		—			—			500			—			15,000
Total operating expenses		40,556			39,942			31,587			150,009			114,775
Income (loss) from operations		2,390			10,454			(4,264	)		5,850			10,034
Interest (expense)		(2,659	)		(2,690	)		(4,294	)		(10,553	)		(4,012	)
Other income (expense), net		269			(281	)		1,842			1,368			167
Income (loss) before income taxes		—			7,483			(6,716	)		(3,335	)		6,189
Income tax provision (benefit)		(399	)		(2,738	)		(1,084	)		(2,255	)		70
Net income (loss)	$	399		$	10,221		$	(5,632	)	$	(1,080	)	$	6,119
Net income (loss) per share:
Basic	$	0.00		$	0.11		$	(0.06	)	$	(0.01	)	$	0.07
Diluted	$	0.00		$	0.11		$	(0.06	)	$	(0.01	)	$	0.07
Weighted average shares outstanding used in computing net income (loss) per share:
Basic		90,359			89,779			87,691			89,359			86,520
Diluted		92,619			92,336			87,691			89,359			89,928

INVENSENSE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Fiscal Years Ended
	March, 29, 2015			December, 28, 2014			March, 30, 2014			March 29, 2015			March 30, 2014
GAAP net income (loss)	$	399		$	10,221		$	(5,632	)	$	(1,080	)	$	6,119
Adjustments:
Stock based compensation expense		7,954			8,309			5,128			31,140			16,024
Convertible note accretion interest expense		1,926			1,886			1,786			7,484			2,854
Amortization of acquisition-related intangible assets		2,034			2,034			1,244			6,940			2,073
Amortization of fair value write-up of acquired inventory		—			—			552			146			1,835
Business acquisition costs		119			1,160			414			3,388			2,417
Patent litigation legal expense, net		905			1,187			3,730			3,304			13,133
Gain on equity investment		—			—			—			(890	)
Write-off of in-process research and development		—			—			—			770
Litigation settlement cost		—			—			500			—			15,000
Other		—			—			274			68			274
Income tax – discrete cumulative benefit		—			—			—			—			622
Income tax effect of pretax non-GAAP adjustments		(1,896	)		(5,519	)		(1,994	)		(8,607	)		(8,093	)
Non-GAAP net income	$	11,441		$	19,278		$	6,002		$	42,663		$	52,258
GAAP net income (loss) per share of common stock, diluted	$	0.00		$	0.11		$	(0.06	)	$	(0.01	)	$	0.07
Non-GAAP net income per share of common stock, diluted	$	0.12		$	0.21		$	0.07		$	0.46		$	0.58
GAAP Gross profit	$	42,946		$	50,396		$	27,323		$	155,859		$	124,809
Adjustments:
Stock based compensation expense		621			591			452			2,431			1,296
Amortization of acquisition-related intangible assets		1,978			1,978			1,188			6,716			1,980
Amortization of fair value write-up of acquired inventory		—			—			552			146			1,835
Non-GAAP Gross profit	$	45,545		$	52,965		$	29,515		$	165,152		$	129,920
GAAP Operating Expense	$	40,556		$	39,942		$	31,587		$	150,009		$	114,775
Adjustments:
Stock based compensation expense		7,333			7,718			4,676			28,709			14,728
Amortization of acquisition-related intangible assets		56			56			56			224			93
Business acquisition costs		119			1,160			414			3,388			2,417
Patent litigation legal expense, net		905			1,187			3,730			3,304			13,133
Write-off of in-process research and development		—			—			—			770
Litigation settlement cost		—			—			500			—			15,000
Other		—			—			274			68			274
Non-GAAP Operating Expense	$	32,143		$	29,821		$	21,937		$	113,546		$	69,130

INVENSENSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	March 29, 2015			March 30, 2014
Assets
Current assets:
Cash and cash equivalents	$	85,637		$	26,025
Short-term investments		129,919			91,307
Accounts receivable		44,522			39,009
Inventories		75,105			73,032
Prepaid expenses and other current assets		14,950			19,587
Total current assets		350,133			248,960
Property and equipment, net		41,849			25,239
Intangible assets, net		45,508			35,360
Goodwill		139,175			50,952
Long-term investments		—			128,755
Other assets		9,226			5,469
Total assets	$	585,891		$	494,735
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	23,130		$	18,964
Accrued liabilities		31,991			14,985
Total current liabilities		55,121			33,949
Long-term debt		143,017			135,583
Other long-term liabilities		28,252			11,375
Total liabilities		226,390			180,907
Stockholders’ equity:
Preferred stock:
Preferred stock, $0.001 par value — 20,000 shares authorized, no shares issued and outstanding and outstanding at March 29, 2015 and March 30, 2014		—			—
Common stock:
Common stock, $0.001 par value — 750,000 shares authorized, 90,894 shares issued and outstanding at March 29, 2015, 88,332 shares issued and outstanding at March 30, 2014		262,677			215,958
Accumulated other comprehensive (loss)		(4	)		(38	)
Retained earnings		96,828			97,908
Total stockholders’ equity		359,501			313,828
Total liabilities and stockholders’ equity	$	585,891		$	494,735

INVENSENSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended									Fiscal Years Ended
	March 29, 2015			December 28, 2014			March 30, 2014			March 29, 2015			March 30, 2014
Cash flows from operating activities:
Net income (loss)	$	399		$	10,221		$	(5,632	)	$	(1,080	)	$	6,119
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		2,847			3,047			1,559			10,203			4,492
Amortization of intangible assets		2,074			2,034			1,244			7,003			2,073
Write-off of in-process research and development		—			—			—			770			—
Loss on disposal of property and equipment		95			131			—			552			—
Gain on equity investment		—			—			—			(890	)		—
Stock-based compensation expense		7,566			8,300			5,128			30,504			16,024
Deferred income tax assets		(272	)		(5,237	)		(2,338	)		(5,484	)		(2,337	)
Tax effect of employee benefit plans		—			42			1,608			42			4,839
Excess tax benefit from stock-based compensation		—			(42	)		(1,608	)		(42	)		(4,839	)
Non cash interest expense		1,926			1,907			1,785			7,505			2,854
Changes in operating assets and liabilities:
Accounts receivable		29,413			(7,010	)		(4,230	)		(4,895	)		(8,911	)
Inventories		(7,304	)		7,210			(14,521	)		(2,072	)		(44,164	)
Prepaid expenses and other current assets		7,778			946			(152	)		8,778			(2,699	)
Other assets		25			940			387			(135	)		(1,013	)
Accounts payable		2,494			(4,771	)		6,815			3,122			4,474
Accrued liabilities		4,737			94			(13,136	)		12,961			11,790
Net cash provided by (used in) operating activities		51,778			17,812			(23,091	)		66,842			(11,298	)
Cash flows from investing activities:
Purchase of property and equipment		(2,031	)		(7,665	)		(2,525	)		(27,315	)		(17,207	)
Sale and maturities of available-for-sale investments		33,252			14,200			23,088			145,974			86,233
Purchase of available-for-sale investments		(55,845	)		—			(17,843	)		(55,845	)		(206,949	)
Purchase of intangible assets		(2,120	)		—			—			(2,120	)		—
Acquisitions, net of cash acquired		—			120			—			(71,326	)		(99,324	)
Net cash provided by (used in) investing activities		(26,744	)		6,655			2,720			(10,632	)		(237,247	)
Cash flows from financing activities:
Proceeds from exercise of common stock		2,602			2,124			4,152			10,425			13,115
Proceeds from debt issuances, net of issuance costs		—			—			(491	)		—			169,259
Proceeds from sale of warrants		—			—			—			—			25,643
Payments of long-term debt and capital lease obligations		—			—			—			(9	)		(11	)
Payments for purchase of convertible notes hedge		—			—			—						(39,118	)
Payments contingent consideration		(7,056	)		—			—			(7,056	)		—
Excess tax benefit from stock-based compensation		—			42			1,608			42			4,839
Net cash provided by (used in) financing activities		(4,454	)		2,166			5,269			3,402			173,727
Net increase (decrease) in cash and cash equivalents		20,580			26,633			(15,102	)		59,612			(74,818	)
Cash and cash equivalents:
Beginning of period		65,057			38,424			41,127			26,025			100,843
End of period	$	85,637		$	65,057		$	26,025		$	85,637		$	26,025