July 25 (Reuters) - Shares of InvenSense Inc rose 27 percent after the chipmaker’s quarterly results beat analysts’ expectations as more smartphone makers chose its motion tracking devices, at a time when weak demand has plagued most chipmakers.
The company also forecast second-quarter revenue in line with analysts’ estimates.
InvenSense, which makes motion-sensing chips used in smartphones and gaming devices, reported higher second-quarter revenue on Tuesday, that beat analysts’ estimates.
The company’s integrated six-axis motion tracking devices are being adopted by smartphone and tablet makers such as Samsung Electronics’ Galaxy S3, Google Inc’s Nexus 7 tablet and a number of other new Android-based tablets, Chief Executive Steve Nasiri said during an investors’ call.
Motion tracking is the process of recording movement of one or more objects. It is also used in filmmaking and games to record actions of human actors and use that information to animate digital characters in 2D or 3D computer animation.
InvenSense’s results come amid a gloomy chip spending environment, where bellwethers Intel Corp and Advanced Micro Devices Inc along with smaller rivals have cut forecasts.
But chipmakers with a higher exposure to the buoyant tablets and smartphone market have proved to be more resilient than their PC peers.
Skyworks Solutions Inc, ARM Holdings Plc, Qualcomm Inc and Broadcom Corp have been exceptions in an otherwise weak chip market.
California-based InvenSense, which counts Japanese games maker Nintendo Co. Ltd as its largest customer, competes with chip manufacturers like STMicroelectronics , Sony Corp and Panasonic Corp.
Shares of InvenSense, which listed on the New York Stock Exchange in November, were up $2.36 at $11.55 on Wednesday. (Reporting by Shubham Singhal in Bangalore; Editing by Joyjeet Das)