Identiv Reports First Quarter 2023 Business Results
Record Revenue for a Fiscal First Quarter, with Stable Gross Margins Year-over-Year
Recent Financial and Operational Highlights
-
First quarter revenue grew
4% year-over-year to$26.0 million -
Premises revenue grew
8% year-over-year to$11.3 million 1% year-over-year to$14.7 million -
GAAP gross margin in Q1 2023 was
35.4% ; non-GAAP gross margin in the first quarter was flat year-over-year at37.1% . - Shipped 10 million units of Wiliot’s IoT Pixels in Q1 2023, on track to ship 14 million units in Q2 2023. Received a follow-on order of similar magnitude from Wiliot for delivery through the end of 2023.
-
Ended Q1 2023 with
$21.2 million $21.1 million $9.9 million -
Managed 54 non-recurring engineering (NRE) contracts and continued to maintain
100% RFID customer retention. - Launched the Velocity Vision Ecosystem, a comprehensive video, access, and analytics solution.
- Partnered with IoT company ProQure to launch new NFC Type 2 RFID tags, expanding chip supplier relationships.
- Collaborated with ST Microelectronics to launch eco-friendly and small format RFID tags encoded to easily integrate with the bitse.io SaaS platform for data analytics.
- Awarded three 2023 Cybersecurity Excellence Awards for the uTrust FIDO2 NFC+ Security Key for Multi-Factor Authentication (MFA).
-
Accelerated build out of new production facility in
Thailand , with first production runs on track and expected to begin in July.
First Quarter 2023 Financial Summary
Revenue for the first quarter 2023 was
First quarter 2023 GAAP gross margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative were
GAAP net loss was
Non-GAAP adjusted EBITDA in the first quarter of 2023 was
Management Commentary
“In the first quarter, both Identity and Premises segments made progress, keeping us on track to meet our 2023 growth expectations,” said Identiv CEO Steven Humphreys. “In IoT, our strategic partnership with Wiliot continued to strengthen. We shipped 10 million units in Q1, are on pace to deliver 14 million units in Q2, and confirmed our first follow-on order of similar scale for delivery in 2023. In the medical and healthcare vertical, we’ve established ourselves as the go-to partner for specialty RFID applications and expanded our pipeline. Chip supply is normalizing, and we’ve added new designs with ST Micro and ProQure to provide customers with optionality. The accelerated buildout of our
Identiv CFO Justin Scarpulla added, “Maintaining a strong balance sheet and ample working capital to fully capitalize on our strategic opportunities for disciplined growth is a top priority for 2023. We continue to make prudent investments in key areas that drive revenue growth. Our facility in
Financial Outlook
Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and key component availability. Management reconfirms its fiscal year 2023 revenue outlook, with net revenues in the range of
Conference Call
Identiv management will hold a conference call today, May 4, 2023, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss the company’s first quarter 2023 financial results. A question-and-answer session will follow management's presentation.
Toll-Free Number: 888-506-0062
International Number: 973-528-0011
Call ID: 904963
Webcast link: Register and Join
The teleconference replay will be available through May 18, 2023, by dialing 877-481-4010 (Toll-Free Replay Number) or 919-882-2331 (International Replay Number) and entering passcode 48113.
If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.
About Identiv
Identiv, Inc. is a global leader in digitally securing the physical world. Identiv's platform encompasses RFID and NFC, cybersecurity, and the full spectrum of physical access, video, and audio security. Identiv is a publicly traded company, and its common stock is listed on the NASDAQ Stock Market LLC in the
Non-GAAP Financial Measures
This press release includes financial information that has not been prepared in accordance with GAAP, including non-GAAP adjusted EBITDA, non-GAAP gross margins, and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross margin exclude stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross margin, and excludes income tax benefit (provision), interest expense, foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, loss on disposal of property and equipment, and gain on investment. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, loss on disposal of property and equipment, and restructuring and severance. For historical periods, the exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of the Company’s management and can be identified by words such as “anticipate”, “believe”, “plan”, “will”, “intend”, “expect”, and similar references to the future. Any statement that is not a historical fact, including statements regarding the Company’s expectations regarding future operating and financial outlook and performance, including statements regarding 2023 guidance and growth expectations; the Company’s strategy, focus and plans to accelerate growth; the Company’s beliefs regarding its ability to deliver on its current 2023 outlook; the Company’s expectation regarding margin expansion; expected benefits of the Company’s
| Identiv, Inc. | |||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||
(in thousands, except per share data) |
|||||||||||
(unaudited) |
|||||||||||
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
| Net revenue | $ |
25,997 |
|
$ |
29,001 |
|
$ |
25,061 |
|
||
| Cost of revenue |
|
16,786 |
|
|
18,421 |
|
|
16,095 |
|
||
| Gross profit |
|
9,211 |
|
|
10,580 |
|
|
8,966 |
|
||
| Operating expenses: | |||||||||||
| Research and development |
|
2,707 |
|
|
2,283 |
|
|
2,529 |
|
||
| Selling and marketing |
|
6,097 |
|
|
5,021 |
|
|
5,110 |
|
||
| General and administrative |
|
2,948 |
|
|
2,806 |
|
|
2,488 |
|
||
| Restructuring and severance |
|
191 |
|
|
70 |
|
|
(140 |
) |
||
| Total operating expenses |
|
11,943 |
|
|
10,180 |
|
|
9,987 |
|
||
| Income (loss) from operations |
|
(2,732 |
) |
|
400 |
|
|
(1,021 |
) |
||
| Non-operating income (expense): | |||||||||||
| Interest expense, net |
|
(50 |
) |
|
(42 |
) |
|
(25 |
) |
||
| Gain on investment |
|
— |
|
|
— |
|
|
24 |
|
||
| Foreign currency gains (losses), net |
|
89 |
|
|
44 |
|
|
19 |
|
||
| Income (loss) before income tax benefit (provision) |
|
(2,693 |
) |
|
402 |
|
|
(1,003 |
) |
||
| Income tax benefit (provision) |
|
(26 |
) |
|
(63 |
) |
|
4 |
|
||
| Net income (loss) |
|
(2,719 |
) |
|
339 |
|
|
(999 |
) |
||
| Cumulative dividends on Series B convertible preferred stock |
|
(313 |
) |
|
(304 |
) |
|
(298 |
) |
||
| Net income (loss) available to common stockholders | $ |
(3,032 |
) |
$ |
35 |
|
$ |
(1,297 |
) |
||
| Net income (loss) per common share: | |||||||||||
| Basic | $ |
(0.13 |
) |
$ |
0.00 |
|
$ |
(0.06 |
) |
||
| Diluted | $ |
(0.13 |
) |
$ |
0.00 |
|
$ |
(0.06 |
) |
||
| Weighted average shares used in computing net income (loss) per common share: | |||||||||||
| Basic |
|
22,794 |
|
|
22,737 |
|
|
22,574 |
|
||
| Diluted |
|
22,794 |
|
|
23,160 |
|
|
22,574 |
|
||
Identiv, Inc. |
|||||
Condensed Consolidated Balance Sheets |
|||||
(in thousands) |
|||||
(unaudited) |
|||||
|
|
|
|
||
|
March 31, |
|
December 31, |
||
|
|
2023 |
|
|
2022 |
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ |
20,804 |
$ |
16,650 |
|
| Restricted cash |
|
363 |
|
487 |
|
| Accounts receivable, net of allowances |
|
21,136 |
|
24,826 |
|
| Inventories |
|
30,609 |
|
28,958 |
|
| Prepaid expenses and other current assets |
|
4,361 |
|
4,177 |
|
| Total current assets |
|
77,273 |
|
75,098 |
|
| Property and equipment, net |
|
7,595 |
|
6,719 |
|
| Operating lease right-of-use assets |
|
4,344 |
|
4,373 |
|
| Intangible assets, net |
|
4,999 |
|
5,265 |
|
| Goodwill |
|
10,192 |
|
10,190 |
|
| Other assets |
|
1,148 |
|
1,120 |
|
| Total assets | $ |
105,551 |
$ |
102,765 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ |
9,926 |
$ |
14,760 |
|
| Financial liabilities |
|
9,941 |
|
— |
|
| Operating lease liabilities |
|
1,199 |
|
1,190 |
|
| Deferred revenue |
|
1,798 |
|
2,068 |
|
| Accrued compensation and related benefits |
|
2,395 |
|
2,757 |
|
| Other accrued expenses and liabilities |
|
2,648 |
|
2,618 |
|
| Total current liabilities |
|
27,907 |
|
23,393 |
|
| Long-term operating lease liabilities |
|
3,371 |
|
3,366 |
|
| Long-term deferred revenue |
|
647 |
|
587 |
|
| Other long-term liabilities |
|
25 |
|
25 |
|
| Total liabilities |
|
31,950 |
|
27,371 |
|
| Total stockholders' equity |
|
73,601 |
|
75,394 |
|
| Total liabilities and stockholders' equity | $ |
105,551 |
$ |
102,765 |
|
Identiv, Inc. |
|||||||||||
Reconciliation of GAAP and Non-GAAP Financial Information |
|||||||||||
(in thousands) |
|||||||||||
(unaudited) |
|||||||||||
|
|
|
|
|
|
||||||
|
Three Months Ended |
||||||||||
|
March 31, |
|
December 31, |
|
March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
| Reconciliation of GAAP gross margin and non-GAAP gross margin | |||||||||||
| GAAP gross profit | $ |
9,211 |
|
$ |
10,580 |
|
$ |
8,966 |
|
||
| Reconciling items included in GAAP gross profit: | |||||||||||
| Stock-based compensation |
|
45 |
|
|
53 |
|
|
56 |
|
||
| Amortization and depreciation |
|
385 |
|
|
363 |
|
|
270 |
|
||
| Total reconciling items included in GAAP gross profit |
|
430 |
|
|
416 |
|
|
326 |
|
||
| Non-GAAP gross profit | $ |
9,641 |
|
$ |
10,996 |
|
$ |
9,292 |
|
||
| Non-GAAP gross margin |
|
37 |
% |
|
38 |
% |
|
37 |
% |
||
| Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||
| GAAP operating expenses | $ |
11,943 |
|
$ |
10,180 |
|
$ |
9,987 |
|
||
| Reconciling items included in GAAP operating expenses: | |||||||||||
| Stock-based compensation |
|
(945 |
) |
|
(543 |
) |
|
(839 |
) |
||
| Amortization and depreciation |
|
(238 |
) |
|
(236 |
) |
|
(239 |
) |
||
| Loss on disposal of property and equipment |
|
— |
|
|
(68 |
) |
|
— |
|
||
| Restructuring and severance |
|
(191 |
) |
|
(70 |
) |
|
140 |
|
||
| Total reconciling items included in GAAP operating expenses |
|
(1,374 |
) |
|
(917 |
) |
|
(938 |
) |
||
| Non-GAAP operating expenses | $ |
10,569 |
|
$ |
9,263 |
|
$ |
9,049 |
|
||
| Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||
| GAAP net income (loss) | $ |
(2,719 |
) |
$ |
339 |
|
$ |
(999 |
) |
||
| Reconciling items included in GAAP net income (loss): | |||||||||||
| Income tax provision (benefit) |
|
26 |
|
|
63 |
|
|
(4 |
) |
||
| Interest expense, net |
|
50 |
|
|
42 |
|
|
25 |
|
||
| Gain on investment |
|
— |
|
|
— |
|
|
(24 |
) |
||
| Loss on disposal of property and equipment |
|
— |
|
|
68 |
|
|
— |
|
||
| Foreign currency gains (losses), net |
|
(89 |
) |
|
(44 |
) |
|
(19 |
) |
||
| Stock-based compensation |
|
990 |
|
|
596 |
|
|
895 |
|
||
| Amortization and depreciation |
|
623 |
|
|
599 |
|
|
509 |
|
||
| Restructuring and severance |
|
191 |
|
|
70 |
|
|
(140 |
) |
||
| Total reconciling items included in GAAP net income (loss) |
|
1,791 |
|
|
1,394 |
|
|
1,242 |
|
||
| Non-GAAP adjusted EBITDA | $ |
(928 |
) |
$ |
1,733 |
|
$ |
243 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005824/en/
Investor Relations Contact:
Sophie Pearson
Director of Investor Relations
IR@identiv.com
Media Contact:
press@identiv.com
Source: Identiv, Inc.
