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Identiv Reports Third Quarter 2024 Financial Results

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Identiv (NASDAQ: INVE) reported its Q3 2024 financial results, highlighting a transformative period. The company completed an asset sale on September 6, 2024, strengthening its cash position. Revenue for Q3 2024 was $6.5 million, a decline from $11.7 million in Q3 2023. GAAP gross margin was 3.6%, down from 11.2% in the previous year. Non-GAAP gross margin also decreased to 9.3% from 14.0%. GAAP operating expenses rose to $9.8 million, compared to $4.6 million in Q3 2023, including $3.6 million in strategic transaction-related costs. The GAAP net loss from continuing operations was ($9.3) million, or ($0.40) per share, compared to ($3.7) million, or ($0.17) per share, in Q3 2023. The company announced a $10 million stock repurchase program and introduced the 'Perform, Accelerate, and Transform' strategy. For Q4 2024, Identiv expects net revenue between $6.0 million and $6.3 million.

Identiv (NASDAQ: INVE) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando un periodo di trasformazione. L'azienda ha completato una vendita di attivi il 6 settembre 2024, rafforzando la propria posizione di liquidità. I ricavi per il terzo trimestre 2024 sono stati di 6,5 milioni di dollari, in calo rispetto a 11,7 milioni di dollari nel terzo trimestre 2023. Il margine lordo GAAP è stato del 3,6%, in diminuzione dall'11,2% dell'anno precedente. Anche il margine lordo non GAAP è diminuito, passando dal 14,0% al 9,3%. Le spese operative GAAP sono aumentate a 9,8 milioni di dollari, rispetto ai 4,6 milioni di dollari nel terzo trimestre 2023, incluse spese di transazione strategiche per 3,6 milioni di dollari. La perdita netta GAAP dalle operazioni continuative è stata di (9,3) milioni di dollari, ossia ($0,40) per azione, rispetto a (3,7) milioni di dollari, o ($0,17) per azione, nel terzo trimestre 2023. L'azienda ha annunciato un programma di riacquisto di azioni da 10 milioni di dollari e ha introdotto la strategia 'Perform, Accelerate, and Transform'. Per il quarto trimestre 2024, Identiv prevede ricavi netti tra 6,0 milioni di dollari e 6,3 milioni di dollari.

Identiv (NASDAQ: INVE) informó sus resultados financieros del tercer trimestre de 2024, destacando un período de transformación. La compañía completó la venta de activos el 6 de septiembre de 2024, fortaleciendo su posición de efectivo. Los ingresos para el tercer trimestre de 2024 fueron de 6,5 millones de dólares, una disminución respecto a 11,7 millones de dólares en el tercer trimestre de 2023. El margen bruto GAAP fue del 3,6%, una caída desde el 11,2% del año anterior. El margen bruto no GAAP también disminuyó al 9,3% desde el 14,0%. Los gastos operativos GAAP aumentaron a 9,8 millones de dólares, en comparación con 4,6 millones de dólares en el tercer trimestre de 2023, incluidos 3,6 millones de dólares en costos relacionados con transacciones estratégicas. La pérdida neta GAAP de operaciones continuas fue de (9,3) millones de dólares, o ($0,40) por acción, en comparación con (3,7) millones de dólares, o ($0,17) por acción, en el tercer trimestre de 2023. La compañía anunció un programa de recompra de acciones de 10 millones de dólares e introdujo la estrategia 'Perform, Accelerate, and Transform'. Para el cuarto trimestre de 2024, Identiv espera ingresos netos entre 6,0 millones de dólares y 6,3 millones de dólares.

Identiv (NASDAQ: INVE)는 2024년 3분기 재무 결과를 발표하며 변화의 시기를 강조했습니다. 이 회사는 2024년 9월 6일 자산 매각을 완료하여 현금 위치를 강화했습니다. 2024년 3분기의 수익은 650만 달러로, 2023년 3분기의 1,170만 달러에서 감소했습니다. GAAP 총 마진은 3.6%로, 전년의 11.2%에서 감소했습니다. 비-GAAP 총 마진도 14.0%에서 9.3%로 감소했습니다. GAAP 운영 비용은 980만 달러로 증가했으며, 2023년 3분기의 460만 달러와 비교됩니다. 여기에 전략 거래 관련 비용으로 360만 달러가 포함되어 있습니다. 지속적인 운영에서 GAAP 순손실은 (930만) 달러 또는 주당 ($0.40)로, 2023년 3분기의 (370만) 달러 또는 주당 ($0.17)과 비교됩니다. 이 회사는 1,000만 달러 규모의 자사주 매입 프로그램을 발표하고 'Perform, Accelerate, and Transform' 전략을 도입했습니다. 2024년 4분기에는 Identiv가 600만 달러에서 630만 달러 사이의 순수익을 예상하고 있습니다.

Identiv (NASDAQ: INVE) a publié ses résultats financiers du troisième trimestre 2024, soulignant une période de transformation. L'entreprise a finalisé une vente d'actifs le 6 septembre 2024, renforçant ainsi sa position de trésorerie. Les revenus pour le troisième trimestre 2024 s'élevaient à 6,5 millions de dollars, en baisse par rapport à 11,7 millions de dollars au troisième trimestre 2023. La marge brute GAAP était de 3,6%, en baisse par rapport à 11,2% l'année précédente. La marge brute non GAAP a également diminué, atteignant 9,3% contre 14,0%. Les dépenses d'exploitation GAAP ont augmenté à 9,8 millions de dollars, contre 4,6 millions de dollars au troisième trimestre 2023, y compris 3,6 millions de dollars en frais liés à des transactions stratégiques. La perte nette GAAP des opérations continues était de (9,3) millions de dollars, soit ($0,40) par action, contre (3,7) millions de dollars, soit ($0,17) par action, au troisième trimestre 2023. L'entreprise a annoncé un programme de rachat d'actions de 10 millions de dollars et a introduit la stratégie 'Perform, Accelerate, and Transform'. Pour le quatrième trimestre 2024, Identiv s'attend à des revenus nets compris entre 6,0 millions de dollars et 6,3 millions de dollars.

Identiv (NASDAQ: INVE) hat seine Finanzzahlen für das dritte Quartal 2024 veröffentlicht und einen transformierenden Zeitraum hervorgehoben. Das Unternehmen schloss am 6. September 2024 den Verkauf von Vermögenswerten ab, wodurch seine Liquidität gestärkt wurde. Die Einnahmen für das dritte Quartal 2024 betrugen 6,5 Millionen Dollar, ein Rückgang von 11,7 Millionen Dollar im dritten Quartal 2023. Die GAAP-Bruttomarge betrug 3,6%, im Vergleich zu 11,2% im Vorjahr. Auch die Nicht-GAAP-Bruttomarge sank auf 9,3% von 14,0%. Die GAAP-Betriebsausgaben stiegen auf 9,8 Millionen Dollar, verglichen mit 4,6 Millionen Dollar im dritten Quartal 2023, einschließlich 3,6 Millionen Dollar an strategisch bedingten Kosten. Der GAAP-Nettoverlust aus fortgeführten Betrieben betrug (9,3) Millionen Dollar oder ($0,40) pro Aktie, verglichen mit (3,7) Millionen Dollar oder ($0,17) pro Aktie im dritten Quartal 2023. Das Unternehmen kündigte ein Aktienrückkaufprogramm in Höhe von 10 Millionen Dollar an und stellte die Strategie 'Perform, Accelerate, and Transform' vor. Für das vierte Quartal 2024 erwartet Identiv Nettoumsätze zwischen 6,0 Millionen Dollar und 6,3 Millionen Dollar.

Positive
  • Completion of asset sale transaction, strengthening cash position
  • Introduction of $10 million stock repurchase program
  • Strategic 'Perform, Accelerate, and Transform' framework
Negative
  • Revenue decline to $6.5 million from $11.7 million year-over-year
  • GAAP gross margin dropped to 3.6% from 11.2%
  • GAAP net loss increased to ($9.3) million from ($3.7) million
  • Non-GAAP adjusted EBITDA loss widened to ($4.5) million from ($2.3) million

Closed Asset Sale Transaction on September 6, 2024

Announces $10 Million Stock Repurchase Program

Introduces Perform-Accelerate-Transform Strategy Framework

SANTA ANA, Calif.--(BUSINESS WIRE)-- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID-enabled Internet of Things (IoT) solutions, today released its financial results for the third quarter ended September 30, 2024.

"The third quarter was transformative for Identiv, marked by the successful completion of our asset sale transaction,” said Identiv CEO Kirsten Newquist. “This has strengthened our cash position, providing resources to fund our future growth. With a clear vision for the direction of our business, our ‘Perform, Accelerate, and Transform’ strategy serves as the framework for executing that vision. The transition of production to Thailand continues to progress, and our new product development pipeline remains strong. We are confident that Identiv is well-positioned to leverage upcoming opportunities.”

Financial Results for Fiscal Third Quarter 2024

Revenue for the third quarter of 2024 was $6.5 million, compared to $11.7 million in the third quarter of 2023. Third quarter 2024 GAAP gross margin was 3.6% and non-GAAP gross margin was 9.3%, compared to third quarter 2023 GAAP gross margin of 11.2% and non-GAAP gross margin of 14.0%.

GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, were $9.8 million in the third quarter of 2024, compared to $4.6 million in the third quarter of 2023. Non-GAAP operating expenses were $5.1 million in the third quarter of 2024, compared to $4.1 million in the third quarter of 2023. Third quarter 2024 GAAP operating expenses included $3.6 million in strategic transaction-related costs and $1.1 million in stock-based compensation.

Third quarter 2024 GAAP net loss from continuing operations was ($9.3) million, or ($0.40) per basic and diluted share, compared to GAAP net loss from continuing operations of ($3.7) million, or ($0.17) per basic and diluted share, in the third quarter of 2023.

Non-GAAP adjusted EBITDA loss in the third quarter of 2024 was ($4.5) million, compared to ($2.3) million in the third quarter of 2023.

Capital Allocation

Identiv anticipates total net proceeds from the asset sale transaction to be approximately $135 million, after taxes, transaction costs, and other one-time costs, subject to further customary adjustments in accordance with the asset purchase agreement. Under its current capital allocation plan, Identiv intends to allocate 25% to 30% of the net proceeds for investments in its core business and key growth initiatives; 35% to 40% for strategic M&A; 25% to 30% for working capital purposes; and $10 million for a stock repurchase program.

Financial Outlook

Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For fiscal Q4 2024, management currently expects net revenue to be in the range of $6.0 million to $6.3 million.

Conference Call

Identiv management will hold a conference call today, November 7, 2024, at 5:00 p.m. EST (2:00 p.m. PST) to discuss the company’s third quarter 2024 financial results. A question-and-answer session will follow management's presentation.

Toll-Free: 888-506-0062
International Number: +1 973-528-0011
Call ID: 251228
Webcast link: Register and Join

The teleconference replay will be available through November 21, 2024, by dialing 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 51400.

If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.

About Identiv

Identiv’s full-circle RFID-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 1.5 billion applications worldwide, drive innovation across healthcare, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com.

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 margin 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 excludes 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 provision, net interest income (expense), net foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, 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 management of Identiv and can be identified by words such as “anticipate,” “believe,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv’s belief that the asset sale transaction is providing the resources needed to fund future growth; Identiv’s belief that it is well-positioned to leverage upcoming opportunities; Identiv’s expectations regarding future operating and financial outlook and performance, including 2024 fourth quarter guidance and outlook; Identiv’s strategy, opportunities, focus and goals; Identiv’s expectations regarding the transition of production to its Thailand facilities and progression thereof; Identiv’s beliefs regarding its new product development pipeline; the expected amount of net proceeds from the asset sale transaction; Identiv’s expectations regarding its capital allocation plan and intended use of net proceeds from the asset sale transaction; Identiv’s beliefs regarding access to future capital; and Identiv’s expectations relating to the growth of its IoT business. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv’s control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: any post-closing purchase price adjustments to the amount of proceeds from the asset sale transaction; risks that the completion of the asset sale transaction disrupts current business, plans and operations of Identiv or its business prospects; the ability of Identiv to retain and hire key personnel; the effect of the change in management following the completion of the asset sale transaction; Identiv’s ability to continue the momentum in its business; Identiv’s ability to successfully execute its business strategy, including, but not limited to, its capital allocation plan and organic and inorganic growth; changes in uses of capital; Identiv’s ability to capitalize on trends in its business; Identiv’s ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv’s products and strategic partnerships; industry trends and seasonality; the impact of macroeconomic conditions and customer demand, inflation and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements.

Identiv, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net revenue

$

6,532

 

$

11,732

 

$

19,931

 

$

32,097

 

Cost of revenue

 

6,294

 

 

10,413

 

 

18,596

 

 

27,928

 

Gross profit

 

238

 

 

1,319

 

 

1,335

 

 

4,169

 

Operating expenses:
Research and development

 

1,102

 

 

1,019

 

 

2,965

 

 

3,150

 

Selling and marketing

 

1,657

 

 

1,404

 

 

4,654

 

 

4,525

 

General and administrative

 

7,032

 

 

2,215

 

 

15,052

 

 

6,577

 

Restructuring and severance

 

 

 

 

 

 

 

46

 

Total operating expenses

 

9,791

 

 

4,638

 

 

22,671

 

 

14,298

 

Loss from continuing operations

 

(9,553

)

 

(3,319

)

 

(21,336

)

 

(10,129

)

Non-operating income (expense):
Interest income (expense), net

 

244

 

 

(211

)

 

8

 

 

(351

)

Gain on investment

 

 

 

132

 

 

 

 

132

 

Foreign currency gains (losses), net

 

340

 

 

(249

)

 

55

 

 

(187

)

Loss from continuing operations before income tax provision

 

(8,969

)

 

(3,647

)

 

(21,273

)

 

(10,535

)

Income tax provision

 

(360

)

 

(13

)

 

(361

)

 

(15

)

Net loss from continuing operations

 

(9,329

)

 

(3,660

)

 

(21,634

)

 

(10,550

)

Income from discontinued operations, net of tax:
Income (loss) from Physical Security Business, net of tax

 

(4,268

)

 

3,638

 

 

(2,737

)

 

6,665

 

Gain on sale of Physical Security Business, net of tax

 

99,546

 

 

-

 

 

99,546

 

 

-

 

Total income from discontinued operations, net of tax

 

95,278

 

 

3,638

 

 

96,809

 

 

6,665

 

Net income (loss)

 

85,949

 

 

(22

)

 

75,175

 

 

(3,885

)

Cumulative dividends on Series B convertible preferred stock

 

(201

)

 

(319

)

 

(682

)

 

(947

)

Net income (loss) available to common stockholders

$

85,748

 

$

(341

)

$

74,493

 

$

(4,832

)

 
Net income (loss) per common share:
Basic and diluted - continuing operations

$

(0.40

)

$

(0.17

)

$

(0.95

)

$

(0.50

)

Basic and diluted - discontinued operations

$

4.03

 

$

0.16

 

$

4.12

 

$

0.29

 

Basic and diluted - net income (loss)

$

3.62

 

$

(0.01

)

$

3.17

 

$

(0.21

)

 
Weighted average common shares outstanding:
Basic and diluted

 

23,660

 

 

23,174

 

 

23,496

 

 

23,008

 

 
Identiv, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
September 30, December 31,

2024

2023

 
ASSETS
Current assets:
Cash and cash equivalents

$

145,361

$

23,312

Restricted cash

 

384

 

1,072

Accounts receivable, net of allowances

 

4,848

 

7,404

Inventories

 

10,710

 

13,560

Prepaid expenses and other current assets

 

4,700

 

1,222

Current assets held-for-sale

 

 

32,916

Total current assets

 

166,003

 

79,486

Property and equipment, net

 

8,203

 

8,472

Operating lease right-of-use assets

 

2,110

 

2,289

Other assets

 

713

 

678

Non-current assets held-for-sale

 

 

18,798

Total assets

$

177,029

$

109,723

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

6,035

$

4,652

Financial liabilities

 

 

9,949

Operating lease liabilities

 

880

 

782

Accrued compensation and related benefits

 

1,321

 

1,376

Accrued income taxes payable

 

7,180

 

104

Other accrued expenses and liabilities

 

3,595

 

917

Current liabilities held-for-sale

 

 

13,002

Total current liabilities

 

19,011

 

30,782

Long-term operating lease liabilities

 

1,251

 

1,507

Other long-term liabilities

 

27

 

26

Non-current liabilities held-for-sale

 

 

3,136

Total liabilities

 

20,289

 

35,451

Total stockholders' equity

 

156,740

 

74,272

Total liabilities and stockholders' equity

$

177,029

$

109,723

 
Identiv, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations
(in thousands)
(unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Reconciliation of GAAP gross margin to non-GAAP gross margin
GAAP gross profit

$

238

 

$

1,319

 

$

1,335

 

$

4,169

 

Reconciling items included in GAAP gross profit:
Stock-based compensation

 

5

 

 

8

 

 

17

 

 

27

 

Amortization and depreciation

 

362

 

 

314

 

 

1,130

 

 

823

 

Total reconciling items included in GAAP gross profit

 

367

 

 

322

 

 

1,147

 

 

850

 

Non-GAAP gross profit

$

605

 

$

1,641

 

$

2,482

 

$

5,019

 

Non-GAAP gross margin

 

9

%

 

14

%

 

12

%

 

16

%

 
Reconciliation of GAAP operating expenses to non-GAAP operating expenses
GAAP operating expenses

$

9,791

 

$

4,638

 

$

22,671

 

$

14,298

 

Reconciling items included in GAAP operating expenses:
Stock-based compensation

 

(1,090

)

 

(506

)

 

(2,583

)

 

(1,478

)

Amortization and depreciation

 

(64

)

 

(52

)

 

(154

)

 

(132

)

Strategic review-related costs

 

(3,551

)

 

 

 

(6,120

)

 

 

Restructuring and severance

 

 

 

 

 

 

 

(46

)

Total reconciling items included in GAAP operating expenses

 

(4,705

)

 

(558

)

 

(8,857

)

 

(1,656

)

Non-GAAP operating expenses

$

5,086

 

$

4,080

 

$

13,814

 

$

12,642

 

 
Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA
GAAP net loss

$

(9,329

)

$

(3,660

)

$

(21,634

)

$

(10,550

)

Reconciling items included in GAAP net loss:
Income tax provision

 

360

 

 

13

 

 

361

 

 

15

 

Interest income (expense), net

 

(244

)

 

211

 

 

(8

)

 

351

 

Foreign currency gains (losses), net

 

(340

)

 

249

 

 

(55

)

 

187

 

Stock-based compensation

 

1,095

 

 

514

 

 

2,600

 

 

1,505

 

Amortization and depreciation

 

426

 

 

366

 

 

1,284

 

 

955

 

Strategic review-related costs

 

3,551

 

 

 

 

6,120

 

 

 

Restructuring and severance

 

 

 

 

 

 

 

(46

)

Total reconciling items included in GAAP net loss from continuing operations

 

4,848

 

 

1,353

 

 

10,302

 

 

2,967

 

Non-GAAP adjusted EBITDA

$

(4,481

)

$

(2,307

)

$

(11,332

)

$

(7,583

)

 

Investor Relations Contact:

IR@identiv.com

Media Contact:

press@identiv.com

Source: Identiv, Inc.

FAQ

What was Identiv's Q3 2024 revenue?

Identiv's Q3 2024 revenue was $6.5 million, down from $11.7 million in Q3 2023.

What is the new stock repurchase program announced by Identiv?

Identiv announced a $10 million stock repurchase program.

What was Identiv's GAAP net loss in Q3 2024?

Identiv's GAAP net loss in Q3 2024 was ($9.3) million, or ($0.40) per share.

What is Identiv's revenue guidance for Q4 2024?

Identiv expects Q4 2024 net revenue to be between $6.0 million and $6.3 million.

What is the 'Perform, Accelerate, and Transform' strategy?

The 'Perform, Accelerate, and Transform' strategy is Identiv's new framework for executing its business vision.

Identive, Inc.

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