Identiv Reports Fourth Quarter and Full Year 2023 Financial Results
Record Fiscal Year Revenues of
Delivered
Secured Second Facility in
Recent Financial and Operational Highlights
-
FY 2023 revenue was
$116.4 million , up 3% year-over-year. -
Ended Q4 2023 with
$24.4 million in cash, cash equivalents and restricted cash. Maintained a strong working capital position of$48.7 million exiting the fourth quarter. - Federal billings in FY 2023 increased 9% year-over-year.
- Software, services, and recurring revenues grew to a record 24% of Premises segment revenues in Q4 2023.
- FY 2023 RFID units shipped increased to just under 200 million units.
-
Continued to scale production in
Thailand , the facility’s first year in operation, and exited 2023 with a capacity for primary processes of 200 million units. -
Signed lease for adjacent building in
Thailand , securing our ability to expand production as needed. -
Collaborated with Energous and Wiliot on a real-time tracking solution for temperature-sensitive assets; currently in pilot with several logistics companies in
Europe . - Commenced engagement with retail data platform company Nexite to support further growth of BLE-enabled RFID category.
- Launched ScrambleFactor reader with biometrics and multi-factor authentication for Federal market customers.
-
Partnered with
Mazars USA LLP Consulting Group on a new AI-enabled retail operations solution that integratesMicrosoft Dynamics 365 with our bitse.io platform. -
Opened the IoT Excellence Center in
Germany , showcasing the breadth of our complete IoT portfolio for current and prospective customers. -
Secured a
$2 million contract from a global electronics retailer for a secure employee login application. - Released bitse.io 3.0, the latest version of our global IoT connecting cloud platform, which includes advanced features for supply chain monitoring and customer engagement.
- Showed continued strength in OEM reader sales, doubling category revenues quarter-over-quarter.
- Board-led strategic review continued to be a major focus and activity in Q4 2023.
Fiscal Year 2023 Financial Results
Revenue for fiscal year 2023 was
Fiscal year 2023 GAAP gross margin was 36.2% and non-GAAP gross margin was 37.9%.
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, totaled
GAAP net loss in fiscal year 2023 was
Non-GAAP adjusted EBITDA for fiscal year 2023 was
Fourth Quarter 2023 Financial Summary
Revenue for the fourth quarter 2023 was
Fourth quarter 2023 GAAP gross margin was 35.1% and non-GAAP gross margin was 37.0%.
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, totaled
GAAP net loss for the fourth quarter 2023 was
Non-GAAP adjusted EBITDA in the fourth quarter of 2023 was
Management Commentary
“In 2023, we delivered record fiscal year revenue while keeping margins healthy with a consistent focus on delivering disciplined growth,” said
Financial Outlook
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About
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.
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,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” 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 2024 first quarter guidance and outlook; the Company’s strategy, focus and its foundation for growth; the Company’s expectations regarding seasonality; expected benefits of the Company’s
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Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Net revenue |
$ |
28,985 |
|
$ |
31,846 |
|
$ |
29,001 |
|
$ |
116,383 |
|
$ |
112,915 |
|
||||
Cost of revenue |
|
18,821 |
|
|
19,905 |
|
|
18,421 |
|
|
74,219 |
|
|
71,971 |
|
||||
Gross profit |
|
10,164 |
|
|
11,941 |
|
|
10,580 |
|
|
42,164 |
|
|
40,944 |
|
||||
Operating expenses: | |||||||||||||||||||
Research and development |
|
2,952 |
|
|
2,916 |
|
|
2,283 |
|
|
11,590 |
|
|
9,916 |
|
||||
Selling and marketing |
|
4,938 |
|
|
5,641 |
|
|
5,021 |
|
|
22,555 |
|
|
20,730 |
|
||||
General and administrative |
|
3,570 |
|
|
2,939 |
|
|
2,806 |
|
|
12,360 |
|
|
10,429 |
|
||||
Restructuring and severance |
|
338 |
|
|
104 |
|
|
70 |
|
|
714 |
|
|
202 |
|
||||
Total operating expenses |
|
11,798 |
|
|
11,600 |
|
|
10,180 |
|
|
47,219 |
|
|
41,277 |
|
||||
Income (loss) from operations |
|
(1,634 |
) |
|
341 |
|
|
400 |
|
|
(5,055 |
) |
|
(333 |
) |
||||
Non-operating income (expense): | |||||||||||||||||||
Interest expense, net |
|
(76 |
) |
|
(211 |
) |
|
(42 |
) |
|
(427 |
) |
|
(143 |
) |
||||
Gain on investment |
|
— |
|
|
132 |
|
|
— |
|
|
132 |
|
|
30 |
|
||||
Foreign currency gains (losses), net |
|
209 |
|
|
(264 |
) |
|
44 |
|
|
25 |
|
|
155 |
|
||||
Income (loss) before income tax provision |
|
(1,501 |
) |
|
(2 |
) |
|
402 |
|
|
(5,325 |
) |
|
(291 |
) |
||||
Income tax provision |
|
(103 |
) |
|
(20 |
) |
|
(63 |
) |
|
(164 |
) |
|
(101 |
) |
||||
Net income (loss) |
|
(1,604 |
) |
|
(22 |
) |
|
339 |
|
|
(5,489 |
) |
|
(392 |
) |
||||
Cumulative dividends on Series B convertible preferred stock |
|
(319 |
) |
|
(319 |
) |
|
(304 |
) |
|
(1,266 |
) |
|
(1,206 |
) |
||||
Net income (loss) available to common stockholders |
$ |
(1,923 |
) |
$ |
(341 |
) |
$ |
35 |
|
$ |
(6,755 |
) |
$ |
(1,598 |
) |
||||
Net income (loss) per common share: | |||||||||||||||||||
Basic |
$ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.29 |
) |
$ |
(0.07 |
) |
||||
Diluted |
$ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.29 |
) |
$ |
(0.07 |
) |
||||
Weighted average shares used in computing net income (loss) per common share: | |||||||||||||||||||
Basic |
|
23,248 |
|
|
23,174 |
|
|
22,737 |
|
|
23,068 |
|
|
22,659 |
|
||||
Diluted |
|
23,248 |
|
|
23,174 |
|
|
23,160 |
|
|
23,068 |
|
|
22,659 |
|
|
||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
|
|
|
||||||
2023 |
2023 |
2022 |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
23,312 |
$ |
19,674 |
$ |
16,650 |
||
Restricted cash |
|
1,072 |
|
1,254 |
|
487 |
||
Accounts receivable, net of allowances |
|
21,969 |
|
25,892 |
|
24,826 |
||
Inventories |
|
28,712 |
|
29,423 |
|
28,958 |
||
Prepaid expenses and other current assets |
|
4,421 |
|
5,238 |
|
4,177 |
||
Total current assets |
|
79,486 |
|
81,481 |
|
75,098 |
||
Property and equipment, net |
|
9,320 |
|
8,518 |
|
6,719 |
||
Operating lease right-of-use assets |
|
5,214 |
|
5,525 |
|
4,373 |
||
Intangible assets, net |
|
4,251 |
|
4,483 |
|
5,265 |
||
|
|
10,218 |
|
10,189 |
|
10,190 |
||
Other assets |
|
1,234 |
|
1,261 |
|
1,120 |
||
Total assets |
$ |
109,723 |
$ |
111,457 |
$ |
102,765 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
12,250 |
$ |
12,099 |
$ |
15,231 |
||
Financial liabilities |
|
9,949 |
|
9,939 |
|
— |
||
Operating lease liabilities |
|
1,714 |
|
1,708 |
|
1,190 |
||
Deferred revenue |
|
2,341 |
|
2,474 |
|
2,068 |
||
Accrued compensation and related benefits |
|
2,334 |
|
2,580 |
|
2,757 |
||
Other accrued expenses and liabilities |
|
2,194 |
|
2,872 |
|
2,147 |
||
Total current liabilities |
|
30,782 |
|
31,672 |
|
23,393 |
||
Long-term operating lease liabilities |
|
3,716 |
|
4,037 |
|
3,366 |
||
Long-term deferred revenue |
|
927 |
|
904 |
|
587 |
||
Other long-term liabilities |
|
26 |
|
25 |
|
25 |
||
Total liabilities |
|
35,451 |
|
36,638 |
|
27,371 |
||
Total stockholders' equity |
|
74,272 |
|
74,819 |
|
75,394 |
||
Total liabilities and stockholders' equity |
$ |
109,723 |
$ |
111,457 |
$ |
102,765 |
||
|
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||||||||||||||||
GAAP gross profit |
$ |
10,164 |
|
$ |
11,941 |
|
$ |
10,580 |
|
$ |
42,164 |
|
$ |
40,944 |
|
||||
Reconciling items included in GAAP gross profit: | |||||||||||||||||||
Stock-based compensation |
|
60 |
|
|
45 |
|
|
53 |
|
|
195 |
|
|
191 |
|
||||
Amortization and depreciation |
|
491 |
|
|
458 |
|
|
363 |
|
|
1,737 |
|
|
1,312 |
|
||||
Total reconciling items included in GAAP gross profit |
|
551 |
|
|
503 |
|
|
416 |
|
|
1,932 |
|
|
1,503 |
|
||||
Non-GAAP gross profit |
$ |
10,715 |
|
$ |
12,444 |
|
$ |
10,996 |
|
$ |
44,096 |
|
$ |
42,447 |
|
||||
Non-GAAP gross margin |
|
37 |
% |
|
39 |
% |
|
38 |
% |
|
38 |
% |
|
38 |
% |
||||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||||||
GAAP operating expenses |
$ |
11,798 |
|
$ |
11,600 |
|
$ |
10,180 |
|
$ |
47,219 |
|
$ |
41,277 |
|
||||
Reconciling items included in GAAP operating expenses: | |||||||||||||||||||
Stock-based compensation |
|
(938 |
) |
|
(944 |
) |
|
(543 |
) |
|
(3,776 |
) |
|
(2,970 |
) |
||||
Amortization and depreciation |
|
(241 |
) |
|
(274 |
) |
|
(236 |
) |
|
(995 |
) |
|
(960 |
) |
||||
Loss on disposal of property and equipment |
|
— |
|
|
— |
|
|
(68 |
) |
|
— |
|
|
(68 |
) |
||||
Strategic review-related costs |
|
(435 |
) |
|
— |
|
|
— |
|
|
(435 |
) |
|
— |
|
||||
Restructuring and severance |
|
(338 |
) |
|
(104 |
) |
|
(70 |
) |
|
(714 |
) |
|
(202 |
) |
||||
Total reconciling items included in GAAP operating expenses |
|
(1,952 |
) |
|
(1,322 |
) |
|
(917 |
) |
|
(5,920 |
) |
|
(4,200 |
) |
||||
Non-GAAP operating expenses |
$ |
9,846 |
|
$ |
10,278 |
|
$ |
9,263 |
|
$ |
41,299 |
|
$ |
37,077 |
|
||||
Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||||||||||
GAAP net income (loss) |
$ |
(1,604 |
) |
$ |
(22 |
) |
$ |
339 |
|
$ |
(5,489 |
) |
$ |
(392 |
) |
||||
Reconciling items included in GAAP net income (loss): | |||||||||||||||||||
Income tax provision |
|
103 |
|
|
20 |
|
|
63 |
|
|
164 |
|
|
101 |
|
||||
Interest expense, net |
|
76 |
|
|
211 |
|
|
42 |
|
|
427 |
|
|
143 |
|
||||
Gain on investment |
|
— |
|
|
(132 |
) |
|
— |
|
|
(132 |
) |
|
(30 |
) |
||||
Loss on disposal of property and equipment |
|
— |
|
|
— |
|
|
68 |
|
|
— |
|
|
68 |
|
||||
Foreign currency gains (losses), net |
|
(209 |
) |
|
264 |
|
|
(44 |
) |
|
(25 |
) |
|
(155 |
) |
||||
Stock-based compensation |
|
998 |
|
|
989 |
|
|
596 |
|
|
3,971 |
|
|
3,161 |
|
||||
Amortization and depreciation |
|
732 |
|
|
732 |
|
|
599 |
|
|
2,732 |
|
|
2,272 |
|
||||
Strategic review-related costs |
|
435 |
|
|
— |
|
|
— |
|
|
435 |
|
|
— |
|
||||
Restructuring and severance |
|
338 |
|
|
104 |
|
|
70 |
|
|
714 |
|
|
202 |
|
||||
Total reconciling items included in GAAP net income (loss) |
|
2,473 |
|
|
2,188 |
|
|
1,394 |
|
|
8,286 |
|
|
5,762 |
|
||||
Non-GAAP adjusted EBITDA |
$ |
869 |
|
$ |
2,166 |
|
$ |
1,733 |
|
$ |
2,797 |
|
$ |
5,370 |
|
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