Identiv Reports First Quarter 2024 Financial Results
Signed Transformative
New President, IoT Solutions Joins
Gross Margins Expand to Highest Levels since Q3 2021
Recent Financial and Operational Highlights
-
Concluded strategic review with announcement of
$145 million asset purchase agreement (APA) transaction with security solutions provider Vitaprotech; transaction expected to close in Q3 2024, subject to regulatory and stockholder approvals and other customary closing conditions. -
Welcomed
Kirsten Newquist as President, IoT Solutions;Ms. Newquist will become CEO at the close of asset sale. - First quarter GAAP and non-GAAP gross margins were 37.3% and 39.9%, respectively, their highest levels since Q3 2021.
- Software, services, and recurring revenues grew to 27.4% of Premises segment revenues in Q1 2024.
-
Ended Q1 2024 with
$22.4 million in cash, cash equivalents and restricted cash. -
Continued the development of Thailand RFID production facility, reflected by 40% of Q1 RFID volume being produced in
Thailand . -
Shipped the majority of a previously announced
$2 million reader application order for a global online retailer. - Secured 2-year contract with IoT customer for smart home application.
- Showcased broad specialty IoT solutions portfolio at RFID Journal Live trade show.
-
Demonstrated Scramble Factor reader with multi-factor authentication at ISC West trade show in
Las Vegas . -
Joined Axia Institute atMichigan State University , a research center focused on the transformation of today’s supply chains across multiple industries, including healthcare. -
Expanded sales and pipeline of FIDO (Fast Identity Online) dual-factor security keys, with new projects in
Europe .
Asset Sale Transaction Summary
As previously announced, on
First Quarter 2024 Financial Summary
Revenue for the first quarter 2024 was
First quarter 2024 GAAP gross margin was 37.3% and non-GAAP gross margin was 39.9%.
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, were
GAAP net loss for the first quarter 2024 was
Non-GAAP adjusted EBITDA in the first quarter of 2024 was
Management Commentary
"In the first quarter, our total business net revenue was within our guidance range, and we delivered our highest GAAP and non-GAAP gross margins in ten quarters,” 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 management of
Additional Information and Where to Find It
On
Participants in the Solicitation
|
|||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
|
|
|
|||||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Net revenue |
$ |
22,494 |
|
$ |
28,985 |
|
$ |
25,997 |
|
||
Cost of revenue |
|
14,102 |
|
|
18,821 |
|
|
16,786 |
|
||
Gross profit |
|
8,392 |
|
|
10,164 |
|
|
9,211 |
|
||
Operating expenses: | |||||||||||
Research and development |
|
3,011 |
|
|
2,952 |
|
|
2,707 |
|
||
Selling and marketing |
|
5,302 |
|
|
4,938 |
|
|
6,097 |
|
||
General and administrative |
|
4,252 |
|
|
3,570 |
|
|
2,948 |
|
||
Restructuring and severance |
|
22 |
|
|
338 |
|
|
191 |
|
||
Total operating expenses |
|
12,587 |
|
|
11,798 |
|
|
11,943 |
|
||
Loss from operations |
|
(4,195 |
) |
|
(1,634 |
) |
|
(2,732 |
) |
||
Non-operating income (expense): | |||||||||||
Interest expense, net |
|
(87 |
) |
|
(76 |
) |
|
(50 |
) |
||
Foreign currency gains (losses), net |
|
(256 |
) |
|
209 |
|
|
89 |
|
||
Loss before income tax provision |
|
(4,538 |
) |
|
(1,501 |
) |
|
(2,693 |
) |
||
Income tax provision |
|
(20 |
) |
|
(103 |
) |
|
(26 |
) |
||
Net loss |
|
(4,558 |
) |
|
(1,604 |
) |
|
(2,719 |
) |
||
Cumulative dividends on Series B convertible preferred stock |
|
(248 |
) |
|
(319 |
) |
|
(313 |
) |
||
Net loss available to common stockholders |
$ |
(4,806 |
) |
$ |
(1,923 |
) |
$ |
(3,032 |
) |
||
Net loss per common share: | |||||||||||
Basic |
$ |
(0.21 |
) |
$ |
(0.08 |
) |
$ |
(0.13 |
) |
||
Diluted |
$ |
(0.21 |
) |
$ |
(0.08 |
) |
$ |
(0.13 |
) |
||
Weighted average shares used in computing net loss per common share: | |||||||||||
Basic |
|
23,368 |
|
|
23,248 |
|
|
22,794 |
|
||
Diluted |
|
23,368 |
|
|
23,248 |
|
|
22,794 |
|
|
|||||
Condensed Consolidated Balance Sheets | |||||
(in thousands) | |||||
(unaudited) | |||||
|
|
||||
|
2024 |
|
2023 |
||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents |
$ |
21,623 |
$ |
23,312 |
|
Restricted cash |
|
811 |
|
1,072 |
|
Accounts receivable, net of allowances |
|
17,811 |
|
21,969 |
|
Inventories |
|
28,460 |
|
28,712 |
|
Prepaid expenses and other current assets |
|
4,159 |
|
4,421 |
|
Total current assets |
|
72,864 |
|
79,486 |
|
Property and equipment, net |
|
8,832 |
|
9,320 |
|
Operating lease right-of-use assets |
|
4,756 |
|
5,214 |
|
Intangible assets, net |
|
3,995 |
|
4,251 |
|
|
|
10,192 |
|
10,218 |
|
Other assets |
|
1,150 |
|
1,234 |
|
Total assets |
$ |
101,789 |
$ |
109,723 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable |
$ |
9,564 |
$ |
12,250 |
|
Financial liabilities |
|
9,894 |
|
9,949 |
|
Operating lease liabilities |
|
1,655 |
|
1,714 |
|
Deferred revenue |
|
1,744 |
|
2,341 |
|
Accrued compensation and related benefits |
|
2,099 |
|
2,334 |
|
Other accrued expenses and liabilities |
|
2,351 |
|
2,194 |
|
Total current liabilities |
|
27,307 |
|
30,782 |
|
Long-term operating lease liabilities |
|
3,309 |
|
3,716 |
|
Long-term deferred revenue |
|
981 |
|
927 |
|
Other long-term liabilities |
|
26 |
|
26 |
|
Total liabilities |
|
31,623 |
|
35,451 |
|
Total stockholders' equity |
|
70,166 |
|
74,272 |
|
Total liabilities and stockholders' equity |
$ |
101,789 |
$ |
109,723 |
|
|||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | |||||||||||
(in thousands) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
|
|
|
|||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||||||||
GAAP gross profit |
$ |
8,392 |
|
$ |
10,164 |
|
$ |
9,211 |
|
||
Reconciling items included in GAAP gross profit: | |||||||||||
Stock-based compensation |
|
47 |
|
|
60 |
|
|
45 |
|
||
Amortization and depreciation |
|
547 |
|
|
491 |
|
|
385 |
|
||
Total reconciling items included in GAAP gross profit |
|
594 |
|
|
551 |
|
|
430 |
|
||
Non-GAAP gross profit |
$ |
8,986 |
|
$ |
10,715 |
|
$ |
9,641 |
|
||
Non-GAAP gross margin |
|
40 |
% |
|
37 |
% |
|
37 |
% |
||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||
GAAP operating expenses |
$ |
12,587 |
|
$ |
11,798 |
|
$ |
11,943 |
|
||
Reconciling items included in GAAP operating expenses: | |||||||||||
Stock-based compensation |
|
(972 |
) |
|
(938 |
) |
|
(945 |
) |
||
Amortization and depreciation |
|
(238 |
) |
|
(241 |
) |
|
(238 |
) |
||
Strategic review-related costs |
|
(953 |
) |
|
(435 |
) |
|
— |
|
||
Restructuring and severance |
|
(22 |
) |
|
(338 |
) |
|
(191 |
) |
||
Total reconciling items included in GAAP operating expenses |
|
(2,185 |
) |
|
(1,952 |
) |
|
(1,374 |
) |
||
Non-GAAP operating expenses |
$ |
10,402 |
|
$ |
9,846 |
|
$ |
10,569 |
|
||
Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||
GAAP net loss |
$ |
(4,558 |
) |
$ |
(1,604 |
) |
$ |
(2,719 |
) |
||
Reconciling items included in GAAP net loss: | |||||||||||
Income tax provision |
|
20 |
|
|
103 |
|
|
26 |
|
||
Interest expense, net |
|
87 |
|
|
76 |
|
|
50 |
|
||
Foreign currency gains (losses), net |
|
256 |
|
|
(209 |
) |
|
(89 |
) |
||
Stock-based compensation |
|
1,019 |
|
|
998 |
|
|
990 |
|
||
Amortization and depreciation |
|
785 |
|
|
732 |
|
|
623 |
|
||
Strategic review-related costs |
|
953 |
|
|
435 |
|
|
— |
|
||
Restructuring and severance |
|
22 |
|
|
338 |
|
|
191 |
|
||
Total reconciling items included in GAAP net loss |
|
3,142 |
|
|
2,473 |
|
|
1,791 |
|
||
Non-GAAP adjusted EBITDA |
$ |
(1,416 |
) |
$ |
869 |
|
$ |
(928 |
) |
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