Identiv Reports Second Quarter 2024 Financial Results
Transformative
IoT Strategic Growth and Go-to-Market Plan Advances; Conclusion Expected in Q4 2024
Thailand Production Facility Earns ISO 9001:2015 and ISO 14001:2015 Certifications
Status of Asset Sale Transaction
On
Management Commentary
"We achieved significant milestones in the second quarter toward concluding the previously announced asset sale transaction,” said
“I am excited to lead the IoT team through this transformational period in Identiv’s history,” said
GAAP Financial Results for Fiscal Second Quarter 2024
GAAP Earnings for second quarter 2024 reflect the continuing operations of the company, the “IoT Business,” as of
Revenue from continuing operations for the second quarter of 2024 was
GAAP operating expenses from the IoT Business, including research and development, sales, and marketing, and general and administrative, were
GAAP net loss from the IoT Business in the second quarter of 2024 was
Non-GAAP adjusted EBITDA for the IoT Business in the second quarter of 2024 was
Non-GAAP Aggregated Information for Fiscal Second Quarter 2024
In accordance with GAAP, revenue and operating expenses directly related to the Physical Security Business must be removed from their applicable statements of operations captions for continuing operations and reported for all periods presented as net income from discontinued operations in the GAAP financial statements. For this transition quarter,
Total revenue from continuing operations and revenue included in discontinued operations for the second quarter 2024 would have been
Non-GAAP aggregated operating expenses would have been
Non-GAAP aggregated net loss for the second quarter of 2024 would have been
Non-GAAP aggregated adjusted EBITDA in the second quarter of 2024 would have been
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
Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net revenue |
$ |
6,741 |
|
$ |
11,476 |
|
$ |
13,399 |
|
$ |
20,365 |
|
|||
Cost of revenue |
|
6,127 |
|
|
9,844 |
|
|
12,302 |
|
|
17,515 |
|
|||
Gross profit |
|
614 |
|
|
1,632 |
|
|
1,097 |
|
|
2,850 |
|
|||
Operating expenses: | |||||||||||||||
Research and development |
|
966 |
|
|
1,151 |
|
|
1,863 |
|
|
2,131 |
|
|||
Selling and marketing |
|
1,828 |
|
|
1,602 |
|
|
2,997 |
|
|
3,121 |
|
|||
General and administrative |
|
4,540 |
|
|
2,161 |
|
|
8,020 |
|
|
4,362 |
|
|||
Restructuring and severance |
|
— |
|
|
45 |
|
|
— |
|
|
46 |
|
|||
Total operating expenses |
|
7,334 |
|
|
4,959 |
|
|
12,880 |
|
|
9,660 |
|
|||
Loss from continuing operations |
|
(6,720 |
) |
|
(3,327 |
) |
|
(11,783 |
) |
|
(6,810 |
) |
|||
Non-operating income (expense): | |||||||||||||||
Interest expense, net |
|
(149 |
) |
|
(90 |
) |
|
(236 |
) |
|
(140 |
) |
|||
Foreign currency gains (losses), net |
|
(59 |
) |
|
(34 |
) |
|
(285 |
) |
|
62 |
|
|||
Loss from continuing operations before income tax benefit (provision) |
|
(6,928 |
) |
|
(3,451 |
) |
|
(12,304 |
) |
|
(6,888 |
) |
|||
Income tax benefit (provision) |
|
5 |
|
|
— |
|
|
(1 |
) |
|
(2 |
) |
|||
Net loss from continuing operations |
|
(6,923 |
) |
|
(3,451 |
) |
|
(12,305 |
) |
|
(6,890 |
) |
|||
Income from discontinued operations, net of tax |
|
707 |
|
|
2,307 |
|
|
1,531 |
|
|
3,027 |
|
|||
Net loss |
|
(6,216 |
) |
|
(1,144 |
) |
|
(10,774 |
) |
|
(3,863 |
) |
|||
Cumulative dividends on Series B convertible preferred stock |
|
(232 |
) |
|
(315 |
) |
|
(481 |
) |
|
(628 |
) |
|||
Net loss available to common stockholders |
$ |
(6,448 |
) |
$ |
(1,459 |
) |
$ |
(11,255 |
) |
$ |
(4,491 |
) |
|||
Net income (loss) per common share: | |||||||||||||||
Basic and diluted - continuing operations |
$ |
(0.31 |
) |
$ |
(0.16 |
) |
$ |
(0.55 |
) |
$ |
(0.33 |
) |
|||
Basic and diluted - discontinued operations |
$ |
0.03 |
|
$ |
0.10 |
|
$ |
0.07 |
|
$ |
0.13 |
|
|||
Basic and diluted - net loss |
$ |
(0.27 |
) |
$ |
(0.06 |
) |
$ |
(0.48 |
) |
$ |
(0.20 |
) |
|||
Weighted average common shares outstanding: | |||||||||||||||
Basic and diluted |
|
23,459 |
|
|
23,051 |
|
|
23,413 |
|
|
22,924 |
|
|
|||||
Condensed Consolidated Balance Sheets | |||||
(in thousands) | |||||
(unaudited) | |||||
|
|
||||
|
2024 |
|
2023 |
||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents |
$ |
18,435 |
$ |
23,312 |
|
Restricted cash |
|
566 |
|
1,072 |
|
Accounts receivable, net of allowances |
|
3,716 |
|
7,404 |
|
Inventories |
|
11,267 |
|
13,560 |
|
Prepaid expenses and other current assets |
|
1,797 |
|
1,222 |
|
Current assets held-for-sale |
|
33,600 |
|
32,916 |
|
Total current assets |
|
69,381 |
|
79,486 |
|
Property and equipment, net |
|
7,669 |
|
8,472 |
|
Operating lease right-of-use assets |
|
2,228 |
|
2,289 |
|
Other assets |
|
681 |
|
678 |
|
Non-current assets held-for-sale |
|
17,801 |
|
18,798 |
|
Total assets |
$ |
97,760 |
$ |
109,723 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable |
$ |
2,946 |
$ |
4,652 |
|
Financial liabilities |
|
7,905 |
|
9,949 |
|
Operating lease liabilities |
|
815 |
|
782 |
|
Accrued compensation and related benefits |
|
1,191 |
|
1,376 |
|
Other accrued expenses and liabilities |
|
3,036 |
|
1,021 |
|
Current liabilities held-for-sale |
|
12,334 |
|
13,002 |
|
Total current liabilities |
|
28,227 |
|
30,782 |
|
Long-term operating lease liabilities |
|
1,393 |
|
1,507 |
|
Other long-term liabilities |
|
27 |
|
26 |
|
Non-current liabilities held-for-sale |
|
3,056 |
|
3,136 |
|
Total liabilities |
|
32,703 |
|
35,451 |
|
Total stockholders' equity |
|
65,057 |
|
74,272 |
|
Total liabilities and stockholders' equity |
$ |
97,760 |
$ |
109,723 |
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||||||||||||
GAAP gross profit |
$ |
614 |
|
$ |
1,632 |
|
$ |
1,097 |
|
$ |
2,850 |
|
|||
Reconciling items included in GAAP gross profit: | |||||||||||||||
Stock-based compensation |
|
5 |
|
|
9 |
|
|
12 |
|
|
19 |
|
|||
Amortization and depreciation |
|
364 |
|
|
262 |
|
|
768 |
|
|
509 |
|
|||
Total reconciling items included in GAAP gross profit |
|
369 |
|
|
271 |
|
|
780 |
|
|
528 |
|
|||
Non-GAAP gross profit |
$ |
983 |
|
$ |
1,903 |
|
$ |
1,877 |
|
$ |
3,378 |
|
|||
Non-GAAP gross margin |
|
15 |
% |
|
17 |
% |
|
14 |
% |
|
17 |
% |
|||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||
GAAP operating expenses |
$ |
7,334 |
|
$ |
4,959 |
|
$ |
12,880 |
|
$ |
9,660 |
|
|||
Reconciling items included in GAAP operating expenses: | |||||||||||||||
Stock-based compensation |
|
(981 |
) |
|
(498 |
) |
|
(1,492 |
) |
|
(972 |
) |
|||
Amortization and depreciation |
|
(65 |
) |
|
(33 |
) |
|
(90 |
) |
|
(80 |
) |
|||
Strategic review-related costs |
|
(1,616 |
) |
|
— |
|
|
(2,569 |
) |
|
— |
|
|||
Restructuring and severance |
|
— |
|
|
(45 |
) |
|
— |
|
|
(46 |
) |
|||
Total reconciling items included in GAAP operating expenses |
|
(2,662 |
) |
|
(576 |
) |
|
(4,151 |
) |
|
(1,098 |
) |
|||
Non-GAAP operating expenses |
$ |
4,672 |
|
$ |
4,383 |
|
$ |
8,729 |
|
$ |
8,562 |
|
|||
Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA | |||||||||||||||
GAAP net loss |
$ |
(6,923 |
) |
$ |
(3,451 |
) |
$ |
(12,305 |
) |
$ |
(6,890 |
) |
|||
Reconciling items included in GAAP net loss: | |||||||||||||||
Income tax provision (benefit) |
|
(5 |
) |
|
— |
|
|
1 |
|
|
2 |
|
|||
Interest expense, net |
|
149 |
|
|
90 |
|
|
236 |
|
|
140 |
|
|||
Foreign currency gains (losses), net |
|
59 |
|
|
9 |
|
|
285 |
|
|
(155 |
) |
|||
Stock-based compensation |
|
986 |
|
|
507 |
|
|
1,504 |
|
|
991 |
|
|||
Amortization and depreciation |
|
429 |
|
|
295 |
|
|
858 |
|
|
589 |
|
|||
Strategic review-related costs |
|
1,616 |
|
|
— |
|
|
2,569 |
|
|
— |
|
|||
Restructuring and severance |
|
— |
|
|
(45 |
) |
|
— |
|
|
(46 |
) |
|||
Total reconciling items included in GAAP net loss from continuing operations |
|
3,234 |
|
|
856 |
|
|
5,453 |
|
|
1,521 |
|
|||
Non-GAAP adjusted EBITDA |
$ |
(3,689 |
) |
$ |
(2,595 |
) |
$ |
(6,852 |
) |
$ |
(5,369 |
) |
|
|||||||||||||||
Reconciliation of GAAP Financial Information to Non-GAAP Aggregated View | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net Revenue: | |||||||||||||||
Continuing operations |
$ |
6,741 |
|
$ |
11,476 |
|
$ |
13,399 |
|
$ |
20,365 |
|
|||
Non-GAAP discontinued operations - Physical Security Business |
|
17,592 |
|
|
18,079 |
|
|
33,428 |
|
|
35,187 |
|
|||
Non-GAAP Total Aggregated |
$ |
24,333 |
|
$ |
29,555 |
|
$ |
46,827 |
|
$ |
55,552 |
|
|||
Gross Profit: | |||||||||||||||
Continuing operations |
$ |
614 |
|
$ |
1,632 |
|
$ |
1,097 |
|
$ |
2,850 |
|
|||
Non-GAAP discontinued operations - Physical Security Business |
|
7,904 |
|
|
9,216 |
|
|
15,813 |
|
|
17,209 |
|
|||
Non-GAAP Total Aggregated |
$ |
8,518 |
|
$ |
10,848 |
|
$ |
16,910 |
|
$ |
20,059 |
|
|||
Operating Expenses | |||||||||||||||
Continuing operations |
$ |
7,334 |
|
$ |
4,959 |
|
$ |
12,880 |
|
$ |
9,660 |
|
|||
Non-GAAP discontinued operations - Physical Security Business |
|
7,148 |
|
|
6,919 |
|
|
14,189 |
|
|
14,161 |
|
|||
Non-GAAP Total Aggregated |
$ |
14,482 |
|
$ |
11,878 |
|
$ |
27,069 |
|
$ |
23,821 |
|
|||
Net income (loss): | |||||||||||||||
Continuing operations |
$ |
(6,923 |
) |
$ |
(3,451 |
) |
$ |
(12,305 |
) |
$ |
(6,890 |
) |
|||
Non-GAAP discontinued operations - Physical Security Business |
|
707 |
|
|
2,307 |
|
|
1,531 |
|
|
3,027 |
|
|||
Non-GAAP Total Aggregated |
$ |
(6,216 |
) |
$ |
(1,144 |
) |
$ |
(10,774 |
) |
$ |
(3,863 |
) |
|||
Non-GAAP EBITDA: | |||||||||||||||
Continuing operations |
$ |
(3,689 |
) |
$ |
(2,595 |
) |
$ |
(6,852 |
) |
$ |
(5,369 |
) |
|||
Discontinued operations - Physical Security Business |
|
1,678 |
|
|
3,285 |
|
|
3,425 |
|
|
5,131 |
|
|||
Non-GAAP Total Aggregated |
$ |
(2,011 |
) |
$ |
690 |
|
$ |
(3,427 |
) |
$ |
(238 |
) |
|
|||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP Financial Information - Non-GAAP Aggregated View | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of GAAP gross margin to adjusted non-GAAP aggregated gross margin | |||||||||||||||
GAAP gross profit - continuing operations |
$ |
614 |
|
$ |
1,632 |
|
$ |
1,097 |
|
$ |
2,850 |
|
|||
Non-GAAP gross profit - discontinued operations |
|
7,904 |
|
|
9,216 |
|
|
15,813 |
|
|
17,209 |
|
|||
Non-GAAP Total Aggregated |
|
8,518 |
|
|
10,848 |
|
|
16,910 |
|
|
20,059 |
|
|||
Reconciling items included in non-GAAP gross profit: | |||||||||||||||
Stock-based compensation |
|
46 |
|
|
45 |
|
|
93 |
|
|
90 |
|
|||
Amortization and depreciation |
|
505 |
|
|
403 |
|
|
1,052 |
|
|
788 |
|
|||
Total reconciling items included in non-GAAP aggregated gross profit |
|
551 |
|
|
448 |
|
|
1,145 |
|
|
878 |
|
|||
Adjusted non-GAAP aggregated gross profit |
$ |
9,069 |
|
$ |
11,296 |
|
$ |
18,055 |
|
$ |
20,937 |
|
|||
Adjusted non-GAAP aggregated gross margin |
|
37 |
% |
|
38 |
% |
|
39 |
% |
|
38 |
% |
|||
Reconciliation of GAAP operating expenses to adjusted non-GAAP aggregated operating expenses | |||||||||||||||
GAAP operating expenses - continuing operations |
$ |
7,334 |
|
$ |
4,959 |
|
$ |
12,880 |
|
$ |
9,660 |
|
|||
Non-GAAP operating expenses - discontinued operations |
|
7,148 |
|
|
6,919 |
|
|
14,189 |
|
|
14,161 |
|
|||
Non-GAAP Total Aggregated |
|
14,482 |
|
|
11,878 |
|
|
27,069 |
|
|
23,821 |
|
|||
Reconciling items included in non-GAAP aggregated operating expenses: | |||||||||||||||
Stock-based compensation |
|
(1,429 |
) |
|
(949 |
) |
|
(2,401 |
) |
|
(1,894 |
) |
|||
Amortization and depreciation |
|
(234 |
) |
|
(242 |
) |
|
(472 |
) |
|
(480 |
) |
|||
Strategic review-related costs |
|
(1,616 |
) |
|
— |
|
|
(2,569 |
) |
|
— |
|
|||
Restructuring and severance |
|
(123 |
) |
|
(81 |
) |
|
(145 |
) |
|
(272 |
) |
|||
Total reconciling items included in non-GAAP aggregated operating expenses |
|
(3,402 |
) |
|
(1,272 |
) |
|
(5,587 |
) |
|
(2,646 |
) |
|||
Adjusted non-GAAP aggregated operating expenses |
$ |
11,080 |
|
$ |
10,606 |
|
$ |
21,482 |
|
$ |
21,175 |
|
|||
Reconciliation of GAAP net loss to non-GAAP adjusted EBITDA | |||||||||||||||
GAAP net loss |
|
(6,216 |
) |
|
(1,144 |
) |
|
(10,774 |
) |
|
(3,863 |
) |
|||
Reconciling items included in non-GAAP net loss: | |||||||||||||||
Income tax provision |
|
29 |
|
|
15 |
|
|
49 |
|
|
41 |
|
|||
Interest expense, net |
|
149 |
|
|
90 |
|
|
236 |
|
|
140 |
|
|||
Foreign currency gains (losses), net |
|
74 |
|
|
9 |
|
|
330 |
|
|
(80 |
) |
|||
Stock-based compensation |
|
1,475 |
|
|
994 |
|
|
2,494 |
|
|
1,984 |
|
|||
Amortization and depreciation |
|
739 |
|
|
645 |
|
|
1,524 |
|
|
1,268 |
|
|||
Strategic review-related costs |
|
1,616 |
|
|
— |
|
|
2,569 |
|
|
— |
|
|||
Restructuring and severance |
|
123 |
|
|
81 |
|
|
145 |
|
|
272 |
|
|||
Total reconciling items included in non-GAAP net loss |
|
4,205 |
|
|
1,834 |
|
|
7,347 |
|
|
3,625 |
|
|||
Non-GAAP adjusted EBITDA |
$ |
(2,011 |
) |
$ |
690 |
|
$ |
(3,427 |
) |
$ |
(238 |
) |
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