First Quarter Revenue of $14.9 Million and Adjusted EBITDA of $(1.9) Million
FREMONT, Calif., May 13, 2015 — Identiv, Inc. (NASDAQ: INVE) today announced financial results for the first quarter (Q1) of 2015. For the first quarter, total revenues were $14.9 million, GAAP gross profit margin was 41% and adjusted EBITDA was $(1.9) million.
“During the first quarter, we continued to tune and focus our business operations, which resulted in strong sales in our premises and credential product lines,” said Jason Hart, CEO of Identiv. “However, despite this strength in premises and credentials, we experienced an unexpected decline in the first quarter in our international desktop reader business and generally unfavorable conditions in Europe, as well as the typical first quarter seasonality and an unfavorable foreign currency impact. As a result of these factors, our first quarter revenue was lower than expected.
As we look forward, our business and market outlook over the next 12 months is positive. Our visibility into this sales forecast is supported by new projects with brand names in toys, wearables, smart batteries, perishable products, and apparel. These new projects further demonstrate demand for our secure IoT technology and solutions – a demand which did not exist 12 months ago.
Our announcement of a major global partnership with a leading technology company has further enhanced our confidence in our ability to access previously unavailable markets and customers, and we have been impressed by the activity levels in these sales channels.
The demand for IoT security and privacy continues to grow and we remain focused on driving results from our selling organization and working closely with our strategic partners to deliver improved financial and operating results.”
First Quarter Financial Highlights Review
In reviewing the results for the first quarter of fiscal year 2015, all figures are compared to the first quarter of fiscal year 2014, unless stated otherwise:
- Total revenues were $14.9 million, a decrease of 11% from $16.9 million, primarily due to a decrease in identity reader sales in Europe, the Middle East and Africa (EMEA) and Asia-Pacific as well as lower digital media reader sales. This was partially offset by an increase in premises sales.
- GAAP gross profit margin was 41%, compared to 39%, primarily due to an increase in credentials margin, partially offset by a decrease in identity reader and premises margin.
- Base operating expenses, which include research and development, sales and marketing, and general and administrative costs were $10.1 million, compared to $9.6 million, up 5%. This is primarily the result of an increase in research and development (R&D) related expenditures.
- Adjusted EBITDA for the quarter was $(1.9) million, compared to $(2.0) million.
- GAAP net loss from continuing operations was $(5.8) million in the first quarter of 2015, or $(0.54) per share, compared with GAAP net loss from continuing operations of $(5.6) million, or $(0.74) per share. First quarter 2015 results included restructuring costs of $0.2 million, compared to restructuring costs of $0.4 million.
- The company was awarded four additional U.S. patents in Q1.
- Cash was $33.1 million at March 31, 2015, compared with $36.5 million at December 31, 2014.
Note: Financial results contained in this release reflect the continuing operations of Identiv only and exclude discontinued operations of non-core businesses sold in December 2013, February 2014, and June 2014.
Identiv now expects revenues for fiscal year 2015 between $90 million and $95 million, a decrease from the previous revenue guidance range of between $95 million and $105 million. The company is reaffirming its guidance for positive adjusted EBITDA on an annual basis.
Webcast and Conference Call Information
Identiv will hold an audio webcast and conference call to discuss its first quarter 2015 results today, May 13, 2015, at 2:00 PM PT (5:00 PM ET). The audio webcast can be accessed at identiv.com/investors/ir-events. The conference call can be accessed by dialing 888-771-4371 (toll-free within the U.S.) or +1 847-585-4405 (for international callers) using passcode 3967 8087. For those unable to attend the live webcast, it will be archived following the event for 30 days at identiv.com/investors/ir-events. A replay of the call will also be available for one week and can be accessed by dialing 888-843-7419 (toll-free within the U.S.) or +1 630-652-3042 (for international callers) using passcode 3967 8087.
Identiv is a global security technology company that establishes identity in the connected world, including premises, information, and everyday items. CIOs, CSOs, and product departments rely upon Identiv’s trusted identity solutions to reduce risk, achieve compliance, and protect brand identity. Identiv’s trust solutions are implemented using standards-driven products and technology, such as digital certificates, trusted authentication, mobility, and cloud services. For more information, visit identiv.com.
Non-GAAP Financial Measures (Unaudited)
This release includes financial information that has not been prepared in accordance with GAAP, including non-GAAP gross profit margin, non-GAAP operating expenses and adjusted EBITDA. Identiv uses these 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 our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. The non-GAAP financial results discussed above exclude items detailed in the reconciliation table contained within this 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 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, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company’s management and can be identified by words such as “anticipates”, “believes”, “plans”, “will”, “intends”, “expects”, and similar references to the future. Any statement that is not a historical fact, including the statements made under the caption “Guidance” and any other estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause our actual business and operating 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, factors discussed in our public company reports, including our Annual Report on Form 10-K for the year ended December 31, 2014 and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.
Investor Relations Contacts:
David Isaacs/Leah Polito
Sard Verbinnen & Co
Angela Lestar/David Sikorski