Third Quarter Revenue of $17.2 Million and Adjusted EBITDA of $(3.3) Million
FREMONT, Calif., November 12, 2015 — Identiv, Inc. (NASDAQ: INVE) today announced financial results for its fiscal 2015 third quarter ended September 30, 2015. For the third quarter, total revenues were $17.2 million, GAAP gross profit margin was 44%, and adjusted EBITDA was $(3.3) million.
“We are pleased with the growth in our premises business with new demand from our government and commercial customers, as well as launching our ICPAM solution in support of our new partnership with Cisco,” said Steven Humphreys, Identiv CEO. “Throughout the quarter, we have implemented activities to strengthen the focus of resources on these key areas. As an organization, we will exit the year streamlined to support our focus in existing markets and partnerships, which we believe will allow us to grow the business with a path to profitability in 2016.”
Third Quarter Financial Highlights Review
- Total revenues were $17.2 million in the third quarter of fiscal year 2015 compared to $15.6 million in the second quarter of 2015 and $22.7 million in the third quarter of 2014, reflecting a sequential growth of 10% and a decline of 24% from the third quarter of 2014. The sequential growth was mainly driven by stronger sales of physical access products in our premises segment, which grew over 20%. The decline from the third quarter of 2014 is primarily a result of 39% lower revenues in our credential segment.
- GAAP gross profit margin increased to 44% in the third quarter of fiscal year 2015, compared to 43% in the second quarter of 2015 and 43% in the third quarter of 2014. This was primarily driven by our product mix, reflecting a higher portion of revenues in our premises segment and a lower portion of sales in our credentials segment.
- GAAP operating expenses, including research and development, sales and marketing, and general and administrative costs, but excluding restructuring charges and goodwill impairment, were $13.0 million in the third quarter of fiscal year 2015, compared to $12.9 million in the second quarter of 2015 and $10.6 million in the third quarter of 2014. This reflects a sequential increase of 1% and a year over year increase of 23%, both primarily the result of the continued expenditures related to legal and accounting professional fees associated with non-core business activities.
- Adjusted EBITDA for the third quarter of fiscal year 2015 was $(3.3) million, compared to $(4.2) million in the second quarter of 2015 and $1.0 million in the third quarter of 2014, predominantly reflecting the continuing legal and accounting professional fees since the second quarter of 2015.
- GAAP net loss was $(6.2) million in the third quarter of 2015, or $(0.57) per share, compared to a GAAP net loss of $(7.4) million, or $(0.67) per share in the second quarter of fiscal year 2015 and GAAP net loss of $(3.8) million, or $(0.46) per share in the third quarter of 2014. The third quarter of 2015 included restructuring costs of $0.2 million compared to restructuring costs of $0.02 million in the second quarter of 2015 and restructuring costs of $2.1 million in the third quarter of 2014.
The Company is providing guidance for fiscal year 2015 of revenue between $62 million and $64 million.
Webcast and Conference Call Information
Identiv will hold an audio webcast and conference call to discuss its third quarter 2015 results today, November 12, 2015, at 2:00 PM PT (5:00 PM ET). The audio webcast can be accessed atidentiv.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 41176647. 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 41176647#.
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 press 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 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “anticipates”, “believes”, “plans”, “will”, “intends”, “expects”, and similar references to the future. Examples of such statements include, without limitation, statements regarding our expectations for additional revenue from new sales partnerships, including but not limited to sales under our agreement with Cisco; our ability to establish a stable financial platform on which to execute our strategy to deliver trust solutions; our expectations with respect to sales to government and multinational customers; our belief that we will exit 2015 streamlined, which will allow us to grow our business with a path to profitability in 2016; our expectations from increased investments in sales, marketing and engineering; and our ability to achieve the level of revenues for which we have provided guidance. Readers should not unduly rely on these forward-looking statements, which are not a guarantee of future performance 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. Factors that could cause actual results to differ materially from those in the forward-looking statements include our ability to realize cost savings from the restructuring of our operations; our ability to increase revenues through new sales and marketing programs and sales partnerships; our ability to develop successfully and commercialize new products and solutions that satisfy the evolving and increasingly complex requirements of customers; our ability to finance continued investments in technology, products and manufacturing capacity in order to develop products and solutions for our markets; whether the markets in which we participate or target grow, converge or standardize at anticipated rates or at all, including the markets that we are targeting; our ability to compete successfully in the markets in which we participate or target; our ability to meet our sales forecasts; our ability to meet financial covenants of our loan agreement; our ability to meet growing demand for our products; and general global political and economic factors that are beyond our control but may unduly impact our markets and our business. For a discussion of further risks and uncertainties related to our business, please refer to 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.
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