Total Revenue Increases 13% Year-Over-Year
Gross Margin expansion +275 bps sequentially
RFID Unit Shipments Up 20% Year-Over-Year
23% Year-over-Year Growth in Premises Driven by share gains in Commercial market
First Quarter 2022 and Recent Financial and Operational Highlights
- First quarter revenue grew 13% year-over-year to
$25.1 million . - Premises revenue grew 23% year-over-year; Identity revenue grew 7% year-over-year.
- Sequential and year-over-year improvement in GAAP and non-GAAP gross margins to 36% and 37%, respectively, ahead of planned progression.
- RFID units shipped totaled 48.0 million, a 20% year-over-year increase, AUP increased 16% sequentially.
- Exited the first quarter of 2022 with backlog for Q2 2022 up 32% year-over-year; total backlog of
$32.4 million , up 24% year-over-year for all future shipments. - Continued to maintain a strong balance sheet to fulfill working capital requirements and accelerate growth in the RFID market, with
$28.7 million of cash, cash equivalents, and restricted cash and no debt. - Maintained 100% customer retention in RFID, further expanding our broad base of RFID customers with new use cases and design wins.
- Premises recurring revenues up 14% year-over-year, representing 15% of Premises revenues in the first quarter.
- Recognized by the RFID industry for our innovative advanced RFID products, winning TMC’s 2022 IoT Evolution Industrial IoT Product of the Year Award and Lucintel’s 2021 Product Innovation Award, AIM Consumer Case Study Award (Jointly with CVS).
- Hosted a well-received presentation on the company’s vision for ‘Enabling the IoT’ for the investment community.
First Quarter 2022 Financial Results
Revenue for the first quarter of 2022 was
Revenues in the Identity segment grew 7% year-over-year to
GAAP gross margin was 36% in the first quarter of 2022, compared to 33% in the prior quarter and 35% in the first quarter of 2021.
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative were
GAAP net loss was
Non-GAAP adjusted EBITDA in the first quarter of 2022 was
Management Commentary
“We believe the strong operating momentum of the first quarter creates a solid foundation to achieve our growth expectations for 2022 and beyond,” said
“Execution of our RFID growth strategy is our top priority for 2022. We’re capitalizing on our award-winning position as a premier provider of advanced NFC-based RFID products to secure new design wins and non-recurring engineering (NRE) contracts. Our expanded sales and engineering teams are driving our presence in virtually every opportunity in the industry, and we’re adding capacity almost continuously to support our core demand and to be positioned to support our transformational opportunities. We remain highly engaged with the customers leading these transformational opportunities as they make progress on their plans towards full production. We’re leveraging our technology partnerships with NXP, Wiliot, collectID and others to drive additional growth and work to safeguard our supply chain so that we can maintain our track record of 100% RFID customer retention. Combined with our Premises business growing 3x the industry’s rate, based on the expanded commercial and federal demand for our security solutions, we believe we’re well-positioned to deliver strong revenue and EBITDA growth in 2022.”
Identiv CFO
Financial Outlook
Conference Call
Toll-Free Number: +1 888.506.0062
International Number: +1 973.528.0011
Call ID: 113038
Webcast link: Register and Join
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at +1.949.574.3860.
The conference call will be broadcast simultaneously and available for replay here.
The replay of the call will be available after
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 profit and gross profit margins, 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 “anticipates”, “believes”, “plans”, “will”, “intends”, “expects”, 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 statements regarding 2022 expectations and 2022 and 2023 guidance and the Company’s ability to meet such guidance, the Company’s beliefs regarding its ability to achieve its business and strategic objectives and growth expectations and expected benefits thereof, its business strategy and the drivers of momentum in its business, the Company’s beliefs regarding its capital and the sufficiency and uses thereof, the Company’s beliefs regarding its supply chain, the Company’s beliefs regarding customer demand, customer production and design wins and the associated benefits, the Company’s beliefs regarding its ability to execute on its key initiatives and the potential benefits thereof, the company’s beliefs regarding its efforts to address inflationary pressures, the Company’s beliefs regarding its competitive position, the Company’s beliefs regarding the benefits of its strategic collaborations, and the Company’s beliefs regarding design wins, backlog and future orders 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 actual 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 the Company’s ability to continue the momentum in its business, its ability to successfully execute its business strategy, its ability to capitalize on trends in its business, its ability to satisfy customer demand and expectations, the level and timing of customer orders, the success of its products and strategic partnerships, industry trends and seasonality, the impact of inflation and increases in prices, the impact of COVID-19, the effects of shortages of semiconductors and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended
Investor Relations Contact:
Gateway Investor Relations
+1 949.574.3860
IR@identiv.com
Media Contact:
press@identiv.com
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
2022 | 2021 | 2021 | |||||||||
Net revenue | $ | 25,061 | $ | 28,517 | $ | 22,162 | |||||
Cost of revenue | 16,095 | 19,100 | 14,470 | ||||||||
Gross profit | 8,966 | 9,417 | 7,692 | ||||||||
Operating expenses: | |||||||||||
Research and development | 2,529 | 2,117 | 2,337 | ||||||||
Selling and marketing | 5,110 | 4,351 | 4,064 | ||||||||
General and administrative | 2,488 | 4,771 | 2,125 | ||||||||
Restructuring and severance | (140 | ) | 56 | 388 | |||||||
Total operating expenses | 9,987 | 11,295 | 8,914 | ||||||||
Loss from operations | (1,021 | ) | (1,878 | ) | (1,222 | ) | |||||
Non-operating income (expense): | |||||||||||
Interest expense, net | (25 | ) | (32 | ) | (245 | ) | |||||
Gain on investment | 24 | — | — | ||||||||
Foreign currency gains (losses), net | 19 | (77 | ) | 46 | |||||||
Loss before income tax benefit (provision) | (1,003 | ) | (1,987 | ) | (1,421 | ) | |||||
Income tax benefit (provision) | 4 | 66 | (44 | ) | |||||||
Net loss | (999 | ) | (1,921 | ) | (1,465 | ) | |||||
Cumulative dividends on Series B convertible preferred stock | (298 | ) | (289 | ) | (284 | ) | |||||
Net loss available to common stockholders | $ | (1,297 | ) | $ | (2,210 | ) | $ | (1,749 | ) | ||
Net loss per common share: | |||||||||||
Basic | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.09 | ) | ||
Diluted | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.09 | ) | ||
Weighted average shares used in computing net loss per common share: | |||||||||||
Basic | 22,574 | 22,504 | 18,443 | ||||||||
Diluted | 22,574 | 22,504 | 18,443 | ||||||||
Condensed Consolidated Balance Sheets | |||||
(in thousands) | |||||
(unaudited) | |||||
2022 | 2021 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 27,614 | $ | 28,553 | |
Restricted cash | 1,074 | 1,254 | |||
Accounts receivable, net of allowances | 19,452 | 19,963 | |||
Inventories | 20,493 | 19,924 | |||
Prepaid expenses and other current assets | 2,673 | 3,032 | |||
Total current assets | 71,306 | 72,726 | |||
Property and equipment, net | 4,341 | 4,066 | |||
Operating lease right-of-use assets | 1,780 | 2,088 | |||
Intangible assets, net | 6,182 | 6,445 | |||
10,288 | 10,268 | ||||
Other assets | 1,012 | 1,070 | |||
Total assets | $ | 94,909 | $ | 96,663 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ | 11,335 | $ | 10,502 | |
Operating lease liabilities | 1,143 | 1,269 | |||
Deferred revenue | 1,489 | 2,153 | |||
Accrued compensation and related benefits | 2,675 | 3,150 | |||
Other accrued expenses and liabilities | 3,316 | 3,774 | |||
Total current liabilities | 19,958 | 20,848 | |||
Long-term operating lease liabilities | 748 | 938 | |||
Long-term deferred revenue | 295 | 280 | |||
Other long-term liabilities | 74 | 85 | |||
Total liabilities | 21,075 | 22,151 | |||
Total stockholders' equity | 73,834 | 74,512 | |||
Total liabilities and stockholders' equity | $ | 94,909 | $ | 96,663 | |
Reconciliation of GAAP and Non-GAAP Financial Information | |||||||||||
(in thousands) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
2022 | 2021 | 2021 | |||||||||
Reconciliation of GAAP gross profit margin and non-GAAP gross profit margin | |||||||||||
GAAP gross profit | $ | 8,966 | $ | 9,417 | $ | 7,692 | |||||
Reconciling items included in GAAP gross profit: | |||||||||||
Stock-based compensation | 56 | 53 | 33 | ||||||||
Amortization and depreciation | 270 | 269 | 227 | ||||||||
Total reconciling items included in GAAP gross profit | 326 | 322 | 260 | ||||||||
Non-GAAP gross profit | $ | 9,292 | $ | 9,739 | $ | 7,952 | |||||
Non-GAAP gross profit margin | 37 | % | 34 | % | 36 | % | |||||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||
GAAP operating expenses | $ | 9,987 | $ | 11,295 | $ | 8,914 | |||||
Reconciling items included in GAAP operating expenses: | |||||||||||
Stock-based compensation | (839 | ) | (526 | ) | (725 | ) | |||||
Amortization and depreciation | (239 | ) | (242 | ) | (239 | ) | |||||
Restructuring and severance | 140 | (56 | ) | (388 | ) | ||||||
Total reconciling items included in GAAP operating expenses | (938 | ) | (824 | ) | (1,352 | ) | |||||
Non-GAAP operating expenses | $ | 9,049 | $ | 10,471 | $ | 7,562 | |||||
Reconciliation of GAAP net loss to non-GAAP adjusted EBITDA | |||||||||||
GAAP net loss | $ | (999 | ) | $ | (1,921 | ) | $ | (1,465 | ) | ||
Reconciling items included in GAAP net loss: | |||||||||||
Income tax provision (benefit) | (4 | ) | (66 | ) | 44 | ||||||
Interest expense, net | 25 | 32 | 245 | ||||||||
Gain on investment | (24 | ) | — | — | |||||||
Foreign currency gains (losses), net | (19 | ) | 77 | (46 | ) | ||||||
Stock-based compensation | 895 | 579 | 758 | ||||||||
Amortization and depreciation | 509 | 511 | 466 | ||||||||
Restructuring and severance | (140 | ) | 56 | 388 | |||||||
Total reconciling items included in GAAP net loss | 1,242 | 1,189 | 1,855 | ||||||||
Non-GAAP adjusted EBITDA | $ | 243 | $ | (732 | ) | $ | 390 |
Source:
2022 GlobeNewswire, Inc., source