Impinj, Inc. (NASDAQ: PI), a
leading provider and pioneer of RAIN RFID solutions, today released
its financial results for the first quarter ended March 31,
2020.
“Our first-quarter revenue was strong, setting another company
record,” said Chris Diorio, Impinj co-founder and CEO. “Despite the
prevailing sentiment in many of our end markets being negative,
there are bright spots as well, such as in omnichannel retail and
supply chain and logistics. Regardless, considering the significant
uncertainties looking forward, we feel it is prudent to not give
quantitative guidance for the second quarter.”
First Quarter 2020 Financial Summary
- Revenue of $47.8 million
- GAAP gross margin of 44.7%; non-GAAP gross margin of 46.1%
- GAAP net loss of $4.3 million, or loss of $0.19 per diluted
share using 22.4 million shares
- Adjusted EBITDA of $3.0 million
- Non-GAAP net income of $2.9 million, or income of $0.13 per
diluted share using 23.0 million shares
A reconciliation between GAAP and non-GAAP information is
contained in the tables below. Additionally, descriptions of these
non-GAAP financial measures are provided in the “Non-GAAP Financial
Measures” sections below.
Second Quarter 2020 Financial Considerations
Impinj is continuing to monitor the impact of the Covid-19
pandemic on its business, including how the pandemic will affect
customers, end-users, suppliers and other business partners.
However, given the uncertainty regarding the duration and severity
of the epidemiological, economic and operational impacts of
Covid-19, as of the date of this report Impinj cannot reasonably
estimate the pandemic’s impact on its operating results for the
second quarter of 2020 or future periods.
For additional information regarding the impact of the Covid-19
pandemic’s impact on our business, operating results, financial
condition and prospects, please see Impinj’s Quarterly Report on
Form 10-Q expected to be filed on the date hereof.
Conference Call Information
Impinj will host a conference call today, Apr. 27, 2020 at 5:00
p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions
on its first quarter 2020 results. Open to the public, investors
may access the call by dialing +1-412-317-5196. A live webcast of
the conference call will also be accessible on our website at
investor.impinj.com. Following the
webcast, an archived version will be available on the website for
one year. A telephonic replay of the call will be available one
hour after the call and will run for five business days and may be
accessed by dialing +1-412-317-0088 and entering passcode
10142298.
Management’s prepared written remarks, along with quarterly
financial data, will be made available on our website at
investor.impinj.com commensurate with
this release.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements regarding the market for RAIN RFID,
our strategy, prospects, the impact of the Covid-19 pandemic, and
financial considerations for the second quarter of 2020 and future
periods. Forward-looking statements are subject to known and
unknown risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements. Actual results may differ materially from the results
predicted, and reported results should not be considered as an
indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted include, among others, those risks and
uncertainties included under the caption "Risk Factors" and
elsewhere in our annual report on Form 10-K and quarterly reports
on Form 10-Q filed with the U.S. Securities and Exchange
Commission. All information provided in this release and in the
attachments is as of the date hereof, and we undertake no duty to
update this information unless required by law.
About Impinj
Impinj (NASDAQ: PI) helps businesses and people analyze,
optimize, and innovate by wirelessly connecting billions of
everyday things—such as apparel, automobile parts, luggage, and
shipments—to the Internet. The Impinj platform uses RAIN RFID to
deliver timely data about these everyday things to business and
consumer applications, enabling a boundless Internet of Things.
www.impinj.com
Impinj is a registered trademark of Impinj, Inc. All other
trademarks are the property of their owners.
IMPINJ, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands, except par value,
unaudited)
March 31, 2020
December 31, 2019 (1)
Assets:
Current assets:
Cash and cash equivalents
$
83,722
$
66,898
Short-term investments
35,497
49,597
Accounts receivable, net
28,106
23,735
Inventory
31,763
34,153
Prepaid expenses and other current
assets
1,892
2,386
Total current assets
180,980
176,769
Property and equipment, net
16,923
17,442
Operating lease right-of-use assets
15,844
16,501
Other non-current assets
579
453
Goodwill
3,881
3,881
Total assets
$
218,207
$
215,046
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
6,748
$
5,600
Accrued compensation and employee related
benefits
3,926
5,859
Accrued liabilities
4,699
3,755
Current portion of operating lease
liabilities
3,469
3,380
Current portion of deferred revenue
661
551
Other current liabilities
161
352
Total current liabilities
19,664
19,497
Long-term debt, net of current portion
51,755
50,876
Operating lease liabilities, net of
current portion
17,995
18,907
Deferred revenue, net of current
portion
258
213
Long-term liabilities — other
316
314
Total liabilities
89,988
89,807
Stockholders' equity:
Common stock, $0.001 par value
23
22
Additional paid-in capital
395,160
387,926
Accumulated other comprehensive income
105
34
Accumulated deficit
(267,069
)
(262,743
)
Total stockholders' equity
128,219
125,239
Total liabilities and stockholders'
equity
$
218,207
$
215,046
(1) Certain immaterial amounts on our
condensed consolidated balance sheets in prior periods have been
reclassified to conform with current period presentation.
IMPINJ, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per
share data, unaudited)
Three Months Ended
March 31,
2020
2019
Revenue
$
47,822
$
33,063
Cost of revenue
26,428
17,190
Gross profit
21,394
15,873
Operating expenses:
Research and development
11,057
8,561
Sales and marketing
7,490
8,549
General and administrative
6,242
5,695
Total operating expenses
24,789
22,805
Loss from operations
(3,395
)
(6,932
)
Other income, net
409
321
Interest expense
(1,312
)
(429
)
Loss before income taxes
(4,298
)
(7,040
)
Income tax expense
(28
)
(28
)
Net loss
$
(4,326
)
$
(7,068
)
Net loss per share — basic and diluted
$
(0.19
)
$
(0.33
)
Weighted-average shares — basic and
diluted
22,412
21,544
IMPINJ, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands,
unaudited)
Three Months Ended
March 31,
2020
2019
Operating activities:
Net loss
$
(4,326
)
$
(7,068
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
1,168
1,155
Stock-based compensation
5,221
3,477
Accretion of discount or amortization of
premium on short-term investments
(4
)
(197
)
Amortization of debt issuance costs and
debt discount
879
18
Changes in operating assets and
liabilities:
Accounts receivable
(4,371
)
504
Inventory
2,390
3,506
Prepaid expenses and other assets
368
423
Deferred revenue
155
167
Accounts payable
1,096
949
Accrued compensation and employee related
benefits
(1,933
)
(3,279
)
Operating lease right-of-use assets
657
419
Operating lease liabilities
(823
)
(739
)
Accrued liabilities and other
liabilities
1,368
(66
)
Net cash provided by (used in) operating
activities
1,845
(731
)
Investing activities:
Purchases of investments
—
(22,222
)
Proceeds from maturities of
investments
14,175
22,944
Purchases of property and equipment
(1,112
)
(305
)
Net cash provided by investing
activities
13,063
417
Financing activities:
Principal payments on finance lease
obligations
(98
)
(147
)
Payments on term and equipment loans
—
(250
)
Proceeds from exercise of stock options
and employee stock purchase plan
2,014
1,842
Net cash provided by financing
activities
1,916
1,445
Net increase in cash and cash
equivalents
16,824
1,131
Cash and cash equivalents
Beginning of period
66,898
17,530
End of period
$
83,722
$
18,661
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements
prepared and presented in accordance with U.S. generally accepted
accounting principles, or GAAP, we use non-GAAP financial measures
by financial statement line items that exclude, if applicable for
the periods presented, the effects of stock-based compensation,
depreciation, investigation costs, restructuring costs and other
expenses that we believe do not reflect our core operating
performance. Our key non-GAAP performance measures include adjusted
EBITDA and non-GAAP net income (loss), the definitions of which are
below. We use adjusted EBITDA and non-GAAP net income (loss) as key
measures to understand and evaluate our core operating performance
and trends, to prepare and approve our annual budget and to develop
short- and long-term operating plans. We believe excluding those
items can provide useful information for period-to-period
comparisons of our business to allow investors and others to
understand and evaluate our operating results in the same manner as
it does for our management and board of directors. Our presentation
of these non-GAAP financial measures is not meant to be considered
in isolation or as a substitute for our financial results prepared
in accordance with GAAP, and our non-GAAP measures may be different
from non-GAAP measures used by other companies.
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) determined in
accordance with GAAP, excluding, if applicable for the periods
presented, the effects of stock-based compensation; depreciation;
investigation costs; restructuring costs; other income, net;
interest expense; loss on debt extinguishment and income tax
benefit (expense).
Non-GAAP Net Income (Loss)
We define non-GAAP net income (loss) as net income (loss)
determined in accordance with GAAP, excluding, if applicable for
the periods presented, the effects of stock-based compensation;
depreciation; investigation costs; restructuring costs;
amortization of debt discount related to the equity component of
our senior convertible notes; and prepayment penalty on debt
extinguishment. Under GAAP, certain convertible debt instruments
that may be settled in cash on conversion are required to be
accounted for as separate liability and equity components in a
manner that reflects our non-convertible debt borrowing rate. This
results in the debt component being treated as though it was issued
at a discount, with the debt discount being amortized as additional
non-cash interest expense over the term of the notes using the
effective interest method. As a result, we believe that excluding
this non-cash interest expense attributable to the debt discount in
calculating our non-GAAP net income (loss) is useful because this
interest expense is not indicative of our ongoing operational
performance. We incurred prepayment penalty on debt extinguishment
in connection with the December 2019 repayment of our senior credit
facility, which was included in loss on debt extinguishment in our
condensed consolidated statements of operations. Because of the
non-recurring nature of the prepayment fees, we believe this
expense is not representative of ongoing operation costs.
IMPINJ, INC. RECONCILIATIONS
OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in
thousands, except percentages, unaudited)
Three Months Ended
March 31,
2020
2019
GAAP Gross margin
44.7
%
48.0
%
Adjustments:
Depreciation
1.0
%
1.6
%
Stock-based compensation
0.4
%
0.4
%
Non-GAAP Gross margin
46.1
%
50.0
%
GAAP Net loss
$
(4,326
)
$
(7,068
)
Adjustments:
Depreciation
1,168
1,155
Stock-based compensation
5,221
3,477
Other income, net
(409
)
(321
)
Interest expense
1,312
429
Income tax expense
28
28
Adjusted EBITDA
$
2,994
$
(2,300
)
GAAP Net loss
$
(4,326
)
$
(7,068
)
Adjustments:
Depreciation
1,168
1,155
Stock-based compensation
5,221
3,477
Amortization of debt discount
854
—
Non-GAAP Net income (loss)
$
2,917
$
(2,436
)
Non-GAAP Net income (loss) per share:
Basic
$
0.13
$
(0.11
)
Diluted
$
0.13
$
(0.11
)
GAAP and non-GAAP Weighted-average shares
— basic
22,412
21,544
GAAP Weighted-average shares — diluted
22,412
21,544
Dilutive shares from stock plans
589
—
Non-GAAP Weighted-average shares —
diluted
23,001
21,544
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200427005707/en/
Investor Relations ir@impinj.com
+1-206-315-4470
Media Relations Jill West Sr. Director, Marketing &
Communications jwest@impinj.com +1 206-834-111
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