Record Fiscal Year Revenues of $116.4
million
Delivered $4.8 million in Cash Flow from
Operations in Fourth Quarter 2023
Secured Second Facility in Thailand for Future
RFID Production
Identiv, Inc. (NASDAQ: INVE), a global digital
security and identification leader in the Internet of Things (IoT),
today released its financial results for the fourth quarter and
fiscal year ended December 31, 2023.
Recent Financial and Operational Highlights
- FY 2023 revenue was $116.4 million, up 3% year-over-year.
- Ended Q4 2023 with $24.4 million in cash, cash equivalents and
restricted cash. Maintained a strong working capital position of
$48.7 million exiting the fourth quarter.
- Federal billings in FY 2023 increased 9% year-over-year.
- Software, services, and recurring revenues grew to a record 24%
of Premises segment revenues in Q4 2023.
- FY 2023 RFID units shipped increased to just under 200 million
units.
- Continued to scale production in Thailand, the facility’s first
year in operation, and exited 2023 with a capacity for primary
processes of 200 million units.
- Signed lease for adjacent building in Thailand, securing our
ability to expand production as needed.
- Collaborated with Energous and Wiliot on a real-time tracking
solution for temperature-sensitive assets; currently in pilot with
several logistics companies in Europe.
- Commenced engagement with retail data platform company Nexite
to support further growth of BLE-enabled RFID category.
- Launched ScrambleFactor reader with biometrics and multi-factor
authentication for Federal market customers.
- Partnered with Mazars USA LLP Consulting Group on a new
AI-enabled retail operations solution that integrates Microsoft
Dynamics 365 with our bitse.io platform.
- Opened the IoT Excellence Center in Germany, showcasing the
breadth of our complete IoT portfolio for current and prospective
customers.
- Secured a $2 million contract from a global electronics
retailer for a secure employee login application.
- Released bitse.io 3.0, the latest version of our global IoT
connecting cloud platform, which includes advanced features for
supply chain monitoring and customer engagement.
- Showed continued strength in OEM reader sales, doubling
category revenues quarter-over-quarter.
- Board-led strategic review continued to be a major focus and
activity in Q4 2023.
Fiscal Year 2023 Financial Results
Revenue for fiscal year 2023 was $116.4 million, a 3% increase
from $112.9 million in fiscal year 2022. By segment, Identity
revenues were $68.1 million and Premises revenues were $48.3
million.
Fiscal year 2023 GAAP gross margin was 36.2% and non-GAAP gross
margin was 37.9%.
GAAP operating expenses, including research and development,
sales, and marketing, and general and administrative, totaled $47.2
million in fiscal year 2023, compared to $41.3 million in fiscal
year 2022. Non-GAAP operating expenses totaled $41.3 million in
fiscal year 2023, compared to $37.1 million in fiscal year
2022.
GAAP net loss in fiscal year 2023 was ($5.5) million, or ($0.29)
per basic and diluted share, compared to GAAP net loss of ($0.4)
million, or ($0.07) per basic and diluted share, in fiscal year
2022.
Non-GAAP adjusted EBITDA for fiscal year 2023 was $2.8 million,
compared to $5.4 million in fiscal year 2022.
Fourth Quarter 2023 Financial Summary
Revenue for the fourth quarter 2023 was $29.0 million, compared
to $31.8 million in the prior quarter and $29.0 million in the
fourth quarter of 2022. By segment, Identity revenues were $17.5
million and Premises revenues totaled $11.5 million.
Fourth quarter 2023 GAAP gross margin was 35.1% and non-GAAP
gross margin was 37.0%.
GAAP operating expenses, including research and development,
sales, and marketing, and general and administrative, totaled $11.8
million in the fourth quarter of 2023, compared to $11.6 million in
the prior quarter and $10.2 million in the fourth quarter of 2022.
Non-GAAP operating expenses were $9.8 million in the fourth quarter
of 2023, compared to $10.3 million in the prior quarter and $9.3
million in the fourth quarter of 2022. Excluded from our fourth
quarter 2023 non-GAAP operating expenses were $0.4 million in costs
related to the ongoing Board-led strategic review.
GAAP net loss for the fourth quarter 2023 was ($1.6) million, or
($0.08) per basic and diluted share, compared to GAAP net loss of
($0.02) million, or ($0.01) per basic and diluted share, in the
prior quarter and GAAP net income of $0.3 million, or $0.00 per
basic and diluted share, in the fourth quarter of 2022.
Non-GAAP adjusted EBITDA in the fourth quarter of 2023 was $0.9
million, compared to $2.2 million in the prior quarter and $1.7
million in the fourth quarter of 2022.
Management Commentary
“In 2023, we delivered record fiscal year revenue while keeping
margins healthy with a consistent focus on delivering disciplined
growth,” said Identiv CEO Steven Humphreys. “Our commitment to
maintaining a strong balance sheet enabled us to deliver a record
quarter for cash flow from operations, while investing to build our
foundation for strategic growth.”
Financial Outlook
Identiv provides guidance based on current market conditions and
expectations, including macroeconomic conditions and customer
demand. For fiscal Q1 2024, management currently expects net
revenues in the range of $22 million to $24 million, with normal
seasonality expected to continue.
Conference Call
Identiv management will hold a conference call today, March 12,
2024, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss the company’s
fourth quarter and fiscal year 2023 financial results. A
question-and-answer session will follow management's
presentation.
Toll-Free: 888-506-0062 International Number: 973-528-0011 Call
ID: 107746 Webcast link: Register and Join
The teleconference replay will be available through March 26,
2024, by dialing 877-481-4010 (Toll-Free Replay Number) or
919-882-2331 (International Replay Number) and entering passcode
49814.
If you have any difficulty connecting with the teleconference,
please contact Identiv Investor Relations at IR@identiv.com.
About Identiv
Identiv, Inc. is a global leader in digitally securing the
physical world. Identiv's platform encompasses RFID and NFC,
cybersecurity, and the full spectrum of physical access, video, and
audio security. Identiv is a publicly traded company, and its
common stock is listed on the Nasdaq Stock Market LLC in the U.S.
under the symbol “INVE.” For more information, visit
identiv.com.
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.
Identiv uses 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 ongoing operational
performance. Identiv believes that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends. Non-GAAP gross
margin excludes stock-based compensation and amortization and
depreciation. Non-GAAP adjusted EBITDA excludes items that are
included in GAAP net income (loss), GAAP operating expenses, and
GAAP gross margin, and excludes income tax provision, interest
expense, net foreign currency gains (losses), net stock-based
compensation, amortization and depreciation, restructuring and
severance, gain on investment, and strategic review-related costs.
Non-GAAP operating expenses exclude stock-based compensation,
amortization and depreciation, and restructuring and severance. For
historical periods, the exclusions are detailed in the
reconciliation table included in 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 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 “anticipate,” “believe,”
“continue,” “plan,” “will,” “intend,” “expect,” “outlook,” 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 2024 first quarter guidance and outlook; the
Company’s strategy, focus and its foundation for growth; the
Company’s expectations regarding seasonality; expected benefits of
the Company’s Thailand production facilities, including the
Company’s ability to expand production capacity; and the Company’s
expectations with respect to demand and customer orders.
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 completion of the 2023 audit and any related
adjustments; 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 and changes/cancellations, the success of
its products and strategic partnerships, industry trends and
seasonality, the impact of macroeconomic conditions and customer
demand, inflation and increases in prices, the effects of the
strategic review on the Company’s business, and the other factors
discussed in its periodic reports, including its Annual Report on
Form 10-K for the year ended December 31, 2022, 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.
Identiv, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Net revenue
$
28,985
$
31,846
$
29,001
$
116,383
$
112,915
Cost of revenue
18,821
19,905
18,421
74,219
71,971
Gross profit
10,164
11,941
10,580
42,164
40,944
Operating expenses: Research and development
2,952
2,916
2,283
11,590
9,916
Selling and marketing
4,938
5,641
5,021
22,555
20,730
General and administrative
3,570
2,939
2,806
12,360
10,429
Restructuring and severance
338
104
70
714
202
Total operating expenses
11,798
11,600
10,180
47,219
41,277
Income (loss) from operations
(1,634
)
341
400
(5,055
)
(333
)
Non-operating income (expense): Interest expense, net
(76
)
(211
)
(42
)
(427
)
(143
)
Gain on investment
—
132
—
132
30
Foreign currency gains (losses), net
209
(264
)
44
25
155
Income (loss) before income tax provision
(1,501
)
(2
)
402
(5,325
)
(291
)
Income tax provision
(103
)
(20
)
(63
)
(164
)
(101
)
Net income (loss)
(1,604
)
(22
)
339
(5,489
)
(392
)
Cumulative dividends on Series B convertible preferred stock
(319
)
(319
)
(304
)
(1,266
)
(1,206
)
Net income (loss) available to common stockholders
$
(1,923
)
$
(341
)
$
35
$
(6,755
)
$
(1,598
)
Net income (loss) per common share: Basic
$
(0.08
)
$
(0.01
)
$
0.00
$
(0.29
)
$
(0.07
)
Diluted
$
(0.08
)
$
(0.01
)
$
0.00
$
(0.29
)
$
(0.07
)
Weighted average shares used in computing net income (loss)
per common share: Basic
23,248
23,174
22,737
23,068
22,659
Diluted
23,248
23,174
23,160
23,068
22,659
Identiv, Inc. Condensed Consolidated Balance Sheets
(in thousands) (unaudited)
December 31,
September 30,
December 31,
2023
2023
2022
ASSETS Current assets: Cash and cash equivalents
$
23,312
$
19,674
$
16,650
Restricted cash
1,072
1,254
487
Accounts receivable, net of allowances
21,969
25,892
24,826
Inventories
28,712
29,423
28,958
Prepaid expenses and other current assets
4,421
5,238
4,177
Total current assets
79,486
81,481
75,098
Property and equipment, net
9,320
8,518
6,719
Operating lease right-of-use assets
5,214
5,525
4,373
Intangible assets, net
4,251
4,483
5,265
Goodwill
10,218
10,189
10,190
Other assets
1,234
1,261
1,120
Total assets
$
109,723
$
111,457
$
102,765
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
12,250
$
12,099
$
15,231
Financial liabilities
9,949
9,939
—
Operating lease liabilities
1,714
1,708
1,190
Deferred revenue
2,341
2,474
2,068
Accrued compensation and related benefits
2,334
2,580
2,757
Other accrued expenses and liabilities
2,194
2,872
2,147
Total current liabilities
30,782
31,672
23,393
Long-term operating lease liabilities
3,716
4,037
3,366
Long-term deferred revenue
927
904
587
Other long-term liabilities
26
25
25
Total liabilities
35,451
36,638
27,371
Total stockholders' equity
74,272
74,819
75,394
Total liabilities and stockholders' equity
$
109,723
$
111,457
$
102,765
Identiv, Inc.
Reconciliation of GAAP to
Non-GAAP Financial Information
(in thousands)
(unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Reconciliation of GAAP gross margin to non-GAAP gross margin
GAAP gross profit
$
10,164
$
11,941
$
10,580
$
42,164
$
40,944
Reconciling items included in GAAP gross profit: Stock-based
compensation
60
45
53
195
191
Amortization and depreciation
491
458
363
1,737
1,312
Total reconciling items included in GAAP gross profit
551
503
416
1,932
1,503
Non-GAAP gross profit
$
10,715
$
12,444
$
10,996
$
44,096
$
42,447
Non-GAAP gross margin
37
%
39
%
38
%
38
%
38
%
Reconciliation of GAAP operating expenses to non-GAAP
operating expenses GAAP operating expenses
$
11,798
$
11,600
$
10,180
$
47,219
$
41,277
Reconciling items included in GAAP operating expenses: Stock-based
compensation
(938
)
(944
)
(543
)
(3,776
)
(2,970
)
Amortization and depreciation
(241
)
(274
)
(236
)
(995
)
(960
)
Loss on disposal of property and equipment
—
—
(68
)
—
(68
)
Strategic review-related costs
(435
)
—
—
(435
)
—
Restructuring and severance
(338
)
(104
)
(70
)
(714
)
(202
)
Total reconciling items included in GAAP operating expenses
(1,952
)
(1,322
)
(917
)
(5,920
)
(4,200
)
Non-GAAP operating expenses
$
9,846
$
10,278
$
9,263
$
41,299
$
37,077
Reconciliation of GAAP net income (loss) to non-GAAP
adjusted EBITDA GAAP net income (loss)
$
(1,604
)
$
(22
)
$
339
$
(5,489
)
$
(392
)
Reconciling items included in GAAP net income (loss): Income tax
provision
103
20
63
164
101
Interest expense, net
76
211
42
427
143
Gain on investment
—
(132
)
—
(132
)
(30
)
Loss on disposal of property and equipment
—
—
68
—
68
Foreign currency gains (losses), net
(209
)
264
(44
)
(25
)
(155
)
Stock-based compensation
998
989
596
3,971
3,161
Amortization and depreciation
732
732
599
2,732
2,272
Strategic review-related costs
435
—
—
435
—
Restructuring and severance
338
104
70
714
202
Total reconciling items included in GAAP net income (loss)
2,473
2,188
1,394
8,286
5,762
Non-GAAP adjusted EBITDA
$
869
$
2,166
$
1,733
$
2,797
$
5,370
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version on businesswire.com: https://www.businesswire.com/news/home/20240312612773/en/
Investor Relations Contact: IR@identiv.com
Media Contact: press@identiv.com
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