Identiv Reports Third Quarter 2024 Financial Results
Closed Asset Sale Transaction on September 6, 2024
Announces
Introduces Perform-Accelerate-Transform Strategy Framework
"The third quarter was transformative for Identiv, marked by the successful completion of our asset sale transaction,” said Identiv CEO Kirsten Newquist. “This has strengthened our cash position, providing resources to fund our future growth. With a clear vision for the direction of our business, our ‘Perform, Accelerate, and Transform’ strategy serves as the framework for executing that vision. The transition of production to
Financial Results for Fiscal Third Quarter 2024
Revenue for the third quarter of 2024 was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, were
Third quarter 2024 GAAP net loss from continuing operations was
Non-GAAP adjusted EBITDA loss in the third quarter of 2024 was
Capital Allocation
Identiv anticipates total net proceeds from the asset sale transaction to be approximately
Financial Outlook
Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For fiscal Q4 2024, management currently expects net revenue to be in the range of
Conference Call
Identiv management will hold a conference call today, November 7, 2024, at 5:00 p.m. EST (2:00 p.m. PST) to discuss the company’s third quarter 2024 financial results. A question-and-answer session will follow management's presentation.
Toll-Free: 888-506-0062
International Number: +1 973-528-0011
Call ID: 251228
Webcast link: Register and Join
The teleconference replay will be available through November 21, 2024, by dialing 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 51400.
If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.
About Identiv
Identiv’s full-circle RFID-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 1.5 billion applications worldwide, drive innovation across healthcare, consumer electronics, luxury goods, smart packaging, and more. For additional 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, net interest income (expense), net foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, 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 management of Identiv 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 is a forward-looking statement, including statements regarding: Identiv’s belief that the asset sale transaction is providing the resources needed to fund future growth; Identiv’s belief that it is well-positioned to leverage upcoming opportunities; Identiv’s expectations regarding future operating and financial outlook and performance, including 2024 fourth quarter guidance and outlook; Identiv’s strategy, opportunities, focus and goals; Identiv’s expectations regarding the transition of production to its
| Identiv, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| Net revenue | $ |
6,532 |
|
$ |
11,732 |
|
$ |
19,931 |
|
$ |
32,097 |
|
|||
| Cost of revenue |
|
6,294 |
|
|
10,413 |
|
|
18,596 |
|
|
27,928 |
|
|||
| Gross profit |
|
238 |
|
|
1,319 |
|
|
1,335 |
|
|
4,169 |
|
|||
| Operating expenses: | |||||||||||||||
| Research and development |
|
1,102 |
|
|
1,019 |
|
|
2,965 |
|
|
3,150 |
|
|||
| Selling and marketing |
|
1,657 |
|
|
1,404 |
|
|
4,654 |
|
|
4,525 |
|
|||
| General and administrative |
|
7,032 |
|
|
2,215 |
|
|
15,052 |
|
|
6,577 |
|
|||
| Restructuring and severance |
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
|||
| Total operating expenses |
|
9,791 |
|
|
4,638 |
|
|
22,671 |
|
|
14,298 |
|
|||
| Loss from continuing operations |
|
(9,553 |
) |
|
(3,319 |
) |
|
(21,336 |
) |
|
(10,129 |
) |
|||
| Non-operating income (expense): | |||||||||||||||
| Interest income (expense), net |
|
244 |
|
|
(211 |
) |
|
8 |
|
|
(351 |
) |
|||
| Gain on investment |
|
— |
|
|
132 |
|
|
— |
|
|
132 |
|
|||
| Foreign currency gains (losses), net |
|
340 |
|
|
(249 |
) |
|
55 |
|
|
(187 |
) |
|||
| Loss from continuing operations before income tax provision |
|
(8,969 |
) |
|
(3,647 |
) |
|
(21,273 |
) |
|
(10,535 |
) |
|||
| Income tax provision |
|
(360 |
) |
|
(13 |
) |
|
(361 |
) |
|
(15 |
) |
|||
| Net loss from continuing operations |
|
(9,329 |
) |
|
(3,660 |
) |
|
(21,634 |
) |
|
(10,550 |
) |
|||
| Income from discontinued operations, net of tax: | |||||||||||||||
| Income (loss) from Physical Security Business, net of tax |
|
(4,268 |
) |
|
3,638 |
|
|
(2,737 |
) |
|
6,665 |
|
|||
| Gain on sale of Physical Security Business, net of tax |
|
99,546 |
|
|
- |
|
|
99,546 |
|
|
- |
|
|||
| Total income from discontinued operations, net of tax |
|
95,278 |
|
|
3,638 |
|
|
96,809 |
|
|
6,665 |
|
|||
| Net income (loss) |
|
85,949 |
|
|
(22 |
) |
|
75,175 |
|
|
(3,885 |
) |
|||
| Cumulative dividends on Series B convertible preferred stock |
|
(201 |
) |
|
(319 |
) |
|
(682 |
) |
|
(947 |
) |
|||
| Net income (loss) available to common stockholders | $ |
85,748 |
|
$ |
(341 |
) |
$ |
74,493 |
|
$ |
(4,832 |
) |
|||
| Net income (loss) per common share: | |||||||||||||||
| Basic and diluted - continuing operations | $ |
(0.40 |
) |
$ |
(0.17 |
) |
$ |
(0.95 |
) |
$ |
(0.50 |
) |
|||
| Basic and diluted - discontinued operations | $ |
4.03 |
|
$ |
0.16 |
|
$ |
4.12 |
|
$ |
0.29 |
|
|||
| Basic and diluted - net income (loss) | $ |
3.62 |
|
$ |
(0.01 |
) |
$ |
3.17 |
|
$ |
(0.21 |
) |
|||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic and diluted |
|
23,660 |
|
|
23,174 |
|
|
23,496 |
|
|
23,008 |
|
|||
| Identiv, Inc. | |||||
| Condensed Consolidated Balance Sheets | |||||
| (in thousands) | |||||
| (unaudited) | |||||
| September 30, | December 31, | ||||
2024 |
2023 |
||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ |
145,361 |
$ |
23,312 |
|
| Restricted cash |
|
384 |
|
1,072 |
|
| Accounts receivable, net of allowances |
|
4,848 |
|
7,404 |
|
| Inventories |
|
10,710 |
|
13,560 |
|
| Prepaid expenses and other current assets |
|
4,700 |
|
1,222 |
|
| Current assets held-for-sale |
|
— |
|
32,916 |
|
| Total current assets |
|
166,003 |
|
79,486 |
|
| Property and equipment, net |
|
8,203 |
|
8,472 |
|
| Operating lease right-of-use assets |
|
2,110 |
|
2,289 |
|
| Other assets |
|
713 |
|
678 |
|
| Non-current assets held-for-sale |
|
— |
|
18,798 |
|
| Total assets | $ |
177,029 |
$ |
109,723 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ |
6,035 |
$ |
4,652 |
|
| Financial liabilities |
|
— |
|
9,949 |
|
| Operating lease liabilities |
|
880 |
|
782 |
|
| Accrued compensation and related benefits |
|
1,321 |
|
1,376 |
|
| Accrued income taxes payable |
|
7,180 |
|
104 |
|
| Other accrued expenses and liabilities |
|
3,595 |
|
917 |
|
| Current liabilities held-for-sale |
|
— |
|
13,002 |
|
| Total current liabilities |
|
19,011 |
|
30,782 |
|
| Long-term operating lease liabilities |
|
1,251 |
|
1,507 |
|
| Other long-term liabilities |
|
27 |
|
26 |
|
| Non-current liabilities held-for-sale |
|
— |
|
3,136 |
|
| Total liabilities |
|
20,289 |
|
35,451 |
|
| Total stockholders' equity |
|
156,740 |
|
74,272 |
|
| Total liabilities and stockholders' equity | $ |
177,029 |
$ |
109,723 |
|
| Identiv, Inc. | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations | |||||||||||||||
| (in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||||||||||||
| GAAP gross profit | $ |
238 |
|
$ |
1,319 |
|
$ |
1,335 |
|
$ |
4,169 |
|
|||
| Reconciling items included in GAAP gross profit: | |||||||||||||||
| Stock-based compensation |
|
5 |
|
|
8 |
|
|
17 |
|
|
27 |
|
|||
| Amortization and depreciation |
|
362 |
|
|
314 |
|
|
1,130 |
|
|
823 |
|
|||
| Total reconciling items included in GAAP gross profit |
|
367 |
|
|
322 |
|
|
1,147 |
|
|
850 |
|
|||
| Non-GAAP gross profit | $ |
605 |
|
$ |
1,641 |
|
$ |
2,482 |
|
$ |
5,019 |
|
|||
| Non-GAAP gross margin |
|
9 |
% |
|
14 |
% |
|
12 |
% |
|
16 |
% |
|||
| Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||
| GAAP operating expenses | $ |
9,791 |
|
$ |
4,638 |
|
$ |
22,671 |
|
$ |
14,298 |
|
|||
| Reconciling items included in GAAP operating expenses: | |||||||||||||||
| Stock-based compensation |
|
(1,090 |
) |
|
(506 |
) |
|
(2,583 |
) |
|
(1,478 |
) |
|||
| Amortization and depreciation |
|
(64 |
) |
|
(52 |
) |
|
(154 |
) |
|
(132 |
) |
|||
| Strategic review-related costs |
|
(3,551 |
) |
|
— |
|
|
(6,120 |
) |
|
— |
|
|||
| Restructuring and severance |
|
— |
|
|
— |
|
|
— |
|
|
(46 |
) |
|||
| Total reconciling items included in GAAP operating expenses |
|
(4,705 |
) |
|
(558 |
) |
|
(8,857 |
) |
|
(1,656 |
) |
|||
| Non-GAAP operating expenses | $ |
5,086 |
|
$ |
4,080 |
|
$ |
13,814 |
|
$ |
12,642 |
|
|||
| Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA | |||||||||||||||
| GAAP net loss | $ |
(9,329 |
) |
$ |
(3,660 |
) |
$ |
(21,634 |
) |
$ |
(10,550 |
) |
|||
| Reconciling items included in GAAP net loss: | |||||||||||||||
| Income tax provision |
|
360 |
|
|
13 |
|
|
361 |
|
|
15 |
|
|||
| Interest income (expense), net |
|
(244 |
) |
|
211 |
|
|
(8 |
) |
|
351 |
|
|||
| Foreign currency gains (losses), net |
|
(340 |
) |
|
249 |
|
|
(55 |
) |
|
187 |
|
|||
| Stock-based compensation |
|
1,095 |
|
|
514 |
|
|
2,600 |
|
|
1,505 |
|
|||
| Amortization and depreciation |
|
426 |
|
|
366 |
|
|
1,284 |
|
|
955 |
|
|||
| Strategic review-related costs |
|
3,551 |
|
|
— |
|
|
6,120 |
|
|
— |
|
|||
| Restructuring and severance |
|
— |
|
|
— |
|
|
— |
|
|
(46 |
) |
|||
| Total reconciling items included in GAAP net loss from continuing operations |
|
4,848 |
|
|
1,353 |
|
|
10,302 |
|
|
2,967 |
|
|||
| Non-GAAP adjusted EBITDA | $ |
(4,481 |
) |
$ |
(2,307 |
) |
$ |
(11,332 |
) |
$ |
(7,583 |
) |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107939068/en/
Investor Relations Contact:
IR@identiv.com
Media Contact:
press@identiv.com
Source: Identiv, Inc.
