Closed Asset Sale Transaction on September 6,
2024
Announces $10 Million Stock Repurchase
Program
Introduces Perform-Accelerate-Transform
Strategy Framework
Identiv, Inc. (NASDAQ: INVE), a global leader in
RFID-enabled Internet of Things (IoT) solutions, today released its
financial results for the third quarter ended September 30,
2024.
"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 Thailand continues to
progress, and our new product development pipeline remains strong.
We are confident that Identiv is well-positioned to leverage
upcoming opportunities.”
Financial Results for Fiscal Third Quarter 2024
Revenue for the third quarter of 2024 was $6.5 million, compared
to $11.7 million in the third quarter of 2023. Third quarter 2024
GAAP gross margin was 3.6% and non-GAAP gross margin was 9.3%,
compared to third quarter 2023 GAAP gross margin of 11.2% and
non-GAAP gross margin of 14.0%.
GAAP operating expenses, including research and development,
sales, and marketing, and general and administrative, were $9.8
million in the third quarter of 2024, compared to $4.6 million in
the third quarter of 2023. Non-GAAP operating expenses were $5.1
million in the third quarter of 2024, compared to $4.1 million in
the third quarter of 2023. Third quarter 2024 GAAP operating
expenses included $3.6 million in strategic transaction-related
costs and $1.1 million in stock-based compensation.
Third quarter 2024 GAAP net loss from continuing operations was
($9.3) million, or ($0.40) per basic and diluted share, compared to
GAAP net loss from continuing operations of ($3.7) million, or
($0.17) per basic and diluted share, in the third quarter of
2023.
Non-GAAP adjusted EBITDA loss in the third quarter of 2024 was
($4.5) million, compared to ($2.3) million in the third quarter of
2023.
Capital Allocation
Identiv anticipates total net proceeds from the asset sale
transaction to be approximately $135 million, after taxes,
transaction costs, and other one-time costs, subject to further
customary adjustments in accordance with the asset purchase
agreement. Under its current capital allocation plan, Identiv
intends to allocate 25% to 30% of the net proceeds for investments
in its core business and key growth initiatives; 35% to 40% for
strategic M&A; 25% to 30% for working capital purposes; and $10
million for a stock repurchase program.
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 $6.0 million to $6.3 million.
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 Thailand facilities and
progression thereof; Identiv’s beliefs regarding its new product
development pipeline; the expected amount of net proceeds from the
asset sale transaction; Identiv’s expectations regarding its
capital allocation plan and intended use of net proceeds from the
asset sale transaction; Identiv’s beliefs regarding access to
future capital; and Identiv’s expectations relating to the growth
of its IoT business. Forward-looking statements are only
predictions and are subject to a number of risks and uncertainties,
many of which are outside Identiv’s 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: any
post-closing purchase price adjustments to the amount of proceeds
from the asset sale transaction; risks that the completion of the
asset sale transaction disrupts current business, plans and
operations of Identiv or its business prospects; the ability of
Identiv to retain and hire key personnel; the effect of the change
in management following the completion of the asset sale
transaction; Identiv’s ability to continue the momentum in its
business; Identiv’s ability to successfully execute its business
strategy, including, but not limited to, its capital allocation
plan and organic and inorganic growth; changes in uses of capital;
Identiv’s ability to capitalize on trends in its business;
Identiv’s ability to satisfy customer demand and expectations; the
level and timing of customer orders and changes/cancellations; the
loss of customers, suppliers or partners; the success of Identiv’s
products and strategic partnerships; industry trends and
seasonality; the impact of macroeconomic conditions and customer
demand, inflation and increases in prices; and the other factors
discussed in its periodic reports, including its Annual Report on
Form 10-K for the year ended December 31, 2023, Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024 and subsequent
reports filed with the Securities and Exchange Commission. All
forward-looking statements are based on information available to
Identiv on the date hereof, and Identiv assumes no obligation to
update such statements.
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
Identiv (NASDAQ:INVE)
Historical Stock Chart
From Dec 2024 to Jan 2025
Identiv (NASDAQ:INVE)
Historical Stock Chart
From Jan 2024 to Jan 2025
