Dave Savastano01.21.10
SCM Microsystems, Inc., d.b.a. Identive Group, a provider of products, services and solutions for the security, identification and RFID industries, announced preliminary results for its 2009 fiscal fourth quarter (Q4) and year (FY) and outlined the company’s cost reduction program following the completion of its combination with Bluehill ID.
For Q4 2009, Identive expects to report total revenue of approximately US$11.9 million, compared with US$9 million in Q4 2008. The expected increase is due to the inclusion of revenues from the Hirsch business, which was acquired on April 30, 2009. Continued strong performance from the Hirsch business in Q4 2009 was partially offset by low sales levels from the SCM smart card reader and digital media reader businesses.
The company expects to record a GAAP loss from continuing operations before taxes of US$(7.3) million in Q4 2009, which includes expenses of approximately US$1 million in transaction costs related to the company’s recently completed business combination with Bluehill ID and approximately US$2 million related to the impairment of the company’s investment in TranZfinity, Inc. and the company’s proportionate share of losses realized by TranZfinity.
This compares with GAAP loss from continuing operations before taxes of US$(3.1) million recorded in Q4 2008, which included US$0.2 million for the Company’s proportionate share of losses realized by TranZfinity. The above figures include the Hirsch business from May 2009 onwards and no contribution from Bluehill ID, which will be included from Q1 2010 onwards.
For the year as a whole, Identive expects to report total revenue from continuing operations of approximately US$41.3 million, which includes seven months of revenues from the Hirsch business, compared with US$28.4 million in 2008. The company further expects to record GAAP loss from continuing operations before taxes of US$(14.7) million for the full year 2009, which includes approximately US$4 million in transaction costs related to the business combination with Bluehill ID and the company’s merger with Hirsch Electronics; a charge of approximately US$3 million for impairment of the company’s investment in TranZfinity and the company’s share of losses realized by TranZfinity during 2009; approximately US$1 million in severance costs; and US$1.4 million recorded on the gain from sale of assets during the year. This compares with GAAP loss from continuing operations before taxes of US$(9.7) million recorded in fiscal 2008, which included US$0.2 million for the company’s proportionate share of losses realized by TranZfinity.
Identive Group was created from the recently completed business combination of SCM Microsystems with Bluehill ID, and is now a group comprised of leading technology providers in the security and identity market. The individual business units within Identive Group include SCM Microsystems, Hirsch Electronics, Multicard, Arygon, ACiG, TagStar and Syscan ID. Ayman S. Ashour has been appointed executive chairman of the board of Identive Group with overall executive responsibility for the company. Felix Marx, formerly CEO of SCM Microsystems, has been named CEO of Identive Group, focusing on sales organic growth opportunities for the group. Melvin Denton-Thompson has been appointed CFO and COO of Identive Group.
Alongside its integration efforts, Identive plans to implement a cost reduction program designed to lower overhead costs at both the corporate and individual business unit levels and support a rapid push to profitability. The program is expected to include the consolidation of facilities, organizational streamlining and other cost savings measures. John Rogers, formerly an executive with Bluehill ID, has been appointed as executive vice president of Identive Group in charge of transition management and acquisition integration and will direct the integration and reorganization activities within the company.
“Identive aims to build a lasting business of scale and technology to capitalize on the growth of our markets,” said Ashour. “We are moving rapidly and aggressively to reduce our cost base and enhance our ability to execute our buy, build and grow strategy. Strengthening our financial position will bolster our ability to take advantage of the tremendous and exciting opportunities in the identity market.”
For Q4 2009, Identive expects to report total revenue of approximately US$11.9 million, compared with US$9 million in Q4 2008. The expected increase is due to the inclusion of revenues from the Hirsch business, which was acquired on April 30, 2009. Continued strong performance from the Hirsch business in Q4 2009 was partially offset by low sales levels from the SCM smart card reader and digital media reader businesses.
The company expects to record a GAAP loss from continuing operations before taxes of US$(7.3) million in Q4 2009, which includes expenses of approximately US$1 million in transaction costs related to the company’s recently completed business combination with Bluehill ID and approximately US$2 million related to the impairment of the company’s investment in TranZfinity, Inc. and the company’s proportionate share of losses realized by TranZfinity.
This compares with GAAP loss from continuing operations before taxes of US$(3.1) million recorded in Q4 2008, which included US$0.2 million for the Company’s proportionate share of losses realized by TranZfinity. The above figures include the Hirsch business from May 2009 onwards and no contribution from Bluehill ID, which will be included from Q1 2010 onwards.
For the year as a whole, Identive expects to report total revenue from continuing operations of approximately US$41.3 million, which includes seven months of revenues from the Hirsch business, compared with US$28.4 million in 2008. The company further expects to record GAAP loss from continuing operations before taxes of US$(14.7) million for the full year 2009, which includes approximately US$4 million in transaction costs related to the business combination with Bluehill ID and the company’s merger with Hirsch Electronics; a charge of approximately US$3 million for impairment of the company’s investment in TranZfinity and the company’s share of losses realized by TranZfinity during 2009; approximately US$1 million in severance costs; and US$1.4 million recorded on the gain from sale of assets during the year. This compares with GAAP loss from continuing operations before taxes of US$(9.7) million recorded in fiscal 2008, which included US$0.2 million for the company’s proportionate share of losses realized by TranZfinity.
Identive Group was created from the recently completed business combination of SCM Microsystems with Bluehill ID, and is now a group comprised of leading technology providers in the security and identity market. The individual business units within Identive Group include SCM Microsystems, Hirsch Electronics, Multicard, Arygon, ACiG, TagStar and Syscan ID. Ayman S. Ashour has been appointed executive chairman of the board of Identive Group with overall executive responsibility for the company. Felix Marx, formerly CEO of SCM Microsystems, has been named CEO of Identive Group, focusing on sales organic growth opportunities for the group. Melvin Denton-Thompson has been appointed CFO and COO of Identive Group.
Alongside its integration efforts, Identive plans to implement a cost reduction program designed to lower overhead costs at both the corporate and individual business unit levels and support a rapid push to profitability. The program is expected to include the consolidation of facilities, organizational streamlining and other cost savings measures. John Rogers, formerly an executive with Bluehill ID, has been appointed as executive vice president of Identive Group in charge of transition management and acquisition integration and will direct the integration and reorganization activities within the company.
“Identive aims to build a lasting business of scale and technology to capitalize on the growth of our markets,” said Ashour. “We are moving rapidly and aggressively to reduce our cost base and enhance our ability to execute our buy, build and grow strategy. Strengthening our financial position will bolster our ability to take advantage of the tremendous and exciting opportunities in the identity market.”