11.14.19
Identiv, Inc. reported financial results for the third quarter ended Sept. 30, 2019.
Revenue for the third quarter of 2019 was $23 million, an increase of 15% from $20 million in the third quarter of 2018 and an increase of 4% from $22.2 million in the second quarter of 2019.
Revenue in the Premises segment increased 38% from the third quarter of 2018 and increased 22% from the prior quarter to $12.9 million. Revenue in the Identity segment decreased 5% from the third quarter of 2018 and decreased 13% from the prior quarter to $10.1 million. The year-over-year increase in the Premises segment was mainly driven by strong demand for physical access security solutions, video analytics software, and strong federal government sales. The year-over-year decrease in the Identity segment primarily reflects higher RFID sales which grew 11% year-over-year, offset by delays in Thursby software sales to the DoD and a planned reduction in identity card sales towards higher margin, higher security identities.
GAAP gross margin was 46% in the third quarter of 2019, an increase of 334 basis points compared to 42% in the third quarter of 2018 and an increase from 44% in the second quarter of 2019. The year-over-year gross margin improvement is primarily attributable to the change in product mix, including a higher percentage of software and services sales com-pared to the prior year.
GAAP net income attributable to Identiv, Inc. was $1.1 million in the third quarter of 2019, compared to a net loss of $(0.3) million in the third quarter of 2018, and net income of $0.4 million in the second quarter of 2019.
For the fiscal year ending Dec. 31, 2019, the company now expects revenue of $88 million to $90 million (previously $92 million to $95 million), representing an increase of 14% at the midpoint compared to fiscal 2018. The company has increased the midpoint of its ad-justed EBITDA guidance to $8.5 million and $9 million (previously $7 million to $9 million) and increased its net income attributable to Identiv, Inc. guidance to $1 million to $1.2 million (previously a loss of $0.5 million to a gain of $1 million) and earnings per basic share of $0.00 to $0.01.
“During Q3, we grew revenue 15% and achieved positive GAAP net income attributable to common stockholders and positive EPS for the second consecutive quarter,” Identiv CFO Sandra Wallach said. “We also achieved our 13th consecutive quarter of positive adjusted EBITDA. The fact that we achieved these results despite greater than anticipated fluctuations in our Identity business due almost exclusively to some variance in Thursby indicate that we are not only effectively managing costs but continue to be well positioned for even greater leverage going forward. We remain confident that executing on our key initiatives will ultimately result in greater scale, operating expense leverage, higher margins, and improving profitability.”
Revenue for the third quarter of 2019 was $23 million, an increase of 15% from $20 million in the third quarter of 2018 and an increase of 4% from $22.2 million in the second quarter of 2019.
Revenue in the Premises segment increased 38% from the third quarter of 2018 and increased 22% from the prior quarter to $12.9 million. Revenue in the Identity segment decreased 5% from the third quarter of 2018 and decreased 13% from the prior quarter to $10.1 million. The year-over-year increase in the Premises segment was mainly driven by strong demand for physical access security solutions, video analytics software, and strong federal government sales. The year-over-year decrease in the Identity segment primarily reflects higher RFID sales which grew 11% year-over-year, offset by delays in Thursby software sales to the DoD and a planned reduction in identity card sales towards higher margin, higher security identities.
GAAP gross margin was 46% in the third quarter of 2019, an increase of 334 basis points compared to 42% in the third quarter of 2018 and an increase from 44% in the second quarter of 2019. The year-over-year gross margin improvement is primarily attributable to the change in product mix, including a higher percentage of software and services sales com-pared to the prior year.
GAAP net income attributable to Identiv, Inc. was $1.1 million in the third quarter of 2019, compared to a net loss of $(0.3) million in the third quarter of 2018, and net income of $0.4 million in the second quarter of 2019.
For the fiscal year ending Dec. 31, 2019, the company now expects revenue of $88 million to $90 million (previously $92 million to $95 million), representing an increase of 14% at the midpoint compared to fiscal 2018. The company has increased the midpoint of its ad-justed EBITDA guidance to $8.5 million and $9 million (previously $7 million to $9 million) and increased its net income attributable to Identiv, Inc. guidance to $1 million to $1.2 million (previously a loss of $0.5 million to a gain of $1 million) and earnings per basic share of $0.00 to $0.01.
“During Q3, we grew revenue 15% and achieved positive GAAP net income attributable to common stockholders and positive EPS for the second consecutive quarter,” Identiv CFO Sandra Wallach said. “We also achieved our 13th consecutive quarter of positive adjusted EBITDA. The fact that we achieved these results despite greater than anticipated fluctuations in our Identity business due almost exclusively to some variance in Thursby indicate that we are not only effectively managing costs but continue to be well positioned for even greater leverage going forward. We remain confident that executing on our key initiatives will ultimately result in greater scale, operating expense leverage, higher margins, and improving profitability.”
