Identiv, Inc. reported financial results for the third quarter ended Septe. 30, 2020.
Total revenue grew 30% sequentially to $24.9 million. GAAP gross margin was 40% in the third quarter of 2020, consistent with the prior quarter and a decrease from 46% in the third quarter of 2019.
Revenue in Identity grew 33% sequentially to $15.4 million, while RFID grew more than 100% year-over-year, on track for full-year 80% growth. Revenue in Premises grew 26% sequentially, predominantly due to demand from federal customers
Total backlog for orders requested to ship in the fourth quarter 2020 grew 68% year-over-year, with RFID backlog up 125%.
GAAP net income was $0.4 million. Non-GAAP adjusted EBITDA increased to $2.8 million with positive GAAP earnings per share (EPS).
“As our third quarter results issued today demonstrate, we exceeded each of the growth metrics we projected at the end of last quarter around RFID, our federal business, and Premises overall in the third quarter of 2020,” said Identiv CEO Steven Humphreys.
“RFID growth of over 100% year-over-year, combined with the rebound in the physical security market and the strength in our federal business enabled our third quarter revenues to grow 30% sequentially,” Humphreys noted. “The 90% sequential increase in our government sales helped drive 33% sequential growth in Identity and 26% growth in Premises, while we continued to strengthen our business model by driving recurring revenues. With broad RFID market growth, continued demand for work-from-home and work-mobile, strength in federal sales, and our Q4 backlog up 68% year-over-year, we expect continued strong growth for the rest of 2020 and throughout 2021.”
“The third quarter was another proof point of our growth potential as we near the inflection point of our business model,” Sandra Wallach, Identiv’s CFO, added. “With third quarter revenues of $24.9 million, we earned positive GAAP net income ahead of expectations, and we believe we will be non-GAAP free cash flow positive, as committed, during the fourth quarter and beyond. Given the line of sight we have into our building backlog and pipeline for 2021, we currently believe we have the ability to out-pace the market and grow our revenues to $96 million to $102 million in 2021.”
