Led by 100% revenue gains in RFID, Identiv, Inc. is positioned for a strong 2021. The company is focused on the increasingly broad adoption of RFID, expanding its federal government foothold and expanding recurring revenues.
Based on preliminary, unaudited financial results, Identiv anticipates meeting its revenue guidance for fiscal 2020, including revenue growth in the second half of 2020 of more than 30% over the first half of 2020.
The company expects revenue of $24.6 million to $24.8 million, which is up 30% year-over-year at the midpoint. RFID revenue is up 100% year-over-year for the second consecutive quarter, shipping more than 130 million RFID units while increasing average unit prices (AUP) by 20%.
Identiv finished the fourth quarter of 2020 with a backlog for Q1 2021 of approximately $10.5 million, up 121% compared to the same time last year. The company also noted positive GAAP net cash flows from operations of $3.4 million to $3.6 million
“At the beginning of the fourth quarter, we projected several growth metrics for RFID and our business overall, and we’ve exceeded each of them,” said Identiv CEO Steven Humphreys. “The fourth quarter’s approximately 30% year-over-year growth is a result of the continuing expansion in RFID, supported further by strength in our federal business, and a rebound in the physical security market. Our gross margins in the fourth quarter were impacted by the strong demand we’re seeing for RFID and consequent production ramp-up as we expanded capacity and technical capabilities, but we expect margins to return to prior-period levels going forward.
“2020 has been a pivotal year for Identiv,” added Humphreys. “We doubled our RFID volumes in the second half of the year while navigating the pandemic, sustaining operations and maintaining solid relationships with our core RFID and federal government customers. We supported our customers’ transition to remote working and capitalized on the large-scale adoption of RFID that’s taking off. The industry trends driving our growth continue to strengthen, demonstrated by our $10.5 million backlog at the beginning of the first quarter of 2021, more than double last year’s backlog.”