05.05.22
Identiv, Inc. reported financial results for the first quarter ended March 31, 2022, validating its growth strategy for advanced RFID solutions and the robust demand for its security products from government and commercial customers.
Revenue for the first quarter of 2022 was $25.1 million, an increase of 13% from $22.2 million in the first quarter of 2021. Revenues in the Identity segment grew 7% year-over-year to $14.6 million from $13.7 million, primarily due to higher sales of RFID products and access cards. RFID units shipped totaled 48 million, a 20% year-over-year increase. Revenues in the Premises segment grew 23% year-over-year to $10.5 million from $8.5 million.
Sequential and year-over-year improvement in GAAP and non-GAAP gross margins to 36% and 37%, respectively, ahead of planned progression.
Identiv exited the first quarter of 2022 with backlog for Q2 2022 up 32% year-over-year, and a total backlog of $32.4 million, up 24% year-over-year for all future shipments. The company continued to maintain a strong balance sheet to fulfill working capital requirements and accelerate growth in the RFID market, with $28.7 million of cash, cash equivalents, and restricted cash and no debt.
Identiv maintained 100% customer retention in RFID, further expanding its broad base of RFID customers with new use cases and design wins.
GAAP net loss was $1.0 million, or $(0.06) per basic and diluted share, compared to GAAP net loss of $1.9 million, or $(0.10) per basic and diluted share, in the prior quarter and GAAP net loss of $1.5 million, or $(0.09) per basic and diluted share, in the first quarter of 2021.
“We believe the strong operating momentum of the first quarter creates a solid foundation to achieve our growth expectations for 2022 and beyond,” said Identiv CEO Steven Humphreys. “Our total revenue for the first quarter was up 13% year-over-year and our non-GAAP gross margins improved by nearly 3 percentage points sequentially, strengthening faster than we expected to over 37%.
“RFID unit shipments increased 20% over the prior-year period, to 48.0 million units, and unit prices increased 16% sequentially,” Humphreys added. “Our transformational projects in cannabis, medical devices, prescription and mobile devices all made great progress. Together with our expanding design wins, we believe this positions us to lead in the accelerating RFID market.”
“Execution of our RFID growth strategy is our top priority for 2022,” he noted. “We’re capitalizing on our award-winning position as a premier provider of advanced NFC -based RFID products to secure new design wins and non-recurring engineering (NRE) contracts. Our expanded sales and engineering teams are driving our presence in virtually every opportunity in the industry, and we’re adding capacity almost continuously to support our core demand and to be positioned to support our transformational opportunities. We’re leveraging our technology partnerships with NXP, Wiliot, collectID and others to drive additional growth and work to safeguard our supply chain so that we can maintain our track record of 100% RFID customer retention.”
“Our first quarter financial results indicate that the business is on the right track to meet its 2022 revenue outlook,” Identiv CFO Justin Scarpulla added. “Our total backlog of orders has steadily increased over the last year, and we have increased our capacity accordingly to meet this growing customer demand and capture incremental market share. We have also updated our price list to address inflationary concerns and implemented the necessary systems to judiciously manage our project margins. With a strong balance sheet that provides us with ample working capital, we are increasingly optimistic about our growth trajectory in 2022.”
Revenue for the first quarter of 2022 was $25.1 million, an increase of 13% from $22.2 million in the first quarter of 2021. Revenues in the Identity segment grew 7% year-over-year to $14.6 million from $13.7 million, primarily due to higher sales of RFID products and access cards. RFID units shipped totaled 48 million, a 20% year-over-year increase. Revenues in the Premises segment grew 23% year-over-year to $10.5 million from $8.5 million.
Sequential and year-over-year improvement in GAAP and non-GAAP gross margins to 36% and 37%, respectively, ahead of planned progression.
Identiv exited the first quarter of 2022 with backlog for Q2 2022 up 32% year-over-year, and a total backlog of $32.4 million, up 24% year-over-year for all future shipments. The company continued to maintain a strong balance sheet to fulfill working capital requirements and accelerate growth in the RFID market, with $28.7 million of cash, cash equivalents, and restricted cash and no debt.
Identiv maintained 100% customer retention in RFID, further expanding its broad base of RFID customers with new use cases and design wins.
GAAP net loss was $1.0 million, or $(0.06) per basic and diluted share, compared to GAAP net loss of $1.9 million, or $(0.10) per basic and diluted share, in the prior quarter and GAAP net loss of $1.5 million, or $(0.09) per basic and diluted share, in the first quarter of 2021.
“We believe the strong operating momentum of the first quarter creates a solid foundation to achieve our growth expectations for 2022 and beyond,” said Identiv CEO Steven Humphreys. “Our total revenue for the first quarter was up 13% year-over-year and our non-GAAP gross margins improved by nearly 3 percentage points sequentially, strengthening faster than we expected to over 37%.
“RFID unit shipments increased 20% over the prior-year period, to 48.0 million units, and unit prices increased 16% sequentially,” Humphreys added. “Our transformational projects in cannabis, medical devices, prescription and mobile devices all made great progress. Together with our expanding design wins, we believe this positions us to lead in the accelerating RFID market.”
“Execution of our RFID growth strategy is our top priority for 2022,” he noted. “We’re capitalizing on our award-winning position as a premier provider of advanced NFC -based RFID products to secure new design wins and non-recurring engineering (NRE) contracts. Our expanded sales and engineering teams are driving our presence in virtually every opportunity in the industry, and we’re adding capacity almost continuously to support our core demand and to be positioned to support our transformational opportunities. We’re leveraging our technology partnerships with NXP, Wiliot, collectID and others to drive additional growth and work to safeguard our supply chain so that we can maintain our track record of 100% RFID customer retention.”
“Our first quarter financial results indicate that the business is on the right track to meet its 2022 revenue outlook,” Identiv CFO Justin Scarpulla added. “Our total backlog of orders has steadily increased over the last year, and we have increased our capacity accordingly to meet this growing customer demand and capture incremental market share. We have also updated our price list to address inflationary concerns and implemented the necessary systems to judiciously manage our project margins. With a strong balance sheet that provides us with ample working capital, we are increasingly optimistic about our growth trajectory in 2022.”
