08.04.22
Identiv, Inc. reported financial results for the second quarter ended June 30, 2022, reflecting the company’s continued leadership in specialty RFID applications for the IoT sector.
RFID revenues grew 41% year-over-year, consistent with long-term model growth rate. Premises revenue grew 19% year-over-year, three times the average industry growth rate. Second quarter total revenue grew 16% year-over-year to $27.9 million.
Identiv reported sequential improvement in GAAP and non-GAAP gross profit margins to 37% and 38%, respectively. The company exited the second quarter of 2022 with total backlog for all future shipments of $34.2 million, up 23% year-over-year. Identiv remained debt-free while supporting a strong balance sheet to meet working capital requirements and accelerate growth in its core.
Identiv maintained 100% customer retention in RFID, broadening its base of RFID customers with new design wins and a company record 38 non-recurring engineering (NRE) contracts.
Revenue for the second quarter of 2022 was $27.9 million, an increase of 16% from $24 million in the second quarter of 2021. Revenues in the Identity segment grew 14% year-over-year to $16.9 million from $14.8 million, primarily due to higher sales of RFID products.
Revenues in the Premises segment grew 19% year-over-year to $10.9 million from $9.2 million. GAAP gross profit margin was 37% in the second quarter of 2022, compared to 36% in the prior quarter and 37% in the second quarter of 2021. Non-GAAP gross profit margin was 38% in the second quarter of 2022, compared to 37% in the prior quarter and 38% in the second quarter of 2021.
“We continue to make progress securing our position as a leading solutions provider in the IoT sector, with RFID revenue up 41% year-over-year,” said Identiv CEO Steven Humphreys. “We’re designing and delivering next-generation solutions that are enabling the future of the IoT. As shown by our increasing growth rate in RFID revenue and record number of NRE projects for a broadening range of use cases, our pipeline of RFID projects is very strong. Moreover, our transformational projects in medical devices, cannabis, prescriptions, and mobile devices are all on track, and in some cases expanding to potential new customers and use cases.
“We’re expanding our Singapore capacity to meet this fast growing demand and are working on a second location in Southeast Asia to position our business for significantly higher volumes next year,” added Humphreys. “We’re well-positioned to continue growing strongly regardless of the macroeconomic environment. We expect demand in our core end markets – medical devices in RFID and security in Premises – to be recession-resistant.”
“Our second quarter financial performance reflects our continued progress towards reaching our long-term operating model, with the delivery of sequential and year-over-year growth in revenue, sequential increase in gross profit margin and positive non-GAAP adjusted EBITDA,” noted Identiv CFO Justin Scarpulla. “Our total backlog of orders grew 23% year-over-year, reflecting the accelerating market demand for our specialty RFID solutions. We have maintained a strong, debt-free balance sheet and healthy cash position to secure our ability to meet our working capital needs. With our team’s strong execution and our current visibility into the second half of 2022, we expect to be able to sustain our positive operating momentum.”
RFID revenues grew 41% year-over-year, consistent with long-term model growth rate. Premises revenue grew 19% year-over-year, three times the average industry growth rate. Second quarter total revenue grew 16% year-over-year to $27.9 million.
Identiv reported sequential improvement in GAAP and non-GAAP gross profit margins to 37% and 38%, respectively. The company exited the second quarter of 2022 with total backlog for all future shipments of $34.2 million, up 23% year-over-year. Identiv remained debt-free while supporting a strong balance sheet to meet working capital requirements and accelerate growth in its core.
Identiv maintained 100% customer retention in RFID, broadening its base of RFID customers with new design wins and a company record 38 non-recurring engineering (NRE) contracts.
Revenue for the second quarter of 2022 was $27.9 million, an increase of 16% from $24 million in the second quarter of 2021. Revenues in the Identity segment grew 14% year-over-year to $16.9 million from $14.8 million, primarily due to higher sales of RFID products.
Revenues in the Premises segment grew 19% year-over-year to $10.9 million from $9.2 million. GAAP gross profit margin was 37% in the second quarter of 2022, compared to 36% in the prior quarter and 37% in the second quarter of 2021. Non-GAAP gross profit margin was 38% in the second quarter of 2022, compared to 37% in the prior quarter and 38% in the second quarter of 2021.
“We continue to make progress securing our position as a leading solutions provider in the IoT sector, with RFID revenue up 41% year-over-year,” said Identiv CEO Steven Humphreys. “We’re designing and delivering next-generation solutions that are enabling the future of the IoT. As shown by our increasing growth rate in RFID revenue and record number of NRE projects for a broadening range of use cases, our pipeline of RFID projects is very strong. Moreover, our transformational projects in medical devices, cannabis, prescriptions, and mobile devices are all on track, and in some cases expanding to potential new customers and use cases.
“We’re expanding our Singapore capacity to meet this fast growing demand and are working on a second location in Southeast Asia to position our business for significantly higher volumes next year,” added Humphreys. “We’re well-positioned to continue growing strongly regardless of the macroeconomic environment. We expect demand in our core end markets – medical devices in RFID and security in Premises – to be recession-resistant.”
“Our second quarter financial performance reflects our continued progress towards reaching our long-term operating model, with the delivery of sequential and year-over-year growth in revenue, sequential increase in gross profit margin and positive non-GAAP adjusted EBITDA,” noted Identiv CFO Justin Scarpulla. “Our total backlog of orders grew 23% year-over-year, reflecting the accelerating market demand for our specialty RFID solutions. We have maintained a strong, debt-free balance sheet and healthy cash position to secure our ability to meet our working capital needs. With our team’s strong execution and our current visibility into the second half of 2022, we expect to be able to sustain our positive operating momentum.”
