Identiv Reports Q1 2014 Earnings

Identiv reported its financial results for the first quarter (Q1) of 2014.

Total revenues for continuing operations were $17.2 million, compared to $16.0 million in first quarter 2013, reflecting growth of 8% with significant contribution from sales of credentials products increasing 36% to meet demand for electronic game toys and other Internet of Things applications.

“In Q1 2014, we continued cost reductions and focused on growth, seeing early success with increased revenue of 8%, compared to Q1 2013,” said Jason Hart, CEO of Identiv. “Our credentials products, used in our trust solutions for everyday items, grew 36% compared to Q1 2013, with strong demand from electronic gaming and other Internet of Things applications.

“We significantly enhanced liquidity with a $20 million term loan and line-of-credit agreement on favorable commercial terms with Opus Bank, allowing retirement of previous expensive debt, increased liquidity and reduced debt service in future quarters,” Hart added.

GAAP gross profit margin was 39%, compared to 42% in first quarter 2013, primarily due to product mix. Adjusted EBITDA for the quarter was $(2.0) million, compared to $(2.1) million. GAAP net loss from continuing operations was $(5.6) million in Q1 2014.

In March 2014, Identiv entered into term loan and line-of-credit agreement with Opus Bank, of which $6.0 million was used to refinance the debt with Hercules.

“Our investment in growth is producing results as reflected by our Q1 2014 total revenues. In addition, we continue executing on additional opportunities to streamline the business and improve margins, including consolidation of our factories, which, when complete, will yield a margin improvement in our rapidly growing trust solutions for everyday items,” Hart added.

The company reaffirms guidance for fiscal year 2014 of revenue between $80 million and $90 million and adjusted EBITDA positive on an annual basis.