Identiv Reports 2Q 2020 Results

Identiv, Inc. reported financial results for the second quarter ended June 30, 2020.

Revenue in Identity increased 18% sequentially to $11.6 million. RFID grew 36% year-over-year. Federal access control increased 28% first half 2020 over first half 2019.

Backlog for orders requested to ship in the third quarter totaled $13 million, up 140% year-over-year.

Identiv developed an NFC-enabled, wearable body temperature measurement patch, which supports the reopening of public venues and facilitates simple patient monitoring.Meanwhile, COVID-19 solutions gained traction with more than 200 requests for Cirrus and MobilisID demos as well as requests for more than 75,000 body temperature measurement tag sample units as of July 31, 2020.

Revenue for the second quarter of 2020 was $19.1 million, an increase of 5% from $18.1 million in the prior quarter and a decrease of 14% from $22.2 million in the second quarter of 2019.

Revenues in the Identity segment were driven by higher sales of readers and RFID transponder products, which were offset by lower access card sales. Revenues in the Premises segment were affected by lower sales of access control and video hardware, partially offset by higher Hirsch Velocity software product sales and related support services.

GAAP gross margin was 40.4% in the second quarter of 2020, a decrease from 41.4% in the prior quarter and a decrease from 44.4% in the second quarter of 2019. The sequential and year-over-year gross margin decline was primarily attributable to a higher number of lower margin RFID transponder products sold, which decreased margins in the Identity segment.

GAAP net loss in the second quarter of 2020 totaled $2.7 million, compared to net loss of $2 million in the prior quarter and net income of $0.4 million in the second quarter of 2019.

Non-GAAP adjusted EBITDA in the second quarter of 2020 was $0.4 million, which compares to a loss of $0.3 million in the prior quarter and positive non-GAAP adjusted EBITDA of $2.4 million in the second quarter of 2019.

Identiv provides guidance based on current market conditions and expectations. Consistent with the company’s guidance issued on May 7, 2020, management currently forecasts full year 2020 revenue to range between $86 million to $90 million, with potentially improved results and more confidence in the second half of 2020.

“Despite the economic uncertainty that began towards the end of first quarter, we were able to execute against our strategic initiatives and deliver solid financial results for the second quarter,” said Identiv CEO Steven Humphreys. “Our Identity business grew 18% sequentially, mostly driven by 36% growth in our RFID products year-over-year.

“In Premises, our strategic federal business grew 28% in the first half of 2020 relative to the same period in 2019,” Humphreys added. “We’re currently on track to return to positive cash flow from operations by the end of this year, which we expect to sustain throughout 2021. We believe our current backlog combined with the historical trend of government fiscal year-end spending, the strong secular growth we’re experiencing in RFID, work-from-home going into a second wave of demand, and the products we’ve launched to take advantage of return-to-work needs have built the base for a very strong second half of 2020 and 2021.”

“During the second quarter, we generated $19.1 million in revenue driven mostly by an 18% sequential increase in our Identity business, our transponder business grew 36% quarter-over-quarter and 23% sequentially, and we increased our backlog by 140% year-over-year,” Sandra Wallach, Identiv CFO, added: “Due to the initiatives we undertook at the start of this year to bolster the business and our ability to weather the challenges of a difficult operating environment, we continue to see a path to our original revenue guidance, and we believe we stand well positioned to capitalize on the growing opportunities we see in the second half of the year.”