Identiv Reports 2Q 2018 Results

Identiv, Inc. reported financial results for the second quarter ended June 30, 2018.
 
Revenues for the second quarter of 2018 were $20.3 million, a sequential increase of 23% from $16.5 million in the first quarter of 2018, reflecting sequential growth in all segments and the inclusion of a full quarter of revenue contribution from 3VR Security (3VR) after the acquisition in February 2018. Revenues for the second quarter of 2018 increased 37% compared to $14.8 million in the second quarter of 2017.
 
Revenues in the Premises segment, which includes the company’s physical access control solutions on the Hirsch Velocity and Cisco ICPAM platforms as well as the 3VR branded video and analytics solutions, grew 18% sequentially and 53% over the prior year comparable quarter. The comparative growth was driven primarily by organic growth, augmented by the contribution from video and analytics solutions.
 
Revenues in the Credentials segment grew 33% sequentially and 66% over the prior year comparable quarter, both reflecting sales growth in access cards as well as RFID transponders. Revenues in the Identity segment increased 13% sequentially and declined 22% over the prior year comparable quarter due to a large international government project in Q2 last year, partially offset by strong sales of smart card readers to the US government.
 
GAAP gross margin was 40% in the second quarter of 2018, compared to 39% in the first quarter of 2018 and 38% in the second quarter of 2017. GAAP net loss totaled $2.7 million, or $(0.18) per share in the second quarter of 2018, compared to $2.3 million, or $(0.15) per share in the first quarter of 2018, and $1.9 million, or $(0.15) per share in the second quarter of 2017. GAAP net loss in the second quarter of 2018 included $1.4 million loss on extinguishment of debt and $0.3 million in restructuring charges in connection with the 3VR acquisition, both of which are non-recurring items.
 
For the fiscal year ending Dec. 31, 2018, the company expects revenue to be between $74 million and $78 million, and non-GAAP adjusted EBITDA between $4 million and $6 million, reconfirming its previously issued guidance.
 
“Q2 was a strong quarter for our company, with 37% revenue growth over Q2 last year. This reflects a continuing growth trend, with growth of 30% for the first half of the year, compared with the first half of 2017. Importantly, the majority of our growth is organic, from strong results in our core businesses, augmented by inorganic growth. We generated positive adjusted EBITDA for the eighth quarter in a row, demonstrating consistent strength in our business platform,” said Steven Humphreys, Identiv CEO.
 
“The 66% organic growth in our Credentials segment is equally encouraging, as existing customers increasingly adopt our RFID solutions across more product lines, and new customers launch new solutions,” Humphreys added. “We believe our pipeline is very strong, building backlog for growth already extending into 2019. The delivery of our new multi-interface cards demonstrated our capacity to rapidly launch innovative use cases, particularly incorporating our expanded focus including UHF solutions.”
 
“Based on our recent results, we remain on track to achieve our double-digit revenue and adjusted EBITDA growth targets for 2018 and are re-confirming our guidance”, added Sandra Wallach, Identiv CFO. “The completed financing and repayment of all outstanding term-debt in the quarter further improved our balance sheet structure and brings us closer to GAAP profitability in the coming quarters. Looking ahead, we’re focused on continuing to execute our organic and inorganic growth strategy to build a leading, fully-scaled platform that can drive continued, profitable growth moving forward.”