Identiv Reports Third Quarter 2022 Results

Identiv, Inc. reported financial results for the third quarter ended Sept. 30, 2022, reflecting record levels of revenue in both business segments and total backlog for future shipments.

Revenue for the third quarter of 2022 was $31 million, an increase of 7% from $29.1 million in the third quarter of 2021. Revenues in the Premises segment grew 14% year-over-year to $11.8 million from $10.4 million, driven primarily by product and channel strength. Revenues in the Identity segment grew 2% year-over-year to $19.2 million from $18.7 million.

Backlog for shipments in Q4 2022 grew 42% year-over-year and 19% sequentially, to $16.6 million. Supply shortages and a customer de-commit impacted Identity revenues by nearly $5 million in the quarter.

RFID units shipped grew 17% year-over-year to 45.4 million units, also constrained by supply limitations. Identiv maintained 100% customer retention in RFID while growing total number of non-recurring engineering (NRE) contracts to a record 56 contracts.

GAAP gross profit margin was 36% in the third quarter of 2022, while non-GAAP gross profit margin was 37% in the third quarter of 2022.

GAAP net income was $0.5 million, or $0.01 per basic and diluted share, compared to GAAP net loss of ($0.3) million, or $(0.02) per basic and diluted share, in the prior quarter and GAAP net income of $2.5 million, or $0.10 per basic share and $0.09 per diluted share, in the third quarter of 2021.

Non-GAAP adjusted EBITDA in the third quarter of 2022 was $2 million, compared to $1.4 million in the prior quarter and $3.2 million in the third quarter of 2021.  

“In the third quarter we delivered record quarterly topline revenue and expanded our total backlog to a new high, yet our financial performance was impacted by customer demand shifts and supply chain availability,” said Identiv CEO Steven Humphreys.  “We have taken corrective actions to rigorously manage our supply chain and customer order reliability.  Customers are changing orders in real time and we have to remain flexible to address this reality.  The outlook for customer demand for our RFID solutions remains strong, as reflected by our 25-million-unit initial order with Wiliot and record number of NRE projects for use cases ranging from medical devices to casino chips.

“We also continue to make progress with our transformational opportunities in medical devices, cannabis, mobile devices, and specialty retail.   In medical devices we’re now engaged with four of the top five autoinjector companies, have our first ½ million-unit order and delivered two autoinjector NRE projects in Q3.  We continue to expect RFID IoT-enabled medical devices to be a multi-hundred-million-unit market opportunity and are committed to being a leader in it.  In Premises, we maintained our track record of growth much faster than the market.”

“Our third quarter financial performance reflects the underlying demand for our product portfolio as we work toward our long-term operating model,” added Identiv CFO Justin Scarpulla. “We set a new record for quarterly revenues at $31 million, and our total backlog for all future shipments grew 31% year-over-year to a record $36.9 million, reflecting strong market demand for our IoT-enabling solutions.  Our balance sheet remains debt-free with a robust cash position to meet our working capital needs.  With our team’s focus on execution, we expect to maintain our positive operating momentum.”