Identiv Reports 4Q, Fiscal Year 2021 Results

Identiv, Inc. reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2021, achieving several operational and financial milestones in 2021 that strengthen the company’s foundation for future growth.

Total full year 2021 revenue grew 19% year-over-year to a record $103.8 million.  Fourth quarter revenue grew 15% year-over-year to $28.5 million.

Revenues in the Identity segment increased 23% to $64.7 million from $52.7 million in fiscal year 2020 primarily due to higher sales of RFID products and smart card readers. Revenues in the Premises segment increased 14% to $39 million from $34.2 million in fiscal year 2020 primarily due to higher sales of access controllers, readers and video technology and analytics.

RFID unit shipments in 2021 totaled approximately 185 million units, a 36% year-over-year increase. Identiv shipped 65.9 million units in the fourth quarter, a 49% year-over-year increase.

Identiv exited 2021 with total backlog of $30.2 million, up 45% year-over-year.
Total new orders booked through the first month of Q1 2022 were $12 million, up 43% over the same period of the prior year.

The company maintained 100% customer retention in RFID and expanded base of RFID customers with new use cases and design wins, accelerating growth in health care, smart packaging and specialty retail applications.

GAAP gross margin was 36% in fiscal year 2021 compared to 39% in fiscal year 2020. The change in gross margin was primarily due to product mix driven by rapid RFID growth and increased freight and logistics costs. GAAP net income in fiscal year 2021 was $1.6 million, or $0.02 per basic and diluted share, compared to a GAAP net loss of $5.1 million, or $(0.34) per basic and diluted share, in fiscal year 2020.

Fourth Quarter 2021 Financial Results

Revenue for the fourth quarter of 2021 was $28.5 million, an increase of 15% from $24.8 million in the fourth quarter of 2020.

Revenues in the Identity segment grew 11% year-over-year to $17.5 million from $15.8 million, primarily due to higher sales of RFID products and smart card readers. Revenues in the Premises segment grew 22% year-over-year to $11 million from $9 million.

“In 2021, we built our foundation for market leadership as the advanced RFID applications market started to take off,” said Identiv CEO Steven Humphreys.  “We believe we put the technology, team, capacity, and key customer design wins in place to secure our future growth in this pervasive emerging market. 

“We finalized our major hiring and systems capabilities, completed our technology and project management foundation, and shipped record levels of RFID units while managing a complicated supply chain environment,” added Humphreys. “Our total company revenue for 2021 was up 19% year-over-year, while RFID unit shipments were up 36% for the year, demonstrating our growth trajectory.   We dealt with effects from sudden volume step-ups in specific RFID projects and implemented systems to manage, since step-functions in unit volumes are core to our project-based business trajectory. 

“In 2022, we’re focused on execution across design wins, current customer volume growth and technology partnerships to drive growth. So far this year we’ve announced partnerships with NXP, Wiliot, and PLM TrustLink to deliver innovative solutions that further expand our pipeline.  We’re also accelerating our manufacturing capacity to meet this unit volume step-up and maintain our track record of fulfilling every major customer shipment request,” he added.

“We believe the business is prepared to deliver on its growth expectations for 2022,” Identiv CFO Justin Scarpulla added. “We expect our growth will be driven by our position as a premier provider of leading-edge NFC-enabled RFID products, increased federal government spending for security, sustainable customer retention rates, and expanded recurring revenues.  We have a solid backlog of orders and have put the systems in place to be able to respond to increasing customer demand and market share.”

Financial Outlook

Identiv provides guidance based on current market conditions and expectations. Momentum exiting the fourth quarter of 2021, combined with a strong backlog, gives management confidence in the company’s growth expectations for fiscal years 2022 and 2023.

Management is reaffirming its guidance for fiscal year 2022, with expected revenues of $130 million to $135 million, reflecting year-over-year growth of 25% to 35%. Normal seasonality is expected to continue.  Management also is reaffirming its guidance for 30% to 35% year-over-year revenue growth in fiscal year 2023.