Identiv Closes Acquisition of 3VR, Reports Preliminary 4Q and Fiscal Year 2017 Results

Identiv, Inc. reported completion of its previously announced acquisition of 3VR Security, Inc., a San Francisco-based video technology and data analytics company. The company also reported preliminary unaudited results for its fourth quarter and fiscal year ended Dec. 31, 2017.
 
Identiv has closed its previously announced acquisition of 3VR, which will strengthen the company’s position in the premises security market.
 
“Access control and video management go hand-in-hand, making 3VR a great fit from a technology, strategic, and financial perspective,” said Steven Humphreys, Identiv CEO. “It has always been in our DNA to build trusted relationships with our customers and partners. The combined companies’ breadth of solutions across our Hirsch Access Control, 3VR video surveillance, real-time analytics, readers, RFID and cards supports our path to enabling a new level of security and business intelligence for our customers.”
 
As previously disclosed, Identiv expects 3VR to add between $10 million and $11 million to the company’s Premises segment revenue in fiscal year 2018.
 
Based on preliminary unaudited results, the company expects total revenue for the fourth quarter of 2017 to range between $16.5 million and $16.7 million, representing sequential and year-over-year growth, compared to $15.4 million in the third quarter of 2017 and $14.6 million in the fourth quarter of 2016. The resulting preliminary revenue for fiscal year 2017 ranges between $60.2 million and $60.4 million, an improvement from $56.2 million in fiscal year 2016.
 
Net loss for the fourth quarter of 2017 is expected to range between $4.3 million and $4.7 million. The resulting preliminary net loss for fiscal year 2017 is expected to range between $7.9 million and $8.3 million, based on preliminary unaudited results.
 
Non-GAAP adjusted EBITDA for the fourth quarter of 2017 is expected to range between $1.3 million and $1.5 million, based on preliminary unaudited results. This compares to $0.9 million in the third quarter of 2017 and $1.1 million in the fourth quarter of 2016. The resulting preliminary non-GAAP adjusted EBITDA for fiscal year 2017 ranges between $2.7 million and $2.9 million, an improvement from a non-GAAP adjusted EBITDA loss of $2.1 million in fiscal year 2016.
 
“We’re encouraged by the sequential and year-over-year growth of our preliminary Q4 results, which came in within the updated outlook we provided in November,” said Sandra Wallach, Identiv CFO. “As anticipated, Q4 was stronger than Q3, which has not been the historical pattern. The sequential growth was particularly driven by strong sales across RFID transponders, access cards as well as physical access controllers and access readers. With regards to non-GAAP adjusted EBITDA, Q4 represented our sixth consecutive quarter of positive non-GAAP adjusted EBITDA and 2017 represented our first full year of positive non-GAAP adjusted EBITDA since 2010. Organically, we expect to see our Premises segment growing in the mid-single digits range and Identity and Credentials to grow in the low double digits range in 2018.”