Identiv Reports 1Q 2023 Business Results

Identiv, Inc. reported its financial results for the first quarter ended March 31, 2023.

Recent financial and operational highlights:
• First quarter revenue grew 4% year-over-year to $26.0 million, a fiscal first quarter record.
• Premises revenue grew 8% year-over-year to $11.3 million; Identity revenue grew 1% year-over-year to $14.7 million.
• GAAP gross margin in Q1 2023 was 35.4%; non-GAAP gross margin in the first quarter was flat year-over-year at 37.1%.
• Shipped 10 million units of Wiliot’s IoT Pixels in Q1 2023, on track to ship 14 million units in Q2 2023. Received a follow-on order of similar magnitude from Wiliot for delivery through the end of 2023.
• Ended Q1 2023 with $21.2 million in cash, cash equivalents and restricted cash; accounts receivable at $21.1 million; and accounts payable at a 24-month low of $9.9 million.
• Managed 54 non-recurring engineering (NRE) contracts and continued to maintain 100% RFID customer retention.
• Launched the Velocity Vision Ecosystem, a comprehensive video, access, and analytics solution.
• Partnered with IoT company ProQure to launch new NFC Type 2 RFID tags, expanding chip supplier relationships.
• Collaborated with ST Microelectronics to launch eco-friendly and small format RFID tags encoded to easily integrate with the bitse.io SaaS platform for data analytics.
• Awarded three 2023 Cybersecurity Excellence Awards for the uTrust FIDO2 NFC+ Security Key for Multi-Factor Authentication (MFA).
• Accelerated build out of new production facility in Thailand, with first production runs on track and expected to begin in July.

Revenue for the first quarter 2023 was $26 million, an increase of 4% from $25.1 million in the first quarter of 2022. By segment, Identity revenues were $14.7 million and Premises revenues totaled $11.3 million. First quarter 2023 GAAP gross margin was 35.4% and non-GAAP gross margin was 37.1%.

GAAP net loss was $2.7 million, or ($0.13) per basic and diluted share, compared to GAAP net income of $0.3 million, or $0.00 per basic and diluted share, in the prior quarter and GAAP net loss of $1.0 million, or ($0.06) per basic and diluted share, in the first quarter of 2022.

“In the first quarter, both Identity and Premises segments made progress, keeping us on track to meet our 2023 growth expectations,” said Identiv CEO Steven Humphreys. “In IoT, our strategic partnership with Wiliot continued to strengthen. We shipped 10 million units in Q1, are on pace to deliver 14 million units in Q2, and confirmed our first follow-on order of similar scale for delivery in 2023.

“In the medical and healthcare vertical, we’ve established ourselves as the go-to partner for specialty RFID applications and expanded our pipeline,” added Humphreys. “Chip supply is normalizing, and we’ve added new designs with ST Micro and ProQure to provide customers with optionality. The accelerated buildout of our Thailand production facility is on track to begin production runs in July.”

“Maintaining a strong balance sheet and ample working capital to fully capitalize on our strategic opportunities for disciplined growth is a top priority for 2023,” Identiv CFO Justin Scarpulla added. “We continue to make prudent investments in key areas that drive revenue growth. Our facility in Thailand is progressing at an accelerated pace, and we expect margins to expand as our Thailand facility’s utilization increases. We feel confident in our ability to deliver on our current 2023 outlook.”