Identiv Reports 2Q 2024 Financial Results

Identiv, Inc. released its financial results for the second quarter ended June 30, 2024.

On April 2, 2024, Identiv entered into a definitive asset purchase agreement to sell its physical security, access card, and identity reader operations and assets (the Physical Security Business) to a wholly owned subsidiary of Vitaprotech, a security solutions provider.

Under the terms of the agreement, Identiv will receive a cash payment of $145 million upon closing of the transaction, subject to customary adjustments. As of Aug. 8, 2024, Identiv has received approval or cleared applicable waiting periods under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and the United Kingdom National Security and Investment Act 2021.

The transaction was approved by Identiv’s stockholders on June 28, 2024, and remains subject to approval by the Committee on Foreign Investment in the United States (CFIUS). Identiv anticipates that the transaction will close in the third quarter of 2024. The proceeds from the sale will significantly strengthen Identiv’s financial position, providing capital to pursue growth opportunities for its specialty IoT solutions business.

“We achieved significant milestones in the second quarter toward concluding the previously announced asset sale transaction,” said Identiv CEO Steven Humphreys.  “This included a highly supportive stockholder vote in favor of the transaction, affirming our decision to focus exclusively on growing our IoT solutions business. At the same time, we made progress expanding RFID production in Thailand and advancing our strategic plan for RFID-enabled IoT applications. We are excited for the future of Identiv and remain on track for an expected close of the asset sale transaction in the third quarter.”

“I am excited to lead the IoT team through this transformational period in Identiv’s history,” said Kirsten Newquist, Identiv president, IoT Solutions. “With a clear vision, a comprehensive and disciplined plan, and focused execution, we believe we can capitalize on the opportunity before us.”

Revenue from continuing operations for the second quarter of 2024 was $6.7 million, compared to $11.5 million in the second quarter of 2023. Second quarter 2024 GAAP gross margin was 9.1% and non-GAAP gross margin was 14.6%, compared to second quarter 2023 GAAP gross margin of 14.2% and non-GAAP gross margin of 16.6%.

GAAP net loss from the IoT Business in the second quarter of 2024 was ($6.9) million, or ($0.31) per basic and diluted share, compared to GAAP net loss of ($3.5) million, or ($0.16) per basic and diluted share, in the second quarter of 2023.

Total revenue from continuing operations and revenue included in discontinued operations for the second quarter 2024 would have been $24.3 million, compared to GAAP revenue of $29.6 million in the second quarter of 2023. Second quarter 2024 non-GAAP aggregated gross margin would have been 35.0% and adjusted non-GAAP aggregated gross margin would have been 37.3%.

Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand.  For fiscal Q3 2024, management currently expects revenue from continuing operations to be in the range of $5.8 million to $6.1 million. 

If the asset sale transaction has not closed by the end of the third quarter of 2024 as anticipated, then management expects total revenue from continuing operations and revenue included in discontinued operations to be in the range of $24 million to $26 million.