Identiv Reports 3Q 2024 Financial Results

Identiv, Inc. released its financial results for the third quarter ended Sept. 30, 2024.

“The third quarter was transformative for Identiv, marked by the successful completion of our asset sale transaction,” said Identiv CEO Kirsten Newquist.  “This has strengthened our cash position, providing resources to fund our future growth. With a clear vision for the direction of our business, our ‘Perform, Accelerate, and Transform’ strategy serves as the framework for ex-ecuting that vision. The transition of production to Thailand continues to progress, and our new product development pipeline remains strong.  We are confident that Identiv is well-positioned to leverage upcoming opportunities.”

Financial Results for Fiscal Third Quarter 2024

Revenue for the third quarter of 2024 was $6.5 million, compared to $11.7 million in the third quarter of 2023. Third quarter 2024 GAAP gross margin was 3.6% and non-GAAP gross margin was 9.3%, compared to third quarter 2023 GAAP gross margin of 11.2% and non-GAAP gross margin of 14.0%.

Third quarter 2024 GAAP net loss from continuing operations was ($9.3) million, or ($0.40) per basic and diluted share, compared to GAAP net loss from continuing operations of ($3.7) mil-lion, or ($0.17) per basic and diluted share, in the third quarter of 2023.

Non-GAAP adjusted EBITDA loss in the third quarter of 2024 was ($4.5) million, compared to ($2.3) million in the third quarter of 2023. 

Capital Allocation

Identiv anticipates total net proceeds from the asset sale transaction to be approximately $135 million, after taxes, transaction costs, and other one-time costs, subject to further customary adjustments in accordance with the asset purchase agreement.

Under its current capital allocation plan, Identiv intends to allocate 25% to 30% of the net pro-ceeds for investments in its core business and key growth initiatives; 35% to 40% for strategic M&A; 25% to 30% for working capital purposes; and $10 million for a stock repurchase pro-gram.

Identiv provides guidance based on current market conditions and expectations, including mac-roeconomic conditions and customer demand. For fiscal Q4 2024, management currently ex-pects net revenue to be in the range of $6.0 million to $6.3 million.