Identiv Reports 4Q, Fiscal Year 2019 Results

Identiv, Inc. reported financial results for the fiscal fourth quarter and year ended Dec. 31, 2019.

Revenue for the fiscal year 2019 was a record $83.8 million, an increase of 7% from $78.1 million in fiscal year 2018. The increase in revenue was primarily due to higher revenue in the Premises segment.

Revenue in the Premises segment increased 20% to $41.6 million from $34.6 million in the fiscal year 2018. The increase in Premises segment revenue was mainly driven by higher sales of physical access control solutions products, and software and related support services. Revenue in the Identity segment decreased 3% to $42.2 million from $43.6 million in the fiscal year 2018. The decrease in Identity segment revenue primarily reflects the planned reduction of lower margin access card sales, offset by higher sales of RFID transponder products.

GAAP gross margin was 44% in fiscal year 2019, an improvement compared to 43% in fiscal year 2018. GAAP net loss attributable to Identiv, Inc. in fiscal year 2019 totaled $1.2 million, compared with GAAP net loss to the company of $4.7 million in fiscal year 2018. As of Dec. 31, 2019, backlog was up 50% from the same period last year

Fourth Quarter 2019 Financial Results
Revenue for the fourth quarter of 2019 was $19 million, a decrease of 11% from $21.3 million in the fourth quarter of 2018 and a decrease of 18% from $23 million in the third quarter of 2019.
Revenue in the Premises segment decreased 3% from the fourth quarter of 2018 and decreased 33% from the prior quarter to $8.6 million. Revenue in the Identity segment decreased 17% from the fourth quarter of 2018 and increased 2% from the prior quarter to $10.3 million.

The year-over-year decrease in the Premises segment was mainly driven by the un-evenness of large video analytics deployments to enterprise customers, offset by higher sales of traditional physical access control product lines and new incremental revenue from our Viscount acquisition. The year-over-year decrease in the Identity segment primarily reflects the planned reduction of lower margin access card sales, offset by higher sales of RFID transponder products.

GAAP gross margin was 40% in the fourth quarter of 2019, a decrease compared to 48% in the fourth quarter of 2018 and a decrease from 46% in the third quarter of 2019. GAAP net loss attributable to Identiv, Inc. was $(1.8) million in the fourth quarter of 2019, compared to a net income of $630,000 in the fourth quarter of 2018 and net income of $1.1 million in the third quarter of 2019.

“Despite the challenges we encountered towards the end of the year, the strong operational progress we made throughout 2019, and the resilient nature of our business delivered positive results overall for the year,” said Steven Humphreys, Identiv CEO. “Our Premises business increased 20%, nearly three times the industry growth rate, showing the strength of our total solution and the traction we’re generating as we complement our core business with the addition of recurring revenue streams. Software and services grew 27% year-over-year, a key proof point that we’re moving in the right direction strategically. With our new salespeople driving increased revenues, our substantial backlog and the increasing demand for our RFID business, we believe we’re well-positioned to execute on our major initiatives in 2020 and to continue to drive growth and profitability while strengthening our strategic position and business value.”

“During 2019, we grew revenue by 7% to $83.8 million, but we improved our non-GAAP adjusted EBITDA by 20% to $6.8 million and substantially narrowed our net loss, which is indicative of our ability to manage costs and effectively respond to dynamic market conditions,” Identiv CFO Sandra Wallach added.