Financial Data and Key Metrics Changes - Fourth quarter 2024 revenue was $6.7 million, exceeding the midpoint of previously announced outlook by approximately $600,000 [17] - Fourth quarter GAAP and non-GAAP gross margin was negative 14.9% and negative 5.2%, respectively, compared to positive gross margins of 16.2% and 19.5% in Q4 2023 [18] - Fiscal year 2024 revenue was $26.6 million, a decrease of $16.8 million compared to the prior year period [23] - Fiscal year 2024 GAAP and non-GAAP gross margin was 1.3% and 8%, respectively, compared to 13.8% and 16.6% in fiscal year 2023 [24] - Fiscal year GAAP net loss from continuing operations was $25.9 million or $1.14 per share, compared to a loss of $13.9 million or $0.66 per share in fiscal year 2023 [26] Business Line Data and Key Metrics Changes - The transition of RFID production from Singapore to Thailand is a key priority, with 75% of current volume transitioned by year-end [9] - The company aims for a long-term non-GAAP gross margin target of 35% [10] - New product development pipeline includes several high-value applications, such as smart labels for home appliances and BLE devices for industrial applications [12] Market Data and Key Metrics Changes - The company is focusing on higher-margin opportunities in healthcare and other high-value segments [21] - The partnership with Novanta aims to streamline the development process for medical devices, enhancing patient safety [13] Company Strategy and Development Direction - The company has shifted to a pure-play provider of specialty RFID and BLE solutions following the sale of its physical security business [6] - The PAT (Perform, Accelerate, Transform) framework is designed to strengthen core business, accelerate growth, and transform into a market leader in specialty IoT solutions [7][36] - The company is actively assessing M&A opportunities to add scale and technical capabilities [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for RFID and BLE technologies driven by digitization, security, and sustainability trends [34] - The company anticipates that growth from new projects will be more pronounced in 2026 [80] Other Important Information - The company exited Q4 2024 with $135.9 million in cash and cash equivalents, an increase of $111 million since December 31, 2023 [27] - The capital allocation plan prioritizes organic growth and strategic M&A, with a stock repurchase program of $10 million [31] Q&A Session Summary Question: Can you expand on the Novanta partnership and revenue expectations? - The partnership is focused on technology and business development, with no specific revenue target but aims for higher gross margins in healthcare applications [59][61] Question: What is the expected impact of the grocery store device opportunity? - The BLE device is expected to have a higher price point than typical products, with hopes for early volumes by the end of this year or early next year [63][65] Question: Can you quantify the pull-in order in Q4? - The pull-in order contributed approximately $600,000 to the revenue increase in Q4 [75] Question: What are the expectations for gross margins throughout the year? - The company does not provide detailed guidance beyond one quarter but expects to be in the ballpark of mid- to high 20% margins [78] Question: Is there a timeline for EBITDA breakeven? - The company has not formally provided a timeline for EBITDA breakeven [84]

Identiv, Inc. (NASDAQ:INVE) Q4 2024 Earnings Conference Call March 5, 2025 5:00 PM ET Company Participants Kirsten Newquist - Chief Executive Officer Justin Scarpulla - Chief Financial Officer Conference Call Participants Anthony Stoss - Craig-Hallum Jaeson Schmidt - Lake Street Stacy Che - B. Riley Securities Operator Good afternoon. Welcome to Identiv's presentation of its Fourth Quarter and Fiscal Year 2024 Earnings Call. My name is John, and I will be your operator this afternoon. Joining us for today's ...

Core Insights - Identiv, Inc. reported a quarterly loss of $0.19 per share, better than the Zacks Consensus Estimate of a loss of $0.25, representing an earnings surprise of 24% [1] - The company posted revenues of $6.7 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 9.79%, but down from $28.99 million year-over-year [2] - Identiv shares have declined approximately 5.7% year-to-date, compared to a 1.8% decline in the S&P 500 [3] Financial Performance - Over the last four quarters, Identiv has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $5 million, and for the current fiscal year, it is -$0.92 on revenues of $22.3 million [7] Industry Context - The Computer - Peripheral Equipment industry, to which Identiv belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Identiv's stock performance [5]

Revenue Performance - Revenue for fiscal year 2024 was $26.6 million, a decrease of 38.7% compared to $43.4 million in fiscal year 2023[3] - Revenue for the fourth quarter of 2024 was $6.7 million, a decline of 41.9% from $11.3 million in the fourth quarter of 2023[7] - Management expects net revenue for Q1 2025 to be in the range of $4.8 million to $5.1 million[11] Profitability Metrics - GAAP gross margin for fiscal year 2024 was 1.3%, down from 13.8% in fiscal year 2023[3] - Fourth quarter 2024 GAAP gross margin was (14.9%), compared to 16.2% in the fourth quarter of 2023[7] - Non-GAAP gross profit for Q4 2024 was $(349) thousand, while Q4 2023 reported a gross profit of $2.210 million[23] - Non-GAAP gross margin for Q4 2024 was -5%, down from 19% in Q4 2023[23] Net Loss - GAAP net loss from continuing operations for fiscal year 2024 was ($25.9) million, or ($1.14) per share, compared to a loss of ($13.9) million, or ($0.66) per share in fiscal year 2023[5] - GAAP net loss from continuing operations for the fourth quarter of 2024 was ($4.3) million, or ($0.19) per share, compared to a loss of ($3.3) million, or ($0.16) per share in the fourth quarter of 2023[9] - GAAP net loss from continuing operations for Q4 2024 was $4.277 million, compared to a loss of $3.325 million in Q4 2023[23] - Non-GAAP adjusted EBITDA loss for fiscal year 2024 was ($15.8) million, compared to ($9.5) million in fiscal year 2023[6] - Non-GAAP adjusted EBITDA for the year ended December 31, 2024, was $(15.791) million, compared to $(9.492) million for the year ended December 31, 2023[23] Operating Expenses - GAAP operating expenses for fiscal year 2024 were $28.3 million, up from $19.5 million in fiscal year 2023[4] - Non-GAAP operating expenses for fiscal year 2024 were $17.9 million, compared to $16.7 million in fiscal year 2023[4] Balance Sheet Highlights - Total assets decreased to $160.951 million from $177.029 million, a decline of approximately 9.6%[21] - Current liabilities significantly reduced to $7.812 million from $19.011 million, a decrease of about 58.9%[21] - Total stockholders' equity increased to $151.943 million from $156.740 million, a decrease of about 3.6%[21] - Cash and cash equivalents decreased to $135.646 million from $145.361 million, a decline of about 6.4%[21] - Operating lease liabilities decreased to $852 thousand from $880 thousand, a reduction of approximately 3.2%[21] - Non-current liabilities held-for-sale decreased to $0 from $3.136 million, indicating a complete divestiture[21]

Core Insights - Identiv, Inc. is transitioning into a pure play IoT solutions company, focusing on growth through strategic partnerships and product development [2] - The company reported a significant decline in revenue for fiscal year 2024, totaling $26.6 million, down from $43.4 million in fiscal year 2023 [3] - Identiv's GAAP net loss from continuing operations for fiscal year 2024 was $25.9 million, or $1.14 per share, compared to a loss of $13.9 million, or $0.66 per share, in fiscal year 2023 [5] Financial Results for Fiscal Year 2024 - Revenue for fiscal year 2024 was $26.6 million, a decrease of 38.7% from $43.4 million in fiscal year 2023 [3] - GAAP gross margin for fiscal year 2024 was 1.3%, down from 13.8% in fiscal year 2023; non-GAAP gross margin was 8.0%, compared to 16.6% in the previous year [3] - GAAP operating expenses increased to $28.3 million in fiscal year 2024 from $19.5 million in fiscal year 2023, with non-GAAP operating expenses rising to $17.9 million from $16.7 million [4] Financial Results for Fiscal Fourth Quarter 2024 - Revenue for the fourth quarter of 2024 was $6.7 million, down from $11.3 million in the fourth quarter of 2023, representing a decline of 40.5% [6] - GAAP gross margin for the fourth quarter of 2024 was (14.9%), compared to 16.2% in the fourth quarter of 2023; non-GAAP gross margin was (5.2%), down from 19.5% [6] - GAAP net loss from continuing operations for the fourth quarter of 2024 was $4.3 million, or $0.19 per share, compared to a loss of $3.3 million, or $0.16 per share, in the fourth quarter of 2023 [8] Financial Outlook - For fiscal Q1 2025, Identiv expects net revenue to be in the range of $4.8 million to $5.1 million, indicating a cautious outlook based on current market conditions [9]

Core Insights - Identiv and Novanta have formed a strategic partnership to market RFID-based solutions aimed at medical device and pharmaceutical manufacturers, addressing a significant market gap for end-to-end solutions in access, identification, and traceability [1][4] Group 1: Partnership Objectives - The collaboration will focus on marketing RFID solutions for smart medical devices, advanced diagnostics, and wearables, enhancing product performance and patient safety [2][3] - By integrating Identiv's RFID inlays with Novanta's reader technology, the partnership aims to simplify the development process for medical device manufacturers [2][3] Group 2: Market Impact - The partnership is expected to optimize the ecosystem for healthcare manufacturers, enabling them to evaluate and implement RFID solutions more easily, thus reducing complexity and accelerating time to market [3] - Novanta's President highlighted that the collaboration will support real-time monitoring of patient vitals and medication compliance, significantly improving patient safety and hospital compliance [4] Group 3: Company Backgrounds - Identiv specializes in RFID-enabled IoT solutions, with over 1.5 billion applications globally, driving innovation across various sectors including healthcare [6] - Novanta is a leading supplier of technology solutions for medical and life sciences, focusing on precision medicine and advanced industrial applications [7]

Financial Performance - For the three months ended September 30, 2024, net revenue was $9.045 million, a decrease of 55.1% compared to $20.114 million for the same period in 2023[25]. - Gross profit for the three months ended September 30, 2024, was $3.835 million, down 64.1% from $10.622 million in the prior year[25]. - Operating expenses increased to $8.171 million for the three months ended September 30, 2024, compared to $6.962 million in the same period of 2023, representing a 17.3% increase[25]. - The Company reported a net loss of $4.268 million for the three months ended September 30, 2024, compared to a net income of $3.638 million for the same period in 2023[25]. - The net loss from continuing operations for the three months ended September 30, 2024, was $9.3 million, compared to a loss of $3.7 million for the same period in 2023[64]. - For the three months ended September 30, 2024, total net revenue was $6,532,000, a decrease of 44% compared to $11,732,000 for the same period in 2023[68]. Discontinued Operations - The Company has classified the results of the Physical Security Business as discontinued operations in its financial statements[24]. - The gain on the sale of the Physical Security Business, net of taxes, was $99.546 million, subject to adjustments based on tax analysis[23]. - Basic net income per common share for discontinued operations was $4.03 for the three months ended September 30, 2024, compared to $0.16 for the same period in 2023[64]. - The Company completed the sale of its Physical Security Business for approximately $144.3 million in cash on September 6, 2024[21]. - The Company completed the sale of its Physical Security Business in Q3 2024, resulting in a single reportable segment: the IoT Business segment[67]. Cash and Investments - The company reported cash equivalents of $60.0 million and treasury bills of $65.0 million as of September 30, 2024, both classified as Level 1 fair value measurements[37]. - The company had $348,000 of privately-held investments measured at fair value on a nonrecurring basis as of September 30, 2024, classified as Level 3 assets[38]. - The company had no outstanding amounts under the Loan Agreement as of September 30, 2024, with $20.0 million available[45]. Inventory and Assets - As of September 30, 2024, the company's total inventories decreased to $10.71 million from $13.56 million as of December 31, 2023, representing a decline of approximately 21.0%[40]. - The company’s total property and equipment, net, was $8.203 million as of September 30, 2024, a slight decrease from $8.472 million as of December 31, 2023[42]. - As of September 30, 2024, there are 444,460 stock options outstanding with a weighted average exercise price of $4.36 and an aggregate intrinsic value of $0[53][55]. Stock-Based Compensation - The Company recognized $0.2 million in stock-based compensation related to the modification of stock options for the former CEO in Q3 2024[55]. - The Company recognized $3.8 million in stock-based compensation expense in Q3 2024 due to the vesting of RSUs held by employees who transitioned to the Buyer following the Asset Sale[57]. - Total stock-based compensation expense for continuing operations was $2.6 million for the nine months ended September 30, 2024, compared to $1.5 million for the same period in 2023[61]. - The Company granted 477,500 Performance Stock Units (PSUs) during the nine months ended September 30, 2024, with an unrecognized compensation expense of $1.8 million related to unvested PSUs[59][60]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $2.311 million, an increase of 21.8% from $1.897 million in the same period of 2023[25]. Lease Obligations - The company reported total minimum lease payments of $2,359,000 for the remaining years, with long-term operating lease liabilities of $1,251,000[74]. - Cash paid for operating lease liabilities was $0.3 million for Q3 2024, unchanged from Q3 2023[75]. - The weighted average remaining lease term for operating leases was 2.5 years, with a discount rate of 7.6%[74]. Other Financial Metrics - The company’s accrued professional fees increased to $594,000 as of September 30, 2024, compared to $404,000 as of December 31, 2023, an increase of approximately 47.0%[43]. - The balance of Series B convertible preferred stock increased to $27.271 million as of September 30, 2024, from $26.270 million as of September 30, 2023, reflecting an increase of approximately 3.8%[49]. - The company’s financial liabilities, net of debt issuance costs, were $9.949 million as of December 31, 2023, with no liabilities reported as of September 30, 2024[44].

Financial Data and Key Metrics Changes - The third quarter net revenue was $6.5 million, slightly above previous guidance but a decrease of $5.2 million compared to the prior year period [7][17] - GAAP gross margin for Q3 2024 was 3.6%, down from 11.2% in Q3 2023, while non-GAAP gross margin was 9.3%, down from 14% in the same period [17][20] - The company exited Q3 2024 with $145.7 million in cash, an increase of $121.4 million since December 31, 2023 [22] Business Line Data and Key Metrics Changes - The transition of RFID and BLE production from Singapore to Thailand is ongoing, with nearly 75% expected to be transitioned by year-end [8][10] - The company anticipates non-GAAP gross margin to almost double to 26% to 28% once production is fully transitioned to Thailand [10][18] Market Data and Key Metrics Changes - The company is focusing on higher-margin opportunities in healthcare and other high-value segments to improve gross margins [18] - The total addressable market for healthcare initiatives is estimated at over 10 billion units annually, translating to $1.5 billion to $2 billion in RFID and BLE inlay sales [35][36] Company Strategy and Development Direction - The company has shifted its focus solely to building its IoT business and developing specialty RFID and Bluetooth low energy solutions [5] - A new growth strategy called Perform, Accelerate, and Transform will be implemented starting Q1 2025 to optimize core business performance and drive revenue expansion [30][31] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a non-GAAP gross margin of 26% to 28% by the end of 2025 as production transitions are completed [55] - The company sees strong macro trends driving demand for RFID and next-generation technologies, positioning itself well for future growth [49] Other Important Information - The company announced a $10 million share repurchase program as part of its capital allocation strategy [43][47] - The board is reviewing corporate governance policies to align with the company's new strategic direction [45] Q&A Session Summary Question: Near-term confidence in attaining non-GAAP gross margin - Management is confident in achieving the 26% to 28% non-GAAP gross margin range by the end of 2025 as production transitions are on track [54] Question: Cash burn trajectory - Management confirmed expected cash burn over the next 12 months to be in the range of $14 million to $16 million, indicating that $25 million for the following year is too high [56][58] Question: Potential acquisition timing for revenue growth - Management is actively looking at potential acquisition targets but does not have a specific timeline in place [59] Question: Pharmaceutical companies penetration - Management highlighted active NPD projects in the pharmaceutical sector and plans to focus on this area for additional opportunities [62]

分组1 - Identiv, Inc. reported a quarterly loss of $0.25 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.26, compared to a loss of $0.01 per share a year ago, indicating an earnings surprise of 3.85% [1] - The company posted revenues of $6.53 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.87%, but down from $31.85 million in the same quarter last year [2] - Identiv shares have declined approximately 55.5% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] 分组2 - The earnings outlook for Identiv is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.27 on revenues of $6.2 million, and -$1.02 on revenues of $41.4 million for the current fiscal year [7] - The Zacks Industry Rank for Computer - Peripheral Equipment is in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Revenue for Q3 2024 was $6.5 million, a decrease of 44.5% compared to $11.7 million in Q3 2023[3]. - For Q4 2024, management expects net revenue to be in the range of $6.0 million to $6.3 million[7]. Gross Margin and Profitability - GAAP gross margin for Q3 2024 was 3.6%, down from 11.2% in Q3 2023; non-GAAP gross margin was 9.3%, compared to 14.0% in the same period[3]. - Non-GAAP gross profit for the three months ended September 30, 2024, was $605 thousand, down from $1,641 thousand for the same period in 2023, reflecting a 63% decrease[16]. - Non-GAAP gross margin for the three months ended September 30, 2024, was 9%, down from 14% in the same period of 2023[16]. Operating Expenses - GAAP operating expenses increased to $9.8 million in Q3 2024 from $4.6 million in Q3 2023, with non-GAAP operating expenses rising to $5.1 million from $4.1 million[4]. - Non-GAAP operating expenses for the three months ended September 30, 2024, were $5,086 thousand, compared to $4,080 thousand for the same period in 2023, an increase of 25%[16]. Net Loss - GAAP net loss from continuing operations was ($9.3) million, or ($0.40) per share, compared to a loss of ($3.7) million, or ($0.17) per share in Q3 2023[5]. - GAAP net loss for the three months ended September 30, 2024, was $(9,329) thousand, compared to $(3,660) thousand for the same period in 2023, indicating a 155% increase in losses[16]. - Non-GAAP adjusted EBITDA for the nine months ended September 30, 2024, was $(11,332) thousand, worsening from $(7,583) thousand for the same period in 2023[16]. Asset Management and Financial Position - Total current assets increased to $166,003 thousand as of September 30, 2024, compared to $79,486 thousand at December 31, 2023, representing a 109% increase[15]. - Total liabilities decreased to $20,289 thousand as of September 30, 2024, from $35,451 thousand at December 31, 2023, a reduction of 43%[15]. - Current liabilities decreased to $19,011 thousand as of September 30, 2024, from $30,782 thousand at December 31, 2023, a decline of 38%[15]. - Cash and cash equivalents significantly increased to $145,361 thousand as of September 30, 2024, from $23,312 thousand at December 31, 2023, a growth of 523%[15]. - Total stockholders' equity rose to $156,740 thousand as of September 30, 2024, compared to $74,272 thousand at December 31, 2023, an increase of 111%[15]. Strategic Initiatives - The "Perform, Accelerate, and Transform" strategy framework has been introduced to guide future growth[2]. - Identiv anticipates total net proceeds from the asset sale transaction to be approximately $135 million after costs[6]. - Identiv plans to allocate 25% to 30% of net proceeds from the asset sale for investments in core business and growth initiatives[6]. - The transition of production to Thailand is progressing, and the new product development pipeline remains strong[2]. - The company announced a $10 million stock repurchase program[1].