|Total revenues were $14.9 million, a decrease of 11% from $16.9 million due to a decrease in identity sales|
Identiv, Inc., recently announced financial results for the first quarter (Q1) of 2015. For the first quarter, total revenues were $14.9 million, GAAP gross profit margin was 41% and adjusted EBITDA was $(1.9) million.
“During the first quarter, we continued to tune and focus our business operations, which resulted in strong sales in our premises and credential product lines,” said Jason Hart, CEO of Identiv. “However, despite this strength in premises and credentials, we experienced an unexpected decline in the first quarter in our international desktop reader business and generally unfavorable conditions in Europe, as well as the typical first quarter seasonality and an unfavorable foreign currency impact. As a result of these factors, our first quarter revenue was lower than expected.
As we look forward, our business and market outlook over the next 12 months is positive. Our visibility into this sales forecast is supported by new projects with brand names in toys, wearables, smart batteries, perishable products, and apparel. These new projects further demonstrate demand for our secure IoT technology and solutions - a demand which did not exist 12 months ago.
Our announcement of a major global partnership with a leading technology company has further enhanced our confidence in our ability to access previously unavailable markets and customers, and we have been impressed by the activity levels in these sales channels.
The demand for IoT security and privacy continues to grow and we remain focused on driving results from our selling organization and working closely with our strategic partners to deliver improved financial and operating results.”
First Quarter Financial Highlights Review
The demand for IoT security and privacy continues to grow and we remain focused on driving results from our selling organization, says Jason Hart, CEO, Identiv
In reviewing the results for the first quarter of fiscal year 2015, all figures are compared to the first quarter of fiscal year 2014, unless stated otherwise:
- Total revenues were $14.9 million, a decrease of 11% from $16.9 million, primarily due to a decrease in identity reader sales in Europe, the Middle East and Africa (EMEA) and Asia-Pacific as well as lower digital media reader sales. This was partially offset by an increase in premises sales.
- GAAP gross profit margin was 41%, compared to 39%, primarily due to an increase in credentials margin, partially offset by a decrease in identity reader and premises margin.
- Base operating expenses, which include research and development, sales and marketing, and general and administrative costs were $10.1 million, compared to $9.6 million, up 5%. This is primarily the result of an increase in research and development (R&D) related expenditures.
- Adjusted EBITDA for the quarter was $(1.9) million, compared to $(2.0) million.
- GAAP net loss from continuing operations was $(5.8) million in the first quarter of 2015, or $(0.54) per share, compared with GAAP net loss from continuing operations of $(5.6) million, or $(0.74) per share. First quarter 2015 results included restructuring costs of $0.2 million, compared to restructuring costs of $0.4 million.
- The company was awarded four additional U.S. patents in Q1.
- Cash was $33.1 million at March 31, 2015, compared with $36.5 million at December 31, 2014.
Identiv now expects revenues for fiscal year 2015 between $90 million and $95 million, a decrease from the previous revenue guidance range of between $95 million and $105 million. The company is reaffirming its guidance for positive adjusted EBITDA on an annual basis.