DGAP-News: SCM Microsystems, Inc. d.b.a. Identive Group: IDENTIVE GROUP ANNOUNCES FIRST QUARTER 2010 RESULTS
(firmenpresse) - SCM Microsystems, Inc. d.b.a. Identive Group / Quarter Results
13.05.2010 08:36
Dissemination of a Corporate News, transmitted by
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SANTA ANA, Calif. and ISMANING, Germany, May 13, 2010 - SCM Microsystems,
Inc. d.b.a. Identive Group (NASDAQ: INVE; Frankfurt Stock Exchange: INV), a
provider of products, services and solutions for the security,
identification and RFID industries, today announced results for the first
quarter (Q1) of fiscal 2010, ended March 31, 2010.
'Q1 was a critical period for Identive, during which we launched our
expanded company as Identive Group, formed our new management team and took
quick action to reduce overheads,' said Ayman S. Ashour, Chief Executive
Officer and Chairman of Identive Group. 'A significant amount of work was
completed during the quarter to consolidate facilities and we have reduced
our total headcount by over 15%. At the same time, we also selectively
increased our selling capacity to capitalize on the growth opportunities in
our markets.'
Q1 2010 Results
Q1 2010 results include the operating results of Hirsch Electronics
Corporation, which the Company acquired on April 30, 2009, and the
operating results of Bluehill ID AG, since its acquisition on January 4,
2010. All figures are reported in U.S. GAAP, except as noted. A discussion
of non-GAAP measures and reconciliation to the applicable GAAP measures is
included below.
Revenue in Q1 2010 was $15.3 million, up 194% from $5.2 million in Q1 2009.
The increase was primarily due to the inclusion of revenue from the
acquired Hirsch and Bluehill ID businesses, as well as a small increase in
sales from the traditional SCM business. Q1 2010 revenue also grew 29% from
$11.9 million in the fourth quarter (Q4) of 2009, primarily as a result of
the inclusion of revenue from the Bluehill ID business.
Sales in the Americas accounted for 56%, EMEA region sales accounted for
34% and sales in Asia Pacific accounted for 10% of total Q1 2010 revenue.
Identive's ID Management Solutions and Services segment showed good growth
as the Hirsch business experienced improved activity in the U.S. government
market and Multicard benefited from initial orders for large transportation
and contactless payment programs in the Netherlands and for logical access
control projects in Australia. In Identive's ID Products and Components
segment, the SCM business unit had improved sales to the U.S. government
market and in Japan and recorded its first significant sales to Brazil and
China during the quarter. TagStar's RFID inlay manufacturing was hampered
due to semiconductor shortages in the early part of the quarter but this
was partly compensated by new customer wins in transport ticketing.
Gross profit margin, before overhead allocation and excluding amortization,
remained stable at 49% in Q1 2010 compared with Q1 2009 and improved from
46% in Q4 2009.
Overhead costs (operating expenses before amortization, depreciation,
impairment, equity-based compensation, acquisition, transition and
integration costs and a gain on the sale of assets), were $10.0 million in
Q1 2010, up 127% from $4.4 million in Q1 2009 and up 11% from $9.1 million
in Q4 2009. The increase in overhead costs in Q1 2010 compared with the
previous periods is primarily the result of the inclusion of the
incremental overhead costs from the acquired Hirsch and Bluehill ID
businesses. Beginning in January 2010 Identive began implementing a series
of cost reduction measures, including facility consolidations, streamlining
of its existing and acquired development organizations, and reductions in
headcount and executive salaries. The Company expects these measures will
result in cost savings of approximately $6.0 million per year, of which
approximately $4.5 million will be realized in 2010. While the cost savings
measures were implemented in Q1, the Company expects the main benefits will
start to become apparent in the second quarter of 2010.
During Q1 2010 the Company incurred significant costs related to the
acquisition of Bluehill ID AG, which was completed on January 4, 2010.
These included acquisition and related costs of $0.3 million and transition
and integration costs of $1.4 million. The costs related to transition and
integration primarily were related to headcount reduction and facility
consolidation.
Adjusted EBITDA (EBITDA before equity-based compensation, acquisition,
transition and integration costs) was a loss of $(2.5) million in Q1 2010,
compared with $(1.9) million in Q1 2009 and $(3.6) million in Q4 2009.
Cash and cash equivalents at the end of Q1 2010 were $6.8 million, up from
$4.8 million at the end of the previous quarter, reflecting the addition of
cash and short-term investments from the Bluehill ID business.
'We have made important progress in forming a new corporate ethos in the
first quarter,' continued Mr. Ashour. 'Our SCM business unit is now
operating with much more focus and sense of urgency, our Hirsch business is
beginning to see the benefits from its substantially completed R&D effort.
We are now online with additional capacity in our RFID inlay manufacturing
and have established key alliances that position it for strong growth. In
addition, our Indian operations have come together. We are rapidly putting
in place the critical elements to support both organic growth and continued
execution of our acquisition strategy, by which we aim to become the
signature company in the secure ID market. Much more work is needed, but Q1
is very encouraging indeed.'
On a GAAP basis, gross profit margin in Q1 2010 was 40%, compared with 41%
in Q1 2009 and 37% in Q4 2009. Total GAAP operating expenses in Q1 2010
were $11.7 million and included $2.6 million in amortization, depreciation,
equity-based compensation, acquisition, transition and integration costs.
This compares with GAAP operating expenses of $5.3 million in Q1 2009,
which included $1.5 million in amortization, depreciation, share-based
compensation and acquisition costs, as well as a $0.2 million gain on the
sale of assets; and GAAP operating expenses of $11.3 million in Q4 2009,
which included $3.1 million in amortization, depreciation, share-based
compensation, impairment and acquisition costs.
GAAP operating loss was $(5.5) million in Q1 2010, compared with $(3.1)
million in Q1 2009 and $(6.9) million in Q4 2009.
Loss from continuing operations attributable to SCM Microsystems, Inc. in
Q1 2010 was $(6.0) million, or $(0.15) per share, compared with $(3.1)
million, or $(0.20) per share in Q1 2009 and $(8.5) million, or $(0.34) per
share in Q4 2009. Included in Q4 2009 is a $2.2 million impairment charge
related to the write off of equity investments and exclusivity fees related
to the Company's investment in TranZfinity, Inc.
Conference Call Information
Identive Group will host a conference call today at 8:00 AM Eastern Time,
which can be accessed by calling 866-788-0547 or +1 857-350-1685 (for
international callers) and using passcode 17380222. A webcast of the call
can be accessed by visiting the investor page of the Company's website at
www.identive-group.com, where it also will be archived for those unable to
listen to the live webcast.
About Identive Group
Identive Group (NASDAQ: INVE; Frankfurt Stock Exchange: INV) is an
international technology company focused on building the world's signature
group in secure identification-based technologies. The businesses within
Identive Group have deep industry expertise and are well-known global
brands in their individual markets, providing leading-edge products and
solutions in the areas of physical and logical access control, identity
management and RFID systems to governments, commercial and industrial
enterprises and consumers. Identive's growth model is based on a
combination of strong technology-driven organic growth from the businesses
within the group and disciplined acquisitive development. For additional
info visit: www.identive-group.com.
NOTE: This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
include, without limitation, the statements by Ayman S. Ashour, including
statements about our ability to support both organic growth and continued
execution of our acquisition strategy and becoming the signature company in
secure ID; and statements about our expectation that our cost reduction
measures will result in savings of $6.0 million per year; that $4.5 million
of these savings will be realized in 2010; and that the main benefits of
these savings during 2010 will be realized in the second quarter of 2010.
These statements are based on current expectations or beliefs, as well as a
number of assumptions about future events that are subject to risks and
uncertainties that may cause actual results to differ materially from those
contemplated herein. Our financial results may not meet expectations, our
cost savings may not be in the amounts or the time frames we expect; and we
may not be successful in our strategy of pursuing both organic and
acquisitive growth. Readers should not unduly rely on these forward-looking
statements, which are not a guarantee of future performance and are subject
to a number of risks and uncertainties, many of which are outside our
control, that could cause our actual business and operating results to
differ, including, but not limited to, our ability to successfully
integrate the Bluehill ID business into ours; our ability to effect
significant reductions in our expense base; we may not be able to reduce
the transaction costs associated with mergers and acquisitions; our ability
to grow the Company based on a strategy of providing products, components
and services for the identification systems value chain; our ability to
complete additional acquisitions that add to the value of our Company; our
ability to complete transactions for mergers and acquisitions at a lower
cost than in the past; our ability to grow market share and revenues based
on participation in early stage markets for contactless products; our
ability to successfully develop and introduce new products that satisfy the
evolving and increasingly complex requirements of customers; the markets in
which we participate or target may not grow, converge or standardize at
anticipated rates or at all, including the identification and identity
markets that we are targeting; and we may not successfully compete in the
markets in which we participate or target. For a discussion of further
risks and uncertainties related to our business, please refer to our public
company reports, including our Annual Report on Form 10-K for the year
ended December 31, 2009 and subsequent reports filed with the U.S.
Securities and Exchange Commission.
###
All trade names are trademarks or registered trademarks of their respective
holders.
Contact:
Fabien B. Nestmann
+41 44 783 8043
fnestmann(at)identive-group.com
13.05.2010 08:36 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: SCM Microsystems, Inc. d.b.a. Identive Group
1900 Carnegie Ave. Bldg. B
CA 92705 Santa Ana
Vereinigte Staaten von Amerika
Phone: +49 89 9595-5000
Fax: +49 89 9595-5555
E-mail: ir(at)scmmicro.com
Internet: www.scmmicro.com
ISIN: US7840181033
WKN: 909247
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
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Datum: 13.05.2010 - 08:36 Uhr
Sprache: Deutsch
News-ID 20846
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