DGAP-News: Identive Group Inc.: IDENTIVE GROUP REPORTS RESULTS FOR ITS 2013 SECOND QUARTER
(firmenpresse) - DGAP-News: Identive Group Inc. / Key word(s): Quarter Results
Identive Group Inc.: IDENTIVE GROUP REPORTS RESULTS FOR ITS 2013
SECOND QUARTER
14.08.2013 / 14:56
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IDENTIVE GROUP REPORTS RESULTS FOR ITS 2013 SECOND QUARTER
- Reaffirmed preliminary results issued on July 19th -
- Investment strategy beginning to deliver growth in key markets with
record order book for next 12 months -
SANTA ANA, Calif. and ISMANING, Germany, August 14, 2013 - Identive Group,
Inc. (NASDAQ: INVE) (Frankfurt: INV), a provider of products, services and
solutions for the identification, security and RFID industries, reported
its financial results for the second quarter (Q2) ended June 30, 2013.
'In the second quarter 2013, we delivered growth in target markets and
gained traction with key offerings, demonstrating Identive's strategy is
coming to fruition,' said Ayman S. Ashour, CEO of Identive Group. 'Focused
on becoming the leader in Secure ID, we have been investing in emergent
markets with hyper-growth potential, including NFC and mobility solutions,
cashless payment, and Identity-as-a-Service. Our Q2 results included
successes that we believe are the early stages of important positive
trends.
'For example, our increased transponder capacity drove 50% growth in RFID
tag and inlay shipments. On the cutting edge of cashless payments, we have
established a strong business model and sealed it with additional stadium
contracts. In addition, we created a foothold with early adopters of
identity on-demand and have begun to build a stable recurring SaaS revenue
stream.
'While our revenue growth momentum was offset by delays in project
implementation and sales in our normally stable Access Control&Security
business, we view the effects of the U.S. Government federal budget
sequester as a temporary setback. We are confident this business will
improve and augment the growth in our target emergent markets.
'Revenues excluding our U.S. Government business grew 13% year-over-year.
During Q2, more than one-quarter of transponders shipped were NFC, and more
intelligent products sales continued to improve transponder margins. These
factors, combined with good cost management, resulted in improvements to
the bottom line,' added Ashour.
Financial Results for Q2 2013 Compared with Q2 2012
- Revenues were $23.6 million, compared with $23.9 million.
- Revenues from the Identity Management Services and Solutions
segment were $10.6 million, compared with $14.2 million.
- Access Control&Security revenue decreased 41% related
to the U.S. Government federal budget sequester, the
effects of which management believes are temporary.
- ID Solutions revenue decreased 16% due to the timing of
orders in Europe and lower demand in the U.S.
- Cloud-based Identity Management recorded its first
meaningful revenue, won a major international
healthcare customer and signed a $2 million long-term
SaaS contract with a leading technology company.
- Revenues from the ID Products segment grew 34% to $13.0 million,
compared with $9.7 million.
- Transponders revenues increased 81%, reflecting several
large NFC product orders for mobility and M2M
applications.
- ID Infrastructure revenues remained stable with orders
from several regions supporting a variety of
applications.
- GAAP gross profit margin was 39%, compared with 40%, primarily due to
lower Access Security&Control sales.
- GAAP operating expenses were $11.9 million, compared with $52.9 million
of which $39.7 million were related to goodwill and intangible asset
impairment costs and related adjustments.
- Non-GAAP operating expenses were $10.8 million, compared with $11.9
million; the 9% reduction reflects 2012 restructuring and ongoing
initiatives to improve operational efficiencies.
- GAAP net loss was $(2.9) million, or $(0.05) per share, compared with
net loss of $(36.4) million, or $(0.61) per share, including the
aforementioned impairment costs.
- Non-GAAP net loss was $(2.5) million, or $(0.04) per share, compared
with non-GAAP net loss of $(1.1) million, or $(0.02) per share.
- Adjusted EBITDA was $(1.0) million, compared with $(1.1) million.
- Backlog at the end of Q2 was $19 million, reflecting orders over the
next 12 months for NFC and reader products as well as payment and
cloud-based systems; also on the order book is an additional $8 million
from longer-term contracts.
- Cash and cash equivalents were $3.7 million at June 30, 2013, compared
with $7.4 million at December 31, 2012. Today, the company announced
that it has confirmed subscriptions in connection with a private
placement of its equity securities that is expected to close this week.
David Wear, chief financial officer of Identive stated, 'We believe our
August financing demonstrates our investors agree there is great promise in
NFC and mobility solutions, cashless payment, and cloud-based identity
management. With the capital raise we announced today and our strongest
backlog to date, we are better positioned to drive ahead with our strategy
for investment in products, solutions and capacity. While our near-term
guidance is modest, we have sown the seeds for long-term growth.'
Outlook for Q3 2013
Based on its current expectations and the continued uncertainty associated
with the U.S. Government business, management expects revenues of $23.0
million to $25.0 million for the third quarter of 2013, and further expects
adjusted EBITDA of $(0.5) million to $0.5 million. For full year 2013,
management expects revenues of $98.0 million to $105.0 million and adjusted
EBITDA of $(1.0) million to $1.0 million.
Conference Call and Webcast Information
Identive Group will host a conference call and webcast today at 9:00 AM
Eastern Time, which can be accessed by dialing 888.771.4371 (toll free
within the U.S.) or +1 847.585.4405 (for international callers) and using
pass code 35451556. A webcast of the call that includes presentation slides
can be accessed by visiting the investor relations section of the Company's
website at www.identive-group.com, and by clicking on 'Presentations,
Reports&Webcasts,' where it also will be archived for those unable to
listen to the live webcast. An audio replay of the call also will be
available for one week and can be accessed by dialing 888.843.7419 (toll
free within the U.S.) or +1 630.652.3042 (for international callers) and
using pass code 35451556.
Non-GAAP Measures
Non-GAAP gross profit margin, adjusted EBITDA and non-GAAP net loss and net
loss per share all exclude various items that are detailed in the financial
table and accompanying footnotes reconciling GAAP to non-GAAP results
contained in this release. An explanation of these measures is also
included below under the heading 'Non-GAAP Financial Measures.'
About Identive Group
Identive Group, Inc. (NASDAQ: INVE) (Frankfurt: INV) is focused on building
the world's signature company in Secure ID. The company's products,
software, systems and services address the markets for identity management,
physical and logical access control, cashless payment, NFC solutions and a
host of RFID-enabled applications for customers in the government,
enterprise, consumer, education and healthcare sectors. Identive's mission
is to build a lasting business of scale and technology based on a
combination of strong technology-driven organic growth and disciplined
acquisitive expansion. The company delivers up-to-date information on its
activity as well as industry trends through its industry-leading social
media initiatives and educational resource, AskIdentive.com. For additional
information, please visit www.identive-group.com or follow on Twitter at
(at)IdentiveGroup.
Non-GAAP Financial Measures (Unaudited)
Identive has provided in this release financial information that has not
been prepared in accordance with GAAP, including non-GAAP gross profit
margin, adjusted EBITDA and non-GAAP net income (loss) and net income
(loss) per share. Identive uses these non-GAAP financial measures
internally in analyzing its financial results and believes they are useful
to investors, as a supplement to GAAP measures, in evaluating Identive's
ongoing operational performance. Identive believes that the use of these
non-GAAP financial measures provides an additional tool for investors to
use in evaluating ongoing operating results and trends. As noted, the
non-GAAP financial results discussed above exclude items detailed in the
reconciliation table and accompanying footnotes contained within this
release. Non-GAAP financial measures should not be considered in isolation
from, or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of these
non-GAAP measures to their most directly comparable GAAP financial measures
as detailed in this release.
Note Regarding Forward Looking Information:
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. Forward-looking
statements can be identified by words such as 'anticipates,' 'believes,'
'plans,' 'will,' 'intends,' 'expects,' and similar references to the
future. Examples of such statements include, without limitation, statements
we make regarding our expectations regarding our strategy coming to
fruition; continued or increased growth in our business as a result of our
investments in NFC and mobility solutions, cashless payment, and SaaS-based
identity management; that our results in Q2 indicate important positive
trends for future growth; our expectations regarding the generation of
stable recurring revenue in our SaaS business; our expectations for
improved sales in the U.S. Government market and continued growth in our
target emergent markets; and our expectations regarding continued or
increased demand for our products, solutions and services, including our
Transponder and NFC products, our ID Infrastructure products, our payment
solutions and our idOnDemand SaaS solutions. 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, which could cause our actual business and
operating results to differ. Factors that could cause actual results to
differ materially from those in the forward-looking statements include our
ability to grow our company based on a strategy of providing products,
systems and services for the secure identification market; our ability to
successfully develop and commercialize new products and solutions that
satisfy the evolving and increasingly complex requirements of customers;
our ability to finance continued investments in technology, products and
manufacturing capacity to develop products and solutions for the market;
whether the markets in which we participate or target may grow, converge or
standardize at anticipated rates or at all, including the markets that we
are targeting; our ability to successfully compete in the markets in which
we participate or target; our ability to meet our sales forecasts; our
ability to meet financial covenants of our loan agreement; our ability to
meet growing demand for our products; and general global political and
economic factors which are beyond our control but may unduly impact our
markets and our business. 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, 2012 and subsequent reports filed with the U.S. Securities and
Exchange Commission. All forward-looking statements are based on
information available to us on the date hereof, and we assume no obligation
to update such statements.
Nothing contained herein constitutes or should be construed as an offer to
sell or a solicitation of an offer to buy any securities in the Company.
###
Note: Identive and the Identive logo are trademarks of Identive Group, Inc,
registered in many jurisdictions worldwide. All other company, product or
service names may be trademarks or registered trademarks of others and are
the property of their respective owners.
Contacts:
Identive:
Darby Dye, +1 949 553 4251, ddye(at)identive-group.com
Lennart Streibel, +49 89 9595 5195, lstreibel(at)identive-group.com
LHA:
Kirsten Chapman and Becky Herrick, +1 415 433 3777, identive(at)lhai.com
End of Corporate News
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Language: English
Company: Identive Group Inc.
1900B Carnegie Avenue
CA 92705 Santa Ana
United States
Phone: +49 (0)89 9595 5000
Fax: +49 (0)89 9595 5555
E-mail: info(at)identive-group.com
Internet: www.identive-group.com
ISIN: US45170X1063
WKN: A1C0ZG
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Frankfurt in Open Market (Entry Standard)
End of News DGAP News-Service
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