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| In Q2 2014, Identiv continued to grow with a series of new launches, including the uTrust product line |
Identiv, a global security technology company that provides trust solutions for premises, information, and everyday items, reports its financial results for the second quarter (Q2) of 2014.
"In Q2 2014, we continued our strategy of growth with a series of exciting launches, including the uTrust product line for converged premises and information access, uTrust TS premises readers, Identiv Channel Alliance Network (ICAN), and an OEM launch of idOnDemand with a global service provider," said Jason Hart, Identiv CEO. "These initiatives have contributed to a record year-on-year revenue growth of 23%."
Q2 Financial Summary
In reviewing the results for the second quarter of fiscal year 2014, compared to the second quarter of fiscal year 2013:
- Total revenues for continuing operations were $22.3 million, compared to $18.2 million, reflecting growth of 23%, with significant contribution from sales of credentials products increasing 65% to meet demand for electronic game toys and other Internet of Things applications.
- GAAP gross profit margin was 40%, compared to 44%, primarily due to product mix.
- Base operating expenses, which include research and development, sales and marketing, and general and administrative costs, were $10.3 million, compared to $9.9 million, up 4%. The company increased its investment in sales and marketing by 20%, offset by a reduction in general and administrative expenses of 13%.
- Adjusted EBITDA for the quarter was $(0.46) million, compared to $(0.47) million.
- GAAP net loss from continuing operations was $(2.6) million in Q2 2014, which included restructuring costs totalling $0.6 million, or $(0.34) per share, compared with GAAP loss from continuing operations of $(2.9) million, or $(0.31) per share, in the comparable prior year period. There were no restructuring costs in Q2 2013.
- Cash and cash equivalents were $12.5 million at June 30, 2014, compared with $5.1 million at December 31, 2013.
Note: Financial results contained in this release reflect the continuing operations of Identiv only and exclude discontinued operations of non-core businesses sold in December 2013, February 2014 and June 2014.
"Our investment in growth is producing a significant increase in sales, and we are only just starting to see the impact of our strong go-to-market partnerships." Hart added "We have built a world class technology team, and added three new granted patents in the quarter. In addition, we continue streamlining the business to reduce costs and improve margins."
