Identiv Reports Second Quarter 2024 Financial Results

Identiv, Inc., a global leader in digital security and identification in the Internet of Things (IoT), has released its financial results for the second quarter ending June 30, 2024. The company is undergoing significant changes, including a transformative $145 million asset sale agreement and strategic growth initiatives in its IoT business.

Financial Highlights

For the second quarter of 2024, Identiv reported revenue from continuing operations of $6.7 million, a decrease from $11.5 million in the same period of 2023. The GAAP gross margin for the quarter was 9.1%, down from 14.2% in the previous year. The company also reported a GAAP net loss from continuing operations of ($6.9) million, or ($0.31) per share, compared to a net loss of ($3.5) million, or ($0.16) per share, in the second quarter of 2023.

Business and Operational Highlights

Identiv has made significant strides in its business operations. The company received ISO 9001:2015 and ISO 14001:2015 certifications for its production facility in Thailand, which is expected to enhance its production capabilities and quality standards. Additionally, the company is advancing its strategic plan for RFID-enabled IoT applications, with a conclusion expected in Q4 2024.

Strategic Initiatives and Corporate Developments

On April 2, 2024, Identiv entered into a definitive asset purchase agreement to sell its Physical Security Business to a subsidiary of Vitaprotech for $145 million. This transaction, approved by stockholders on June 28, 2024, is expected to close in Q3 2024, subject to regulatory approval. The proceeds from this sale will significantly strengthen Identiv’s financial position, providing capital to pursue growth opportunities in its specialty IoT solutions business.

Management's Perspective

CEO Steven Humphreys commented, “We achieved significant milestones in the second quarter toward concluding the previously announced asset sale transaction. This included a highly supportive stockholder vote in favor of the transaction, affirming our decision to focus exclusively on growing our IoT solutions business.”

President of IoT Solutions, Kirsten Newquist, added, “With a clear vision, a comprehensive and disciplined plan, and focused execution, we believe we can capitalize on the opportunity before us.”

Future Outlook

For fiscal Q3 2024, Identiv expects revenue from continuing operations to be in the range of $5.8 million to $6.1 million. If the asset sale transaction has not closed by the end of the third quarter, total revenue from continuing operations and revenue included in discontinued operations is expected to be in the range of $24 million to $26 million.

SEC Filing: Identiv, Inc. [ INVE ] - 8-K - Aug. 08, 2024