08.06.15
Identiv, Inc. announced preliminary results for the quarter ended June 30, 2015 and updated its 2015 annual revenue guidance.
The company expects to report second quarter revenue of approximately $15.6 million, an increase from $14.9 million in the first quarter and a decrease from $22.3 million in the comparable quarter of 2014. The company expects an adjusted EBITDA loss of approximately $4.2 million in the second quarter primarily due to a significant increase in legal and accounting professional fees associated with non-core business activities and increased spending on partner marketing programs.
Identiv’s second quarter revenue results were adversely impacted by a continued decline in the company’s international sales and delayed deployment timeframes for new U.S. customers. The company’s deferred revenue grew in the quarter by approximately $4.4 million, of which in excess of approximately $3.2 million will be recognized in the third quarter.
The factors that affected the company’s results in the first half of 2015 are anticipated to persist through the duration of fiscal year 2015 and as a result, Identiv now expects revenues for the year to be between $65 million and $70 million, a decrease from the previous revenue guidance range of $90 million and $95 million. In response to these factors, Identiv has begun to implement cost reduction activities and expects to be adjusted EBITDA positive on a run rate basis in the fourth quarter of 2015, compared to previous expectations of achieving positive adjusted EBITDA for the full year 2015.
“While we are disappointed that our 2015 revenues are being impacted by international softness and delayed domestic deployments, we are seeing strong demand for our products and increased momentum with new customer opportunities through our new partners and direct sales activities,” said Jason Hart, CEO of Identiv.
“In response to the financial factors, we have begun to implement cost reduction activities focused on strengthening our core identity business,” Hart added. “With recent brand name customer wins in aviation, technology, wearables, athletic apparel, healthcare and government, these actions are a way to further focus our resources on the underlying momentum in enterprise security and identities for people and objects. We expect to see a bottom-line benefit of these actions in the fourth quarter of 2015.”
The company expects to report second quarter revenue of approximately $15.6 million, an increase from $14.9 million in the first quarter and a decrease from $22.3 million in the comparable quarter of 2014. The company expects an adjusted EBITDA loss of approximately $4.2 million in the second quarter primarily due to a significant increase in legal and accounting professional fees associated with non-core business activities and increased spending on partner marketing programs.
Identiv’s second quarter revenue results were adversely impacted by a continued decline in the company’s international sales and delayed deployment timeframes for new U.S. customers. The company’s deferred revenue grew in the quarter by approximately $4.4 million, of which in excess of approximately $3.2 million will be recognized in the third quarter.
The factors that affected the company’s results in the first half of 2015 are anticipated to persist through the duration of fiscal year 2015 and as a result, Identiv now expects revenues for the year to be between $65 million and $70 million, a decrease from the previous revenue guidance range of $90 million and $95 million. In response to these factors, Identiv has begun to implement cost reduction activities and expects to be adjusted EBITDA positive on a run rate basis in the fourth quarter of 2015, compared to previous expectations of achieving positive adjusted EBITDA for the full year 2015.
“While we are disappointed that our 2015 revenues are being impacted by international softness and delayed domestic deployments, we are seeing strong demand for our products and increased momentum with new customer opportunities through our new partners and direct sales activities,” said Jason Hart, CEO of Identiv.
“In response to the financial factors, we have begun to implement cost reduction activities focused on strengthening our core identity business,” Hart added. “With recent brand name customer wins in aviation, technology, wearables, athletic apparel, healthcare and government, these actions are a way to further focus our resources on the underlying momentum in enterprise security and identities for people and objects. We expect to see a bottom-line benefit of these actions in the fourth quarter of 2015.”