Identiv announces preliminary results

Identiv has announced its preliminary results for the quarter ended June 30 2015 and updated its annual revenue guidance.The company expects to report second quarter revenue of approximately US$15.6 million, an increase from US$14.9 million in the first quarter but down on the US$22.3 million reported in the same quarter of 2014. It also expects an adjusted EBITDA loss of approximately US$4.2 million in the second quarter. This is primarily due to a significant increase in the legal and accounting fees associated with non-core business activities and increased spending on partner marketing programmes.Identiv's second quarter results were affected by a continued decline in the company's international sales and delayed deployment timeframes for new US customers. The company's deferred revenue grew in the quarter by approximately US$4.4 million, of which more than US$3.2 million will be recognised in the third quarter.It says it anticipates that factors that affected its results in the first half of 2015 will persist for the rest of the financial year. As a result, Identiv now expects revenues for the year to be between US$65 million and US$70 million, a decrease on previous forecasts of US$90 million to US$95 million. In response, the company has begun to reduce costs 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," says 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. 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."

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