Identiv has announced its financial results for the first quarter of 2015, notching up total revenues of US$14.9 million and GAAP gross profit margin of 41%.Total revenues were US$14.9 million, a decrease of 11% from US$16.9 million for the same period of 2014, primarily due to a decline in identity reader sales in Europe, the Middle East and Africa (EMEA) and Asia-Pacific as well as lower digital media reader sales. This was partially offset by an increase in premises sales.GAAP gross profit margin was 41%, compared to 39% last year, primarily due to an increase in credentials margin, partially offset by a decrease in identity reader and premises margin.Base operating expenses, which include research and development, sales and marketing, and general and administrative costs, were up by 5% to US$10.1 million (US$9.6 million). This is primarily the result of an increase in R&D-related expenditure.Adjusted EBITDA for the quarter was US$(1.9) million, compared to US$(2.0) million.GAAP net loss from continuing operations was US$(5.8) million in the first quarter of 2015, or US$(0.54) per share, compared with GAAP net loss from continuing operations of US$(5.6) million, or US$(0.74) per share in 2014. First quarter 2015 results included restructuring costs of US$0.2 million (US$0.4 million).The company was awarded four additional US patents in Q1."During the first quarter, we continued to tune and focus our business operations, which resulted in strong sales in our premises and credential product lines," says Jason Hart, CEO of Identiv. "However, despite this strength in premises and credentials, we experienced an unexpected decline in the first quarter in our international desktop reader business and generally unfavourable conditions in Europe, as well as the typical first quarter seasonality and an unfavourable foreign currency impact. As a result of these factors, our first quarter revenue was lower than expected."As we look forward, our business and market outlook over the next 12 months is positive. Our visibility into this sales forecast is supported by new projects with brand names in toys, wearables, smart batteries, perishable products, and apparel. These new projects further demonstrate demand for our secure Internet of Things (IoT) technology and solutions – a demand which did not exist 12 months ago."Our announcement of a major global partnership with a leading technology company has further enhanced our confidence in our ability to access previously unavailable markets and customers, and we have been impressed by the activity levels in these sales channels."The demand for IoT security and privacy continues to grow and we remain focused on driving results from our selling organizsation and working closely with our strategic partners to deliver improved financial and operating results."Identiv now expects revenues for the fiscal year 2015 of between US$90 million and US$95 million, a decrease from the previous revenue guidance range of US$95 million to US$105 million. The company is reaffirming its guidance for positive adjusted EBITDA on an annual basis.
Identiv releases Q1 results
