EANS-News: Identive Group Inc. / IDENTIVE GROUP ANNOUNCES PRELIMINARY FIRST QUARTER 2012 RESULTS
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
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quarterly report
SANTA ANA, Calif. and ISMANING, Germany, May 10, 2012 (euro adhoc) –
Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV), a provider of
products, services and solutions for the identification, security and
RFID industries, today announced preliminary results for the fiscal
first quarter (Q1), ended March 31, 2012. These results are subject
to the completion of the review of the Company’s financial results
for the quarter. Final results will be disclosed in the Company’s
Quarterly Report on Form 10-Q.
„Our Q1 revenue performance was at the lower end of our expectations,
reflecting typical seasonality, the absence of new contracts for the
German national ID program, which contributed $2.9 million in the
2011 first quarter, and order deferrals from two large Transponder
customers. Sales of our higher-margin enterprise security systems
grew 10% due to a widening customer base in the U.S. and Europe, as
well as a small amount of movement on delayed projects with some U.S.
Government agencies. With the acquisition of Payment Solution AG in
Germany and the expansion of our Cashless Betalen payment system in
The Netherlands, our cashless payment business accounted for over 13%
of our total non-GAAP revenue of $21.9 million in Q1 and further
expanded our recurring revenue base,“ said Ayman S. Ashour, chairman
and chief executive officer of Identive Group, Inc. „Operating
expense levels in Q1 reflected our continued investments for the near
field communication, converged access and Software as a Service
markets. As we enter Q2 we are encouraged by market reception for our
NFC and SaaS offerings and by the build-up of our order book.“
Q1 results As reported in accordance with U.S. generally accepted
accounting principles (GAAP) and on a preliminary basis, revenue was
$21.2 million in Q1 2012, compared with $22.4 million in Q1 2011 and
$27.9 million in the fourth quarter (Q4) of 2011. By segment, revenue
from Identity Management Services and Solutions was $12.7 million and
revenue from ID Products was $8.5 million in Q1 2012. GAAP gross
profit margin was 41% in Q1 2012, compared with 42% in Q1 2011 and
41% in Q4 2011. Net loss was $(6.2) million, or $(0.11) per share in
Q1 2012. This compares to net loss of $(1.9) million, or $(0.04) per
share in Q1 2011 and net loss of $(2.4) million, or $(0.04) per share
in Q4 2011. Net loss in Q1 2012 included non-cash charges of $2.2
million, of which $0.9 million was primarily due to amortization
expense related to acquisitions.
Non-GAAP revenue of $21.9 million in Q1 2012 includes the assumed
breakage from consumer payment cards where, based on historical
experience the likelihood of redemption is remote as well as timing
differences on revenue associated with the personalization of
preprinted payment cards and tags.
Non-GAAP gross profit margin was 45% in Q1 2012, compared with 46% in
Q1 2011 and 45% in Q4 2011. Adjusted EBITDA was $(3.1) million in Q1
2012, compared with $(0.3) million in Q1 2011 and $0.2 million in Q4
2011. Non-GAAP gross profit margin excludes amortization and
depreciation, overhead allocations, transition and acquisition costs
and stock-based compensation and includes the assumed breakage from
consumer payment cards where, based on historical experience the
likelihood of redemption is remote as well as timing differences on
revenue associated with the personalization of preprinted payment
cards and tags. Adjusted EBITDA reflects EBITDA before stock-based
compensation, adjustments to earn-out estimates, and acquisition,
transition and integration costs, and includes the assumed breakage
from consumer payment cards where, based on historical experience the
likelihood of redemption is remote as well as timing differences on
revenue associated with the personalization of preprinted payment
cards and tags.
A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release. An
explanation of these measures is also included below under the
heading „Non-GAAP Financial Measures.“
Cash and cash equivalents at March 31, 2012 were $13.3 million,
compared with $17.2 million at December 31, 2011, reflecting
expenditures of $1.5 million for capital equipment, $0.5 million for
the purchase of the remaining shares of idOnDemand, $0.2 million
related to the acquisition of Payment Solutions AG, $0.6 million for
quarterly payments on financial liabilities and funding of
operations.
Q1 2012 Business Highlights
Identive won several large projects in the government and critical
infrastructure markets in Q1 2012, including:
– Orders for 266,000 smart card readers for secure network logon for a
U.S. Government agency;
– Expansion of a contract for enterprise security systems valued at $1.6
million for an agency within the U.S. Department of Justice;
– Expansion of a contract to secure switching facilities for a
telecommunications company in the EMEA region; and
– Selection to provide systems and professional services for a terminal
access upgrade project at El Paso International Airport, which follows the
Company’s earlier selections for similar projects at airports in Austin, Long
Beach, Palm Springs, Sacramento and San Diego.
In March 2012, Identive launched important products in which the
Company has made significant investments:
– The next-generation Hirsch Identive access control system seamlessly
bridges physical and IT infrastructures, enabling organizations to improve
security, reduce data redundancy and comply with current and evolving
information and physical security standards;
– The TouchSecure line of readers enable customers to upgrade quickly
their facilities to include integrated network access without added cost or
disruption to existing physical access systems; and
– Integrated solutions using Hirsch Identive’s new access control platform
and the TouchSecure reader enable customers use NFC-enabled mobile phones as
secure credentials to access their facilities and log on to computer networks.
„In recent months we have experienced increasing synergy between the
different parts of our business in product development and sales, as
we are now moving beyond the build-out of Identive’s component parts
to focus on a shared approach in our target markets,“ continued
Ashour. „Changes in our organization and management are accelerating
the marriage of innovation from our newer technology growth areas
with our established sales channels and customer base.“
Conference Call and Webcast Information Identive Group will host a
conference call and webcast today at 9:00 AM Eastern Time, which can
be accessed by dialing 866.271.0675 (toll free within the U.S.) or +1
617.213.8892 (for international callers) and using pass code
92881906. A webcast of the call that includes presentation slides can
be accessed by visiting the investor relations section of the
Company’s website at www.identive-group.com, and by clicking on
„Presentations, Reports & Webcasts,“ where it also will be archived
for those unable to listen to the live webcast. An audio replay of
the call also will be available for one week and can be accessed by
dialing 888.286.8010 (toll free within the U.S.) or +1 617.801.6888
(for international callers) and using pass code 96548996.
About Identive Group Identive Group, Inc. (NASDAQ: INVE; Frankfurt:
INV) is focused on building the world’s signature company in Secure
ID. The company’s products, software, systems and services address
the markets for identity management, physical and logical access
control, cashless payment, NFC solutions and a host of RFID-enabled
applications for customers in the government, enterprise, consumer,
education and healthcare sectors. Identive’s mission is to build a
lasting business of scale and technology based on a combination of
strong technology-driven organic growth and disciplined acquisitive
expansion. The company delivers up-to-date information on its
activity as well as industry trends through its industry-leading
social media initiatives and educational resource, AskIdentive.com.
For additional information, please visit www.identive-group.com or
follow on Twitter at @IdentiveGroup.
Non-GAAP Financial Measures Identive has provided in this release
selected preliminary financial information that has not been prepared
in accordance with GAAP. This information includes non-GAAP revenue,
gross profit margin, and adjusted EBITDA. Identive uses these
non-GAAP financial measures internally in analyzing its financial
results and believes they are useful to investors, as a supplement to
GAAP measures, in evaluating Identive’s ongoing operational
performance. Identive believes that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends. As noted, the
preliminary non-GAAP financial results discussed above add back or
exclude various items which are detailed in the reconciliation table
contained within this release. Assumed breakage from consumer payment
cards where, based on historical experience the likelihood of
redemption is remote, relates to our Payment Solutions AG business
and timing differences related to cards and tags relates to the
two-step process under which preprinted customized payment cards and
tags are provided to customers for subsequent personalization for
their end-users. Non-GAAP financial measures should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to review
the reconciliation of these non-GAAP measures to their most directly
comparable GAAP financial measures as detailed in this release.
Note Regarding Forward Looking Information: This press release
contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements can be identified by words such as „anticipates,“
„believes,“ „plans,“ „will,“ „intends,“ „expects,“ and similar
references to the future. Examples of such statements include,
without limitation, statements we make regarding our preliminary
results for Q1 2012, our expectations regarding continued demand for
our products, solutions and services, our expectations regarding
market acceptance of our NFC and SaaS offerings, our ability to
achieve results from increased investment in R&D, our ability to
capitalize on our technology portfolio, and our expectations for
future growth and profitability. Readers should not unduly rely on
these forward-looking statements, which are not a guarantee of future
performance and are subject to a number of risks and uncertainties,
many of which are outside our control, which could cause our actual
business and operating results to differ. Factors that could cause
actual results to differ materially from those in the forward-looking
statements include our ability to grow our company based on a
strategy of providing products, components and services for the
secure identification market; to successfully develop and
commercialize new products and solutions that satisfy the evolving
and increasingly complex requirements of customers; whether the
markets in which we participate or target may grow, converge or
standardize at anticipated rates or at all, including the markets
that we are targeting; our ability to successfully integrate acquired
businesses; our ability to successfully compete in the markets in
which we participate or target; and general global political and
economic factors which are beyond our control but may unduly impact
our markets and our business. For a discussion of further risks and
uncertainties related to our business, please refer to our public
company reports, including our Annual Report on Form 10-K for the
year ended December 31, 2011 and subsequent reports filed with the
U.S. Securities and Exchange Commission. All forward-looking
statements are based on information available to us on the date
hereof, and we assume no obligation to update such statements. ###
All trade names are trademarks or registered trademarks of their
respective holders.
– FINANCIALS FOLLOW –
Further inquiry note:
Mr. Lennart Streibel
Tel.: +49 89 9595-5195
E-Mail: lstreibel@identive-group.com
end of announcement euro adhoc
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company: Identive Group Inc.
Carnegie Ave., Bldg. B 1900
US-CA 92705 Santa Ana
phone: +1 949 553 4280
FAX: +49 89 9595-5555
mail: investorrelations@identive-group.com
WWW: http://www.identive-group.com
sector: Computing & Information Technology
ISIN: US45170X1063
indexes: NASDAQ
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
Nasdaq: New York, Open Market / Entry Standard: Frankfurt
language: English