New Director Brings Strong Record of Delivering Shareholder Value to Identiv's BoardSANTA ANA, Calif., April 14, 2025 /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID and BLE-enabled Internet of Things (IoT) solutions, today announced the appointment of Mick Lopez to its Board of Directors. Mr. Lopez is a public company board director and former CFO who brings decades of strategic and financial governance expertise to Identiv's Board of Directors. His extensive experience in mergers and ...

Earnings Conference Call Q4 and FY 2024 March 5, 2025 Safe Harbor | Note Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as "anticipate," "believe," "continue," "pla ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 0-29440 IDENTIV, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 77-0444317 (State or other jurisdiction of (I.R.S. Employer In ...

Financial Data and Key Metrics Changes - Fourth quarter 2024 revenue was $6.7 million, exceeding the midpoint of previously announced outlook by approximately $600,000 [17] - Fourth quarter GAAP and non-GAAP gross margin was negative 14.9% and negative 5.2%, respectively, compared to positive gross margins of 16.2% and 19.5% in Q4 2023 [18] - Fiscal year 2024 revenue was $26.6 million, a decrease of $16.8 million compared to the prior year period [23] - Fiscal year 2024 GAAP and non-GAAP gross margin was 1.3% and 8%, respectively, compared to 13.8% and 16.6% in fiscal year 2023 [24] - Fiscal year GAAP net loss from continuing operations was $25.9 million or $1.14 per share, compared to a loss of $13.9 million or $0.66 per share in fiscal year 2023 [26] Business Line Data and Key Metrics Changes - The transition of RFID production from Singapore to Thailand is a key priority, with 75% of current volume transitioned by year-end [9] - The company aims for a long-term non-GAAP gross margin target of 35% [10] - New product development pipeline includes several high-value applications, such as smart labels for home appliances and BLE devices for industrial applications [12] Market Data and Key Metrics Changes - The company is focusing on higher-margin opportunities in healthcare and other high-value segments [21] - The partnership with Novanta aims to streamline the development process for medical devices, enhancing patient safety [13] Company Strategy and Development Direction - The company has shifted to a pure-play provider of specialty RFID and BLE solutions following the sale of its physical security business [6] - The PAT (Perform, Accelerate, Transform) framework is designed to strengthen core business, accelerate growth, and transform into a market leader in specialty IoT solutions [7][36] - The company is actively assessing M&A opportunities to add scale and technical capabilities [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for RFID and BLE technologies driven by digitization, security, and sustainability trends [34] - The company anticipates that growth from new projects will be more pronounced in 2026 [80] Other Important Information - The company exited Q4 2024 with $135.9 million in cash and cash equivalents, an increase of $111 million since December 31, 2023 [27] - The capital allocation plan prioritizes organic growth and strategic M&A, with a stock repurchase program of $10 million [31] Q&A Session Summary Question: Can you expand on the Novanta partnership and revenue expectations? - The partnership is focused on technology and business development, with no specific revenue target but aims for higher gross margins in healthcare applications [59][61] Question: What is the expected impact of the grocery store device opportunity? - The BLE device is expected to have a higher price point than typical products, with hopes for early volumes by the end of this year or early next year [63][65] Question: Can you quantify the pull-in order in Q4? - The pull-in order contributed approximately $600,000 to the revenue increase in Q4 [75] Question: What are the expectations for gross margins throughout the year? - The company does not provide detailed guidance beyond one quarter but expects to be in the ballpark of mid- to high 20% margins [78] Question: Is there a timeline for EBITDA breakeven? - The company has not formally provided a timeline for EBITDA breakeven [84]

Core Insights - Identiv, Inc. reported a quarterly loss of $0.19 per share, better than the Zacks Consensus Estimate of a loss of $0.25, representing an earnings surprise of 24% [1] - The company posted revenues of $6.7 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 9.79%, but down from $28.99 million year-over-year [2] - Identiv shares have declined approximately 5.7% year-to-date, compared to a 1.8% decline in the S&P 500 [3] Financial Performance - Over the last four quarters, Identiv has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $5 million, and for the current fiscal year, it is -$0.92 on revenues of $22.3 million [7] Industry Context - The Computer - Peripheral Equipment industry, to which Identiv belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Identiv's stock performance [5]

Revenue Performance - Revenue for fiscal year 2024 was $26.6 million, a decrease of 38.7% compared to $43.4 million in fiscal year 2023[3] - Revenue for the fourth quarter of 2024 was $6.7 million, a decline of 41.9% from $11.3 million in the fourth quarter of 2023[7] - Management expects net revenue for Q1 2025 to be in the range of $4.8 million to $5.1 million[11] Profitability Metrics - GAAP gross margin for fiscal year 2024 was 1.3%, down from 13.8% in fiscal year 2023[3] - Fourth quarter 2024 GAAP gross margin was (14.9%), compared to 16.2% in the fourth quarter of 2023[7] - Non-GAAP gross profit for Q4 2024 was $(349) thousand, while Q4 2023 reported a gross profit of $2.210 million[23] - Non-GAAP gross margin for Q4 2024 was -5%, down from 19% in Q4 2023[23] Net Loss - GAAP net loss from continuing operations for fiscal year 2024 was ($25.9) million, or ($1.14) per share, compared to a loss of ($13.9) million, or ($0.66) per share in fiscal year 2023[5] - GAAP net loss from continuing operations for the fourth quarter of 2024 was ($4.3) million, or ($0.19) per share, compared to a loss of ($3.3) million, or ($0.16) per share in the fourth quarter of 2023[9] - GAAP net loss from continuing operations for Q4 2024 was $4.277 million, compared to a loss of $3.325 million in Q4 2023[23] - Non-GAAP adjusted EBITDA loss for fiscal year 2024 was ($15.8) million, compared to ($9.5) million in fiscal year 2023[6] - Non-GAAP adjusted EBITDA for the year ended December 31, 2024, was $(15.791) million, compared to $(9.492) million for the year ended December 31, 2023[23] Operating Expenses - GAAP operating expenses for fiscal year 2024 were $28.3 million, up from $19.5 million in fiscal year 2023[4] - Non-GAAP operating expenses for fiscal year 2024 were $17.9 million, compared to $16.7 million in fiscal year 2023[4] Balance Sheet Highlights - Total assets decreased to $160.951 million from $177.029 million, a decline of approximately 9.6%[21] - Current liabilities significantly reduced to $7.812 million from $19.011 million, a decrease of about 58.9%[21] - Total stockholders' equity increased to $151.943 million from $156.740 million, a decrease of about 3.6%[21] - Cash and cash equivalents decreased to $135.646 million from $145.361 million, a decline of about 6.4%[21] - Operating lease liabilities decreased to $852 thousand from $880 thousand, a reduction of approximately 3.2%[21] - Non-current liabilities held-for-sale decreased to $0 from $3.136 million, indicating a complete divestiture[21]

Core Insights - Identiv, Inc. is transitioning into a pure play IoT solutions company, focusing on growth through strategic partnerships and product development [2] - The company reported a significant decline in revenue for fiscal year 2024, totaling $26.6 million, down from $43.4 million in fiscal year 2023 [3] - Identiv's GAAP net loss from continuing operations for fiscal year 2024 was $25.9 million, or $1.14 per share, compared to a loss of $13.9 million, or $0.66 per share, in fiscal year 2023 [5] Financial Results for Fiscal Year 2024 - Revenue for fiscal year 2024 was $26.6 million, a decrease of 38.7% from $43.4 million in fiscal year 2023 [3] - GAAP gross margin for fiscal year 2024 was 1.3%, down from 13.8% in fiscal year 2023; non-GAAP gross margin was 8.0%, compared to 16.6% in the previous year [3] - GAAP operating expenses increased to $28.3 million in fiscal year 2024 from $19.5 million in fiscal year 2023, with non-GAAP operating expenses rising to $17.9 million from $16.7 million [4] Financial Results for Fiscal Fourth Quarter 2024 - Revenue for the fourth quarter of 2024 was $6.7 million, down from $11.3 million in the fourth quarter of 2023, representing a decline of 40.5% [6] - GAAP gross margin for the fourth quarter of 2024 was (14.9%), compared to 16.2% in the fourth quarter of 2023; non-GAAP gross margin was (5.2%), down from 19.5% [6] - GAAP net loss from continuing operations for the fourth quarter of 2024 was $4.3 million, or $0.19 per share, compared to a loss of $3.3 million, or $0.16 per share, in the fourth quarter of 2023 [8] Financial Outlook - For fiscal Q1 2025, Identiv expects net revenue to be in the range of $4.8 million to $5.1 million, indicating a cautious outlook based on current market conditions [9]

Core Insights - Identiv and Novanta have formed a strategic partnership to market RFID-based solutions aimed at medical device and pharmaceutical manufacturers, addressing a significant market gap for end-to-end solutions in access, identification, and traceability [1][4] Group 1: Partnership Objectives - The collaboration will focus on marketing RFID solutions for smart medical devices, advanced diagnostics, and wearables, enhancing product performance and patient safety [2][3] - By integrating Identiv's RFID inlays with Novanta's reader technology, the partnership aims to simplify the development process for medical device manufacturers [2][3] Group 2: Market Impact - The partnership is expected to optimize the ecosystem for healthcare manufacturers, enabling them to evaluate and implement RFID solutions more easily, thus reducing complexity and accelerating time to market [3] - Novanta's President highlighted that the collaboration will support real-time monitoring of patient vitals and medication compliance, significantly improving patient safety and hospital compliance [4] Group 3: Company Backgrounds - Identiv specializes in RFID-enabled IoT solutions, with over 1.5 billion applications globally, driving innovation across various sectors including healthcare [6] - Novanta is a leading supplier of technology solutions for medical and life sciences, focusing on precision medicine and advanced industrial applications [7]

Financial Performance - For the three months ended September 30, 2024, net revenue was $9.045 million, a decrease of 55.1% compared to $20.114 million for the same period in 2023[25]. - Gross profit for the three months ended September 30, 2024, was $3.835 million, down 64.1% from $10.622 million in the prior year[25]. - Operating expenses increased to $8.171 million for the three months ended September 30, 2024, compared to $6.962 million in the same period of 2023, representing a 17.3% increase[25]. - The Company reported a net loss of $4.268 million for the three months ended September 30, 2024, compared to a net income of $3.638 million for the same period in 2023[25]. - The net loss from continuing operations for the three months ended September 30, 2024, was $9.3 million, compared to a loss of $3.7 million for the same period in 2023[64]. - For the three months ended September 30, 2024, total net revenue was $6,532,000, a decrease of 44% compared to $11,732,000 for the same period in 2023[68]. Discontinued Operations - The Company has classified the results of the Physical Security Business as discontinued operations in its financial statements[24]. - The gain on the sale of the Physical Security Business, net of taxes, was $99.546 million, subject to adjustments based on tax analysis[23]. - Basic net income per common share for discontinued operations was $4.03 for the three months ended September 30, 2024, compared to $0.16 for the same period in 2023[64]. - The Company completed the sale of its Physical Security Business for approximately $144.3 million in cash on September 6, 2024[21]. - The Company completed the sale of its Physical Security Business in Q3 2024, resulting in a single reportable segment: the IoT Business segment[67]. Cash and Investments - The company reported cash equivalents of $60.0 million and treasury bills of $65.0 million as of September 30, 2024, both classified as Level 1 fair value measurements[37]. - The company had $348,000 of privately-held investments measured at fair value on a nonrecurring basis as of September 30, 2024, classified as Level 3 assets[38]. - The company had no outstanding amounts under the Loan Agreement as of September 30, 2024, with $20.0 million available[45]. Inventory and Assets - As of September 30, 2024, the company's total inventories decreased to $10.71 million from $13.56 million as of December 31, 2023, representing a decline of approximately 21.0%[40]. - The company’s total property and equipment, net, was $8.203 million as of September 30, 2024, a slight decrease from $8.472 million as of December 31, 2023[42]. - As of September 30, 2024, there are 444,460 stock options outstanding with a weighted average exercise price of $4.36 and an aggregate intrinsic value of $0[53][55]. Stock-Based Compensation - The Company recognized $0.2 million in stock-based compensation related to the modification of stock options for the former CEO in Q3 2024[55]. - The Company recognized $3.8 million in stock-based compensation expense in Q3 2024 due to the vesting of RSUs held by employees who transitioned to the Buyer following the Asset Sale[57]. - Total stock-based compensation expense for continuing operations was $2.6 million for the nine months ended September 30, 2024, compared to $1.5 million for the same period in 2023[61]. - The Company granted 477,500 Performance Stock Units (PSUs) during the nine months ended September 30, 2024, with an unrecognized compensation expense of $1.8 million related to unvested PSUs[59][60]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $2.311 million, an increase of 21.8% from $1.897 million in the same period of 2023[25]. Lease Obligations - The company reported total minimum lease payments of $2,359,000 for the remaining years, with long-term operating lease liabilities of $1,251,000[74]. - Cash paid for operating lease liabilities was $0.3 million for Q3 2024, unchanged from Q3 2023[75]. - The weighted average remaining lease term for operating leases was 2.5 years, with a discount rate of 7.6%[74]. Other Financial Metrics - The company’s accrued professional fees increased to $594,000 as of September 30, 2024, compared to $404,000 as of December 31, 2023, an increase of approximately 47.0%[43]. - The balance of Series B convertible preferred stock increased to $27.271 million as of September 30, 2024, from $26.270 million as of September 30, 2023, reflecting an increase of approximately 3.8%[49]. - The company’s financial liabilities, net of debt issuance costs, were $9.949 million as of December 31, 2023, with no liabilities reported as of September 30, 2024[44].

Financial Data and Key Metrics Changes - The third quarter net revenue was $6.5 million, slightly above previous guidance but a decrease of $5.2 million compared to the prior year period [7][17] - GAAP gross margin for Q3 2024 was 3.6%, down from 11.2% in Q3 2023, while non-GAAP gross margin was 9.3%, down from 14% in the same period [17][20] - The company exited Q3 2024 with $145.7 million in cash, an increase of $121.4 million since December 31, 2023 [22] Business Line Data and Key Metrics Changes - The transition of RFID and BLE production from Singapore to Thailand is ongoing, with nearly 75% expected to be transitioned by year-end [8][10] - The company anticipates non-GAAP gross margin to almost double to 26% to 28% once production is fully transitioned to Thailand [10][18] Market Data and Key Metrics Changes - The company is focusing on higher-margin opportunities in healthcare and other high-value segments to improve gross margins [18] - The total addressable market for healthcare initiatives is estimated at over 10 billion units annually, translating to $1.5 billion to $2 billion in RFID and BLE inlay sales [35][36] Company Strategy and Development Direction - The company has shifted its focus solely to building its IoT business and developing specialty RFID and Bluetooth low energy solutions [5] - A new growth strategy called Perform, Accelerate, and Transform will be implemented starting Q1 2025 to optimize core business performance and drive revenue expansion [30][31] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a non-GAAP gross margin of 26% to 28% by the end of 2025 as production transitions are completed [55] - The company sees strong macro trends driving demand for RFID and next-generation technologies, positioning itself well for future growth [49] Other Important Information - The company announced a $10 million share repurchase program as part of its capital allocation strategy [43][47] - The board is reviewing corporate governance policies to align with the company's new strategic direction [45] Q&A Session Summary Question: Near-term confidence in attaining non-GAAP gross margin - Management is confident in achieving the 26% to 28% non-GAAP gross margin range by the end of 2025 as production transitions are on track [54] Question: Cash burn trajectory - Management confirmed expected cash burn over the next 12 months to be in the range of $14 million to $16 million, indicating that $25 million for the following year is too high [56][58] Question: Potential acquisition timing for revenue growth - Management is actively looking at potential acquisition targets but does not have a specific timeline in place [59] Question: Pharmaceutical companies penetration - Management highlighted active NPD projects in the pharmaceutical sector and plans to focus on this area for additional opportunities [62]