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
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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.
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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