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Mar 31, 2020
Identiv Q1 2020 Earnings Report
Identiv's financial performance decreased slightly compared to the previous year, but recurring revenue and gross margins improved.
Key Takeaways
Identiv reported a decrease in revenue for the first quarter of 2020, with revenue decreasing by 7% compared to Q1 2019. However, the company saw an increase in recurring revenue and improved gross margins. The company also highlighted strong demand for smart card readers and RFID business.
Recurring revenue increased 13% year-over-year to $2.0 million.
Software and services revenue was 15% of total revenue or $2.8 million.
GAAP Gross margin increased 164 basis points from Q4 2019 to 41%.
Backlog for Q2 2020 increased 85% from the prior quarter and 100% from the same period last year.
Identiv
Identiv
Identiv Revenue by Segment
Revenue by Segment
Premises Revenue
CapyFin.comIdentity Revenue
CapyFin.com Forward Guidance
Identiv anticipates revenue between $86 and $90 million for the year and expects gross margin to remain consistent with Q1 2020 levels.
Positive Outlook
- Visibility to Revenue in the range of $86-90 million consistent with prior guidance
- Potentially improved results for more confidence around the 2nd half of the year
- Gross margin for fiscal 2020 will be relatively consistent with Q1 2020 levels
- Undertaking additional cost-optimization measures to reduce operating expenses
- Adequate capital available to fund our business and return to positive Non GAAP Free Cash Flow exiting Q4 2020
Challenges Ahead
- General uncertainty regarding the short term economic environment
- Subject to various important cautionary factors referenced in the section entitled “Note Regarding Forward-Looking Information”
- Risks and uncertainties associated with the COVID-19 pandemic
- Expected choppiness in Q2
- Recognizing the current macroeconomic unknowns
Revenue & Expenses
Visualization of income flow from segment revenue to net income