EANS-News: Identive Group Inc. IDENTIVE GROUP ANNOUNCES FOURTH QUARTER AND
FISCAL 2011 RESULTS
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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annual result
Subtitle: -21% growth to over $100 million in 2011
-Positive adjusted EBITDA and second consecutive quarter of positive cash flow
from operations in Q4
SANTA ANA, Calif. and ISMANING, Germany, March 1, 2012 (euro adhoc) - Identive
Group, Inc. (NASDAQ: INVE; Frankfurt: INV), a provider of products, services and
solutions for the security, identification and RFID industries, today announced
results for the fourth quarter (Q4) and year ended December 31, 2011.
Highlights of 2011 included:
21% revenue growth to $102.7 million
Delivery of a broad range of near field communications (NFC)
infrastructure products globally, including multiple types of NFC tags, tag
customization, readers, tokens and software development kits
Launch of idOnDemand Software as a Service (SaaS)-based credential
management solution
Expansion of IP portfolio to address larger and emerging growth markets,
including radio frequency identification (RFID) tags, smart card manufacturing
and innovative credential management products
80% expansion in transponder manufacturing capacity
Significant improvement in cash performance
"2011 was a year of important accomplishments for Identive," said Ayman S.
Ashour, chairman and CEO of Identive. "Our diverse revenue base enabled us to
achieve strong growth despite an estimated $3.6 million decline in sales to the
U.S. Government sector, which continued to experience budget uncertainties and
resulting project delays. Building on our unique expertise in both RFID and
smart card technologies, we have positioned ourselves as a leading
infrastructure player in the emerging NFC ecosystem. Our launch of idOnDemand as
a pioneering Identity as a Service solution is gaining traction and spinning off
innovative technology to enhance our product offerings. Increased investment in
R&D has generated new patent pending-technology that, together with our
increased transponder production capacity, will allow us to expand our
addressable markets for physical access and cyber security. We also made
significant improvements particularly in the last two quarters in our cash
performance, which increasingly allows us to fund our growth from our own
operations."
The following results are reported in U.S. GAAP, except as noted. Identive uses
certain non-GAAP measures as a way to compare the underlying performance of our
business from period to period, and a discussion of non-GAAP measures and
reconciliation to the applicable GAAP measures is included below.
Full Year 2011 Results
Revenue for the full year 2011 was $102.7 million, up 21% from $84.8 million in
2010 and reflecting organic growth outside the U.S. Government market of 17%, as
well as growth from acquisitions.
Revenue from Identive´s Identity Management services and solutions segment was
$56.5 million in 2011, up 19% from $47.5 million in 2010 and benefitting from
strong sales of credential management solutions to support consumer and citizen
ID programs and growing demand in the education market and for payment
applications. This growth was offset by a decline in sales of enterprise
security and identity management systems to the U.S. Government due to ongoing
budget uncertainty and project delays.
Revenue from the Company´s ID Product segment was $46.2 million in 2011, up 24%
compared with $37.3 million in 2010, driven by a 64% increase in sales of RFID
transponder inlays, tags and other products for a variety of applications
including transit and event ticketing, NFC advertising and payment and secure
asset tracking. Growth was also supported by sustained demand for smart card and
contactless reader technology for the German electronic health card program,
national ID and corporate ID programs in Europe, and increased demand from a
variety of markets in Asia. Sales in the ID Products segment grew despite lower
sales of readers used to provide secure access to PCs and computer networks in
the U.S. Government sector.
Gross profit margin in 2011 was 42%, compared with 44% in 2010. Non-GAAP gross
profit margin (excluding amortization and depreciation, overhead allocations,
transition and acquisition costs and stock-based compensation) was 46% in 2011,
compared with 48% in 2010. Lower sales to the U.S. Government market decreased
overall gross profit margin in 2011, partially masking gross profit margin
improvement in other parts of the Company´s business, particularly in the ID
Products segment.
Research and development expenses in 2011 grew nearly 50% from 2010 as the
Company increased its investments in core technology and new product and
solutions offerings. Sales and marketing expenses as a percentage of sales
remained relatively consistent year over year despite continued market
development for existing and emerging opportunities. General and administrative
expenses declined 4 percentage points as a percentage of sales year over year,
reflecting the Company´s ongoing focus on improving efficiency and emphasizing
synergies across the business.
Net loss in 2011 was $(9.5) million, or $(0.18) per share, compared with net
loss in 2010 of $(9.5) million, or $(0.22) per share. Net loss in 2011 included
non-cash charges of $7.7 million, of which $4.1 million was primarily due to
amortization expense related to acquisitions.
On a non-GAAP basis, adjusted EBITDA (EBITDA before equity-based compensation,
adjustments to earnout estimates, and acquisition, transition and integration
costs) was $(0.7) million in 2011, compared with adjusted EBITDA of $1.1 million
in 2010.
Net cash used in operating activities improved to $4.6 million used in 2011,
compared with $9.3 million used in 2010.
Q4 2011 Results
Revenue in Q4 2011 was $27.9 million, compared with $27.8 million in Q4 2010 and
up 4% from $26.8 million in the third quarter (Q3) of 2011.
Revenue from the Company´s Identity Management services and solutions segment
was $14.2 million in Q4 2011 and reflected sales of credential management and
payment solutions for a diverse range of consumer and citizen ID programs,
offset by a more pronounced drop in sales to the U.S. Government market. Revenue
from the Company´s ID Product segment was $13.7 million in Q4 2011 and reflected
strong demand for readers from the Japanese telecommunications market that drove
near 100% growth in sales to Japan year over year, as well as shipments of
terminals for the German eHealth card program and increased sales of RFID
inlays, tags and other products for contactless ticketing and other
applications.
Gross profit margin was 41% in Q4 2011, compared with 43% in Q4 2010 and 44% in
Q3 2011. Non-GAAP gross profit margin (excluding amortization and depreciation,
overhead allocations, transition and acquisition costs and stock-based
compensation) was 45% in Q4 2011, compared with 46% in Q4 2010 and 48% in Q3
2011. Gross profit margin in Q4 2011 was negatively impacted by lower sales of
enterprise security systems to the U.S. Government market, while gross profit
margin in the Company´s ID Products segment improved year over year.
Net loss was $(2.4) million, or $(0.04) per share in Q4 2011. This compares to
net loss of $(0.8) million, or $(0.02) per share in Q4 2010 and net loss of
$(3.7) million, or $(0.06) per share in Q3 2011. Net loss in Q4 2011 included
non-cash charges of $2.2 million, of which $1.2 million was primarily due to
amortization expense related to acquisitions. Non-GAAP adjusted EBITDA (EBITDA
before stock-based compensation, adjustments to earnout estimates, and
acquisition, transition and integration costs) was $0.2 million in Q4 2011,
compared with $2.9 million in Q4 2010 and $(0.3) million in Q3 2011.
Cash and cash equivalents at December 31, 2011 were $17.2 million, compared with
$17.7 million at September 30, 2011 as a result of ongoing payment of debt
obligations offset by improvements in operating cash flow.
"We generated traction in important growth markets in Q4 as we increased sales
in Japan, expanded deployments of our payment solutions and began selling our
first purpose-built products for converged physical and cyber access," added
Ashour. "Even as we continued to invest in new technology, product and market
development and production capacity, we also reduced G&A spending and generated
$0.9 million in cash from operating activities in the quarter. We expect that
typical seasonality will result in a lower revenue trend in the first quarter
but are confident that our market position, robust portfolio of technology and
offerings as well as our sound financial base position us to make further
progress in 2012 towards our strategy to be the signature company in Secure ID."
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 866.831.6247 (toll free within the U.S.)
or +1 617.213.8856 (for international callers) and using pass code 18753357. 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 thirty days 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 30673076.
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, NFC and a host of RFID-enabled applications for
customers in the government, enterprise, consumer, education, healthcare and
transportation 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. For additional info visit:
www.identive-group.com.
Use of Non-GAAP Financial Information
In evaluating our business, our adjusted EBITDA and non-GAAP gross profit margin
differ from GAAP net income (loss) and GAAP gross profit margin due to the
exclusion of certain items detailed in the reconciliation table within this
press release. Our management uses each of these non-GAAP measures internally
and believes that they provide investors with a meaningful way to evaluate the
Company´s operating performance. However, we caution investors to consider these
non-GAAP financial measures in addition to, and not as a substitute for, our
GAAP financial measures.
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 about our
expectations regarding continued demand for our products, solutions and
services, our ability to capitalize on our position in markets for secure
identification technologies, 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, 2010 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.
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