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| For the fourth quarter total revenues for continuing operations were $19.4 million |
Identiv, Inc. recently announced financial results for the fourth quarter (Q4) and fiscal year ended December 31, 2014. For the fourth quarter, total revenues for continuing operations were $19.4 million, GAAP gross profit margin was 41.5%, adjusted EBITDA was $0.16 million, and GAAP net loss was $(6.2) million. For the fiscal year, total revenues for continuing operations were $81.2 million, GAAP gross profit margin was 41.2%, adjusted EBITDA was $(1.3) million, and GAAP net loss was $(17.8) million.
“In 2014, we successfully completed two substantial tasks — creating a fiscally stable business delivering quality security products to our customers; and aligning Identiv to take the leadership position in providing privacy and security as the Internet of Things continues to expand exponentially,” said Jason Hart, Identiv CEO. “During the fourth quarter and throughout the year, we invested extensively in new products, increased our penetration into new markets with new distribution, OEM, and integrator partnerships, and expanded our direct sales organisation. This investment in 2014, along with our realignment of the business, has enabled us to focus on growth in 2015 and the years to come. We are at an incredible intersection of unprecedented connectivity and the new demand for privacy and security at all levels of our society, creating a marketplace for our solutions and enabling us to create value for shareholders.”
Fourth quarter financial highlights review
- In reviewing the results for the fourth quarter of fiscal year 2014, all figures are compared to the fourth quarter of fiscal year 2013, unless stated otherwise:
- Total revenues were $19.4 million, a decrease of 1% from $19.5 million, primarily due to a decrease in Identity reader sales, partially offset by an increase in premises sales to the U.S. government customers.
- GAAP gross profit margin was 42%, compared to 44%, primarily due to a decrease in credentials margin.
- Base operating expenses, which include research and development, sales and marketing, and general and administrative costs were $9.8 million, compared to $9.2 million, up 7%. This is primarily a result of increased expenditures in research and development, partially offset by a $0.4 million non-recurring R&D tax credit in the fourth quarter of 2013.
"In 2014, we successfully completed two substantial tasks — creating a fiscally stable business delivering quality security products to our customers; and aligning Identiv to take the leadership position in providing privacy"
- Adjusted EBITDA for the quarter was $0.16 million, compared to $0.37 million. Adjusted EBITDA in the prior year quarter benefited from the non-recurring R&D tax credit.
- GAAP net loss from continuing operations was $(6.2) million in the fourth quarter of 2014, or $(0.58) per share, compared with GAAP net loss of $(3.0) million, or $(0.88) per share. Fourth quarter 2014 results included restructuring costs of $0.2 million and earn-out consideration charge of $3.5 million, while there were restructuring costs of $0.5 million and impairment charges to goodwill and long lived assets of $4.6 million in the fourth quarter of 2013.
Fiscal year 2014 financial highlights
In reviewing the results for fiscal year 2014, all figures are compared to fiscal year 2013 unless stated otherwise:
- Total revenue was $81.2 million in 2014, up 9% from $74.3 million. The results include a significant contribution from sales of credentials products, primarily due to demand for electronic game toys. This was offset by lower sales of identity readers.
- GAAP gross profit margin was 41%, compared to 45%, primarily due to product mix and lower margins experienced in the Credential segment.
- Base operating expenses, which include research and development, sales and marketing, and general and administrative costs, were $40.3 million, compared to $39.3 million, up 2%. The company increased its investment in sales and marketing by 9% and in research and development by 10%, partially offset by a reduction in general and administrative expenses of 10%.
- Adjusted EBITDA in 2014 was $(1.3) million, compared with $(1.3) million.
- GAAP net loss from continuing operations was $(18.4) million in 2014 or $(2.12) per share, compared with GAAP net loss from continuing operations of $(25.0) million or $(3.62) per share. Fiscal year 2014 results included restructuring costs of $3.1 million and earn-out consideration charge of $3.5 million, while there were restructuring costs of $1.8 million and impairment charges to goodwill and long lived assets of $15.6 million in the fourth quarter of 2013.
- Cash was $36.5 million at December 31, 2014, compared with $5.1 million at December 31, 2013, reflecting proceeds from a refinancing of debt in March 2014 (and amended in November 2014) and an underwritten offering of common stock in September 2014.
