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Growth in Identification Products and Continued Expense Reductions Drive Adjusted EBITDA Improvement in Seasonally Weakest Quarter Company Enters Q2 With Strong Order Book of $19 Million
SANTA ANA, Calif. and ISMANING, Germany, May 2, 2013 (GLOBE NEWSWIRE) -- Identive Group, Inc. (Nasdaq:INVE) (Frankfurt:INV), a provider of products, services and solutions for the identification, security and RFID industries, today announced results for the first quarter (Q1) ended March 31, 2013.
Q1 2013 Highlights:
18% growth in ID Products sales year over year
First commercial deployments of Tagtrail™ NFC platform to major mobile network operators
Growth in NFC, payment and other products drive margin improvements in Transponders
18% reduction year over year in base operating expenses
Record $19 million order backlog for NFC and reader products as well as payment and cloud-based systems over next 12 months, plus additional $3 million for longer-term payment system contract
"ID Products sales were up 18% year over year in Q1, reflecting growing demand for our smart card readers as well as NFC and RFID transponder products. This growth was offset by a sharp decline in our U.S. Government business related to the Federal budget sequester. The growth in ID Products and our recurring service base, coupled with reductions in our operating expenses, helped drive significant improvement in our bottom line year over year, including a $1.2 million improvement in adjusted EBITDA," stated Ayman S. Ashour, CEO and chairman of Identive. "We enter Q2 with a strong order book of over $22 million, of which a record $19 million is scheduled for billing within 12 months. We are seeing significant buildup in demand for our NFC and payment tags, our SmartCore™ smart card technology, our new reader products and our payment systems validating the significant investment we have made in these growth markets. Our cloud-based offerings, including our idOnDemand™ identity management service and our Tagtrail NFC mobile services delivery platform are gaining momentum and will make meaningful contribution in Q2. While there continues to be significant weakness in the U.S. Government sector and uncertainty regarding near-term budget issues, we remain confident that we are well positioned to benefit from the various Federal Government mandates related to identity management and access control."