This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Identive Group Provides Preliminary Results For Its 2013 Second Quarter

-     Investments driving growth in Transponders, NFC and idOnDemand SaaS -       Earnings call and webcast to discuss Q2 results scheduled for August 13, 2013

SANTA ANA, Calif. and ISMANING, Germany, July 19, 2013 (GLOBE NEWSWIRE) --  Identive Group, Inc. (Nasdaq:INVE) (Frankfurt:INV), a provider of products, services and solutions for the identification, security and RFID industries, announced preliminary results of its second quarter (Q2) ended June 30, 2013. These results are subject to further review and completion by the Company and its auditors. Identive intends to hold a conference call and webcast to discuss Q2 performance on August 13, 2013.

"Sales and margin performance was strong across many areas of our business in Q2, and we continued to improve our bottom line results," said Ayman S. Ashour, chief executive officer of Identive Group. "Our strategy focuses on extending our position in existing identity management and contactless solutions markets and capturing share in new, potentially hyper-growth opportunities including NFC, cashless payment and SaaS. We are now experiencing meaningful sales growth in both emerging and established markets as a result of our investments in core technology, product innovation and manufacturing capacity. Our overall performance in Q2 was tempered by the ongoing effects of the U.S. Government federal budget sequester, which continues to delay project implementation and sales in our normally stable Access Control & Security business."

Q2 2013 Performance Highlights

  • During Q2, Identive was awarded a $2 million, long-term SaaS contract from a leading technology company, won a major healthcare customer and recorded the first meaningful revenue from its idOnDemand cloud-based identity management solution. These new orders begin to build a stable, visible source of recurring revenue in the Company's SaaS business.  
  • Producing at full capacity, Identive shipped 46 million RFID tags and inlays (transponders), an increase of approximately 50% over Q2 2012, to address a variety of contactless applications. As a result, year-to-date 2013 shipments are already on par with the total number of transponders shipped in the full year 2012. A number of large orders for near field communication (NFC) inlays and tags to enable M2M electronic games and mobile phone-based applications, such as access and payment, contributed to this growth, with NFC transponders accounting for more than one-quarter of transponders shipped in the quarter. By selling more intelligent products and subsequently moving up the value chain, the Transponder/NFC business also continued improved margin development.  
  • Within its ID Solutions business, Identive won a multi-year contract at a seventh German sports stadium to provide payment systems for concession sales. The Company also continued to deploy payment products, software and services under a $4 million contract with a retail food franchise that includes more than 300 locations in Europe. 

Preliminary Q2 Results

Revenue for Q2 2013 is expected to be approximately $23.6 million, in the mid-range of management guidance for the quarter of $22 million to $26 million. This represents sales growth of approximately 17% year-over-year, excluding the Company's Access Control & Security business, which decreased 41% year-over-year mainly as a result of temporary, sequester-related delays in U.S. Government sales. Revenue growth in the quarter came from an 81% increase in Transponder division sales, the tripling of Software as a Service (SaaS) sales in the idOnDemand division and a slight increase in ID Infrastructure (smart card reader) sales, offset by a 16% decline in ID Solutions sales compared with the same quarter of 2012. The decrease in ID Solutions sales primarily resulted from variability in the timing of orders from payment customers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs