SEATTLE, Aug. 31, 2016 (GLOBE NEWSWIRE) -- Impinj , Inc. (NASDAQ:PI), a leading provider and pioneer of solutions for identifying, locating and authenticating everyday items using RAIN RFID, today announced its second quarter 2016 financial results for the period ended June 30, 2016.

"We delivered strong second quarter results. Revenue grew 36% year-over-year to a record driven by continued demand for our Monza endpoint ICs, which we believe is an indication of accelerating market growth and our strong market position," said Chris Diorio, co-founder and CEO. "We see a massive and growing market opportunity for our offerings and, with the successful completion of our IPO, we have expanded our available capital and will continue to execute our strategy to further capitalize on this exciting growth opportunity."

Second Quarter Financial Summary
  • Revenue grew 36% year-over-year to $26.0 million
  • GAAP gross margin of 52.3%; Non-GAAP gross margin of 53.4%
  • GAAP net loss of $0.3 million; GAAP net loss attributable to common shareholders of $3.1 million or a loss of $0.71 per share using 4.3 million shares
  • Adjusted EBITDA of $1.3 million
  • Non-GAAP net income of $0.9 million, or $0.06 per share using 13.9 million shares

A reconciliation between historical GAAP and non-GAAP information, including of weighted average basic and diluted shares, is contained in the tables below and in the section titled "Non-GAAP Financial Measures" below are descriptions of these non-GAAP financial measures.

Third Quarter 2016 Financial OutlookImpinj provides guidance based on current market conditions and expectations and actual results may differ materially. Please refer to the company's comments below regarding Forward Looking Statements. For the third quarter of 2016, the company currently expects:
  • Revenue in the range of $27.4 million to $28.9 million
  • Adjusted EBITDA in the range of $0.3 million to $1.8 million
  • Non-GAAP net income in the range of $0.2 million to $1.7 million, and non-GAAP earnings per share in the range of $0.01 and $0.09, using approximately 18.6 million shares.

All forward-looking non-GAAP financial measures contained in this section titled "Third Quarter 2016 Financial Outlook" exclude non-cash income and expenses. We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call InformationImpinj will host a conference call and webcast today, Aug. 31, 2016 at 4:30 p.m. ET / 1:30 p.m. PT for analysts and investors to discuss its second quarter results and outlook for its third quarter of 2016. Open to the public, investors may access the call by dialing +1-412-317-6060. A live webcast of the conference call will also be accessible on the company's website at investor.impinj.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 10091002.

Forward Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the market for RAIN RFID, our strategy, prospects, and our financial outlook for the third quarter of 2016.  Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, the prospectus filed pursuant to Rule 424(b) under the Securities Act of 1993 with the SEC on July 21, 2016.  All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we use the following non-GAAP financial measures: non-GAAP gross margin, net income and earnings per share and Adjusted EBITDA. In computing these non-GAAP financial measures, we exclude the effects of stock-based compensation expense, depreciation and amortization, non-cash interest and other income/expense, and non-cash income tax expense not considered to be indicative of our ongoing core business operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain income, expenses and expenditures that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of GAAP financial measures to Non-GAAP financial measures" included at the end of this release.

About Impinj Impinj (NASDAQ:PI) is a leading provider of RAIN RFID solutions. The Impinj Platform connects billions of everyday items such as apparel, medical supplies, automobile parts, drivers' licenses, food and luggage to applications such as inventory management, patient safety, asset tracking and item authentication, delivering real-time information to businesses about items they create, manage, transport and sell. The Impinj Platform wirelessly delivers information about these items' unique identity, location and authenticity, or Item Intelligence™, to the digital world, which Impinj believes is the essence of the Internet of Things.
             
IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited)
             
    June   30,     December   31,  
    2016     2015  
Assets:                
Current assets:                
Cash and cash equivalents   $ 14,432     $ 10,121  
Accounts receivable, net     15,623       12,889  
Inventory     19,228       11,837  
Prepaid expenses and other current assets     1,142       1,095  
Total current assets     50,425       35,942  
Property and equipment, net     12,621       12,351  
Other non-current assets     1,528       637  
Goodwill     3,881       3,881  
Other intangible assets, net           37  
Total assets   $ 68,455     $ 52,848  
Liabilities, redeemable convertible preferred stock and stockholders' deficit:                
Current liabilities:                
Accounts payable   $ 7,473     $ 3,182  
Accrued compensation and employee related benefits     4,006       4,038  
Accrued liabilities     4,225       2,895  
Current portion of long-term debt     13,162       5,227  
Current portion of capital lease obligations     1,100       1,190  
Current portion of deferred rent     182       258  
Current portion of deferred revenue     371       684  
Total current liabilities     30,519       17,474  
Long-term debt, net of current portion     15,033       10,683  
Capital lease obligations, net of current portion     2,115       2,526  
Long-term liabilities—other     724       678  
Warrant liability     2,711       2,865  
Deferred rent, net of current portion     5,104       4,984  
Deferred revenue, net of current portion     970       710  
Total liabilities     57,176       39,920  
Commitment and contingencies                
Redeemable convertible preferred stock, $0.001 par value                
Series 1: 5,334 shares authorized; 5,334 shares issued and outstanding     65,834       60,184  
Series 2: 2,979 shares authorized; 2,557 shares issued and outstanding     37,897       37,779  
Total redeemable convertible preferred stock     103,731       97,963  
Stockholders' deficit:                
Common stock, $0.001 par value, 17,083 shares authorized; 4,478 and 4,382 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively     4       4  
Additional paid in capital     95,443       100,276  
Accumulated deficit     (187,899 )     (185,315 )
Total stockholders' deficit     (92,452 )     (85,035 )
Total liabilities, redeemable convertible preferred stock and stockholders' deficit   $ 68,455     $ 52,848  

             
IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited)
             
    Six Months Ended     Three Months Ended  
    June   30,     June   30,  
    2016     2015     2016     2015  
Revenue:                                
Product revenue   $ 47,413     $ 34,866     $ 25,862     $ 18,871  
Development, service and licensing revenue     206       322       126       252  
Total revenue     47,619       35,188       25,988       19,123  
Cost of revenue:                                
Cost of product revenue     22,834       16,901       12,339       8,901  
Cost of development, service and licensing revenue     95       96       57       59  
Total cost of revenue     22,929       16,997       12,396       8,960  
Gross profit     24,690       18,191       13,592       10,163  
Operating expenses:                                
Research and development     11,160       8,184       5,726       4,023  
Sales and marketing     10,318       6,379       5,288       3,333  
General and administrative     4,858       3,151       2,356       1,597  
Total operating expenses     26,336       17,714       13,370       8,953  
Income (loss) from operations     (1,646 )     477       222       1,210  
Interest expense and other income (expense), net                                
Interest expense     (977 )     (445 )     (490 )     (230 )
Other income (expense), net     94       86       54       24  
Total interest expense and other income (expense), net     (883 )     (359 )     (436 )     (206 )
Income (loss) before tax expense     (2,529 )     118       (214 )     1,004  
Income tax expense     (55 )     (49 )     (40 )     (30 )
Net income (loss)   $ (2,584 )   $ 69     $ (254 )   $ 974  
Less: Accretion of preferred stock     (5,650 )     (5,650 )     (2,825 )     (2,825 )
Net loss attributable to common stockholders—basic and diluted   $ (8,234 )   $ (5,581 )   $ (3,079 )   $ (1,851 )
Net loss per share attributable to common stockholders—basic and diluted   $ (1.92 )   $ (1.48 )   $ (0.71 )   $ (0.48 )
Weighted—average shares used to compute net loss per share attributable to common stockholders—basic and diluted     4,294       3,766       4,321       3,845  

       
IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
       
    Six Months Ended  
    June   30,  
    2016     2015  
Operating activities:                
Net income (loss)   $ (2,584 )   $ 69  
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:                
Depreciation and amortization     1,483       839  
Amortization of debt issuance costs     84       64  
Revaluation of warrant liability     (93 )     (71 )
Stock-based compensation     662       600  
Changes in operating assets and liabilities:                
Accounts receivable     (2,734 )     (3,313 )
Inventory     (7,391 )     (4,390 )
Prepaid expenses and other assets     (621 )     (166 )
Deferred revenue     (53 )     105  
Deferred rent     44       (375 )
Accounts payable     4,291       2,821  
Accrued compensation and benefits     (235 )     77  
Accrued liabilities     829       53  
Net cash provided by (used in) operating activities     (6,318 )     (3,687 )
Investing activities:                
Purchases of property and equipment     (1,048 )     (436 )
Net cash used in investing activities     (1,048 )     (436 )
Financing activities:                
Payments on capital lease financing obligations     (622 )     (335 )
Payments on term loans     (45,733 )     (598 )
Proceeds from term loans     57,934       4,009  
Proceeds from issuance of common stock upon exercise of stock options     358       282  
Proceeds from issuance of preferred stock upon exercise of warrants     57        
Payments of deferred offering costs     (317 )      
Net cash provided by (used in) financing activities     11,677       3,358  
Net increase (decrease) in cash and cash equivalents     4,311       (765 )
Cash and cash equivalents                
Beginning of period     10,121       6,939  
End of period   $ 14,432     $ 6,174  

 
                                 
IMPINJ, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data, unaudited)
                                 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Gross Margin     51.8 %     51.7 %     52.3 %     53.1 %
Adjustments:                                
Depreciation and amortization     1.1 %     1.2 %     1.0 %     1.3 %
Stock-based compensation     0.1 %     0.1 %     0.1 %     0.1 %
Non-GAAP Gross Margin     53.0 %     53.0 %     53.4 %     54.4 %
 
 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Research and development expense   $ 11,160     $ 8,184     $ 5,726     $ 4,023  
Adjustments:                                
Depreciation and amortization     (563 )     (209 )     (300 )     (107 )
Stock-based compensation     (134 )     (183 )     (66 )     (81 )
Non-GAAP Research and development expense   $ 10,463     $ 7,792     $ 5,360     $ 3,835  
                                 
 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Sales and marketing expense   $ 10,318     $ 6,379     $ 5,288     $ 3,333  
Adjustments:                                
Depreciation and amortization     (261 )     (130 )     (131 )     (66 )
Stock-based compensation     (411 )     (317 )     (206 )     (173 )
Non-GAAP Sales and marketing expense   $ 9,646     $ 5,932     $ 4,951     $ 3,094  
 
 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP General and administrative expense   $ 4,858     $ 3,151     $ 2,356     $ 1,597  
Adjustments:                                
Depreciation and amortization     (107 )     (46 )     (55 )     (23 )
Stock-based compensation     (106 )     (79 )     (51 )     (32 )
Non-GAAP General and administrative expense   $ 4,645     $ 3,026     $ 2,250     $ 1,542  
 
 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Total operating expense   $ 26,336     $ 17,714     $ 13,370     $ 8,953  
Adjustments:                                
Depreciation and amortization     (931 )     (385 )     (486 )     (196 )
Stock-based compensation     (651 )     (579 )     (323 )     (286 )
Non-GAAP Total operating expense   $ 24,754     $ 16,750     $ 12,561     $ 8,471  

 
                                 
IMPINJ, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data, unaudited)
                                 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Net Income   $ (2,584 )   $ 69     $ (254 )   $ 974  
Adjustments:                                
Depreciation and amortization     1,483       840       770       426  
Stock-based compensation     662       600       328       294  
Interest expense and other income (expense), net     883       359       436       206  
Income tax expense     55       49       40       30  
Adjusted EBITDA   $ 499     $ 1,917     $ 1,320     $ 1,930  
                                 
                                 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Net Income   $ (2,584 )   $ 69     $ (254 )   $ 974  
Adjustments:                                
Depreciation and amortization     1,483       840       770       426  
Stock-based compensation     662       600       328       294  
Non-cash interest expense     84       -       37       -  
Change in the fair value of preferred stock warrant liability     (91 )     (71 )     (38 )     (24 )
Non-cash income tax expense     40       21       25       2  
Non-GAAP Net Income   $ (406 )   $ 1,459     $ 868     $ 1,672  
                                 
                                 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
GAAP Weighted—average shares used to compute net loss per share attributable to common stockholders—basic and diluted     4,294       3,766       4,321       3,845  
Adjustments:                                
Shares of common stock issuable upon conversion of mandatorily redeemable convertible preferred stock     8,526       8,522       8,530       8,522  
Non-GAAP Weighted—average shares used to compute net loss per share attributable to common stockholders—basic     12,820       12,288       12,851       12,367  
Effects of potentially dilutive securities                                
Warrants to purchase common stock     -       15       18       16  
Warrants to purchase mandatorily redeemable convertible preferred stock     -       -       44       -  
Weighted-average unvested shares of common stock subject to repurchase     -       169       147       169  
Stock Options     -       1,101       859       1,174  
Non-GAAP Weighted—average shares used to compute net loss per share attributable to common stockholders—diluted     12,820       13,573       13,919       13,726  
                                 
                                 
    Six Months Ended     Three Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
Non-GAAP earnings per share—basic   $ (0.03 )   $ 0.12     $ 0.07     $ 0.14  
Non-GAAP earnings per share—diluted   $ (0.03 )   $ 0.11     $ 0.06     $ 0.12  
                                 

Contacts:Investor RelationsMaria Riley & Chelsea LishThe Blueshirt Groupir@impinj.com+1-206-315-4470Media RelationsErika GoodmansonSr. Director, Marketing and Communications egoodmanson@impinj.com+1-206-812-9744

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