Identiv Continues Turnaround, Verizon Partnership Provides Optionality
Mike Arnold • 13 Comments
Mike Arnold • 13 Comments
Tue, Jul. 19, 3:00 PM
Wed, Jun. 29, 3:00 PM
Wed, Jun. 1, 3:00 PM
Fri, May 6, 2:17 PM
- Palo Alto Networks (PANW -3.7%), Proofpoint (PFPT -3.6%), Rapid7 (RPD -2.1%), Identiv (INVE -7.5%), and Vasco (VDSI -3.1%) are selling off after security tech peers FireEye (down 18.8%), Imperva (down 25.2%), and CyberArk (up 1.5%) delivered their Q1 reports.
- FireEye, likely the biggest culprit behind the selloff, posted mixed Q1 results (sales missed, EPS beat), offered light Q2 and full-year revenue guidance (full-year billings guidance was affirmed), and announced (as part of a larger management shakeup) Kevin Mandia is replacing Dave DeWalt as CEO. The company's product (hardware/software) revenue fell 16% Y/Y amid tough competition in the malware-prevention space from Palo Alto and Cisco - Palo Alto's WildFire malware-detection service has been growing like its name - while its services/subscription revenue grew 58% thanks to both organic growth and M&A.
- Imperva beat Q1 EPS estimates and posted roughly in-line revenue, but offered soft Q2 sales guidance blamed on European execution and (to some extent) web app firewall weakness. The company promises it's fixing both issues.
- CyberArk beat Q1 estimates and offered Q2/2016 guidance that was generally favorable to consensus. The company's license revenue growth slightly accelerated in Q1 to 38% from Q4's 35%.
- The PureFunds ISE Cyber Security ETF (HACK -2.3%) is down 13% YTD.
Wed, Mar. 23, 11:50 AM
- Identiv's (INVE +7.2%) Q4 miss has been accompanied by 2016 revenue guidance of $56M-$60M, below a sole analyst estimate of $67.9M and reported 2015 revenue of $60.8M (not to mention 2014's $81.2M). However, with shares going into earnings trading at a fraction of their early-2015 highs, investors are giving Identiv a pass.
- Possibly pleasing the markets: The authentication hardware/software firm expects to lower its quarterly operating expense run rate to $6M by Q2, and to achieve positive adjusted EBITDA in 2H16. Not counting goodwill impairment and restructuring charges, Q4 opex totaled $11.7M, up from $9.8M a year ago.
- CEO Steven Humphreys: "[W]e announced and implemented an organizational alignment in the first quarter of 2016 which lowered our non-manufacturing headcount by approximately 25%, and reduces our future operating expenses by approximately 40% ... Underneath the tough aggregate business results, our physical access business remains strong, our government customer base has expanded, and our Hirsch dealers and customers remain committed."
- Q4 sales (down 24% Q/Q and 33% Y/Y) were hurt by weak demand in Identiv's credential segment. The company ended 2015 with $16.7M in cash.
- Identiv's Q4 results, earnings release
Mon, Jan. 4, 3:24 PM
- Interestingly, a day in which major indices are down over 2% has proven kind to many tech and/or momentum names that endured steep losses in 2015. The list includes SunEdison (SUNE +13%), GoPro (GPRO +3.9%), ExOne (XONE +5.6%), Voxeljet (VJET +9.8%), Rubicon (RBCN +29%), Identiv (INVE +15.1%), and QuickLogic (QUIK +12.4%). Previously covered: 3D Systems/Stratasys and FireEye.
- Profit-taking by shorts who (for tax purposes) didn't want to cover in 2015 is likely a factor behind some of the moves. SunEdison had 123.1M shares (48% of its float) shorted as of Dec. 15. GoPro had 32.9M shares (50% of its float) shorted, and ExOne 2.3M shares (24% of its float) shorted.
- SunEdison rallied last week after announcing a $336M debt-for-equity exchange. Rubicon caught a bid after issuing a shareholder letter.
Dec. 10, 2015, 12:46 PM
Dec. 1, 2015, 12:34 PM
- Indetiv (NASDAQ:INVE) has disclosed the resignation of BDO as the company's public accounting firm. Burr Pilger Mayer has been hired to replace BDO, which is now unwilling to be associated with Identiv's 2015 financial statements.
- While BDO's reports for Identiv's recent financial statements don't contain an adverse opinion or disclaimer of opinion, BDO has advised the board it's "unwilling to be associated with the consolidated financial statements prepared by management for any of the fiscal periods within 2015 and will not complete its reviews of the interim financial information as of or for the periods ended March 31, 2015, June 30, 2015 or September 30, 2015, and additionally will not audit the Company's consolidated financial statements as of and for the year ending December 31, 2015," due to an accounting review disagreement.
- Specifically, BDO "disagrees with the scope and the remediation" of a special committee investigation (disclosed in May) into accounting issues, and has found two material weaknesses in Identiv's internal control over financial reporting. One relates to entity level controls - BDO asserts "the Company's senior management leadership and operating style and the Board's oversight did not result in an open flow of information and communication and did not support an environment where accountability is valued - and the other involves revenue recognition.
- Shares are now down 81% YTD.
Nov. 13, 2015, 5:10 PM
- Identiv (NASDAQ:INVE) closed within $0.33 of a 52-week low of $2.50 after missing Q3 estimates and cutting full-year revenue guidance to $62M-$64M from $65M-$70M. Consensus was at $66.5M.
- Q3 sales rose 10% Q/Q from a soft Q2 with the help of a 20% increase in physical access product sales, but were down 24% Y/Y due to lower credentials product demand. GAAP gross margin was 44% vs. 43% in Q2 and Q3 2014. Operating expenses rose $0.1M Q/Q and $2.4M Y/Y to $13M.
- Identiv ended Q3 with $21.4M in cash, $5.7M in payment obligations, and $18.1M in long-term financial liabilities. The company's market cap stands at $30M.
- Q3 results, PR
Aug. 18, 2015, 12:35 PM
- Identiv (NASDAQ:INVE) has struck a reseller deal with tech security co-op PSA Security Network, through which PSA will distribute Identiv's uTrust card readers and credentials.
- Identiv notes PSA represents North American security systems integrators collectively responsible for over $2B/year worth of security, fire, and life safety installations. Shares are adding to the big Friday gains seen in the wake of Identiv's Q2 report.
Aug. 14, 2015, 2:41 PM
- Identiv (NASDAQ:INVE) has jumped above $4 after posting Q2 sales that were in-line with the outlook provided in the company's Aug. 4 warning. Guidance for full-year revenue of $65M-$70M (also provided in the warning) has been reiterated.
- Possibly going over well: In spite of the Q2 shortfall, the provider of RFID and smart card authentication systems says it "experienced an increase in large customer wins including a major international airline, multiple government agencies and large technology companies." At the same time, deployment delays hurt revenue recognition.
- Gross margin rose to 43% from Q1's 41% and Q2 2014's 40%. Operating expenses rose 25% Y/Y to $12.9M. Identiv ended Q2 with $30.8M in cash, and $5.9M worth of payment obligations.
- New products related to the Cisco deal are on track to launch in Q3. Shares remain down 7% from where they traded prior to the warning.
- Q2 results, PR
Aug. 5, 2015, 12:48 PM
Aug. 4, 2015, 6:06 PM
- Identive (NASDAQ:INVE) expects to report Q2 revenue of $15.6M, -30% Y/Y and well below a $22M 3-analyst consensus. Adjusted EBITDA is expected to be at -$4.2M, thanks largely to "a significant increase in legal and accounting professional fees associated with non-core business activities and increased spending on partner marketing programs."
- The company now expects 2015 revenue of $65M-$70M, below prior guidance of $90M-$95M and a $92.1M consensus. "Cost reduction activities" have been implemented.
- The Q2 revenue shortfall is blamed on "a continued decline in the Company's international sales and delayed deployment timeframes for new U.S. customers."
- Shares have tumbled to $3.00 AH. Official Q2 results arrive on the afternoon of Aug. 13.
Jun. 5, 2015, 12:56 PM
- The PureFunds ISE Cyber Security ETF (HACK +2.2%) has made fresh highs after government officials disclosed a hack of the federal Office of Personnel Management (OPM) that resulted in the personal records of as many as 4M current and former federal workers being stolen. The Chinese hackers who carried out for a recent attack on health insurance firms Anthem and Premera Blue Cross are believed to be responsible.
- In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Imperva (IMPV +3.7%), KEYW Holding (KEYW +7.5%), Fortinet (FTNT +2.3%), Proofpoint (PFPT +4.3%), Vasco (VDSI +3%), and Identiv (INVE +2.8%). Fortinet, Proofpoint, and Imperva have made new highs. The Nasdaq is close to breakeven.
- The group also rallied on Wednesday, a day after the IRS promised to upgrade its security systems during Senate hearings about a recent breach. Proofpoint is a day removed from announcing a refresh (version 3.0) of its threat-response/intelligence software platform. New features include better cloud-based threat intelligence tools and security alert integration for 3rd-party software tools.
May 14, 2015, 12:45 PM
May 13, 2015, 5:11 PM
- In addition to missing Q1 estimates, Identiv (NASDAQ:INVE) has cut its full-year revenue guidance to $90M-$95M from $95M-$105M (consensus is at $100.8M). The company still expects positive 2015 adjusted EBITDA.
- The RFID/smart card ID system provider blames the Q1 miss on "an unexpected decline in the first quarter in our international desktop reader business and generally unfavorable conditions in Europe, as well as the typical first quarter seasonality and an unfavorable foreign currency impact." Premises and credential product sales were stronger.
- Gross margin rose to 41% from 39% a year ago, and operating expenses rose 5% to $10.1M. Identiv's cash balance fell by $3.4M Q/Q to $33.1M (compares with a current market cap of $84M).
- Shares have tumbled to $7.60 AH.
- Q1 results, PR
Identiv, Inc. is a global security technology company, which establishes identity in the connected world, including premises, information, and everyday items. Its solutions include global government, education, retail, transportation, healthcare, and other organizations rely upon Identiv's Trust... More
Industry: Computer Peripherals
Country: United States