Identiv Inc (INVE) Q3 2024 Earnings Call Highlights: Strategic Shifts Amid Revenue Challenges

GuruFocus.com11-08

Net Revenue: $6.5 million for Q3 2024, slightly above guidance. GAAP Gross Margin: 3.6% in Q3 2024, down from 11.2% in Q3 2023. Non-GAAP Gross Margin: 9.3% in Q3 2024, down from 14% in Q3 2023. GAAP ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIdentiv Inc (INVE) Q3 2024 Earnings Call Highlights: Strategic Shifts Amid Revenue Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 19:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/identiv-inc-inve-q3-2024-110140463.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Revenue: $6.5 million for Q3 2024, slightly above guidance.\nGAAP Gross Margin: 3.6% in Q3 2024, down from 11.2% in Q3 2023.\nNon-GAAP Gross Margin: 9.3% in Q3 2024, down from 14% in Q3 2023.\nGAAP ...</p>\n\n<a href=\"https://finance.yahoo.com/news/identiv-inc-inve-q3-2024-110140463.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"INVE","symbol_name":"单片机微系统","start_time":0,"source_url":"https://finance.yahoo.com/news/identiv-inc-inve-q3-2024-110140463.html","article_id":"2481271621","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EdT2kmixxvb_5hue2EvqRw--~B/aD0zNzI7dz0zNzI7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/90dbd02365540dfc2cf5196e195573d7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481271621","pubTimestamp":1731063700,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Revenue: $6.5 million for Q3 2024, slightly above guidance.GAAP Gross Margin: 3.6% in Q3 2024, down from 11.2% in Q3 2023.Non-GAAP Gross Margin: 9.3% in Q3 2024, down from 14% in Q3 2023.GAAP Operating Expenses: $9.8 million in Q3 2024, including $3.6 million in strategic transaction costs and $1.1 million in stock-based compensation.Non-GAAP Operating Expenses: $5.1 million in Q3 2024.GAAP Net Loss: $9.3 million or $0.40 per share in Q3 2024, compared to $3.7 million or $0.17 per share in Q3 2023.Non-GAAP Adjusted EBITDA Loss: $4.5 million in Q3 2024, compared to $2.3 million in Q3 2023.Cash Position: $145.7 million in cash, cash equivalents, and restricted cash as of September 30, 2024.Working Capital: $147 million as of Q3 2024.GuruFocus has detected 3 Warning Signs with INVE.Identiv Inc  completed the sale of its physical security business, netting approximately $135 million, which strengthens its financial position.Identiv Inc  has a robust new product development pipeline, wi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"INVE":"单片机微系统"},"translate_title":"Identiv Inc(INVE)2024年第三季度收益看涨期权亮点：收入挑战中的战略转变","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"INVE":1},"content_text":"Net Revenue: $6.5 million for Q3 2024, slightly above guidance.\nGAAP Gross Margin: 3.6% in Q3 2024, down from 11.2% in Q3 2023.\nNon-GAAP Gross Margin: 9.3% in Q3 2024, down from 14% in Q3 2023.\nGAAP Operating Expenses: $9.8 million in Q3 2024, including $3.6 million in strategic transaction costs and $1.1 million in stock-based compensation.\nNon-GAAP Operating Expenses: $5.1 million in Q3 2024.\nGAAP Net Loss: $9.3 million or $0.40 per share in Q3 2024, compared to $3.7 million or $0.17 per share in Q3 2023.\nNon-GAAP Adjusted EBITDA Loss: $4.5 million in Q3 2024, compared to $2.3 million in Q3 2023.\nCash Position: $145.7 million in cash, cash equivalents, and restricted cash as of September 30, 2024.\nWorking Capital: $147 million as of Q3 2024.\nQ4 2024 Revenue Guidance: Expected to be in the range of $6.0 to $6.3 million.\n\n\nWarning! GuruFocus has detected 3 Warning Signs with INVE.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nIdentiv Inc (NASDAQ:INVE) completed the sale of its physical security business, netting approximately $135 million, which strengthens its financial position.\nThe company is focusing on building its IoT business, particularly in specialty RFID and Bluetooth Low Energy solutions.\nIdentiv Inc (NASDAQ:INVE) has a robust new product development pipeline, with projects in logistics, pharma, medical devices, and aviation.\nThe transition of production from Singapore to Thailand is on track, expected to improve gross margins significantly.\nA strategic partnership with Inlay for BLE-based solutions is expected to enhance Identiv Inc (NASDAQ:INVE)'s market position in cold chain monitoring and potentially other sectors like healthcare and industrial automation.\n\n Negative Points \n\nThird quarter revenue decreased by $5.2 million compared to the prior year, primarily due to lower sales of BLE transponder and mobile products.\nGross margins have been under pressure due to dual manufacturing overhead costs during the transition from Singapore to Thailand.\nThe company reported a GAAP net loss from continuing operations of $9.3 million, an increase from the previous year's loss.\nNon-GAAP adjusted EBITDA loss increased to $4.5 million, primarily due to lower year-over-year IoT revenues.\nThe transition of production to Thailand is not yet complete, with some customers' production expected to continue in Singapore into the first half of 2025.\n\n Q & A Highlights \nQ: Can you provide an update on the progress of transitioning production from Singapore to Thailand and its impact on achieving the 26-28% non-GAAP gross margin target? A: Kirsten Newquist, CEO: We are making great progress with the transition, expecting 75% of production to be moved by year-end. The remaining customers will transition in the first half of 2025. We are confident in achieving the 26-28% non-GAAP gross margin once full productivity is reached.\nQ: What is the expected cash burn over the next 12 months, and how does it compare to previous guidance? A: Justin Scarpulla, CFO: We expect a cash burn of $14-16 million over the next 12 months, consistent with previous guidance. We do not anticipate a $25 million cash burn in the following year.\nQ: Is there a timeline for potential acquisitions to help reach the $65 million revenue target? A: Kirsten Newquist, CEO: We are actively assessing acquisition targets as part of our strategic pillars. While there is no specific timeline, it remains a priority for us.\nQ: Can you discuss Identiv's penetration in the pharmaceutical sector and any ongoing projects? A: Kirsten Newquist, CEO: Pharmaceutical is a key area for us, with active new product development projects underway. We are building a business development team to explore additional opportunities in this sector.\nQ: What are the company's plans for investor outreach in the coming months? A: Kirsten Newquist, CEO: We will prioritize investor outreach, attending the Craig Hallum Alpha Select Conference in November and the Imperial Capital Security Investors Conference in December, aiming to engage with our investors.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481271621"}