Identiv, Inc. Q1 FY2025 earnings call

• Strategic Framework Execution: The company is executing the 'Perform, Accelerate, Transform' (P-A-T) strategy. Under 'Perform', it's strengthening core channel business, transitioning production to Thailand, and advancing NPD pipeline. Under 'Accelerate', it's expanding BLE and MCL, with partnerships like Tag-N-Trac for cold chain tracking and InPlay for BLE smart labels. Under 'Transform', it's focusing on M&A, developing new metrics for NPD, sales pipeline, etc.
• Operational Progress: Production transition from Singapore to Thailand is on track, with over 75% of volume moved to Thailand. Launched new dual frequency inlays (ID-Brain). Formed strategic partnerships with Tag-N-Trac, InPlay, Novanta, and ZATAP for various IoT solutions.

In the first quarter of 2025, Identiv generated net revenue of $5.3 million, slightly above the quarter one guidance. This is down from $6.7 million in Q1 2024, primarily due to the exit of low margin business. GAAP gross margin was 2.5% and non-GAAP gross margin was 10.8% in Q1 2025, compared to 7.3% GAAP and 13.4% non-GAAP in Q1 2024. GAAP operating expenses for Q1 2025 were $5.6 million, while non-GAAP operating expenses were $4.5 million. GAAP net loss from continuing operations was $4.8 million ($0.21 per share) in Q1 2025, better than the $5.4 million ($0.24 per share) in Q1 2024. Non-GAAP adjusted EBITDA was negative $3.9 million in Q1 2025 vs. negative $3.2 million in Q1 2024. The company exited Q1 2025 with $132.7 million in cash, cash equivalents, and restricted cash.

• For Q2 2025, net revenue is expected to be in the range of $4.9 million to $5.3 million.
• Anticipates passing along tariffs on imported goods to customers and is preparing for various tariff scenarios.
• Margin guidance for Q4 2025 is pending the outcome of the 90-day tariff review ending in July.

• Shifting trade policies and a softening global GDP outlook pose risks.
• Approximately 25% of the business is exposed to US import tariffs due to manufacturing in Thailand and Singapore.
• Uncertainty around customer demand, especially in more discretionary segments, is a concern.

Q: About tariffs and indirect impact on customers A: Kirsten Newquist mentioned there are some customer concerns but no significant impact seen yet, with uncertainty as to what will ultimately stick and happen.

Q: Grocery logistics deal timeline A: Kirsten Newquist stated the deal is tracking, is a complex project, with end of year trials and mid-2026 potential for going live.

Q: Transition from Singapore to Thailand and margin A: Kirsten Newquist said over 75% of volume is now in Thailand, transition going well, but Justin Scarpulla noted margin guidance for Q4 is pending the tariff review outcome.

Q: Pull-in orders in Q1 A: Kirsten Newquist said there were no significant pull-in orders in Q1.

Q: Quoting activity in Q2 A: Kirsten Newquist mentioned some caution from customers, waiting on the 90-day tariff pause, and guidance reflects anticipated slowdown but nothing significant