Identiv Closes Acquisition of 3VR
OREANDA-NEWS. February 16, 2018. Identiv, Inc. (NASDAQ:INVE), a global provider of physical security and secure identification, today reported completion of its previously announced acquisition of 3VR Security, Inc., a San Francisco-based video technology and data analytics company. The Company also reported preliminary unaudited results for its fourth quarter and fiscal year ended December 31, 2017.
3VR Acquisition Closing
Identiv has closed its previously announced acquisition of 3VR, which will strengthen the Company’s position in the premises security market.
“Access control and video management go hand-in-hand, making 3VR a great fit from a technology, strategic, and financial perspective,” said Steven Humphreys, Identiv CEO. “It has always been in our DNA to build trusted relationships with our customers and partners. The combined companies’ breadth of solutions across our Hirsch Access Control, 3VR video surveillance, real-time analytics, readers, RFID and cards supports our path to enabling a new level of security and business intelligence for our customers. Our focus continues to be on growing organically and inorganically to reach full scale; and, as can be seen from our preliminary results, we have made several positive strides on the organic growth front. We believe the acquisition validates our inorganic growth path and represents a model for future accretive acquisitions that can help scale our business.”
As previously disclosed, Identiv expects 3VR to add between $10 million and $11 million to the company’s Premises segment revenue in fiscal year 2018. Identiv also expects 3VR to contribute a mid-term target non-GAAP adjusted EBITDA margin of approximately 10% post synergies.
Preliminary Fourth Quarter and Fiscal Year 2017 Results
Based on preliminary unaudited results, the company expects total revenue for the fourth quarter of 2017 to range between $16.5 million and $16.7 million, representing sequential and year-over-year growth, compared to $15.4 million in the third quarter of 2017 and $14.6 million in the fourth quarter of 2016. The resulting preliminary revenue for fiscal year 2017 ranges between $60.2 million and $60.4 million, an improvement from $56.2 million in fiscal year 2016.
Net loss for the fourth quarter of 2017 is expected to range between $4.3 million and $4.7 million. The resulting preliminary net loss for fiscal year 2017 is expected to range between $7.9 million and $8.3 million, based on preliminary unaudited results.
Non-GAAP adjusted EBITDA for the fourth quarter of 2017 is expected to range between $1.3 million and $1.5 million, based on preliminary unaudited results. This compares to $0.9 million in the third quarter of 2017 and $1.1 million in the fourth quarter of 2016. The resulting preliminary non-GAAP adjusted EBITDA for fiscal year 2017 ranges between $2.7 million and $2.9 million, an improvement from a non-GAAP adjusted EBITDA loss of $2.1 million in fiscal year 2016.
Complete financial results for the fourth quarter and fiscal year ended December 31, 2017 will be released in March 2018. The date and earnings conference call details will be announced prior to the call.
“We’re encouraged by the sequential and year-over-year growth of our preliminary Q4 results, which came in within the updated outlook we provided in November,” said Sandra Wallach, Identiv CFO. “As anticipated, Q4 was stronger than Q3, which has not been the historical pattern. The sequential growth was particularly driven by strong sales across RFID transponders, access cards as well as physical access controllers and access readers. With regards to non-GAAP adjusted EBITDA, Q4 represented our sixth consecutive quarter of positive non-GAAP adjusted EBITDA and 2017 represented our first full year of positive non-GAAP adjusted EBITDA since 2010. Collectively, our preliminary results reflect our progress towards better predictability of financial performance and demonstrate that we are moving closer towards our target operating model. Looking ahead, we're focused on continuing to execute our organic and inorganic growth strategy to build a leading, highly-valued business. Organically, we expect to see our Premises segment growing in the mid-single digits range and Identity and Credentials to grow in the low double digits range in 2018.”About Identiv
Identiv, Inc. is a global provider of physical security and secure identification. Identiv’s products, software, systems, and services address the markets for physical and logical access control and a wide range of RFID-enabled applications. Customers in the government, enterprise, consumer, education, healthcare, and transportation sectors rely on Identiv’s access and identification solutions. Identiv's mission is to secure the connected physical world: from perimeter to desktop access, and from the world of physical things to the Internet of Everything. Identiv is a publicly traded company and its common stock is listed on the NASDAQ Capital Market in the U.S. under the symbol “INVE.” For more information, visit identiv.com.
Non-GAAP Financial Measures (Unaudited)
This press release includes financial information that has not been prepared in accordance with GAAP, including estimated non-GAAP adjusted EBITDA and estimated non-GAAP adjusted EBITDA margin provided by 3VR. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. The non-GAAP adjusted EBITDA discussed above exclude items that are included in GAAP net income (loss) and GAAP operating expenses, and excludes provision (benefit) for income taxes, net loss attributable to non-controlling interest, interest expense, loss on extinguishment of debt, foreign currency (gains) losses, stock-based compensation, amortization and depreciation, acquisition-related transaction costs, inventory obsolescence reserve adjustments and restructuring and severance. We have not provided a reconciliation of projected non-GAAP adjusted EBITDA margin contribution from 3VR to its GAAP equivalent because forward-looking information for expected excluded items and the factors that may impact these items cannot reasonably be predicted. Therefore, the Company is unable to provide such information without unreasonable effort. For historical periods, the exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.