INVE Identiv

Steve Humphreys Chief Executive Officer
Sandra Wallach Chief Financial Officer
Manfred Mueller Chief Operating Officer and General Manager, Identity
Craig Ellis B. Riley FBR
Jaeson Schmidt Lake Street Capital Markets
Michael Latimore Northland Capital Markets
Call transcript
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Good afternoon. Welcome to Identiv’s Presentation of its second quarter 2021 earnings call. My name is John, and I will be your operator this afternoon.

Joining us for today’s presentation are the Company’s CEO, Steve Humphreys; and CFO, Sandra Wallach.

Following Management’s remarks, we will open the call for questions.

note to this including non-GAAP and cash please be management adjusted begin, free references making measures flow. we that call, during may EBITDA Before or projections,

Statements. management or results projections characteristics may statement. those market of financial from be call, conditions to including other this expressed events, differ forward-looking and during that refer materially addition, making In statements. in Actual Forward-Looking projections Any future is statements expectations, forward-looking will these future a

the report risk forward-looking time-to-time no proceed. for Humphreys to over discussed XX-K. For in including today. from Sir, more refer comments. update statements, his information, assumes filed factors with of call as to the I documents please CEO, these Identiv speak to please obligation company’s on will Steve SEC, which the the now latest annual Form turn

Steve Humphreys

XX% Thanks, In us. our grow, in for our operator, RFID continued the over first saw the quarter. in second grew acceleration all thank Overall, to and our momentum the XX% especially year-over-year, joining business. we of growth you quarter, revenues

growing business drive the continues be led in overall strongest to XX% growth Identity RFID. by Our growth XX%

XX%. software strongly premises core and Our year-over-year were sales up and in grew XX% systems premises our business up also

Federal level. Our over were up last stronger XX% sales Government even year’s

were the booked three XX% XX% also versus Our quarter XXXX. of growth XX% of the the over metrics unit key weeks higher Total are units other year at healthy, growth grew We of of last unit a first and And prior. And because than here just unit volume end this growth over ASPs made shipped in our QX progress. strong QX XX% and profitability both year. XXXX end XX it volumes in XXXX. prices. QX, across million our Since orders RFID from up QX is the backlog

were up more is in our the as X% more leverage expanding QX XX%. even we revenues from showed leverage scale. were than were saw down Clearly Expenses XX%. operating expenses our even revenues X% up from This second XXXX, leverage the model. down in quarter showing with while also when business expenses We in QX, we

strategies core second complicated customers customers with and and quarter. production third bringing cycle, moving and the through design getting new new wins, growth expanding Our progress designs production made to generation new the in are more second all designs

committed prototype new One into move designs. XXXX the volumes rest with and XXXX So mobile have And customers our and specifics are expansions of volume of growth are now of them. are of designs ramp of Starting going several production ramp number two the in test, production on in the some QX of designs, provider have done their QX, the each expanded for those which committed latest year for we existing on this through our Also supporting drivers. customer outlook. year. major with second up, we designs their in to device the here introduced through of half now working full launches, the now they orders we

product our are by evaluated and metal product Our another by tag eco tags customer, group. also being but are being this tags on third evaluated group

of a updates other So that use on progressing. are couple give cases let me

or year Now these can ramp. take reach a more to production

pre-revenue. can are milestone while track going progress investors so are report on we So even to they

The is our auto injector first project.

to Volumes, mid-XXXX completed is units. a process. that the prototype reach these and ramp major is for steps, prove product parallel customer. The on design us the made our prototype of the designs, are in regulatory in off huge government designed approval preparation. next are signed with But to have completed qualification over to The is now on-track step Keeping getting working provider the still they IP have showing are stable done. means and can cannabis scale a This and part We fast. the on also They course a up. XXX they projected million project regulator finished for milestone.

final this are they volumes. required the demonstrate month to getting the equipment So

Our engineers equipment know well. the software very

have we proof offered help So scaling. of them calibration to qualification with and

in So good to will have very The good some and not is and supply visibility. this we time progress, put for needed. every have regulator still involved cannabis then doesn’t mandate if to waivers there want issue their to comply. producers progress But be really government to country, got enough provider the

either transformation Now I in since big won’t customers. our updates category. be of that through There go all on can the others Company. the for But these of them one major are

tail For pharmacy and major that we more devices But to continues so second the talked with to about go we results. their is longer detail aware for Q&A of projects are into driving example, in pilot prescription And other now happy of very RFID we continuing customers any much. chain if that them be customers our can turn the or growth. anyone the are the These let me base haven’t to our wants all and of.

some but they Now up they these some won’t others double add and can, be could our drive upside. of unplanned revenues also of that like breakouts the them

cases critical leadership is to our us keep Lastly, of serve competitors. entrench and use course to it out for all

on MSA with and including authenticity tests physical for virtual chain for consumer company any are also (Ph) transactions Helios a Waterfield filters, engagement and Cola, across and for for Tap performance. technology a supply couple based is kits, and ID we and for Coca several a dozen in [Corvo] Mobile, the [indiscernible] both DuPont Hot gold consumer and Online Q&A. hardhats, cannabis test year, authenticity Lipton and projects brands space. water Chemflow for tracking. Hockey constructions for has outlet they in Wheels protocols. tracking go as tea, ID use more Bullion T that drug sportswear, sports blockchain and and for consumer Works Carestream experience. for the here for bullion engagement detail use. for Mattel for that others. So into can medical Collect cards

of is share projects will of business, tangible the customers that double fast more total. to proof Now, base it that The and of I and the can than major the design. ran but is know points XX% the our but our drive I changing base game this adopters XX% through breadth point pace wide these to adding to growth,

in in Now But unit each into cases this of of solutions ways. products. RFID are is the of companies our based use a expand hundreds these we to NFC of integrate kinds of volumes. low sampling Most the their million just adopting or thousands QX three can

cases customer. is other use within first the The

across lockout. improved as next third industry. design. three the competitive of allowed, and where for features well design same is approaches their second expanded the is these The of initial can all in use obvious up as case it generations apply And revenues, to add growth And an we meaningful the

So hopefully really drove gives go development this new that of the are our developer’s accelerating hires, into we more sense events and for you including kits RFID a some later. momentum There strategic in other QX. those will

couple announced momentum Now Electra we Banco deployments we the will premises segments into QX We expect in Mexico. a build our in saw as strongly and acceleration expected like by in high to Azteca Ross addition that the wins continue shown growth we growth Stores segment XXXX. hit RFID our and

bringing over stores. across total Now their with our deploying another stores, systems XXXX Electra XXX is

and rebounded security travel companies are The saw hard they customers, Budget point sectors including are convenience, We And their and from business and also is are fast. Group, even demand demanding. in investing like Royal customers Avis these their back industry like models that Caribbean. hit coming because

is focus XXX% focus consumable customer record In attention QX, revenue retention strategic third on is driven In kept a we and predictability. by in on RFID. of RFID, predictability our Now and repeatability customer track a products.

of by up We you syringes, also use in recurring drug use QX, predictability tests, and we software from revenues software And is revenues. in heard quarter. In of consumables XX% other revenues, of premises kept just recurring appliances, expanding grew driven revenues to last the services cases. premises XX% our and as

strength, growth design not chains, our QX, gross we know but in wins, strength premises, and are in chain for underlying margin the expansion. supply and also all times RFID supply So our tough continuity just across revenue and showed

and XXXX these all and RFID leadership and revenues growth, and market of The progress the and launches our federal winds great hires, product areas design and recurring a QX. focus beyond. Our remain strong made support technology launches and retention in key customer

the this second to So quarter. getting call of for before into the the quarter the year, and rest the Sandra? I turn highlights financial Sandra did next will over

Sandra Wallach


potential. the backlog the our financial results incomparable quarter supply second line. our investments capabilities chain. continued believe its those million Steve growth XX% top to the quarter was XXXX We results with leverage, RFID consolidated continued with gross delivery a and by of increases of mentioned, margins and growth our growth and million up over a business growth The our growth powered second in X% core XXXX premises second up on comparable year-over-year. quarter in revenue, in XX basis units by our shipped QX growth reflect the improvement in strength operating in paired generated exiting driven the the closed in RFID sequential business. over XX positioned on achieve with in customers the capacity profitability XX% out As quarter, XX% and sequential devices, Future XX% and with We expense to our Company federal and XX%

second the of revenue, revenue. Our X% recurring stable revenue X%, total and XX-month quarter trailing at was of

the in margins gross XXXX, in XX quarter are and second GAAP XX% For XX%, quarter and the the and to quarter profit XX% respectively, first our XX% non-GAAP of and of XXXX. second of adjusted and XX% XXXX, compared

within and Gross expenses, changes historical GAAP GAAP X% XX-month trailing revert our XXXX. within XXXX. the and gross were margins respectively. versus QX across profit profit the margins mix For We segments. to with from exhibited down primarily leverage operating expect XX% to to non-GAAP And resulted margin and levels period, were which our continue adjusted we XX%,

in EBITDA adjusted XXXX XXXX. QX X.X or X% X% was to million, QX and in non-GAAP X% Our compared

X%. adjusted the EBITDA trailing period, our For XX-month margin was non-GAAP

compares attributable or of in of stockholders share or loss $X.XX and XXXX. a share. three was X.X a Our X.X loss QX per of million net a GAAP QX to QX per loss loss of common XXXX income per share $X.XX $X.XX or million, income in a This million with of

Adjusted for of of $X.XX would received per QX or non-recurring the we and During have this a gain X.X the EPS recorded of loss million. been TPP appropriate share. full gain loan extinguishment obligation

our reconciliation GAAP to have information, is a in the provided today We in of which also appendix full included earnings release. non-GAAP

QX to was increase million sequential increase compared Our by sales an The to next of analyzes RFID of segment. by XX.X revenue from driven sales year-over-year products, select QX XXXX, access verticals Identity driven identity our from higher trends total and which as products XX% increase XX% compared in an is X% increase products and primarily or total RFID XXXX. QX sales revenue QX by higher of of driving in access slide of further with Beginning XXXX as as XXXX. transponder cards. well was recovery cards higher primarily The

as margins higher XXXX lower QX our grow Our than identity XX% to and XXXX we change XXXX product compared RFID in product QX GAAP due continue a were capacity the sales. lower to segment to with margin QX at transponder proportion in of XX%, XX% in investments mix into

along due velocity QX Government verticals rebound QX Turning Federal an change first increase this sales the reflects premises the compared products like of segment the products. XX% in to commercial GAAP XX% sequential revenue XX% The the in X% XX% segment. and for to products normal the and segment million, in software sales revenue commercial video of in due to increase of the seasonality. within software a with in with from growth in to quarter revenue technology of XXXX the mix The retail, QX And customers for higher year-over-year Premises an X.X to from second of analytics to premises margins sales compared and were in segment in selected segment, QX increase representing recovery our to the the or accounted total banking and XX% XXXX. XXXX. of QX

XXXX. our X.X GAAP the operating with million X.X up million, Now compared operating XXXX and second the expense moving expenses with compared X.X to were QX down of second quarter quarter management, for million

the operating totaled base interest stock foreign such non-GAAP in non-GAAP to extinguishment to adjusted compared revenue of X.X of was back of million costs in million pieces tax, and and restructuring XX% to income QX of XXXX as quarter and of Bringing adjusted XXXX revenue XXXX and EBITDA our million X.X loss, certain exclude X.X QX is normally and total amortization charges second or to revenue. XX% quarter in the gain million, depreciation XXXX. from million QX the compared Our or severance XX% This and increase total X.X million all or QX XXXX. debt excluded expense, non-GAAP of on together X.X compares comp, increase results in XXXX expenses currency second non-cash eight our

million payments we Under working R&D and from of disruptions. cash, QX we quarter last reconciliation the be million and use the release exited will and cash chain in X.X related cash Singapore activities for with X.X the provided million that options, in facility promissory note net a tax in increase for the sheet pay QX repayments we net sale million XX.X million any the drivers million providing capital in and received our cash from supply driven XX.X QX X.X expenditures by A our for repayment activity million income increase a our million to XX.X inventory XXXX of and in The full to of included increase revolver. million down of offset million exercise common full items. key balance proceeds XX-Q and Munich, the of our West X.X RSU manufacturing earnings build had X.X In net funds public million under X.X the in our plants. adjusted potential from of sheet, by of to of invested Turning invested for completeness offerings releases. our million the of used filings financing have our we for East proceeds capital in buffer the XX.X stock generated XXXX. Bank XX.X in from were appendix. X.X from balance flows, to a year-to-date noncash XXXX stock

second the revenue we continued As we for million. increasing half our between full-year year, are XXX today, monitor XXXX the to XXX and the of guidance with now have million

up continue on journey sharing exiting XXXX, versus We and QX up keep we versus XXXX. million our QX XX% metrics XX% was will QX backlog as our XXXX growth XX.X QX

shipments and XX% Our QX XXXX total versus increasing also QX XXXX backlog XX% visibility. all up up future reflecting for versus was

that, our first up quarter-over-quarter. weeks momentum expected of year. new XXXX, half million prior pass through of with XX% We delivered quarter the revenue XX% total orders period growth discussion three XXXX, the guidance booked conclude in the of I XX% Our seasonality over the to half is Normal to first first per building over the it With will financial of growth. XX% the are same Steve. X.X and with back to on continue

Steve Humphreys

Thanks, Sandra.

and show, expected than are results the as our we As of we growing XXXX. faster our higher beginning guidance

drive programs be some beat growth we a drivers position we growth. can for on wins, strong business customer we XXXX. our the rest volume in the goals current that opportunities to half, as core the of think a and always Just in first was year, with our of design transformational That in are focus

more the us some all got into for year designs the and have and and XXXX. QX, customers in of staying visibility design and volumes, second half the For pipeline we with wins our in current into the extending solid QX,

end a are up range. started As lower beginning million as moved Sandra our XXXX. result, million. the We raising for year with range the XXX at said, the the guidance We to the of of we then XX

million. are be with. supply about XXX Demand realistic dealing that but range the have higher, to situation companies we be of top the moving bigger same now also are We actually much could the

how about about So business know chain the tight to on end We that. we like facing. every range, I of thinking supply the higher are is focus and would the all

demand, ends competitors of us share our our which of customer letting clear, Now very top I take us upside, million. raise we to even bottom let now guidance some and is from are that meeting want and all be the XXX line the

confident solid, So facing our the our chain are supply keep situations we to of ability despite tough everyone.

XXXX. both as near-term demand are confident We of side, of the also

not XXXX. really in profile and do year in mid-XXXX, higher are of specific the business. transformational projects of the some We will next But changing formal today giving half the for overall second we of the ramp driving much expect guidance revenues

for all We resolved mostly we categories to Remember, course chip these in are also the our the necessarily least And of right front and are NFC chip cyclical the to of before. And this to time everybody’s semiconductor we base year, in even over business. try to line. relevant projects that well with, chip not at seen it the around usual the in dealing are to right ramp related might RFID industry. the They across downturn think the shortages least chips, the of of large middle next result hit are to anyone starting start industry the by ordering get broader oversupply. that categories next these We now some at could year. us in know

perfect. For be us, would this time, we

the are growth. the in a orders an could oversupply, there for devices, strong described breakout devices, higher will very will as I don’t Our meantime, see be. mid will growth injector, Right business the levels much is if the supply volumes. and demand directions be solid prescriptions we position margins demand or charges what phases main other end cannabis, of be others they an support our higher availability. oversupply visibility into like Even both other in supply right wide have as and to because XXXX. we at if cannabis least And early mobile complicated applications strong year, and next projects drive will sustained in growth place good moving In could scaling very cases there we the more up and like range earlier, be and pressure of will the use the sensors medical auto think good

want our So and to year with context, to this guidance. back get I that

are we areas and We our in demand supply meet raised the We over. guidance we confident think will range. growth go some could pre-ordered

we it ready that is But that still possible could we excess haven’t be. we demand can So ordered the of are ahead. as come from as some products

drive not So companies, we I not to right are shipments we some be able want by are now. not. we like constrained be might we even to supply are clear, higher saying

haven’t are be in for could range narrow relatively is possible growing come us that It the revenue for This plans, and a we business keeps increased pre-ordered products that of for base our is guidance. shippable Our demand that requests fulfill. customer we or for, our that in above hard outlook. to meeting

if certainly above, will set expect set Now, we in XXXX. stronger demand XXXX. But as it get and for we up shipments expectations excessive into go backlog want we don’t even for to

You see, fulfill is on designs, upside be notice. know we but short to able not recovers very there might new what can some we opportunities

QX Now, our I for it ultimately, but want the we of of on executing lot I was growth detail. of that And to into reflected know XXXX, rest is shippable year into growth. and in revenue the go a drivers some the are in

So all in to I context. it put want

growth customers core. is So to wins customers, always expansion design the our drivers which new existing turning and now of for

solid a to in system a got place, have We winning that combination. is proving be

scaling design So paralyzing to and people the more These engineering areas. key wins. are project we are industry include the across system reach our support To adding scale and in keys. management

adding also development, and sales, are users. our and reached We to end broaden marketing in business pipeline

we leaders, as profile the are attract have best. high so industry to innovator the and Now we able a

best to terms and in the technical teams. already world our engineers, of are adding In we project managers

and Now engineers great great engineers, seeing are anyone join tact this affects. in knows other the we

great to few all project team past is competitive turning in talent. engineers our strong added we huge exciting that equipment, the hired Center there. great a have with months, projects Engineering advantage intern Our draw managers, technical people, more and into and Germany In

side, Instead, and of differentiated of On the the joined interesting the industry’s and in saw he our solutions group Dennison. announced are some Amir an was business, our and solutions, business us. marketing players sales the we SMARTRAC to expanded This been leader a industry. on development, hiring next attracting the business success Khoshniyati week, Avery. of strongest focus has because Avery he the Amir run we most with the an from to and high-end the SMARTRAC’s opportunity k drive leader tasked NFC NFC of

becoming with in well as best-in-class. of now, that is NFC of to similarly business people clear great our profiles Identiv there Too the Now community. on. natural others are our are developer officially but to as build bringing our recognized we application community. high complement right RFID side This the and this is early the launching are launching to as The disclose people month, the presence we process Developers fast Kit

engaged the industry visible had and developer launching to before people some We people these onboard to Developer to the we shared engineers community enthusiastic are questions Kit. expand a managers answered. Now of has be help in community project key thrive. now of team design and the Developers who and our have with both

drives have enable and be process Another This strategy and adoption and components rate the update customer sensors will of is and RFID subsystems strengthens last build design to multisensor started margins, up is to mentioned automated of production we prices increases and which quarter. This core that device of integrated. I margin our retention expansion. more average system multi the analog

of think XXXX RFID and production over design outlook. So wins drivers, device we great leading baseline are pipeline people, our multi our and are community, will expanding getting our especially us automated upside strategic industry developers XXXX give

need improved increasing security, growth I on near-term. the of infrastructure look And health Now level, lots in sales local core as is also share. and of seeing in a physical we and growth both up part for demand lined the growth fiscal strength. government revenue driver. at and the for security physical focus is state our strong products. recurring The for on the Federal our to RFID state federal federal, level, In spending, are the expanding see and Government focused at drivers state With great market local we that premises business because particular, our investments. strong Combine and

year especially we quarter, Federal the platform, security video our to especially system. highly and intelligence launched as be secure as in for expect overall, the strong fiscal our third for well with end newly government’s Specifically

wins, are and association competitive with we a influencers moat, and through engagement deeper with market that competitive we fast. broader development reach business leadership community Kit industry a building for design is partners, key hires on-track, So with continuing sales trade are and expanding as our extending Developers our and

Now, before wrapping I departure. these touch other up comments, one to Sandra’s is topic on would like

Over the we been build is she a years, past in her in very growth she search four our our to it a moving well nearly as on In have has and opportunities, the financial to levels. the partner the unlimited finance and structuring be great and business around turn our She a we parallel, in of the team other world-class wish company to win meantime, to the business. and those. we for partner got well really In business support continuing next leader of to is underway supportive market.

will also are the place in that our accounting keep have and supporting job fortunate growing very a doing to terrific team finance strong We business.

sure in interim beat next us leader. an we we few days, strength professionalism, level finding don’t the an of business will appointing miss Lastly, right making long-term be are progress also and bring CFO our will a on extra financial we while the who

So just up, indicators last some growth the are wrap few to here in weeks.

the first new earlier, versus XX% time bookings million mentioned weeks $X.X in in the we up third last I As quarter, just three the year. of over have same

over RFID dozen with one more a We customers. underway designs are have

quarter substances and is spending QX revenues. likely alcohol from consumable continuing controlled and prescriptions, predictability the of cross and the see their returning XXXX others. devices, of transportation, recurring and launching trends, like of personal is fast growing to XXXX XXXX. replicate medical bicycles rest higher projection We higher and marketing for the industry strong these supporting fiscal for targets are third customers Federal expansion year-end. We even cannabis clearly cases, our strengthening programs our is use revenue And for and growth in always solutions and and

next second of the projects half growth year. expands, and during As fully revenue as of the ramp some multiplying

RFID the open But will have I also that time, discussion. since and with the actually room mention who has and with us me us from Mueller business course, opened in we up. So questions travel Dr. let is this of runs with he Manfred again Germany yet conference

So need. depth we RFID if in can questions, them related we cover there are whatever

operator, So, open the please the lines for discussion.


and Absolutely. coming questions. from FBR. is is from open live. it B. Craig Riley like floor gentlemen, line first Craig And now the looks , Ladies Ellis question is your your Instructions] for [Operator

Craig Ellis

it taking was to for and congratulations related meet XXX year, shipment target just upside may have already revenue business the that not of some year this supply and to your to there given XXX here but million come beyond be the wanted those point capability shipment clarification level the able Thanks million. the raising to level question or if comments around exists shipment the you I on you that was just orders the end the in that on orders are that exists that point that ask of the to growth strength capabilities. high Steve, upside that capability to end in between and the What

Steve Humphreys

can. design long is haven’t able the be is why for new I are products was it designs that is have that in that pointed order some just Yes, to which we and ago. and for depends that it to the more could to the that we excess question. is that we to finished good if if up range XXX color to certainly, orders mix. range, time we of that demand That also wants a current there good that is going me there up out little side demand something But let it for meet. to, are ready visibility in not that. see be And above well if for lead the got And up a add bottom to million it coverage. get got we for in And the parts Manfred very some on XXX a categories of Yes, right it and Craig, we good in got see

Manfred Mueller

And already. feel now. game have of pretty We the planned we well comfortable right ahead

comes it are we any in view, we vendors, ST, IC point so to from Whether chip that these that sure. very, of close them. it seeing So Impinge touch and of the are when very NXP, guys, with particular, is for is

So already, months we have put five, six like, orders in ago.

try view, can. much point that as we of from really plan So as to ahead we

well that is from that view, So of are far. prepared happen, could but point pretty always so something we there

Craig Ellis

and base Got color Steve, [Careflow] a to back bit DuPont customer it. little and much are go about made, and cetera. customers strategies XXXX How for is I them in the like some and and large get (Ph) either on Corvo, larger Carestream calendar you more and that customers those And the you to what those the entities are when and beyond? talking potential were in then wanted customers big points sets just et so become very and of aggregate,

Steve Humphreys

Yes, was it that And fast through things. there. is talking what I tried a to pretty lot say of

can go to there You use of million too few confuse it deep know, a any want hundred But cases, thousand to the people. I them with in few dollars be point will that a don’t too was many because dollars.

a lot broad of driving breakout they that those, business, change and get couple is conceivably of XX the going in that turn are really getting be, of some were is Does customers. a dollar coming, is, But although million of at? to not a answer they unexpected You you to point. where million could, the And know, of the million, can lots a what chord they that point that you is is that growth. of if tail them to growth half a lot

Craig Ellis

projects to the large increased back I greatest some that can talk Can the those get term hear that XXXX and have before of to about going hopping added in just got to the ramp? a greatest visibility question feel then to one mid had with net. around is lastly, Yep, have confidence timeframe. will shift more the And could you confidence I you you or where that the that queue. where those begin that of like nice gets longer And you the the

Steve Humphreys

process. always of confidence got have matter them. of been a We is good most and in timing It

color they black some who they this, go, they in enough regulator switch ready prove the regulator a where do don’t got have is flip but give to and then to doesn’t machines also getting go have supply. cannabis tried telling and on are and I were guy, they if the a scalability, want can everybody So

tell So and to each dealt happen, them way, I into not is can to is that, happen you go that of as is the going going question with but that could working that is something from not on it to the talked with timing. designs I They same accepted. investing about not they not is time, got team on auto the happen. on last it it, IP are they thing that going Similarly And injectors are it.

them past, again, through of the So, ones going all talked all roughly taking we always are the way. expected. without we the re all expected, I that in about we timing and our have talked think we of which And about on still time on paths that the

quarter on already full hard question will is in one It think if And we here, fast to first? most them ramp, come of one in honestly likely would quarter So forward, forward? as production suspect hard cannabis But the is got is the will have in one what go pharmacy That will will I say. to it totally how which a not is floodgates will then because get them. Because to all I as open. you one another say, and when the go the pilot. ramp of most handicap which up, there, I side, know,

already are to starting they So ramp.

through So handicap none probability. there saying first debt and or not is handicap I I certainly is gate is was is lower that would two that think one the there I

Craig Ellis

for on helpful thanks way. That the help the congratulations, Sandra Thanks color. And all you Steve. is Got it.

Sandra Wallach

with It you. working Craig. a been has Thank pleasure you

Craig Ellis

That is great. Thanks Craig. Go ahead.


The question coming is from next live. your is Lake Schmidt from line Street. Jaeson Jaeson

Jaeson Schmidt

Steve, end. mentioned not know, chain I you there. curious you any the out So constraints on But just supply at tightness seeing overall are your that

customers? If you get sorted, of pushed, definitely have seen by some programs projects your and some

Steve Humphreys

aggressive. it. going, are seeing for dozens of aggravation. Germany we elsewhere, and in for and it keep people open being supply everything chain we ahead But getting clarify, plenty needed it to to have fighting as are and because of is And keeping It in only, an open we lack first not, it So Singapore that very successful been of doing is of going.

was they, part of system question? So other And the there there. in the the is of pressure what a lot

Jaeson Schmidt

or timetables you shifted. some I’m any have their customers, just curious projects your get if seen of programs from

their inability Just because of to get components? other

Steve Humphreys

It they to is slow is some then when might components. components. and other but know down, worry back all they We can’t other to get What this that. we a through about And saying are or therefore, don’t up good question. Always thing this pause fighting open we on then think. get and they part. heard have going And we other

going then is build there ahead So say, are we will know something ready And in, we loaded. be you and and almost that locked always least order just slower if comes to what, at and go and yours.

net, that that seen net we is So haven’t happen. the

not it, some running major timelines. of all the own We have in their had The projects. major conversations ones about any on are

And so with, have the some by in we fazed much seem device marketplace they companies that this. like some of power don’t work companies mobile the frankly, they

add So it all. that out you like a conversation nets not happens want business neutral core to positive. It the of at and Do it lot. Manfred? to That our a affecting is equally seems is that

Manfred Mueller

problems two Jaeson. Yes,

The some first one on we our have with flexibility is parts end. some

coach the shortage try Part day a chip same related to there for Part B. is similar the and on really give customers whenever that through with So switch them one a to from of possibility on we to functionality, dedicated possibility to IC, better a or move A or one our

really market from chip there we with scrub The thing out the things try is, to up distributors. other

for are so it. more of pay willing And a lot and customers very to

rather we only know. have now But some can not they also side. on of it on that that if we the like challenges get whole, And increased the customer comment vendors lot to customers everybody topic is now. us a even out by also projects Reach And yes, competition. is don’t from struggling. seen but really and because a but some and have find right ICs, important important is So another that IC as seen prices a of lot year, March to next you there wait February, until

visibility we of to So view, surface, in are of lot which seeing a projects coming we the point past. our from that haven’t had basically

for us great right now. So a it is opportunity

Jaeson Schmidt

interest that guess with. that Okay, sizable Have the opportunity. there? And pretty out other I you just second pharmacy helpful. at have given looking could is you you Exeter customers relatedly seen stage When two really pharmacies do that pilot do are that you working customer from increasing think and

Steve Humphreys

of First almost on course, And pilot. have to XXXXs processors year took pharmacies, the the of in one any all first the these pharmacies. a of then they

they And have training. got pharmacists supplied everywhere, so rollout, get all and them to the the

a up. So get after through pilot, it to some year that months and that months to can and to take then eight the deploy ramp

and thing once is grow, projects don’t do the going but just these So great they they time. take about are they stop, they

Again, to think So they to that but way next (Ph) the to. scale, of sort [XXx] appropriate consume that to is but about the timeframe ramp can get volumes, a to little again, it. up maybe I mid are continuing to that is they year already scale not earlier, aggressive timeframe, in think

Jaeson Schmidt

pharmacy Steve, customers And are additional with customers? talking potential or you Okay.

Steve Humphreys

and player evaluating online kind of some point, Yes, some pretty every industry the of this. major are like at much the everybody at this project looking in participants

Sometimes, we direct aren’t but there by have, are looking third-parties it we be now. some I some would if that them, to and go and of any at through that surprised integrators

Jaeson Schmidt

guys. the I lot queue. in Okay. back will Thanks a jump

Steve Humphreys

Thanks Jaeson.


[Operator our Capital. your coming from line question next from Latimore Instructions] Mike Mike is And Northland live. is

Unidentified Analyst

syringe Could expect When Hi, the could FDA this for of behalf approval case? syringe is case? [Aditya] Mike Latimore. talk we (Ph) on the about use you the use

Steve Humphreys

knowledge exceed experts rapidly a a filing They extension, is there But approvals. and that FDA you is isn’t use So a the it. device of it on are going COVID. my to

For medical needs in Manfred more existing an this. example, involved is it. just it all device medical a approved, that. on is answer device extension It there not trial - a and

Manfred Mueller

whatever services to designed like medicine like be existing it or is going with got to it FDA is avoid and not be just applied. wrapped way the interfering be around is Waste syringe. because And going is an going additional like approval, to to ideally how offering just be is

Henry So from that necessarily is part point-of-view, there. that the not

this So I question. hope answers your

Unidentified Analyst

Alright can half it. could margins And we expect percentage year. in gross margins? above of color thanks. XX give the Could on what expect the we Hot the some second you

Steve Humphreys

non-GAAP XX and range. to where you purchase even about consistent as think, there I that the making chain again, you the margins I we think everything. are now. Because gross the are a XX% supply to gross margins will More that costs some under we price be more than, with are sure about keep in things are talking if There in delivering are is are other logistics pressure. you variances, going few we are keep talking

through pressure to be gross will We and margin the delivering that all some XX%. to going But is year. to we this find there small way might the on be get think I

For us, company. any like

Unidentified Analyst

you. further No fine. Alright, Thank questions.

Steve Humphreys



The live. question your coming is [Jay Chung] line is next Jay, (Ph). from

Unidentified Analyst

opportunity you in side. next year? next the year of or just the to capacity ahead ask Can for turning a you. thank have Hi step RFID year give great Then for questions. plan us hope you your And congratulations Sandra, you on next this

Steve Humphreys

are units. now, million capacity, of in we of range terms In mid-XXX right the

our a unit adding newer on we doing we not what XX capacity per faster now because se, And newer are of some the the that right equipments We XX but swapping effectively. processes more ton is critical equipment. million add for are will to out older of stuff some million can more of equipment, the are handle increments some

through these see in be units. the next will But demand side some XXX million XXX to the a volume equipment when that of from up that more it for the million will start come larger we mid-XXX projects, the capacity. moving to of So meaningful couple is we add pieces really units that

Unidentified Analyst

year when mid times mentioned play. the far those come have see. some to accommodate And to next of How them? into perhaps anther you programs you capacity build bank, I larger

Steve Humphreys

then million terms units. months. But XX for euros quickly getting roughly timeframe think million XX qualified four is to to ordering That for around it how in units, each three XXX three five million can the machine, to if in, we add it it million the Relatively roughly months million is way There to you in XXX wrapping it up capacity. quarters four to of getting and and be XX add get, think we - to tend need furlough about machines plus. also back to we three units doesn’t million

Unidentified Analyst

think That know bespoken have is about have we only local are my just I a talked they that ago, now about RX, noticed And a I all quarter you on did. don’t great. I pharmacy, they but then CBS, CDS, the second few

is it ongoing or the CBS? So still complete, at it is rollout now

Steve Humphreys

to we to And It they but that some it every be left as And every they CBS. should information expanding complete. as the fine customers having CBS marketing all of paper. prescription beyond or print all just mean is the before, seem great on out without way might your mentioned get have visually I impaired to it read means the more a to think

Unidentified Analyst


searches are premises right this on premises now, I premises means on for side? the Now then that side the faster be rapid RFID And job is of also, have does pretty means the growing side. you your the than that much expected? majority to side, boards current actually Does the on moving this to employee that noticed all

Steve Humphreys

growing expected, are on we faster true. that is Premises we do have hiring both And but than on, going sides.

that a of and premises company more advertise trying on out targeted, recruiting person a abroad are are actively RFID. not targeted both specific that if be position might pull sometimes We RFID you to you and still there. is out post

often shot. is more vital it So

Unidentified Analyst

I then sort of revenue did be the you OpEx second by what that the report? levels with sort should What forward see. of that pandemic and half? hires in And level can pickup in going new already

Steve Humphreys

the should going to to be to on We at XX% support able top be OpEx do think line. XX% XX%, think will year. drive of of will XX% order the the level the we more based So that that out we we to of XX% revenue we adding that on to something level, be

Unidentified Analyst

The And you without best you thoughts XXXX? versus how is Do a in the the in growth couple times. guess great mentioned guidance on I expect leverage, online? then, this are accelerate easy best like XXXX it year. from hurdle way programs think at about XXXX? of see. from And to giving be to XX.X% a future script, increase XX.X% shaping midpoint the What I revenue then Should look or we those this year? to pretty, And coming see for

Steve Humphreys

shaking her is at well. as Sandra head me, So

aren’t We of that. XXXX at I above think look one giving arithmetic answer in you if course growth we and everything we guidance. did let what XXXX Sandra, reasonable. But adding would the will are is But

Sandra Wallach

November will But earnings. in a I We giving the be what said full guidance reasonable think Steve is assumption.

Unidentified Analyst

half pandemic. Okay, series XXXX of to first flexibility rather finally, to the of actions to then And I designated great. maintain is a instead And conserve definitely shares of think pay, - cash. Steve due cash and

update apologize back footing I Now are that salary pay much the to much your the doing still ready do competition practical that the you I the or with record, cost And level being is start and shares. your with looks a share costs we or great. are for higher, firmer balance sheet to

Steve Humphreys

was last part? the What

Unidentified Analyst

I cash. compensation in you your get apologize that versus share still

Steve Humphreys

compensation. to to But, answer I the no cash shift will have I intention first part,

Unidentified Analyst

Okay. That for have Thank you is all I that. here.

Steve Humphreys

stick compensation. will equity with I the

Unidentified Analyst

thank Great, so you much.


Riley FBR. from B. Ellis follow-up We Craig have a

line Your live. is

Craig Ellis

of business on does revenue of that so by out really between year is to of with to go to projects about material that year’s that federal premises, and the with types to to have that the the federal you talking part year-to-date continuing business this the mix does year was parts? from things government, from are strong those taking scale the how the follow-up. least go are you premises persist some in is be Steve, wanted different we engagement enterprise I of in for for year to how take will just up to two, two level come it government back remaining long next question strength, signaled June this that The of seeing play strength shift reasonable really engagements that the business one premises that think and clearly to then and Thanks would you brewing much at that end in announcement as and mix next today? how the driven

Steve Humphreys

on the be growing. would think for comments. Yes, Craig? premises Thanks Two that. do Yes. follow-up we

you in On RFID, XX%, this is the other quarter know, which hand, faster. grew growing

But So to because have, will continue to is especially growing federal we accelerate. expect And four it grow it are And moving fact a, Federal of market share keep taking a going those you And that physical of simple is to is the that great, fast mix for way, growth. are will part growing, which secrets, is times share we we keep the just business. is is going investing way. that. that think, fast have cyber just market that are Government, it premises taking a to we most we it and growth, and it the the lot think somewhere, plus we the going,

We have most facility. platform federal secure or the

So that faster will that grow I think grow market. strongly and to we than continue much grow and the premises

drive two In One deployments. growth. of terms the federal of time cycle, there current expansion is things is that

all So et the we secured most TSA, IRS, the Service, are cetera. FBI, in Secret of of locations, number the courthouses, the federal others, a

they more infrastructure. they there deployments. or their go So, higher are go as facilities they security deeper facilities they into growth is driven to and upgrade across And massive

the launched then relative I And and when at long, urgency our projects they I have and how That are question, Intelligence the around. there their which months, what expand also be into surveillance from that fiscal is, platform, which We actually, can Video security can you take Video asking, of so happen is six video anywhere are new. can access Intelligence. core think, can

a the appointments is a are from with across agencies talking Government. And different about in objections of to now. had it. else a have You and do coming departments lot a dozen urgent short-term projects in are expansion right that that and we departments, are few we from Federal more But of a multiple comes you process, when bidders, half growth along near-term to and everything RFP the year full

room of lots So growth for there.

Craig Ellis

Got And will one then I it. gross Thanks on for you Sandra, that. margin. ask

are go get will XX% environment be in like in we in know into of that XX%, this the to XX% range. sounds that some back half range that business I back along the just a operating that to gross the like year. But with in XXs high given incremental the margin would it So costs of

to historic to as levels So this the you go to we and as of XX%. Can puts this the question through of getting event not XX% types is XXXX? if calendar talk getting back at about XX% year some we there, look

Sandra Wallach

we us give cost Yes, costs grow the subscription seeing of will in logistics which continue through XXXX, I and into expansion transponder now premises our see we going think the we calendar extra and place. expansion. some put we gross to cloud margin going are really capacity of the that to we see are that business and to are subside, have offerings And our will see

year. up So in XXXX. above the this segments for to we be the move those to we And expect above firmly continue should XX% that

Craig Ellis

Got it. Thank you both.

Steve Humphreys

Craig. Thanks


concludes question-and-answer this session. time, this At Company’s the

to I would now like team back question call at Humphreys the taken, turn not was Identiv’s your may contact If Investor for over Mr. his remarks. you Relations closing to

Steve Humphreys

this industry. products people. And because a can will I make evening. almost But us you fast top milestones, thank thanks. are moving week This short joining new back of very all hitting this the new very launching hour. a as Alright, programs, we we for at you again every tell, on bring is are the

the the markets next over events up will these investor you progress track over number keep of our time will and couple be we can a communications fast So of months. moving at

and in up. RFID September going is anyone event the for on. be is the RFID Gateway, And who to of B. of got industry, Phoenix year. Street coming the have It all That main We Concord, Riley, Stifle in-person. the will live XXth is journal Colliers, Lake following RFID then XXth also,

care love and are anybody would so and the and will of have meet with a of interest in we presence things to who meaningful course, you we We there industry. you doing show And ourselves both has there see through to the us there, some very that here.

speed you see businesses up keep we of to any and progress. events, So you with hopefully can the that those

Thank thanks and us a have very joining So you all evening. good for again.


today. us joining for you Thank

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