Second Quarter 2023 Financial Summary
Revenue for the second quarter 2023 was $29.6 million, compared to $26.0 million in the prior quarter and $27.9 million in the second quarter of
2022. By segment, Identity revenues were $17.7 million and Premises revenues totaled $11.9 million.
Second quarter 2023 GAAP gross margin was
36.7% and non-GAAP gross margin was 38.2%.
GAAP operating expenses, including research and development, sales,
and marketing, and general and administrative were $11.9 million in the second quarter of 2023, compared to $11.9 million in the prior quarter and $10.5 million in the second quarter of 2022.
Non-GAAP operating expenses were $10.6 million in the second quarter of 2023, compared to $10.6 million in the prior quarter and $9.2 million in the second quarter of 2022.
GAAP net loss was $1.1 million, or ($0.06) per basic and diluted share, compared to GAAP net loss of $2.7 million, or ($0.13) per basic and diluted
share, in the prior quarter and GAAP net loss of $0.3 million, or ($0.02) per basic and diluted share, in the second quarter of 2022.
Non-GAAP adjusted EBITDA in the second quarter of 2023 was $0.7 million, compared to ($0.9) million in the prior quarter and $1.4 million in the second quarter of 2022.
Management Commentary
Our second quarter results
have kept us on track to meet our 2023 financial and operational expectations as we continue to deliver disciplined growth with a strong balance sheet, said Identiv CEO Steven Humphreys. In Q2, we strengthened our strategic position in
both our IoT and Physical Security businesses while generating positive free cash flow and strong gross margins. In IoT, our Thailand facility is fully operational, and currently producing 5 million units a month. The new facility is on track
to produce at an annual rate of 200 million units by the end of the year. Medical and healthcare use cases made steady progress. The Bluetooth-enabled RFID category continues to strengthen. In Q2, we completed Wiliots initial IoT Pixels
order and began production of the follow-on order, while continuing to support engagements with Bluetooth-enabled RFID solution providers. Chip availability has normalized, and weve added IC specialist
Asygn as a partner for new sensor-based IoT solutions optimized for industrial applications.
In Physical Security, demand for our comprehensive end-to-end Velocity platform remains strong, with wins in our major commercial verticals, in addition to our core Federal customer base. Several of our cloud-based access
control and video solutions are now available on the FedRAMP marketplace, which we expect to facilitate adoption by Federal agency customers. We recently launched our Primis access control suite and EG2 edge gateway, a secure, affordable, and
cloud-ready solution ideal for small- to medium-sized organizations. Our recent investments in people and product have begun delivering results, and when combined with
our continued emphasis on working capital and business model efficiency, we are confident in our ability to execute on our 2023 growth strategy.
Identiv CFO Justin Scarpulla added, Delivering disciplined growth continues to be our top focus for 2023, and we will continue to support strategic
opportunities that drive revenue and margin expansion. We are also committed to strengthening our balance sheet and solidifying our working capital position. Our production facility in Thailand is now operational, and we expect there to be a
positive impact on margins once the facility has reached full utilization. As we enter the second half of the fiscal year, with our current visibility we believe we are well-positioned to deliver on our current 2023 outlook.