INVE - Earnings call transcript Q4 2020

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Operator

Good afternoon and welcome to Identiv's Presentation of its Fourth Quarter and Fiscal Year 2020 Earnings Call. My name is Catherine and I will be your operator this afternoon.

Joining us for today's presentation are the company's CEO, Jeff [ph] Humphreys; and CFO Sandra Wallach.

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

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

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

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

Steven Humphreys

expected thank joining expectations. growth all, for aggressive and November. our projections us we Operator, set preliminary we you, those exceed said beat to confirmed we in the In Thanks, we Today, today. results, we

and XXX% with the of more For was double the same second we revenue the fourth more year. XXXX quarter, period quarter, grew finished over XX% RFID first year-over-year than quarter for for our the we year-over-year, the than that grew last consecutive backlog year

XX totally and Now performance. new more Apple the in cost market capabilities floodgates Huge experiences, market off. has extremely XX to force leaps NFC the create growth reliability full behind taken that the into iPhone iOS and is in low of its RFID embrace open the combined engaging RFID with at and of products chip product this engineers their integrating project customer by

of inflection XXXX. which new positioned the customer second in RFID and for we product both faster the an our XX% showed our was capacity growth the leadership. that The in pivot over technical We point, this hit point generated with expanded to drove base momentum launches we in and market expanded half, first year, the As business. we even and XXXX grew our grow half

XXXX. our volumes into year second that business, shipped are In half units doubled the growth second more half we strongly the carrying million So, than us XXXX. RFID so share metrics in some the of and XXX our let over me of RFID XXXX in

We by and That's we the strongest, active cemented more where in prices are in we unit that most with engaged adapters our as go-to also the for the XX% is RFID devices. growth products. XXXX also over strongest with the sophisticated advanced we're increased advanced customers, some RFID of our reputation average early partner XXX showing

indicators in design customer growth three launches. other track RFID: to launches, The and technology wins,

few XXXX. are of from each So here

allowed the pharmacy to we the prescriptions. use for launched where names, customer talk will and and had is area. bottles volumes this Now contents not can expand pill to think Prescription in speak launches. the can high the we're that scale about impaired, we that we but will usually customer think we visually to product One categories all

launch customer in accessories devices. for mobile was Another

part of With accessories having monitors platform. from that opportunity. phone bunch way directly going your a to they unless phone can the do the the missed dumb want is a glucose your wires mobile power phone talk to to just become of phones, wallet, case, objects is your accessories. and accessories are you When of your other RFID that mobile

we designed products going forward. very we major will a again, think volumes that drive category So interesting and launch for

the to disposal supposed the where it's to a RFID-enabled it's with device at ventilators go is should to of the machine is critical sure The to authentic beyond customer markets like faster and part. near-term part the be third replaced only a course, tube sure support and ramped used be right as usage for was right then make medical of manufacturer's ventilator. consumable and launches customer with make track the demand. it's breathing a genuine that breathing and the The every in launch part We consumables tubes authenticity medical particular supported mass part to used ventilators

Another in massive were key and XXXX. the customer market launch recurring

several are are these but more, good examples. some there Now,

design we're scaled working that in to wins but These XXXX. are yet. now up Turning designs haven't on,

personal bikes, ebikes, in both So all engaged and RFID got think very transportation in companies -- Europe Americas. the scooters,

patented track customer on designs for obvious tags tire tag also Our and pressure. metal are We're working on tracking to on metal authenticity, RFID tag engagement uses.

and awkwardly just gauge of So jamming phone pressure you get pressure could tube stem. a wheel to your tap on the a instead

testing different market and and three Still is for win developed and wins Again, cartridges design and And analyzing for was Impinge, like we and design are NXP, ramp and designs customers. authenticity calibrates at our designs but XXXX, improving confirms performance to another strategy category to least blood scaling existing these in goes designs the of continuously system the new to is XXXX. TI with consumable assay. complete. the chip Core With on and we three XXXX. both contents to will Another rapid new leverage up in of blood two major application expect customers, features systems. our also This companies in from price one going of designs shipped others. test be

the in competitive and second XXXX, As half aggressively did these strengthened automation. margins, we processes, quality These new world-class but ramp position. our impact to investments drive we investments customers they've technologies of the in made

So customers' with of to our we apply despite delivered us doubling volumes, advantages now and levels give quality to customers competitive and targets that prospects. and all can our we exceeded schedules yield aggressive

growth as the to result. contribute As a faster we a margin compression the result, we built temporary expect of competitive advantages be to because and to

depends designing big or In you to attached patches. -- the wins bringing new technologies a XXXX, upstream technologies tons of of of new we're But for great and that, with ever built more it's the and record our developed capabilities our on track lets our The production. cases. use design of ability range sensors technology of passive a customers. we launch to This constantly on people new best-in-class our and temperature we're chips customers. having technology incorporating without Now get key engineering us battery temperature was and things

Now integrated senses I even interesting, fill This glass fluid our think, other capacitive we one through of sensors in materials. launched most or RFID the devices.

syringes, bottles can fills track else. and anything you medicine serum and So

Now, more but the applications on later great lots with cases. technology use of

launched strain bending gauges to concrete. plastic We with objects also metal of designs strain integrated track whether made roofing and of they're the

rates NFC see you'll combination but has developed usually and both devices the we our impact a low. XXXX, In area a range multi-frequency but frequency few RFID high another data and Now, and are HF in expensive read high ranges frequency device. devices. the an readers great, are launched centimeters. Ultra having is integrating are are and single UHF

new NXP, Now makers Impinge chips there ST like especially [ph], Micro EM chip especially others well, incorporating as are and and Asine from devices others.

RFID can design made progress technology So a business in customer behind we launches, numbers of the you XXXX wins and tell, lot building in across as developments.

So, in built also government the the XXXX, the remains In our other strength a results. we business federal of business, financial strong parts behind growth driver.

grew IRS worldwide technology Energy, service mobile and secret sales multiple XX% work Driven home Treasury, lots at had bases and offices Department work deployments Air We facilities, by FBI NIST from of strength federal Our and demand. [ph] Force by VA and the key nationwide, of our hospitals, year-over-year. others.

line: subscription Acosta in on physical fourth third customer offerings Cirrus, product who revenues services retention. access service Mobile and for Apartments Cloud service and control launched recurring the adapted XXXX, SID, Now, we service our entire which our a [ph] our video of security and surveillance is identities quarter both service. -- Freedom In Velocity are platforms focus strategic our Bank, XVR as Loma EastWest Customers Prime and La our Center others. mobile Medical -- included

RFID important, and got and retention our year and a into market highlights design to the quarter launches but the wide I'll just over our to our XXXX fiscal and for for in our the leadership But expectations the remain Sandra and and growth, as revenues call supporting hit beyond. XXXX. growth a So year, focus. Sandra? we wins customer range in before turn showed areas XXXX, going The strong federal technology strength, financial of of fourth this customer recurring

Sandra Wallach

Thanks.

have results growth business range double-digit cash in ranges flat versus with the with million XXXX in are of announced the closed end the beyond. the $X.X exiting of flow reflects Steve XX% X fourth high GAAP of at $XX.X with results GAAP up which from These XXXX results reflect net compared XXXX third revenue, within the and with our XXXX. We quarter operations EBITDA, mentioned, loss and seasonality all for and million of fourth track on of preliminary strength XXXX and our financial XXXX normal February provided. quarter range As quarter our out and the revenue, the adjusted us in exiting strength non-GAAP of

the the was in full-year $XX.X guidance in economies. January XXXX original issued COVID-XX offset to within Our in revenue altered than our compared Exceptional of premises RFID original world declines more temporary revenue XXXX guidance. pre-COVID as growth well million, before

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

by margins Gross profit compared of meet short in year and adjusted and in profiles long-term the and the gross of XX% to our investments were technology XXXX. growth For the primarily systems non-GAAP XX% customers margin mix manufacturing resulted XXXX, also and and GAAP respectively, profit processes and XX% full our XX% from changes to products. and

previously Steve As historical margins to to expect we said, has revert levels.

as These and advantages year second in more drive and investments ahead current growth even growth contribute contributed ramped and RFID customers the speeds, our we performance. have XXXX already result. the created and continue with of quality to of competitive years to automation a in because consistent the industry-leading Specifically, in new manufacturing to half high investments already and will technology higher processes, made we

full was Our the non-GAAP XXXX. in margin in and fourth adjusted EBITDA year X% X% quarter the

loss compared million net $X.X loss of loss with of of per Our QX XXXX. a QX million $X.XX in was a loss per share or or share $X $X.XX a

loss manage of or of $X.X Our a share even cash GAAP XXXX on was million. free XXXX. with million the QX Because $X.XX line capital positive in our free loss and achieved flow was And because non-GAAP quarter $X.X of cash our from operations per was $X.X a in non-GAAP our million we million flow per positive deliver to a capital positive cash compared loss full loss share working $X.XX in commitment of we leverage flows million $X.X expense fourth net $X.X expenditures, or year investment our shareholders of after to prudently, operating the exiting alone.

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

XXXX. the our representing of This reflects trends or in million year $X segment. analyzes for accounted of of XXXX, an further slide the QX next results. QX, X% Our increase total exiting XX% of leading delivered by revenue segment recovery way with segment the Beginning backdrop against from this premises, total the

of XX% fluctuations adapted revenue customers pandemic GAAP Premises sales various to margins revenue of year Premises as annual For million, macro XXXX, XX% decrease in in other changes QX our Premises the the $XX.X segment XX% due or lines factors. a from XXXX. to quarter generated product XX% the were The full compared for in quarterly segment to and were our of in and XXXX. fourth from

full-year, compared to the XXXX. XX% Premises GAAP For XX% were margins in

Identity our in a QX Turning Revenue our or the XXXX, totaled to XX% products of from segment. QX million XXXX. $XX.X increase from XX% revenue total Identity

XXXX. to and Identity XXXX an in XX% GAAP full-year card primarily XXXX the higher quarter RFID QX as generated segment from XX% both to a Our segment of of increase were were revenue, Identity $XX.X sales GAAP of our were well million, driven full-year of revenues the XXXX. XX% compared sales margins XX% XX% higher and segment full-year Our compared XXXX XX% Identity or fourth in products XXXX by Identity our QX as smart readers transponder in margins

previously to RFID deployment growth their rapid mentioned, in higher of of As early revenues. of the strategies, our due RFID proportion very which stages customers driving are

Now management. moving operating our expense to

fourth quarter the $X.X decrease million, from XXXX. a for in expense million operating GAAP $X.X QX was Our

totaled quarter revenue total QX of total the to or million Our XX% revenue XX% non-GAAP of $X.X million operating for or $X.X expenses compared XXXX. in

operating For the XXXX. our from million, full $XX.X $X.X expenses year, total an were increase GAAP of million

and were operating held XXXX. revenue do full-year during non-GAAP XX% by the XXXX for compared for revenue expenses envelope We growth for successfully flat total $XX.X operating non-GAAP re-investing our non-GAAP million current or of within to or of with million our expect operating in XX% expenses XXXX. $XX.X expenses Our not cost increase

the our increase As current was XX% the discussed non-GAAP pieces believe calls, we've of Bringing back strongly within fourth adjusted a the prior support XXXX, have QX that compared million operating to quarter on capacity $X.X structure. we together, million we all EBITDA revenue cost at more to $X.X in least our XXXX.

year $X.X XXXX, full the our adjusted was EBITDA For million. non-GAAP

exited quarter license. million expenditures $X QX XXXX The manufacturing increase financing from with used activity drivers operations, million key to $X.X pay net Singapore Turning $X.X million reconciliation filings, reconcile sheet. be XXXX. and the $X.X facility, was flows. invested full to a $XX.X a XX-K there cash GAAP GAAP for XXXX of loan flows used of small off We balance the of million in lastly, positive capital year-to-date reduce and we generated $X.X impact In last to to were to cash decrease net payments our for million in will from QX term to $X.X $X.X million And cash, flow. a a used note QX under foreign cash, $X.X the positive our from in the the million million plant, of activities was $X.X related cash million our cash providing tax [indiscernible] was we in our promissory currency fluctuation million of

included revenues the over early XX% end short release of for RFID year, the of booked we've the guidance difficult With products $XX in XXXX, sheet and upper its completeness, fourth comparable consumables Because to in XXXX, year the the issued mid-February to XXXX the technology lower momentum expected of we adoption XXXX, in operational for accessories are this million, the technology appendix. forecast full $XX updating November in a XXXX million. Fiscal $XXX period Due per on total a the range. or the end exiting the from XX, of of orders updating For new up previously full quarter the the in and it's as initial potential to earnings is stages XXXX. life exceeding increase million we're today, balance

the provide the into we the develop we number guidance year, will we assess the better As guidance appropriate. accurately will as to to and growth is updated to momentum that over with strong continue in quarter-over-quarter of XXXX. of confidence visibility in first XX% able be second half seasonality XX% expected revenue first have we half for to continue more building half Normal our and of XXXX

still that conservative and momentum. double-digit are somewhat business revenue growth considering full-year on the are confident also our We that expectations current track we believe may guidance be

free concludes With expect growth, the from I'll XXXX. operations flow capital strength discussion pass Steve. limited and positive financial expenditures to This required and scale for it we to to cash the stay for non-GAAP back

Steven Humphreys

Thanks, Sandra.

As us momentum revenue we've XX% revenue a overall. first half to for backlog clearly strong got show, year and flow growth, the setting XXXX of in XX% cash up strong our and growth

to drove be expect same We year this priorities growth driven that XXXX. our strategic late the growth by three in our

and increasing premier the expansion, is recurring strength of by government Our revenues predictability improving RFID NFC-enabled customer provider expanding products, and sophisticated federal retention.

underneath main for of it's engine XXXX is technology our the the Now, products. core most and RFID growth

this both focus a it's from keep on call. the reason understand growth? our the and and market market just perspective? And growing business we did is I'll to XXXX. key on is growth The and itself versus QX sustainable can is mostly double highly explosively this thing So, shared QX others the market beginning. why the huge this low-cost physical main XXXX year-over-year Is The that leadership is share and for every planet interact antennas, happens. planet RFID our exactly in on Nvidia physical everything This with. is RFID it. a Impinge, security tuned have We software in are the existence. at RFID on optimized the and and software will with digital that thing enables Tiny with the NXP, every we reaching thing that and chips vision system way embedded it

syringes exact the of into can if them dispensed patient. right is and the So, built into track medication amount

make to put replaced replacement sure and Your be filter refrigerator needs the working. when tell and an authentic it's can in you that's

can running you've steps sense how shoes You're taken. many

stayed contract are phone annually and applications billion used for and the can quality accessories annually appliances products and billion annually; temperature-sensitive tracked annually; medicine every packets of Your Over had. sold and and Every billion billion together shoes a we've sold temperature-controlled sample. billion and over test XX assay billion for compliance, sense the cannabis XX parameters over XXX scale. Governments tax within worldwide; X work authenticity accessories; mentioned X XX syringes over market some shipments with XX can of prescription test be used phone potentially in and never collection. with blood units well not is authentic billion that's and matched phone experiences major assays X made examples sure to especially consumables intelligently your of create the give annually; I billion billion ones just medical right spoiled. used safety blood it In that annually. And sentences, one These of bottles the cannabis a earlier in country; a XX annually. blood over few athletic automated you [ph]

sensor I Competitive gets cost happen. time hundreds on market better adaption Now, technology billions of take examples, augmented more as existence. across to thing RFID every a but nearly this and drop force every other cases sector size more just won't physical will get integrated until obvious pressures units. of of digital has use a makes

happen reader we digital with on and the the power shoe, RFID and readers radio do signal and programing a of personalize go enable data this our the part user with the to power why widely while gets Identiv with credibility of features the working They and analog most software exposed dropped systems, this of and the connects they manages and the security have amazing conversion We With the the run to stuffed providing This messy our programmers or high the or bridge build real security antennas, the over engineers power the in and competitive digital read creates capabilities reliably, embedded generally reliability, on power make communicate with Because to communications RF experience, interaction. conversion can't and the the the bridge have both their a very we've all world and RFID very work digital to then is gives the it's We a pockets to designs with data We doll, deepen chips, high make thing us totally So and transfer, our like tricky just in to washed in to We and Whether a in reading. devices RF. where harvesting value to with devices pharmacy library in is RF optimized and get RFID delightful to industries. that other chip. capabilities, in providers trade system the that the analog or phone closely and products. chips early adapters the metal frequency value developed of make the for the engineers add customers' the huge our the work RFID with for engaged experience it then among from by RFID customers' to themselves the [ph] antennas, of is work deployed end product. harvest embedded the winning? flexibility the syringe, their most engineers software high hair add. and to design They form advanced and patents chip security, have incredible are and the both vendors with that all across chip accesses of to We platform their world. We're and physical that secrets product work. readers into vote our brings programed, in all capabilities harmony sensors any the and place benefits read and of tag trying a devices, through NFC physical

and to an own own awkward pilot almost our go between designs high interaction inconsistent complicated chip what they've the chips, deliver make and durable extremely ramp directly quality most with price new even new product for out happens we come we [ph] experience. customers' partners improve and the the totally is features, production next learned because almost reliable engineers difference want from points. new devices. Then our the with prototypes, up either or facilities, But production Our to magical always runs, because

we prototype design another process. production run So pilot

it [ph] of leading of this hundreds of are advantages. there keep billions first thousands of mover in units, we'll designs Now, because huge market and

This pressure Moore's created to production have more is lose We drive unique platform the Law that performance customer experiences. digitally capabilities accelerating customers driven launched, any they market. and better by redesign by and us a others their their enabled into competitive design advances it with chip through keeps keep pressures when and keep or speed product will as vendors, will up

than XX% security cyber the here all emphasizes federal government, headquarters, continue offices With we're federal security. the to customer the as the expect comments drivers our can market. driver in So keep launches our share growth and of superiority, an of Secret with replicate the in area and RFID, the physical the design In let grow market and growth of we our expansion of core watch we the Among In business federal we wins industry. government the that on leadership. continued cases updating across couple to use specific growth, basic new even our are metrics to These government a our and [ph]. on wins to product business. we'll with recent continue me securing in Service our that core across federal spending healthy expect perspective a and field administration close places

got behind of wins the we orders we'll more the share XXXX. Our Representatives also delivery capital. is security And urgent for in expansions House leadership recently and some U.S. rather throughout

our recurring consumable most are launched increasingly or In in RFID, I products. short either is revenue product priority the full products strategic revenue. Premises life third range products XXXX of technology predictable for lines. The we've mentioned

predictability customer is designed to the So revenue getting in and then very retention. key high

and as or again for consumables new orders consumed are technologies. products Our needed turnover recur are its technology

the best customers RFID we of is in here projects retention their growth. XXX% had products long-term we customer the metric and can Now RFID scale years, great take these visibility Developing for in retention. our in have so customer XXXX, into

Our pipeline interest designs All medical and is need even our with tag of everything levels sensitive and consumables data from vaping and medical at and record in integrity patches for appliances, calibration devices pods. temperature passive applications. and for particular assays other coffee across expensive metal, on authenticity but also matching

So just metrics last to are wrap weeks. some few up, here from the

As Sandra from time mentioned, we're in bookings, XX% now same last million over new year. $XX up the

RFID designs with underway dozen schools medical industry beverages, devices, have luxury replicate multi-million in marketing to or several We unit potential. hospitals, over launched cross a pharmaceuticals solutions and one We've the customers, military. programs with

prescriptions in visually example, for deploying our second customer devices the first addition the to For similar customer for scale our impaired. is pharmacy of in space, a

markets. new and industry to you fast, milestones an which will our Now every that, in cross-leveraging in this moving hitting I'll transformational we're track these so week opportunities, and can open progress questions With communicating discussion. new keep

Operator

you. Thank

We coming Street. from Your Jaeson [Operator now question is questions. will Schmidt Lake first Instructions] take

live. is line Your

Jaeson Schmidt

revenue RFID percentage and Hey business. then XXXX? think can go to for do you your just with questions. I in of Can start share my thanks for you XXXX what the guys, is taking where wanted RFID that

Steven Humphreys

take I'll to a take want that no. you that? Sandra, as do

know. business. out, traditionally So as of half course, but identity that we RFID Then business, broken most Jason, it's you haven't our growing. And the it's the rapidly is Identity within over

in year. by this go So you of the it two-thirds will be range three the quarters time of Identity to business out certainly of

Jaeson Schmidt

that compress the gross we dynamics margin How And sort going to along gross in helpful. this for with with those obviously Okay. trending within That's different really about term. year each it's lines, here should of then segment? near the momentum, think margin

Steven Humphreys

one might technologies. when The think comments put we there. mentioned the of it We being in the and factors in two were second release of in press we growth Yes. equipment, -- -- XXXX, some were have we some ramping new half the new both in the in primary there brought I up Sandra's

into specific requirements investments customers of Some go goods of the largely had cost sorts of sold. those and

So gross or growing next that over that near-term And impact of is to beyond two. That a margins. recover are both quarter parts back range that, should XX% on solidly. the the then business

will over added expect upward continue value we and term. value add more to do longer then as expect So, We margins know. gross and you that time, software the

And you gross will out sense? even Does up so XX% will make that years, when think look that at it above I the how But continue roughly range. that's go. margins

Jaeson Schmidt

one then And helpful. queue. really that's and back me just Yes, jump last a from I'll into

You indicated updating visibility. more guidance once you have

Just range? curious of visibility macro just improving sense to trying that's the orders? the general customer more a if on Just what dynamics current based potentially are get specific or that could to drive upside

Steven Humphreys

volumes and or the but complete, are quarter, based are in quarter there a the It's some decide wins that I on of timing. Very because the designs after can major customers RFID the next strategy, Yes. own this mentioned drive it to huge that good launch in their customer quarter on design question.

into visibility at get quarter specific about really a by -- companies, their launches, we of when that size, our timing our of the as changes hit timing and it big these it's better So by changes quarter. a some profile

the want a more anything. have we we scale on but than at timing timing certainty both frankly visibility, get more it's to the so So, of

Jaeson Schmidt

that sense. Okay Thanks makes lot guys. a

Steven Humphreys

Jason. Thanks,

Operator

Instructions] Jeff from from next Imperial Capital. question is [Operator Kessler Your coming

live. is line Your

Jeff Kessler

hear me? you Can you. Thank

Steven Humphreys

hear Yes, Jeff. we you, can

vague. little a You're

Jeff Kessler

Okay.

set I Is if this. better? can me this see Let just

Steven Humphreys

better. Much

Jeff Kessler

question first side. Premises on My Okay. is the

on to on your of get down would the interested control importantly the turning it time XXXX that of control with much you point you appear market start providers that the looking folks know, going? able and But points been since what were some are haven't recovering gating way for recovers. people second types Given start comment if are it who just what of of the X%. the to up able discussing you will visitor of some the actually topline? there really on that if last right been that could you the analytics possible be if get be and would the a security that using, what up how the at And the as March, show programs and and appears larger -- providers that's business access actually software of who equipment when is look management the were to going and you that premises, access are the probably the to -- growth providers conversations half more been of now industry that kind are the at physical stakes to in in haven't revenue Granted,

Steven Humphreys

the great two so training physical question. resurgence, you with security there there slowdown, aspects doing fact, Federal our it's growing of lot is commercial grew on sign will to as and some to us a business you as accelerate has us. strong that's no XX% we're recurring on then keep administration; there; of new timing revenue regardless. priorities the that And pointed that for and products. of the question say, of a Yes, And stayed going out, it government, is in the should

with so of video-related of ground versions we'll well of line substantial through quarter pretty I the launched have we're recurring as all revenue the those mentioned, in our XXXX; as As we product another premises year. basically second launch this hitting

commercial perspective; and going are schools areas back a were some very hotels and dealer side to from retail like up year places commercial you then the we'll lined of growing a in customer still on seeing federal see training going in already other with thing training and be focusing continue. the we to but really we're a So, bounces think transportation, wait bounce very perspective, be nicely, side right to as back, be is is because And it. to advantage take going think now, on the we're a frankly, of good on we position and that that's products like range

Jeff Kessler

Okay.

there margins -- the in about margins given a -- quarter identity point what's company. I'm begin there You've $XX there on to your talked a -- And whole side the before side, for the given for there OpEx your is at inflection -- -- occur? you're all you're -- per inflection vertical your identity Is since inflection whether point just wondering, is business on -- a mix an much million that I change going the where margin next not is would just are on picture different identity the whether it's markets increasing on not might identity? change; talking point it's there where year. for side that toward And a point mean, on about very

Steven Humphreys

So, me those. go of after let both

our leverage on In I X% you're was it the is OpEx were the XX%. was up think fourth in right. revenues First and like quarter down, model;

be point with that you've a XX% can of -- on R&D; OpEx scale, as it hit to more revenue OpEx and costs margin up put in XX%, if in will that, G&A less going we've clearly out were And lot top fixed somewhat think sales of dollars has which a we areas we while in previously that we get the some still and communicated where grow even go able at to the other up. it leverage gross lot we've go got we So line are of holding and channel, on that and in than we top then, line.

point. we've line the bottom think of inflection and margin the points on Then generate in OpEx about top that's Identity we do so -- in we of going some on did we some and dollars. gross facility of in a as point engineering think and of because those level we gotten our let place, that a I'll now same ads channel. top our because out that production very Singapore, to So above it, we we are that I our about; the technologies so it lot throws as get the it's leverage do out of through at ask and the get was specifically; sector line leverage line out growth, and talking did good that we've in hit our aggregate I facility, view; engineering we build both the

think are as right as and you that we we're to we where we operating leverage at get certainly into XXs in grow that at So, to see good point. margin we XXXX; start high and per terms through leverage now of start points quarter, about

Jeff Kessler

much. you All very right. Great, thank

Steven Humphreys

Thanks, Jeff.

Operator

is coming Mike from Your next [Operator Instructions] Latimore from Northland question Capital.

line live. is Your

Unidentified Analyst

grow than Mike the faster analytics behalf Could to on on business? premise of growth; expect Latimore. Aditya you Hi, this the comment is a do video the [ph] at rate you analytics overall video

Steven Humphreys

retail, surveillance video But is of our year, particular, and Last the a pressure. last we've question. in in good Yes, platform -- video launches of some much our product service we launched had because it was got as business -- so other we've areas; hotels and it end at got some year. actually

everything is that positive that's loss a the think retail in growth, sure of important more important and to and integrated be be -- for more system also or do rather because contributor case shrinkage and side more we the Used and access two are from very is want customers security federal facilities on commercial that and system, integrated going control the making more pretty especially getting an warehouses. more that more we're across a seeing So, rest to -- there no government different platforms. schools they important video with analytics than

come that federal think local already be state But of hotels some us. of It of going certainly I see when in verticals -- driver they retail coming a growth were governments. of be like and some some and the other terms back. So, to and investing, schools, for wait the are and back is already sectors government, the will certainly

Unidentified Analyst

And is [ph]? great. Great. of goods right, plans acquisition on any All there

Steven Humphreys

somewhere or I'm sorry general acquisition specifically [ph]? in

Unidentified Analyst

interest have In near acquisitions in in future? any general. general, in making Do you the

Steven Humphreys

and RFID, should opportunity stay our something full something hands a technologies an the ROI business that if high and scale; that's strengthen our have We'll got in But our own our that's always We growth anything, be managing are looking our and full, leadership to especially we've on focusing products, opportunities in hitting place, frankly, portfolio there so of there, got say we we that. always at. -- just pretty, and a to think it in came busy. us because we're is blue, specifically; a open we our to but we've aren't we've channel opportunity and targeting of we've is the got where predisposition of you execute because you what I don't want with we pretty -- focus execution -- out us. happens delivering front to to and know from if keep activity comes and never does want on it got know

Unidentified Analyst

All Thank right, That's All fine. from my you. it right. side.

Steven Humphreys

Thank you.

Operator

Capital. Jeff [Operator Imperial from Instructions] coming from is question next Your Kessler

Your line live. is

Jeff Kessler

Hi, thank you.

of In I'm their as do or going with vice you just are areas for Do or consolidation -- access against and cohorts just this stand video about talked right basically of going and with video you -- the that co-op and just industry now access combined basic other trying participate area one their people pure where subsystems you a you video up video basic that's others integrated, this and access words, [ph], or cloud talked on one these -- wondering competition? the One the out is, guys? where -- companies? the this cooperation is able there the a to of swoop. control -- that, of of is one in with there is like things to in dramatic video companies Bravo versa. like -- those get with -- -- to I provider guys service -- Ricarda And and a going of as is against either their are and is you up you petition is -- you this these mean,

Steven Humphreys

do that products federal certainly that. and discussions pure is we've not going control up So, strong and fully co-opetition enterprise some having real a in some and the of space, OEM-ing we're technologies but actually think access -- a system we in of any the advantages think Jeff, about gives we have everyone to we where think and SMB such competition, we lot government you you and position a between that integration there just give connectors range know, not core capability. I to know, integrated a is as have there got additional more of and range In it's does all our video, you

and know frankly. system control to not to with an we're it and the to personnel video all integrated doing they're making who going available and that quite where So database your the just system, time; the that, access be there some your deeply that XXX% video pictures, advantages doing being in at they're is are integrated concede bunch that of a you for but has instead of it's example, real it, supposed to events supposed anybody, employees what be to that to accurate

Jeff Kessler

very you appreciate it. Thank great. Okay, I much.

Operator

is coming Chung line question next Jay [ph] Your your Instructions] [Operator from live. is

Unidentified Analyst

okay? hear Hi. me Can you

Steven Humphreys

Yes, we hear you.

Unidentified Analyst

Perfect.

are unit give on the opportunities about talked I [indiscernible] future you just was I build? capacity your wondering guess You for the capacity if there. an and update out what plans

Steven Humphreys

to we we year last through is last Sure. right now beyond right about XX% another We €XXX,XXX are can machine. linear particular, this nice even a it's we year; we capacity pretty But the the we early about so out, that; for and to so have where But for XX% now. capacity €XXX,XXX even last about well very adding for now XX% really got basis, year. where did build so us is were up about -- scale facility capacity XX% volumes already capacity capacity a added got over year, it's scalable, in thing did last We've over capacity we've on got what we've we to year.

Unidentified Analyst

And That's you'll fulfill are orders? shortages your client to to I be to the there able Great. hear. great sure how and be seems you in just that mitigating then, industry. wonder making

Steven Humphreys

thing. months to that; you giving launch but that times, chip those have they're vendor that bottom that's all us there of and not that good forcing first lead that's line ship. have Then and it's going to a happen do have to we has one very what anything if very have right have in is It a control, customer, to the pretty they understand it's orders we're it's -- hairy so out not a before if good under XX-week place good the customer six we're But fall now, question. doing of course is, pretty they have we good it the because it. Yes, -- we relationships, they off,

and good we're The a wherever they aren't -- don't critical get want than you're I relationships has it. short vendors other and out hearing about access but someone going times availability thing we're is or with is, the to sometime really that shorter delivery, able the to committed is anybody we who cut have to there chip really lead

through customers people little to and but each we've built our actually for it when the Because it's the so been out those cements that So, in do to relationship than in the we years, some this. on better right a over marketplace. value relationship additionally; this thick years, we've been bring it now, been in turned us who've what the working and that allows can industry, we've to taking hearing trust other again times they're like off thin in

than better the we're basis. on I it able And to plan and that. order So, of ahead relationships, a also on manage think -- just with some we're ahead then doing average

Unidentified Analyst

sort plan just of then that us couple is more maybe premises Marketing; – to some on you focus -- hear. on give it to lastly, more new can some Lee of the then or is you Vice side? great That's And maybe some it -- tackle? on for the the And of of projects President RFID, [ph]; Dao hire what first

Steven Humphreys

we've some things so so engineers, Lee's in. got career longest whole at chip RFID is very spectrum. It course, Senators to But Honeywell, that's are has knows she design out semiconductor is that -- background. know, can She you and tools; to the you I was device people active that government reasons team building specific her she digital her building has -- she changing store was target targeting has then as website, and like someone as web and understands who adopt the infrastructure the so is question. and big to of to re-architected she on them, marketing she much of Intel; both, also you -- know, just controls, to in keep systems, get who down our she office, go-to-market in is tools. we which re-architected send loved Hill where very so applied generation Using also we government; the our stint lead at marketing, similar saying she and marketing she get engineers at and was a of one the market that Capitol Good digital started very she she the got -- a medical marketing, them and get a And the design, -- already automation leading verticals marketing native she new our DRIP can is platform, get with re-architected engage of can marketing and messages, [ph] really leverage platform, our out specifically, premises. down

So we sales that as having of in. so marketing been our I bit been much digital we marketing driven, frankly, well want you haven't And had to to and a can well it's haven't where go. growth but tool so to with actual now, that before. targeted very -- We've mix contribute a to we leverage and technically really that's aligned her strong very going with tell, the and saw can hardly enough about technical driven sales

Unidentified Analyst

you so Thank much. Great.

Steven Humphreys

you. Thank

Operator

[Operator There this company's no at lines are this session. question-and-answer from And questions Instructions] the the further time. concludes

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

Steven Humphreys

the our about are of And also just some driving look investor into know All updates briefing so we've these keep track build And out backlog and some thank the be design technologies, bit cases, also some I some our an RFID this all for other we market. right, obviously companies the chip we a a joining to as for also thank will we unique market some progress. to coming setting like to on and of companies up analyst at that depth metrics wrap get of today. used and and long; us progression go we'll to the fast-moving up, focused this as regular wins wins, related so design is and more you. little gone you of

discussion this. appropriate a for So in-depth call that than we'll have would more little earnings up bit like set been an

time. you have again all talking looking for thank And So, forward your to good and very a evening.

Operator

you Thank today. us joining for

You disconnect. may now

Identiv (INVE) 5 Mar 212020 Q4 Earnings call transcript