Identive Group Sees Q2 Revenue To Be Mid-range Of Prior Guidance - Quick Facts

(RTTNews) - Identive Group Inc. (INVE) announced the preliminary results for its 2013 second quarter. The company expects revenue for second-quarter 2013 to be approximately $23.6 million, in the mid-range of management guidance for the quarter of $22 million to $26 million. This represents sales growth of approximately 17% year-over-year, excluding the Company's Access Control & Security business, which decreased 41% year-over-year mainly as a result of temporary, sequester-related delays in U.S. Government sales.

The company said that revenue growth in the quarter came from an 81% increase in Transponder division sales, the tripling of Software as a Service (SaaS) sales in the idOnDemand division and a slight increase in ID Infrastructure (smart card reader) sales, offset by a 16% decline in ID Solutions sales compared with the same quarter of 2012. The decrease in ID Solutions sales primarily resulted from variability in the timing of orders from payment customers.

Adjusted EBITDA for the second-quarter is expected to be approximately negative $1.0 million, below the prior guidance of negative $0.5 million to positive $0.5 million as a result of lower Access Control & Security and ID Solutions sales.

Gross profit margin is expected to be approximately 38.9% in the second-quarter of 2013, compared with 40.2% in the second-quarter of 2012. Operating expenses are expected to be approximately $11.9 million, reflecting an 11% decrease in base operating expenses year-over-year as a result of cost reductions initiated in the Company's 2012 restructuring.