Identiv, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with net revenue falling to $26.6 million, a decrease of 39% from $43.4 million in 2023. The company's gross profit also dropped sharply to $0.3 million, down from $6.0 million the previous year, resulting in a gross profit margin of just 1.3%, compared to 13.8% in 2023. The loss from continuing operations widened to $27.9 million, compared to a loss of $13.5 million in the prior year. This downturn was primarily attributed to lower unit sales of RFID transponder products to a key customer undergoing a technology transition.
The company underwent a significant strategic shift with the sale of its Physical Security Business on September 6, 2024, for approximately $143.9 million in cash. This divestiture, which represented a substantial portion of Identiv's historical revenue, has led to a reclassification of its operations, now focusing solely on its IoT Business segment. The sale resulted in a gain of $103.5 million from discontinued operations, contributing to a net income of $74.8 million for the year, contrasting sharply with a net loss of $5.5 million in 2023.
Operationally, Identiv's customer base and geographic revenue distribution also reflected the impact of the transition. Revenue from the Americas decreased by 46%, while Europe and the Middle East saw a 38% decline. The Asia-Pacific region experienced a 21% drop in revenue. The company reported a total of 166 employees as of December 31, 2024, with a focus on enhancing its research and development capabilities to support its IoT initiatives.
Looking ahead, Identiv aims to strengthen its market position by focusing on higher-margin opportunities and expanding its product offerings in the healthcare sector and other high-value applications. The company is also transitioning its RFID device production from Singapore to Thailand, which is expected to be completed by mid-2025. Despite the challenges posed by macroeconomic conditions and competitive pressures, Identiv remains optimistic about the long-term adoption of RFID technology across various industries, which it believes will drive future growth.
About Identiv, Inc.
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