Q2 2020 Identiv Inc Earnings Call

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Good afternoon, welcome to identify presentation <unk> second quarter 2020, <unk> earnings call.

My name is where Sean and I will be the operator just after.

Joining us for today's presentation on the company's C O C properties and yes, Oh Sander wallet following management management remarks, we will open the call for questions.

Before we begin please note that during this call management, maybe making reference to non-GAAP measures and projections include adjusted EBITDA and free cash flow. In addition, during the call management will be make informed looking at and then any statement that refers to the expectations projections or.

The characteristics of future events, including financial projections and future market condition is they forward looking statement actual results may differ materially from those expressed as these or looking statements, but more information. Please refer to the risk factors discussed in documents filed from time to time with the assay.

See including the company's latest annual report on form 10-K, I didn't it seems.

No obligations to update these forward looking statements, which speaks as of today.

Now I'll turn the call over to C O.

Speed Humphreys for his comments.

<unk> Humphrey the floor is yours.

Thanks, operator, thank you all for joining us today.

Our second quarter showed strength in all the areas we expect.

This is lined up for a strong third quarter and second half what do you want it and we're seeing momentum is building backlog carrying us into even stronger 2021.

As you all know our primary focus areas, our or eat at our federal business.

Well go into more details, but the headline numbers are there.

Our if I'd grew 36% year over year and more importantly, our backlog in shipment rates confirming that we're on track record de Groot over 80% for 2020.

That was we've discussed the broad adoption of our if I'd within our major customers core products shows. The this growth is a long term trend that we're just beginning to see take off.

Or other area of course is the federal market.

Our federal access control business grew 28% year over year.

Our smartcard readers also were largely driven by federal customers, we saw year over year growth in these products of 23%.

Or you experienced with the U.S. government. We expect these trends to continue the rest of year and then just 2021.

So as the result of these growth trends and largely due to our idea momentum our total revenue for the second quarter of 2020 grew 5% sequentially.

More tangibly orders during the second quarter came in at record rate and as a result, we entered Q3 with a record backlog of over $13 million.

This is up 140% from our Q3 backlog a year ago.

And up 48% from the already strong backlog going into last quarter.

What's the numbers demonstrate is that orders were coming in even faster than shipments were increasing during the second quarter.

So in tough economic times like these are business looks like it's one of the ones that driving.

No underneath the headline numbers I want to clarify that Q2 sales came from our core business execution.

Less than $400000 came from the major programs, we've talked about that are ramping up going into Q3 and the rest of year.

These results demonstrate the three main factors driving our business.

Long term art I'd growth.

The sudden need for work from home technologies, and our strength in the federal government.

All these drove our business in the second quarter as well is driving the backlog growth going into Q3.

So with that in mind, let's look at the second quarter in more detail.

Within our identity business, both our smart card reader and our if I'd products group.

Revenue from our identity business increased sequentially by 18%.

$1.6 million.

Within that segment, our smartcard readers grew 23% year over year at our if I D grew 36% year over year as I already mentioned.

During the quarter. We also launched prototypes of our temperature tags, which are wearable sensors that track core body temperature.

We have request for over 30000 samples already for a range.