Q1 2025 Identiv Inc Earnings Call
Tom: Good afternoon. Welcome to Identiv's presentation of its first quarter 2025 earnings call. My name is Tom and I will be your operator this afternoon.
Tom: Joining us for today's presentation are the company's CEO , Kirsten Newquist and CFO Justin Scarpulla.
Following management from ARCs, we will open the call for questions.
Tom: Before we begin, please note that during this call, management may be making references to non-GAAP financial measures or guidance, including non-GAAP Adjust City Vita, non-GAAP Gross Profit, [inaudible]
non-GAAP Gross Margin and non-GAAP Operating Expenses
Tom: In addition, during the call, management will be making forward-looking statements
Tom: Any statement that refers to expectations, projections, or other characteristics of future events including future financial results, future business and market conditions and opportunities and future plans, strategies, opportunities and goals is a forward-looking statement.
Tom: Actual results made different materially from those expressed in these forward-looking statements.
Tom: For more information, please refer to the risk factors discussed in documents files from time to time with the SEC, including the company's latest annual report on form 10K, as well as our first quarter 10Q once filed.
Identiv assumes no obligation to update these forward-looking statements.
Tom: I will now turn the call over to CEO Kirsten Newquist for her comments.
The Newquist, please proceed
Kirsten Newquist: Thanks operator, and thank you all for joining our quarter one 2025 earnings call.
Kirsten Newquist: Strong macro trends continue to drive demand for RFID and next-generation technologies like BLE, despite ongoing disruption and uncertainty in the global market.
Kirsten Newquist: More than ever, companies are benefiting from adding a digital identity to their physical products, unlocking intelligence to address critical industry and business challenges.
Kirsten Newquist: The rapid expansion of IoT connected devices, increasing regulatory requirements, heightened security and anti-counterfeiting measures, and the growing focus on sustainability are key drivers of this digital transformation.
Speaker Change: Identiv Specialized RFID and BLE tags, inlays and labels provide for the digital identification of products, enabling physical objects to seamlessly link with the cloud and other digital solutions.
Speaker Change: This connectivity delivers compelling benefits such as real-time tracking and visibility, enhanced product security, condition monitoring and compliance, and more engaging customer experiences.
All especially vital in today's challenging macro-environment
Speaker Change: While we came in slightly above our quarter-one guidance, delivering 5.3 million in net revenue and our core business remains on track, we anticipate continued market uncertainty and high volatility for the foreseeable future.
Speaker Change: We are closely monitoring risks related to shifting trade policies and a softening global GDP outlook.
Speaker Change: Approximately a quarter of our business is exposed to US import tariffs due to our manufacturing footprint in Thailand and Singapore.
Speaker Change: We are actively pursuing potential tariff exemptions, developing a responsible pass-through strategy to protect margins, and preparing for multiple scenarios should reciprocal tariffs resume
Justin will speak to this topic in more detail shortly.
Now, turning to our first quarter business update.
Speaker Change: Since the start of the year, we have fully shifted into execution mode of our perform, accelerate, transform, grow strategy and go to market plan.
Speaker Change: As we've discussed, the objective of PAT is to strengthen and optimize the performance of our core channel business, accelerate our growth through focus key initiatives in high value applications, and ultimately transform the business into a market leader and specialty
Speaker Change: In the first quarter, we welcome new team members across ourselves, marketing and R&D organizations adding important capability and energy.
Speaker Change: We launched our new portfolio of dual-frequency in-lays, ID brain, and advanced several key new product development, NPD, programs, and business development initiatives in support of our Accelerate Strategy.
Speaker Change: We continued strengthening our relationships with our channel customers and partners, transitioning from its traditional supplier approach to a more collaborative partnership model.
Speaker Change: Operationally, we made solid progress on the transition of production from Singapore to our lower cost facility in Thailand.
Speaker Change: Following successful quality audits and the completion of required qualifications, we received formal approval to become production in Thailand for the final three customers still being served from Singapore.
Speaker Change: We are now focused on completing their remaining orders and expect to conclude Singapore based production by the end of quarter two or shortly thereafter.
Speaker Change: In April , we announced the new strategic partnership with Tagantrack, a full-stack IoT platform provider for real-time supply chain visibility and traceability to develop and bring to market specialized IoT solutions for coal chain tracking within the pharmaceutical industry supply chain.
The partnership combines our advanced BLE smart labels.
Speaker Change: with Tag Intract's Relativity SAS platform, offering pharmaceutical customers an integrated IoT solution that delivers item-level visibility and actionable insights from origin to delivery.
Speaker Change: We are excited to partner with Tag Intract to advance the adoption of BLE solutions in the pharmaceutical industry.
Speaker Change: Additionally, yesterday I attended the RFID Journal live show in Las Vegas with our partner in play.
Speaker Change: As you may have seen in our announcement last week, we are collaborating with Inplay on a new portfolio of BLE-enabled smart labels designed for high-value logistics applications.
Speaker Change: The upcoming Smart Label Portfolio will be powered by in place I-N100 Nano Vegan, an ultra low power BLE system on ship and is expected to be commercially available in late 2025.
Speaker Change: We will keep you updated on the product launch of this secure, scalable, and smart IoT solution.
Speaker Change: In summary, despite a challenging macro-environment, we believe our customers continue to recognize strong value proposition.
Speaker Change: Our specialized IoT tags, inlays and labels play a critical role in enabling the digital transformation and addressing key industry challenges.
Trends that we anticipate will continue irrespective of tariffs
Speaker Change: As a standalone pure play IoT solutions company, we are executing our PAT strategic framework with the goal to drive future growth.
Speaker Change: This includes reinforcing the foundation of our core channel business while expanding through new strategic partnerships and the development of next-generation products.
Speaker Change: I will share more details on these ongoing initiatives following Justin's review of our first quarter of financials. Just been.
Justin Scarpulla: Thanks, Kirsten. As Kirsten mentioned, our value proposition remains strong. We are working with several new partners, including Tag and Track, and the completion of the transition of RFID production from Singapore to Thailand remains on track.
Justin Scarpulla: We delivered $5.3 million in revenue in the quarter. Slightly above are previously announced guidance, compared to $6.7 million in Q1 2024. The year-over-year decrease was as expected and due primarily to the exit of low-margined business.
Justin Scarpulla: Gross Margin was in line with Internal Forecasts, given the dual manufacturing overhead of our facilities in Singapore and Thailand.
Justin Scarpulla: First quarter gap and non-GAAP gross margin was 2.5 and 10.8 percent respectively compared to gap and non-GAAP gross margin of 7.3 and 13.4 percent respectively in Q1 2024.
Justin Scarpulla: The year-over-year decrease in gross margin was primarily driven by the incremental costs related to the transition of production to Thailand and the dual manufacturing sites required during the transition and decreased utilization due to lower year-over-year revenues.
Justin Scarpulla: Gap and non-GAAP operating expenses for the first quarter of 2025, including research and development.
Justin Scarpulla: Sales and Marketing and General and Administrative Expenses total $5.6 million and $4.5 million respectively As compared to $5.5 million and $4.1 million respectively in 2021-2024
Justin Scarpulla: The increase reflects management's targeted investments to support the company's organic growth initiatives as outlined in the PAT Strategic Framework.
Justin Scarpulla: First quarter gap net loss from continuing operations was 4.8 million or 21 cents per basic and diluted chair compared to gap net loss from continuing operations of 5.4 million or 24 cents per basic and diluted chair in the first quarter of 2024.
Justin Scarpulla: This decrease in net loss was primarily due to strategic review related costs associated with the asset sale of 0.9 million incurred in the first quarter of 2024 that did not reoccur in the first quarter of 2025.
Justin Scarpulla: non-GAAP Adjusted EBITDA for Q1 2025 was negative 3.9 million compared to negative 3.2 million in the first quarter of 2024.
Justin Scarpulla: In the appendix of today's presentation, we have provided a full reconciliation of gap-to- non-GAAP financial information, which is also included in our earnings release.
Justin Scarpulla: Moving now to the balance sheet, we exited 2-1 2025 with 132.7 million in cash, cash equivalence, and restricted cash.
Justin Scarpulla: in the first quarter of 2025. We use 3.3 million in cash and restricted cash.
Justin Scarpulla: Our previously stated expected net operating cash usage for the 12 months following September 30th, 2024, remains in the range of 14 to 16 million as previously disclosed.
Justin Scarpulla: In the first quarter of 2025, our stock repurchase program was paused due to the elevated macroeconomic uncertainty and no repurchases were made under the program.
Justin Scarpulla: Our working capital, exiting Q1, was 141.5 million. Our balance sheet position remains strong, enabling us to pursue our organic and inorganic growth initiatives within the PAT framework.
Justin Scarpulla: In our 10Q filing, we will be providing a full reconciliation of the Year's Day cash close. For completeness, we have included the full balance sheet in the appendix of today's earnings release.
Justin Scarpulla: Lastly, our financial outlook in April 2025, the U.S. government announced broad tariffs on product imports from most countries along with elevated country-specific tariffs targeting certain others.
Justin Scarpulla: While the tariffs are not expected to have a material impact on our supply of raw materials and components going into our production facilities in Thailand and Singapore, approximately 25% of our finished goods are imported into the US, either by us or our customers.
Justin Scarpulla: We expect the pass along the tariffs that we incur on goods that are imported to our customers as a surcharge.
Justin Scarpulla: We have developed financial models for a variety of tariffs scenarios on shipments from Thailand to the US. The situation remains highly fluid, and we are preparing for a variety of possible outcomes.
Speaker Change: As of today's call for Q2 2025, we currently expect net revenue in the range of 4.9 million to 5.3 million. This concludes the financial discussion. I'll now pass the call back to Kirsten.
Kirsten Newquist: Thanks, Justin. With that financial context in mind, I'd like to share an update on the progress we are making under our Perform, Accelerate, Transform Strategic Framework.
Kirsten Newquist: As the adoption of RFID-based solutions continues to grow, new applications increasingly require more advanced and complex RFID designs to ensure successful implementation and widespread market adoption.
Kirsten Newquist: Identive strengths in engineering excellence, rapid prototyping capabilities, and agile manufacturing processes uniquely positions us as a partner of choice to support these types of complex requirements.
Kirsten Newquist: By executing our PAT strategic framework across several key verticals, we aim to drive revenue growth and expand growth margins in EBITDA.
Kirsten Newquist: Now, let me walk you through the progress we've made on each of the three pillars.
Kirsten Newquist: Our first pillar of performance is focused on strengthening and growing our core channel business.
Kirsten Newquist: To achieve this, we are prioritizing higher margin opportunities with existing customers and channel partners, expanding gross margins by completing the transition to Thailand, and focusing on executing our MPD pipeline with discipline.
Kirsten Newquist: Our goal is to consistently exceed customer expectations through exceptional support and reliable on time delivery.
Thank you for watching!
Kirsten Newquist: Our new sales leadership is in place and in a short amount of time has already had an impact on the company and its culture.
Kirsten Newquist: Kim McCauley, our new commercial leader, has brought a strong customer-centric approach and has prioritized in-person visits for herself and her sales team to build a deeper connection and to gain an even better understanding of our customer's pain points.
Kirsten Newquist: Kim understands the importance of building and maintaining strong relationships to ensure our identity success, recognizing that outstanding service paves the way for future projects and growth.
Kirsten Newquist: Since joining Identiv, Kim has met face-to-face with many of our largest customers and key suppliers.
Kirsten Newquist: During these visits, she heard consistent praise for our ability to design custom products that address complex requirements, as well as for the connections we've built with our customers.
Kirsten Newquist: She also received valuable feedback on areas where we need to improve insights that are critical as we continue to raise the bar on service excellence.
Kirsten Newquist: We continue to advance the development of our MPD pipeline which plays a key role in driving business growth.
Kirsten Newquist: We are utilizing the new stagecape process to ensure we are allocating our resources on those projects that are best aligned with our strategy and have the highest potential for success.
Kirsten Newquist: We are working on numerous active projects, both customer driven and internally driven.
Kirsten Newquist: In the past quarter, we made progress with the projects in the pipeline and added several new ones, including an RFID inlay for a smart home device and the development of the next generation, will it battery-free BLE device?
Moving to the second pillar of our PAT Framework Accelerate
Kirsten Newquist: We are executing against three specific growth initiatives to build our pipeline and drive future revenue and margin expansion.
Kirsten Newquist: 1. The expansion of our BLE and multi-component and CL platform 2. Driving growth in three healthcare high-value applications and 3. Driving growth in three consumer and logistics high-value
Kirsten Newquist: Beginning with BLE and MCL expansion, we are making solid progress.
Kirsten Newquist: As we've discussed, BLE is a next-generation technology for IoT, providing significant benefits for applications that are challenging to address with traditional RFID technology.
Kirsten Newquist: Over the past several months, we have seen growing interests for specialized BLE labels, spanning pharmaceuticals, healthcare, logistics, and asset tracking applications.
Kirsten Newquist: We have several significant projects in our pipeline, including the Food Logistics Project previously mentioned and an industrial track and trace application all with the potential to improve business efficiency through the analytics they generate.
Kirsten Newquist: As mentioned in my opening remarks, we've announced the Strategic Partnership with Tagantrack and our collaboration with InPlay to develop a new BLE Smart Label portfolio utilizing InPlay's BLE chip.
Kirsten Newquist: These partnerships directly support our BLE roadmap and reinforce our position at the forefront of BLE innovation.
Kirsten Newquist: To support these projects and other opportunities under active discussion, we have added resources to our R&D team in Germany to support the critical development work in this area.
Kirsten Newquist: We are highly encouraged by the momentum we are seeing in BLE and the increasing interest from the market.
Kirsten Newquist: The 2nd and 3rd Accelerate initiatives are focused on driving growth in 6th high value and high volume application.
3-in-health care, 2-in-consumer and 1-in logistics [inaudible]
Kirsten Newquist: For these initiatives we have added business development and product management resources to develop the market through strategic partnerships and direct commercial OEM relationships.
Kirsten Newquist: and ensure our product roadmap supports the specific requirements for these applications.
[inaudible]
Kirsten Newquist: Strategic Partnerships play a key role in the development and implementation of solutions for these high value applications.
Speaker Change: As discussed on our last call, we have partnered with Novanta to jointly market our combined solution for medical device and like science OEMs.
Speaker Change: Our advanced RFID inlays, tags, and labels provide the digital identity for critical components and consumables used in smart medical devices, advanced diagnostics, and wearable devices.
Speaker Change: Novantes, Sting Magic, Reader Modules, and APIs analyzed the data produced by our tags to enable authentication of consumables, medication compliance, and calibration for diagnostic test components.
Speaker Change: Together, we are helping OEMs bring next-generation products to the market faster, advancing patient care and safety.
Speaker Change: Our strategic partnership with InPlay to develop BLE Smart Labels represents a meaningful step toward enabling high-value IOT logistics applications.
Speaker Change: These labels are being designed with scalability in mind to provide customers with a smart, cost effective solution that can expand as needed and adapt to support a range of logistics for high-value products.
Speaker Change: In smart packaging, we are partnering with VATAP, Formally Collect ID and Genuine Analytics to deliver a unique wine authentication solution.
Speaker Change: With up to 20% of wines in circulation estimated to be counterfeit, the industry needs a secure, cost-effective way to verify the authenticity of the wine itself, not just the bottle.
Speaker Change: Together, our companies have developed an integrated solution combining wireless digitization, analytics, digital certification, and blockchain.
Speaker Change: This enables wine producers, resellers, buyers, and auction houses to confirm with confidence that both the bottle and the wine inside are genuine.
Speaker Change: The three companies will be co-hosting a webinar on May 28th to showcase this innovative anti-counterfeit solution for luxury wine collectors and producers.
Speaker Change: Turning now to the third part of our strategic framework, Transform.
Speaker Change: This pillar focuses on driving significant business expansion and capability growth through M&A, which is intended to add scale and technical capabilities while expediting achieving EBITDA break even.
[inaudible]
Speaker Change: Our discussions continue to progress with a select group of M&A targets, although the current macroeconomic environment has presented greater uncertainty which we are having to navigate.
Speaker Change: All parties involved are working to understand how these shifting dynamics may impact their businesses and ultimately their valuation.
Speaker Change: Despite these headwinds, we continue to work closely with our Financial Advisor and Internal M&A Committee to assess the potential opportunities.
Speaker Change: As we mentioned during our Quarter 4 2024 earnings call, we have developed several metrics to monitor our progress across our strategic objectives, which we plan to update each quarter, beginning with today's call.
Speaker Change: During this year, we are developing our baseline and will be refining our learning as 2025 progresses.
We intend to establish targets for these metrics in 2026.
Speaker Change: The New Metrics are 1. New Sales Pipeline and Conversion Rate
Speaker Change: This metric tracks the number of opportunities with new customers, or customers we haven't sold to in over two years, across three product categories.
Speaker Change: One, Standard Products Helden Inventory, Two, Standard Products Requiring Minor Modifications, and Three, NPD products which are included only after development and scale-up are complete and we have a 12-month forecast.
Speaker Change: At the end of Quarter 1, we had 74 new opportunities in our pipeline. We converted 10% of these new opportunities to sales during the quarter.
Speaker Change: Given typical sales cycles of six to twelve months, we expect this conversion rate to increase steadily each quarter. By year end, it will establish a baseline for tracking a rolling twelve-month conversion rate moving forward.
Speaker Change: Number two, NPD projects. This metric tracks the number of active NPD initiatives segmented by customer-driven and internally-driven efforts, as well as by target markets and technologies.
Speaker Change: These projects involve the development of entirely new RFID or BLE tags and lace or labels.
Speaker Change: As of the end of quarter one, there were 21 active NPD projects, 13 customer driven and 8 internally driven. Three of the customer driven projects target healthcare applications.
Speaker Change: From a technology perspective, five of the customer driven projects are BLE based.
Speaker Change: These represent the largest share of potential volume and steady state revenue.
Speaker Change: Number 3, NPD Project Completion This metric captures a number of NPD projects completed within the quarter that will be shifting into commercialization.
Speaker Change: In quarter one, one project transitioned, a new inlay design to authenticate consumables for a home water filtration system.
Speaker Change: In addition to these business metrics, we plan to continue to provide quarterly revenue guidance and quarterly updates on our expected operational cash use.
Speaker Change: And finally, I would like to provide an update on our corporate governance.
Speaker Change: As previously announced on our quarter three twenty twenty four earnings call, the board is seeking stockholder approval to amend the company's charter to declass by the board at the annual twenty twenty five annual meeting of stockholders.
Speaker Change: It's a declassification amendment is approved and affected. The class two director nominees who are standing for election at the 2025 annual meeting will be elected for one year term.
Speaker Change: and the board's classified structure will end at the 2026 annual meeting, at which time all nominees for election as director will stand for one year's term.
Speaker Change: If the declassification amendment is not approved and affected, the board will remain classified.
Additionally, as part of its ongoing governance review,
Speaker Change: The board has approved an amendment to the company's corporate governance guidelines.
Speaker Change: to provide that a majority of the votes cast for director are marked against.
Speaker Change: Or withheld in an uncontested election, the director must promptly tender his or her irrevocable resignation for the Board's consideration.
Speaker Change: As we continue to shape our board for the future, we are delighted to welcome Mick Lopez as our newest director.
Speaker Change: Mick is a public company board director and former CFO with decades of strategic and financial governance expertise.
Speaker Change: His extensive experience in M&A, coupled with his strong backgrounds in corporate governance and leading audit committees, will further strengthen the board.
Speaker Change: With his strong financial background, we believe he will be impactful on the transform element of our strategy and provide insightful expertise as we build the baseline for our new performance metrics.
Speaker Change: We look forward to working with Mick through this transformative period and beyond.
Speaker Change: In closing, while we expect the global macroeconomic uncertainty to continue, identity's value proposition remains strong and consistent.
Speaker Change: The long-term secular trends that are driving demand for RFID and BLE-enabled solutions remain solid.
Speaker Change: As a focused, pure play, IoT solutions provider, we believe we have the right team in place to execute our PAT strategic framework.
Speaker Change: By reinforcing our core channel strengths, while expanding through new strategic partnerships and innovative product development, we believe we're well positioned to drive long-term growth and value for all of our stakeholders.
Speaker Change: With that, I'd like to open the call for your questions.
Operator, please open the question to you.
Certainly.
Ladies and gentlemen, the floor is now open for questions.
Speaker Change: If you have a question at this time, you may press star 1 on your telephone keypad to enter the queue. We do ask if listening on speakerphone today that you pick up your handset while asking your question...
Speaker Change: to provide optimal sound quality. Once again, you may press star 1 on your keypad at this time, if you wish to join the queue, to ask a question. Please hold a moment while we pull for questions.
Speaker Change: And the first question today is coming from Rihon Bisson, from Craig Hallam. Rihon, your line is lies, please go ahead.
Speaker Change: Hey guys, it's Rian on for Tony Stoss. Thanks for taking my questions and thanks for all the information again, Kirsten. So just first, just kind of looking at that tariff, and then you mentioned a 25% direct impact. I'm curious.
Speaker Change: Maybe not qualified, but a little more information on what you're seeing, I guess, from some of the customers in your pipeline in terms of caution, or just kind of a more of an indirect impact that you think from tariffs, just adding more color that would be helpful.
Speaker Change: Yeah, I mean, in terms of indirect impact, we've gotten some concerns from customers for sure, but we haven't seen...
Speaker Change: Outside of just maybe a couple of minor things, we haven't seen any significant impact from customers at this point, but obviously there's a lot of uncertainty, things are changing all the time, and so I think there's a little bit of let's wait and see what actually sticks and what actually happens, but certainly kind of with the initial set of reciprocal tariffs that were announced, you know, that was pretty challenging and there is definitely a lot of
Speaker Change: and Sergeant Caution in the market at this point.
Speaker Change: Got it. And then, you know, it was nice to see that some more or some more wins come through from the pipeline this quarter. I'm actually looking back to last quarter as well. I just wanted to see if there was maybe any change or hopefully still the same timeline on that grocery, logistics deal. I believe it was a trial in Q4 and then maybe mid 2026 it could go live. It was that still tracking. [inaudible]
Speaker Change: That's tracking. That's what our customers definitely pushing for that. It's a complex project, a manufacturing process, still being developed, but that is what the strong push is.
Speaker Change: So end of the year, kind of a decent initial order for some trials and proof of concepts and then really going wide towards middle of next year.
Yeah, it's great. Thanks guys. I'll hop back into it.
Okay, thank you.
Speaker Change: Thank you. And once again, if you wish to join the queue to ask a question at this time, you may press star one on your keypad to join the queue. Once again, that will be star one if you wish to join the queue to ask a question at this time.
Speaker Change: Your next question today is coming from Craig Ellis from B Riley. Craig, your line is live, please go ahead.
Hi, this is Stacy Che, I'm for Craig, and-
Speaker Change: Thank you so much for letting me ask a question. And, Kristen, I was wondering, you know, since last time, will we announce about the transition from, you know, Singapore to Thailand and there were some smaller volume, a little margin mixed out and also some bigger customers.
Speaker Change: with one that we're not, you know, bringing over to Thailand. And where do we stand right now in mixing out that business and how much of both of those are in the TQ Guiders?
Thank you [inaudible]
Speaker Change: Yeah, so what we've already made, some of those mix-ups as you're saying and some of that is reflected already this quarter and it's definitely reflected in our quarter to guidance.
Speaker Change: And yes, the transition, though, going from Singapore to Thailand is continuing to make really strong progress and we're pushing as hard as we can to get everything done by the end of the quarter.
Speaker Change: How do we feel about the executive to get to the, I think, 27% is of gross margining for a queue?
Speaker Change: Yeah, well, I'll let Justin speak to the Gross Margin target, but just to start with the transition, yeah, the transition is going very well.
Definitely got-
Speaker Change: over 75% of the volume now transitioned over to Thailand, the team is getting up to speed.
Speaker Change: The Singapore resources who've been running the products for many years are spending time over in Thailand to ensure that the team in Thailand is getting up to speed. I think we're generally seeing that, you know, kind of the yields and the efficiency is, is, is.
is getting very close to what...
Speaker Change: They had, after years of experience with Singapore, so we think it's going very well, I guess, long story short Let's get started.
Speaker Change: and we still have the three big customers that we are serving in.
in Singapore.
Speaker Change: But as I said, we've gotten all the audits complete now in Thailand. We've done all the qualifications. So we're really at this point doing all the final last orders in Singapore. And we expect to have that done by the end of the quarter. And to the margin question, I'll let Justin answer that. Sure. We pulled any guidance or indications of the margin for the rest of the year, depending on the outcome of the tariffs. I'll let Justin answer that. I'll let Justin answer that.
Speaker Change: and what's going to happen because it's been there a 90 day review today, that ends in July , so we're going to wait to see what of that land before we get any future battles on March 24th.
Speaker Change: But as you said, you know, that guy didn't came out because we were anticipating the transition from Singapore to Thailand and that is on track. So I can say operationally on track, getting a margin guide for Q4, I'm going to link and see where the margins fail.
on deck.
Great. Thank you, Kirsten. Thank you, Justin.
Thank you.
Speaker Change: Thank you. And as a reminder, if you wish to ask a question at this time, you may press star one on your telephone keypad once again, that'll be star one if you wish to join you to ask a question at this time.
Speaker Change: And your next question today is coming from Jaeson Schmidt, from Lake Street. Jaeson, your line is live, please go ahead.
Jason Schmidt: Thanks for taking my questions. Just give me the macro dynamics to keep one benefit from any sort of polling orders from any customers.
Speaker Change: No, I don't believe that quarter one benefited from any Poland. No, I mean, just because of our lead times and everything else, it's hard. I was glad if some stuff that maybe already didn't inventory. No, we didn't see any significant benefits.
Thank you.
Speaker Change: Gotcha. And just curious if you could comment on what you're seeing from a kind of quoting activity standpoint or booking so far here in Q2.
Speaker Change: Yeah, I mean, look, you know, we definitely have heard some concerns, of course, from our customers as I said, I think, you know, we've had, you know, some very small orders that have been put on hold.
Speaker Change: Um, but we're seeing, we're hearing some caution, but I think everyone's really honestly waiting to see what happens within, you know, this 90 day pause. Um, because obviously that's really kind of the critical piece at this point.
Speaker Change: We haven't seen, I think, any significant concerns for quarter two and our guidance reflects any slowdown that we're anticipating, but nothing significant.
Okay, thanks a lot, guys.
Thank you.
Speaker Change: Thank you. As a final reminder, if you wish to join the queue at this time to ask a question, please press star 1 on your telephone keypad. Once again, that is star 1 to join queue to ask a question at this time.
Speaker Change: and it appears there are no further questions in queue at this time. I would now like to pass the floor back.
to Kirsten Newquist for closing remarks.
Kirsten Newquist: Thanks, operator. And thank you all again for joining the call today. We definitely appreciate the continued support of our customers, partners, shareholders and employees.
Speaker Change: It was great to feel some of that support yesterday at RFID Journal Live, where I got to spend some time with our strategic partners, NXP and in place.
Speaker Change: A few upcoming IR events. We have the B. Riley Conference on May 21st. We have our annual meeting of Identiv Stockholders on June 10th.
Speaker Change: And from a marketing perspective, we have our luxury wine authentication solution webinar on May 28th with our partners Daytap and genuine analytics. Thank you very much.
Speaker Change: And just as a reminder, we have replays of our previous IoT webinars are available on the events and webinars page of our website. Thank you all so much again for joining and have a good evening.
Speaker Change: Thank you. This does conclude today's conference call. You may disconnect at this time and have a wonderful day. Thank you once again for your participation.