Identive Group Inc.
SCM Microsystems, Inc. d.b.a. Identive Group: IDENTIVE GROUP ANNOUNCES FIRST QUARTER 2010 RESULTS
SCM Microsystems, Inc. d.b.a. Identive Group / Quarter Results 13.05.2010 08:29 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- SANTA ANA, Calif. and ISMANING, Germany, May 13, 2010 - SCM Microsystems, Inc. d.b.a. Identive Group (NASDAQ: INVE; Frankfurt Stock Exchange: INV), a provider of products, services and solutions for the security, identification and RFID industries, today announced results for the first quarter (Q1) of fiscal 2010, ended March 31, 2010. Q1 2010 results include the operating results of Hirsch Electronics Corporation, which the Company acquired on April 30, 2009, and the operating results of Bluehill ID AG, since its acquisition on January 4, 2010. All figures are reported in U.S. GAAP, except as noted. A discussion of non-GAAP measures and reconciliation to the applicable GAAP measures is included below. Revenue in Q1 2010 was $15.3 million, up 194% from $5.2 million in Q1 2009. The increase was primarily due to the inclusion of revenue from the acquired Hirsch and Bluehill ID businesses, as well as a small increase in sales from the traditional SCM business. Q1 2010 revenue also grew 29% from $11.9 million in the fourth quarter (Q4) of 2009, primarily as a result of the inclusion of revenue from the Bluehill ID business. Sales in the Americas accounted for 56%, EMEA region sales accounted for 34% and sales in Asia Pacific accounted for 10% of total Q1 2010 revenue. Identive's ID Management Solutions and Services segment showed good growth as the Hirsch business experienced improved activity in the U.S. government market and Multicard benefited from initial orders for large transportation and contactless payment programs in the Netherlands and for logical access control projects in Australia. In Identive's ID Products and Components segment, the SCM business unit had improved sales to the U.S. government market and in Japan and recorded its first significant sales to Brazil and China during the quarter. TagStar's RFID inlay manufacturing was hampered due to semiconductor shortages in the early part of the quarter but this was partly compensated by new customer wins in transport ticketing. Gross profit margin, before overhead allocation and excluding amortization, remained stable at 49% in Q1 2010 compared with Q1 2009 and improved from 46% in Q4 2009. Overhead costs (operating expenses before amortization, depreciation, impairment, equity-based compensation, acquisition, transition and integration costs and a gain on the sale of assets), were $10.0 million in Q1 2010, up 127% from $4.4 million in Q1 2009 and up 11% from $9.1 million in Q4 2009. The increase in overhead costs in Q1 2010 compared with the previous periods is primarily the result of the inclusion of the incremental overhead costs from the acquired Hirsch and Bluehill ID businesses. Beginning in January 2010 Identive began implementing a series of cost reduction measures, including facility consolidations, streamlining of its existing and acquired development organizations, and reductions in headcount and executive salaries. The Company expects these measures will result in cost savings of approximately $6.0 million per year, of which approximately $4.5 million will be realized in 2010. While the cost savings measures were implemented in Q1, the Company expects the main benefits will start to become apparent in the second quarter of 2010. During Q1 2010 the Company incurred significant costs related to the acquisition of Bluehill ID AG, which was completed on January 4, 2010. These included acquisition and related costs of $0.3 million and transition and integration costs of $1.4 million. The costs related to transition and integration primarily were related to headcount reduction and facility consolidation. Adjusted EBITDA (EBITDA before equity-based compensation, acquisition, transition and integration costs) was a loss of $(2.5) million in Q1 2010, compared with $(1.9) million in Q1 2009 and $(3.6) million in Q4 2009. Cash and cash equivalents at the end of Q1 2010 were $6.8 million, up from $4.8 million at the end of the previous quarter, reflecting the addition of cash and short-term investments from the Bluehill ID business. On a GAAP basis, gross profit margin in Q1 2010 was 40%, compared with 41% in Q1 2009 and 37% in Q4 2009. Total GAAP operating expenses in Q1 2010 were $11.7 million and included $2.6 million in amortization, depreciation, equity-based compensation, acquisition, transition and integration costs. This compares with GAAP operating expenses of $5.3 million in Q1 2009, which included $1.5 million in amortization, depreciation, share-based compensation and acquisition costs, as well as a $0.2 million gain on the sale of assets; and GAAP operating expenses of $11.3 million in Q4 2009, which included $3.1 million in amortization, depreciation, share-based compensation, impairment and acquisition costs. GAAP operating loss was $(5.5) million in Q1 2010, compared with $(3.1) million in Q1 2009 and $(6.9) million in Q4 2009. Loss from continuing operations attributable to SCM Microsystems, Inc. in Q1 2010 was $(6.0) million, or $(0.15) per share, compared with $(3.1) million, or $(0.20) per share in Q1 2009 and $(8.5) million, or $(0.34) per share in Q4 2009. Included in Q4 2009 is a $2.2 million impairment charge related to the write off of equity investments and exclusivity fees related to the Company's investment in TranZfinity, Inc. About Identive Group Identive Group (NASDAQ: INVE; Frankfurt Stock Exchange: INV) is an international technology company focused on building the world's signature group in secure identification-based technologies. The businesses within Identive Group have deep industry expertise and are well-known global brands in their individual markets, providing leading-edge products and solutions in the areas of physical and logical access control, identity management and RFID systems to governments, commercial and industrial enterprises and consumers. Identive's growth model is based on a combination of strong technology-driven organic growth from the businesses within the group and disciplined acquisitive development. For additional info visit: www.identive-group.com. Contact: Fabien B. Nestmann +41 44 783 8043 fnestmann@identive-group.com 13.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: SCM Microsystems, Inc. d.b.a. Identive Group 1900 Carnegie Ave. Bldg. B CA 92705 Santa Ana Vereinigte Staaten von Amerika Phone: +49 89 9595-5000 Fax: +49 89 9595-5555 E-mail: ir@scmmicro.com Internet: www.scmmicro.com ISIN: US7840181033 WKN: 909247 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
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