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Company Strengthens Balance Sheet as RFID Demand Allows Early Repayments
FREMONT, Calif., Dec. 30, 2020 (GLOBE NEWSWIRE) -- Identiv, Inc. (NASDAQ: INVE), a global leader in digital security and identification, today announced the Company repaid its term debt with East West Bank (“EWB”) and the first of two promissory notes to 21 April Funds ahead of schedule.
In early December, Identiv repaid its 12-month, $4.5 million term loan with East West Bank. Subsequently, on December 30, 2020, the Company repaid its initial $1.2 million promissory note to 21 April Fund LP. As a result, Identiv strengthened its balance sheet and positioned the Company for sustained growth funded from operations.
As previously reported, in the third quarter of 2020 RFID revenues more than doubled year-over-year. The Company expects to experience similar RFID growth in the fourth quarter of 2020 and anticipates continued RFID strength in fiscal 2021.
"The loans from East West Bank and 21 April Funds supported our growing RFID business, providing us with additional working capital to expand capacity and meet the demand surge we experienced in 2020, as well as predictable cash flows through the early phases of the COVID-19 period,” said Identiv’s CEO, Steven Humphreys. “With the RFID production capacity and team expansions we executed this year to deliver the revenue ramp, we were able to repay these loans earlier than initially planned.”
Identiv, Inc. is a global leader in digitally securing the physical world. Identiv's platform encompasses RFID and NFC, cybersecurity, and the full spectrum of physical access, video, and audio security. Identiv is a publicly traded company, and its common stock is listed on the NASDAQ Stock Market LLC in the U.S. under the symbol “INVE.” For more information, visit identiv.com.
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of the Company’s management and can be identified by words such as “anticipates”, “believes”, “plans”, “will”, “intends”, “expects”, and similar references to the future. Any statement that is not a historical fact, including statements regarding the Company’s expectations regarding future operating and financial performance, including 2020 guidance and 2021 expectations, the Company’s beliefs regarding its ability to achieve its business and strategic objectives and expected benefits thereof, the drivers of momentum in its business, the Company’s beliefs regarding its ability to execute on its key initiatives and the potential benefits thereof, the Company’s beliefs regarding its ability to respond to market conditions, the Company’s beliefs regarding the benefits and attributes of its platform and products, and beliefs regarding future orders is a forward-looking statement. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to the Company’s ability to continue the momentum in its business, its ability to successfully execute its business strategy, the level and timing of customer orders, the success of its products and partnerships, industry trends and seasonality, the impact of COVID-19, and factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.
Investor Relations Contact:
Matt Glover and Charlie Schumacher
Gateway Investor Relations