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 Impinj Reports Second Quarter 2019 Financial Results
   Monday, July 29, 2019 4:15:00 PM ET

SEATTLE--(BUSINESS WIRE)--Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items, today released its financial results for the second quarter ended June 30, 2019.

“Our second-quarter results were strong, highlighted by $38.2 million revenue and solid performance in both endpoint ICs and systems” said Chris Diorio, Impinj co-founder and CEO. “We set another quarterly revenue record, led by strong system sales.”



Second Quarter 2019 Financial Summary

  • Revenue of $38.2 million
  • GAAP gross margin of 48.2%; non-GAAP gross margin of 50.0%
  • GAAP net loss of $4.2 million, or loss of $0.19 per diluted share using 21.7 million shares
  • Adjusted EBITDA of $0.8 million
  • Non-GAAP net income of $0.7 million, or income of $0.03 per diluted share using 22.3 million shares

A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below.

Third Quarter 2019 Financial Outlook

Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the third quarter of 2019 (in millions, except per share data):

 

 

Three Months Ended

 

 

September 30, 2019

Revenue

 

$37.0 to $39.0

GAAP Net loss

 

$(6.9) to $(5.9)

Adjusted EBITDA

 

$(0.8) to $0.8

Non-GAAP net income (loss)

 

$(0.9) to $0.7

GAAP Weighted-average shares — basic and diluted

 

21.75 to 21.85

GAAP Net loss per share — basic and diluted

 

$(0.32) to $(0.26)

Non-GAAP Weighted-average shares — basic

 

21.75 to 21.85

Non-GAAP Weighted-average shares — diluted

 

21.75 to 22.43

Non-GAAP Net income (loss) per share — basic and diluted

 

$(0.04) to $0.03

A reconciliation between GAAP and non-GAAP is provided in the "Non-GAAP Financial Measures" section below.

Conference Call Information

Impinj will host a conference call today, Jul. 29, 2019 at 5:00 p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions on its second quarter 2019 results, as well as its outlook for its third quarter of 2019. Open to the public, investors may access the call by dialing +1-412-317-5196. A live webcast of the conference call will also be accessible on our website at investor.impinj.com . Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 10132961.

Management’s prepared written remarks, along with quarterly financial data, will be made available on our website at investor.impinj.com commensurate with this release.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the market for RAIN RFID, our strategy, prospects, and financial outlook for the third quarter of 2019. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

About Impinj

Impinj, Inc. (NASDAQ: PI) wirelessly connects billions of everyday items such as apparel, medical supplies, automobile parts, luggage and food to consumer and business applications such as inventory management, patient safety, asset tracking and item authentication. The Impinj platform uses RAIN RFID to deliver timely information about these items to the digital world, thereby enabling the Internet of Things.

Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners.

IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)

 

 

June 30, 2019

 

 

December 31, 2018

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

22,153

 

 

$

 

17,530

 

Short-term investments

 

37,645

 

 

 

38,543

 

Accounts receivable, net

 

21,260

 

 

 

18,462

 

Inventory

 

37,910

 

 

 

44,725

 

Prepaid expenses and other current assets

 

1,524

 

 

 

1,954

 

Total current assets

 

120,492

 

 

 

121,214

 

Property and equipment, net

 

17,759

 

 

 

19,778

 

Operating lease right-of-use assets

 

17,786

 

 

 

—

 

Other non-current assets

 

237

 

 

 

196

 

Goodwill

 

3,881

 

 

 

3,881

 

Total assets

$

 

160,155

 

 

$

 

145,069

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

 

5,407

 

 

$

 

4,643

 

Accrued compensation and employee related benefits

 

5,938

 

 

 

7,409

 

Accrued liabilities

 

2,982

 

 

 

2,887

 

Current portion of operating lease liabilities

 

3,207

 

 

 

—

 

Current portion of restructuring liabilities

 

94

 

 

 

582

 

Current portion of long-term debt

 

1,241

 

 

 

5,930

 

Current portion of finance lease liabilities

 

419

 

 

 

523

 

Current portion of deferred rent

 

—

 

 

 

402

 

Current portion of deferred revenue

 

964

 

 

 

649

 

Total current liabilities

 

20,252

 

 

 

23,025

 

Long-term debt, net of current portion

 

22,126

 

 

 

17,633

 

Operating lease liabilities, net of current portion

 

20,628

 

 

 

—

 

Finance lease liabilities, net of current portion

 

79

 

 

 

258

 

Long-term liabilities — other

 

301

 

 

 

304

 

Long-term restructuring liabilities

 

—

 

 

 

487

 

Deferred rent, net of current portion

 

—

 

 

 

5,294

 

Deferred revenue, net of current portion

 

137

 

 

 

185

 

Total liabilities

 

63,523

 

 

 

47,186

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock, $0.001 par value

 

22

 

 

 

21

 

Additional paid-in capital

 

347,558

 

 

 

337,627

 

Accumulated other comprehensive income (loss)

 

34

 

 

 

(9

)

Accumulated deficit

 

(250,982

)

 

 

(239,756

)

Total stockholders' equity

 

96,632

 

 

 

97,883

 

Total liabilities and stockholders' equity

$

 

160,155

 

 

$

 

145,069

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

Revenue

 

$

 

38,190

 

 

$

 

28,542

 

 

$

 

71,253

 

 

$

 

53,610

 

 

Cost of revenue

 

 

19,774

 

 

 

14,882

 

 

 

36,964

 

 

 

28,188

 

 

Gross profit

 

 

18,416

 

 

 

13,660

 

 

 

34,289

 

 

 

25,422

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

8,773

 

 

 

8,363

 

 

 

17,334

 

 

 

16,366

 

 

Sales and marketing

 

 

8,188

 

 

 

8,023

 

 

 

16,737

 

 

 

16,882

 

 

General and administrative

 

 

5,455

 

 

 

5,061

 

 

 

11,150

 

 

 

10,286

 

 

Restructuring costs

 

 

—

 

 

 

(178

)

 

 

—

 

 

 

3,749

 

 

Total operating expenses

 

 

22,416

 

 

 

21,269

 

 

 

45,221

 

 

 

47,283

 

 

Loss from operations

 

 

(4,000

)

 

 

(7,609

)

 

 

(10,932

)

 

 

(21,861

)

 

Other income, net

 

 

309

 

 

 

267

 

 

 

630

 

 

 

357

 

 

Interest expense

 

 

(421

)

 

 

(351

)

 

 

(850

)

 

 

(580

)

 

Loss before income taxes

 

 

(4,112

)

 

 

(7,693

)

 

 

(11,152

)

 

 

(22,084

)

 

Income tax expense

 

 

(46

)

 

 

(39

)

 

 

(74

)

 

 

(90

)

 

Net loss

 

$

 

(4,158

)

 

$

 

(7,732

)

 

$

 

(11,226

)

 

$

 

(22,174

)

 

Net loss per share — basic and diluted

 

$

 

(0.19

)

 

$

 

(0.36

)

 

$

 

(0.52

)

 

$

 

(1.04

)

 

Weighted-average shares — basic and diluted

 

 

21,709

 

 

 

21,333

 

 

 

21,626

 

 

 

21,229

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(11,226

)

 

$

(22,174

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

2,417

 

 

 

2,258

 

Stock-based compensation

 

 

7,020

 

 

 

4,678

 

Non-cash restructuring benefit

 

 

—

 

 

 

(454

)

Accretion of discount or amortization of premium on short-term investments

 

 

(362

)

 

 

(143

)

Amortization of debt issuance costs

 

 

35

 

 

 

39

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,798

)

 

 

2,228

 

Inventory

 

 

6,815

 

 

 

(6,195

)

Prepaid expenses and other assets

 

 

467

 

 

 

864

 

Deferred revenue

 

 

267

 

 

 

(487

)

Deferred rent

 

 

—

 

 

 

(87

)

Accounts payable

 

 

798

 

 

 

579

 

Accrued compensation and employee related benefits

 

 

(1,429

)

 

 

341

 

Operating lease right-of-use assets

 

 

868

 

 

 

—

 

Operating lease liabilities

 

 

(1,490

)

 

 

—

 

Accrued liabilities and other liabilities

 

 

459

 

 

 

(34

)

Restructuring liabilities

 

 

—

 

 

 

2,275

 

Net cash provided by (used in) operating activities

 

 

1,841

 

 

 

(16,312

)

Investing activities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(36,569

)

 

 

(19,154

)

Proceeds from maturities of investments

 

 

37,794

 

 

 

20,800

 

Purchases of property and equipment

 

 

(799

)

 

 

(1,071

)

Net cash provided by investing activities

 

 

426

 

 

 

575

 

Financing activities:

 

 

 

 

 

 

 

 

Principal payments on finance lease obligations

 

 

(283

)

 

 

(483

)

Payments on term and equipment loans

 

 

(4,222

)

 

 

(2,147

)

Proceeds from term loans, net of debt issuance costs

 

 

3,991

 

 

 

12,379

 

Proceeds from exercise of stock options and employee stock purchase plan

 

 

2,870

 

 

 

2,203

 

Net cash provided by financing activities

 

 

2,356

 

 

 

11,952

 

Net increase (decrease) in cash and cash equivalents

 

 

4,623

 

 

 

(3,785

)

Cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

 

17,530

 

 

 

19,285

 

End of period

 

$

22,153

 

 

$

15,500

 

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, we use non-GAAP financial measures by financial statement line items that exclude, if applicable for the periods presented, the effects of stock-based compensation, depreciation, investigation costs, restructuring costs and other expenses that we believe do not reflect our core operating performance. Our key non-GAAP liquidity and performance measures include adjusted EBITDA and non-GAAP net income (loss), see definitions of such below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We believe excluding those income and expenses inherent in calculating adjusted EBITDA and non-GAAP net income (loss) can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that adjusted EBITDA and non-GAAP net income (loss) provide useful information to investors and others in understanding and evaluating our operating results in the same manner as it does for our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation; investigation costs; restructuring costs; other income, net; interest expense; and income tax benefit (expense).

We define non-GAAP net income (loss) as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation; investigation costs; restructuring costs; amortization of debt issuance costs; and non-cash income tax benefit (expense). We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of future income tax liabilities by utilizing our deferred tax assets, which comprise primarily federal net operating loss carryforwards and federal research and experimentation credit carryforwards.

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except percentages, unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

GAAP Gross profit

 

$

18,416

 

 

$

13,660

 

 

$

34,289

 

 

$

25,422

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

522

 

 

 

503

 

 

 

1,047

 

 

 

1,003

 

Stock-based compensation

 

 

159

 

 

 

98

 

 

 

303

 

 

 

181

 

Non-GAAP Gross profit

 

$

19,097

 

 

$

14,261

 

 

$

35,639

 

 

$

26,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin

 

 

48.2

%

 

 

47.9

%

 

 

48.1

%

 

 

47.4

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1.4

%

 

 

1.8

%

 

 

1.5

%

 

 

1.9

%

Stock-based compensation

 

 

0.4

%

 

 

0.3

%

 

 

0.4

%

 

 

0.3

%

Non-GAAP Gross margin

 

 

50.0

%

 

 

50.0

%

 

 

50.0

%

 

 

49.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Research and development

 

$

8,773

 

 

$

8,363

 

 

$

17,334

 

 

$

16,366

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

(512

)

 

 

(402

)

 

 

(907

)

 

 

(787

)

Stock-based compensation

 

 

(1,240

)

 

 

(822

)

 

 

(2,311

)

 

 

(1,581

)

Non-GAAP Research and development

 

$

7,021

 

 

$

7,139

 

 

$

14,116

 

 

$

13,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing

 

$

8,188

 

 

$

8,023

 

 

$

16,737

 

 

$

16,882

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

(127

)

 

 

(131

)

 

 

(256

)

 

 

(260

)

Stock-based compensation

 

 

(1,116

)

 

 

(931

)

 

 

(2,406

)

 

 

(1,688

)

Non-GAAP Sales and marketing

 

$

6,945

 

 

$

6,961

 

 

$

14,075

 

 

$

14,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP General and administrative

 

$

5,455

 

 

$

5,061

 

 

$

11,150

 

 

$

10,286

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

(101

)

 

 

(102

)

 

 

(207

)

 

 

(208

)

Stock-based compensation

 

 

(1,028

)

 

 

(762

)

 

 

(2,000

)

 

 

(1,228

)

Non-GAAP General and administrative

 

$

4,326

 

 

$

4,197

 

 

$

8,943

 

 

$

8,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Total operating expenses

 

$

22,416

 

 

$

21,269

 

 

$

45,221

 

 

$

47,283

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

(740

)

 

 

(635

)

 

 

(1,370

)

 

 

(1,255

)

Stock-based compensation

 

 

(3,384

)

 

 

(2,515

)

 

 

(6,717

)

 

 

(4,497

)

Restructuring costs

 

 

—

 

 

 

178

 

 

 

—

 

 

 

(3,749

)

Non-GAAP Total operating expenses

 

$

18,292

 

 

$

18,297

 

 

$

37,134

 

 

$

37,782

 

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

GAAP Net loss

 

$

(4,158

)

 

$

(7,732

)

 

$

(11,226

)

 

$

(22,174

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,262

 

 

 

1,138

 

 

 

2,417

 

 

 

2,258

 

Stock-based compensation

 

 

3,543

 

 

 

2,613

 

 

 

7,020

 

 

 

4,678

 

Restructuring costs (benefits)

 

 

—

 

 

 

(178

)

 

 

—

 

 

 

3,749

 

Other income, net

 

 

(309

)

 

 

(267

)

 

 

(630

)

 

 

(357

)

Interest expense

 

 

421

 

 

 

351

 

 

 

850

 

 

 

580

 

Income tax expense

 

 

46

 

 

 

39

 

 

 

74

 

 

 

90

 

Adjusted EBITDA

 

$

805

 

 

$

(4,036

)

 

$

(1,495

)

 

$

(11,176

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(4,158

)

 

$

(7,732

)

 

$

(11,226

)

 

$

(22,174

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,262

 

 

 

1,138

 

 

 

2,417

 

 

 

2,258

 

Stock-based compensation

 

 

3,543

 

 

 

2,613

 

 

 

7,020

 

 

 

4,678

 

Restructuring costs (benefits)

 

 

—

 

 

 

(178

)

 

 

—

 

 

 

3,749

 

Amortization of debt issuance costs

 

 

17

 

 

 

18

 

 

 

35

 

 

 

39

 

Non-cash income tax benefit

 

 

—

 

 

 

12

 

 

 

—

 

 

 

28

 

Non-GAAP Net income (loss)

 

$

664

 

 

$

(4,129

)

 

$

(1,754

)

 

$

(11,422

)

Non-GAAP Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

(0.19

)

 

$

(0.08

)

 

$

(0.54

)

Diluted

 

$

0.03

 

 

$

(0.19

)

 

$

(0.08

)

 

$

(0.54

)

GAAP and non-GAAP Weighted-average shares — basic

 

 

21,709

 

 

 

21,333

 

 

 

21,626

 

 

 

21,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Weighted-average shares — diluted

 

 

21,709

 

 

 

21,333

 

 

 

21,626

 

 

 

21,229

 

Dilutive shares from stock plans

 

 

572

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-GAAP Weighted-average shares — diluted

 

 

22,281

 

 

 

21,333

 

 

 

21,626

 

 

 

21,229

 

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK

(in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2019

 

GAAP Net loss

 

$

(6,400

)

Adjustments:

 

 

 

 

Forecasted Depreciation

 

 

1,280

 

Forecasted Stock-based compensation

 

 

5,000

 

Forecasted Interest expense

 

 

430

 

Forecasted Other income, net

 

 

(340

)

Forecasted Income tax expense

 

 

30

 

Adjusted EBITDA

 

$

—

 

 

 

 

 

 

GAAP Net loss

 

$

(6,400

)

Adjustments:

 

 

 

 

Forecasted Depreciation

 

 

1,280

 

Forecasted Stock-based compensation

 

 

5,000

 

Forecasted Amortization of debt issuance costs

 

 

20

 

Forecasted Non-cash income tax expense

 

 

0

 

Non-GAAP Net loss

 

$

(100

)

 

 

 

 

 

GAAP Net loss per share — basic and diluted

 

$

(0.29

)

Non-GAAP Net loss per share — basic and diluted

 

$

(0.00

)

Weighted-average shares used to compute GAAP and Non-GAAP net loss per share attributable to common stockholders — basic and diluted

 

 

21,800

 

 

Investor Relations
ir@impinj.com
+1-206-315-4470

Source: Impinj, Inc.



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