Identiv, Inc. (NASDAQ:INVE) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET

Company Participants

Steven Humphreys - Chief Executive Officer

Justin Scarpulla - Chief Financial Officer

Amir Khoshniyati - General Manager & Vice President-Transponder Business

Manfred Mueller - Chief Operating Officer

Conference Call Participants

Craig Ellis - B. Riley

Anthony Stoss - Craig-Hallum

Jaeson Schmidt - Lake Street

Operator

Good afternoon. Welcome to Identiv's presentation of its Second Quarter Fiscal 2023 Earnings Call. My name is Paul, and I will be your operator this afternoon. Joining us for today's presentation are the company's CEO, Steven Humphreys and CFO, Justin Scarpulla. Following management's remarks, we will open the call for questions.

Before we begin, please note that during this call management may be making references to non-GAAP financial measures or guidance including non-GAAP adjusted EBITDA, non-GAAP gross margin, non-GAAP operating expenses and non-GAAP free cash flow. In addition, during the call management will be making forward-looking statements. Any statement that refers to expectations, projections or other characteristics of future events, including future financial results, future business and market conditions and future plans and prospects is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the risk factors discussed in documents filed from time to time with the SEC including the company's latest annual form on report 10-K and quarterly report on Form 10-Q. Identiv assumes no obligation to update these forward-looking statements, which speak as of today.

I will now turn the call over to CEO, Steven Humphreys for his comments. Sir, please proceed.

Steven Humphreys

Thanks, Operator and thank you all for joining us. Our second quarter continued our strong progress for the year with record revenues for Q2, gross margin expansion and positive free cash flow. We continued to deliver disciplined growth while strengthening our strategic position in both our RFID-enabled IoT and physical security businesses and positioning our balance sheet to support our growth.

Reflecting our commitment to balance sheet strengthening growth, in Q2 we delivered positive free cash flow and positive net operating cash, a positive swing in this last metric of over $5 million from last quarter. Justin will comment on the details but since these results reflect our focus on disciplined growth and working capital strength, it's worth noting in the business overview.

With a fully normalized supply chain and our position as the go-to company for advanced RFID-based IoT applications, especially in medical and specialty packaging, Q2 has kept us on track for 2023. Because we focus on specialty applications with nearly zero exposure to commodity UHF based retail tags, we've also outperformed some competitors, who've struggled recently and our outlook seems to be in a better position even than some industry bellwethers in the RFID chip category.