Identiv, Inc. (NASDAQ:INVE) Q1 2022 Earnings Conference Call May 4, 2022 5:00 PM ET

Company Participants

Steven Humphreys – Chief Executive Officer & Director

Justin Scarpulla – Chief Financial Officer

Manfred Mueller – Chief Operational Officer & GM of Identity

Amir Khoshniyati – Vice President Business Development, Americas

Conference Call Participants

Jaeson Schmidt – Lake Street Capital Markets

Anthony Stoss – Craig-Hallum

Mike Latimore – Northland Capital Markets

Brian Ruttenbur – Imperial Capital

Craig Ellis – B. Riley Securities

Operator

Good afternoon. Welcome to Identiv's presentation of its First Quarter 2022 Earnings Call. My name is John 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 measures or guidance, including adjusted EBITDA and 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 report on Form 10-K. 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 first quarter was a strong start to a pivotal year for our business. We're on track on all of our key metrics and business activities behind the numbers continue to be ahead of our plans. Our gross margins, in particular, strengthened faster than we projected, up almost 300 basis points over last quarter with non - GAAP gross margins of 37.1%. This was a key goal that we expected to reach mid-year and we got there in Q1. The progress on gross margins is important for three reasons. First, it reflects broad customer demand, so we can balance our mix. Second, it reflects the strength of the market itself, because higher margin specialty RFID devices are the fastest growing segment, driving growth as well as margin expansion.