Q2 2013 Performance Highlights
During Q2, Identive was awarded a $2 million, long-term SaaS contract from a leading technology company, won a major health care customer, and recorded the first meaningful revenue from its idOnDemand cloud-based identity management solution. These new orders begin to build a stable, visible source of recurring revenue in the company's SaaS business.
Producing at full capacity, Identive shipped 46 million RFID tags and inlays (transponders), an increase of approximately 50% over Q2 2012, to address a variety of contactless applications. As a result, year-to-date 2013 shipments are already on par with the total number of transponders shipped in the full year 2012. A number of large orders for NFC inlays and tags to enable M2M electronic games and mobile phone-based applications, such as access and payment, contributed to this growth, with NFC transponders accounting for more than one-quarter of transponders shipped in the quarter. By selling more intelligent products and subsequently moving up the value chain, the Transponder/NFC business also continued improved margin development.
Within its ID Solutions business, Identive won a multiyear contract at a seventh German sports stadium to provide payment systems for concession sales. The company also continued to deploy payment products, software and services under a $4 million contract with a retail food franchise that includes more than 300 locations in Europe.
Adjusted EBITDA in Q2 2013 is expected to be approximately $(1.0) million, below guidance of $(0.5) million to $0.5 million as a result of lower Access Control & Security and ID Solutions sales. The company defines Adjusted EBITDA as earnings before interest income, taxes, depreciation, amortization of purchased intangibles, stock-based compensation, other income (expense), net, non-controlling interest, pension expense, transition and integration costs and any unusual items.
Cash and cash equivalents were approximately $3.7 million at June 30, 2013, compared with $5.5 million at March 31, 2013. In addition to supporting the $1.0 million Adjusted EBITDA loss, principal uses of cash in Q2 included service of financial and related party liabilities and associated interest of $1.7 million plus a build-up of inventories to support customer orders. Net proceeds from capital raised during the quarter amounted to $2.6 million.