Yahoo Finance Impinj Inc (PI) (Q1 2024) Earnings Call Transcript Highlights: Navigating Market Dynamics with ...
First Quarter Revenue: $76.8 million, up 9% sequentially, down 11% year-over-year.
Endpoint IC Revenue: $61.5 million, up 14% sequentially, down 8% year-over-year.
Systems Revenue: $15.3 million, down 9% sequentially, down 19% year-over-year.
Gross Margin: 51.5%, compared to 50.9% in Q4 2023 and 52.4% in Q1 2023.
Operating Expenses: $32.9 million, slightly down from $33 million in Q4 2023.
Adjusted EBITDA: $6.7 million, up from $3 million in Q4 2023.
GAAP Net Income: $33.3 million.
Non-GAAP Net Income: $6.2 million, or $0.21 per share.
Cash and Investments: $174.1 million, up from $113.2 million in Q4 2023.
Inventory: $87.8 million, down $9.4 million from the previous quarter.
Net Cash from Operating Activities: $60.1 million.
Free Cash Flow: $8.9 million, excluding $45 million from litigation settlement.
Second Quarter Revenue Outlook: Between $96 million and $99 million.
Second Quarter Non-GAAP Net Income Outlook: Between $21.7 million and $23.2 million.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide more details on the progress with the large North American retailer and its implications for the retail industry? A: (Chris Diorio - CEO, Impinj Inc) The large North American retailer is a bellwether in the industry, often leading trends that others follow. The progress with this retailer is expected to influence broader industry adoption. Jeff Dossett (CRO, Impinj Inc) added that tagging in general merchandise is expanding, with steady gains and a modest uptick in consumer demand.
Q: What are your expectations for the logistics customer that is ramping up? A: (Chris Diorio - CEO, Impinj Inc) While it's challenging to predict consistent quarterly growth due to potential teething issues with large deployments, there is strong commitment from this customer to digitize their operations fully, which could influence the broader supply chain and logistics industry.
Q: How is the food application progressing, and what are its potential impacts? A: (Chris Diorio - CEO, Impinj Inc) The adoption in the food sector, particularly with quick service chains using RAIN RFID for inventory and freshness tracking, is progressing faster than expected. This sector's large scale means even minor adoptions could significantly impact IC volumes.
Q: What has been the industry reaction to your settlement with NXP, and are there additional licensing opportunities? A: (Chris Diorio - CEO, Impinj Inc) The settlement removed a significant overhang on the industry by resolving ongoing litigation. It opens up further licensing opportunities across various platforms, enhancing Impinj's strategic position.
Q: Can you discuss the digital product Passport and its potential scale? A: (Chris Diorio - CEO, Impinj Inc) The digital product Passport is linked to new regulations requiring traceability from manufacture to end-of-life. It's expected to drive significant consumer engagement and could lead to transformative use cases, including potential integration into mobile phones.
Q: What are your expectations for gross margin trends, especially with the M800 ramping up? A: (Cary Baker - CFO, Impinj Inc) The M800 is expected to improve gross margins by about 300 basis points as it becomes the volume runner, thanks to its lower cost basis. However, the full impact on gross margins will depend on the pace of the ramp-up.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
