EX-99.1 2 pi-ex991_6.htm EX-99.1 pi-ex991_6.htm

Exhibit 99.1

Impinj Announces First Quarter 2018 Financial Results

SEATTLE, WA, May 7, 2018 – Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items, today announced its financial results for the quarter ended March 31, 2018.

“Based on team execution, enhanced partner inventory visibility and positive bookings trends,” said Chris Diorio, Impinj co-founder and CEO, “we believe we are on track to make the first half of 2018 the turning point for our business.”

First Quarter 2018 Financial Summary

 

Revenue was $25.1 million

 

GAAP gross margin of 46.9%; non-GAAP gross margin of 49.2%

 

GAAP net loss of $14.4 million, or loss of $0.68 per basic and diluted share using 21.1 million shares

 

Adjusted EBITDA loss of $7.1 million

 

Non-GAAP net loss of $8.0 million, or loss of $0.38 per diluted share using 21.1 million shares, calculated using our historical methodology for non-GAAP net income; see "Non-GAAP Financial Measures" below for more information

A reconciliation between GAAP and non-GAAP and a description of the methodology we intend to use for calculating non-GAAP net loss for future periods is provided in the "Non-GAAP Financial Measures" section below.


Second Quarter 2018 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 second quarter of 2018 (in millions, except per share data):

 

 

Three Months Ended

 

 

June 30,

 

 

2018

Revenue

 

$25.0 to $27.0

GAAP Net loss (1)

 

$(12.1) to $(10.6)

Adjusted EBITDA

 

$(7.75) to $(6.25)

Non-GAAP Net loss

 

$(8.0) to $(6.5)

GAAP Weighted-average shares — basic and diluted

 

21.3 to 21.6

GAAP Net loss per share — basic and diluted (1)

 

$(0.57) to $(0.49)

Non-GAAP Weighted-average shares — basic and diluted

 

21.3 to 21.6

Non-GAAP Net loss per share — basic and diluted

 

$(0.38) to $(0.30)

(1)

GAAP net loss guidance excludes the impact of forecasted stock-based compensation expense related to the voluntary stock option exchange offer announced on April 18, 2018.

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 and webcast today, May 7, 2018 at 5:00 p.m. ET / 2:00 p.m. PT for analysts and investors to discuss our first quarter 2018 results as well as its outlook for its second quarter of 2018. 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 10119247.

Management’s prepared written remarks, along with quarterly financial data for the last eight quarters, 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 second quarter of 2018. 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.

 

### 

 

Contacts:

Investor Relations

ir@impinj.com

+1-206-315-4470

 

 


Media Relations

Gaylene Meyer

Sr. Director Communications

gmeyer@impinj.com

+1-206-812-9816



IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)

 

 

 

March 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Assets:

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

28,000

 

 

$

19,285

 

Short-term investments

 

 

29,873

 

 

 

38,831

 

Accounts receivable, net

 

 

17,023

 

 

 

22,244

 

Inventory

 

 

54,706

 

 

 

47,083

 

Prepaid expenses and other current assets

 

 

1,846

 

 

 

2,359

 

Total current assets

 

 

131,448

 

 

 

129,802

 

Property and equipment, net

 

 

17,507

 

 

 

18,110

 

Other non-current assets

 

 

208

 

 

 

241

 

Goodwill and other intangible assets, net

 

 

3,881

 

 

 

3,881

 

Total assets

 

$

153,044

 

 

$

152,034

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,499

 

 

$

4,666

 

Accrued compensation and employee related benefits

 

 

4,444

 

 

 

5,729

 

Accrued liabilities

 

 

3,374

 

 

 

3,162

 

Accrued restructuring costs

 

 

2,352

 

 

 

 

Current portion of long-term debt

 

 

 

 

 

4,088

 

Current portion of capital lease obligations

 

 

814

 

 

 

936

 

Current portion of deferred rent

 

 

363

 

 

 

628

 

Current portion of deferred revenue

 

 

586

 

 

 

714

 

Total current liabilities

 

 

16,432

 

 

 

19,923

 

Long-term debt, net of current portion

 

 

19,841

 

 

 

5,500

 

Capital lease obligations, net of current portion

 

 

625

 

 

 

745

 

Long-term liabilities — other

 

 

548

 

 

 

532

 

Long-term restructuring liabilities

 

 

1,286

 

 

 

 

Deferred rent, net of current portion

 

 

5,596

 

 

 

5,891

 

Deferred revenue, net of current portion

 

 

156

 

 

 

501

 

Total liabilities

 

 

44,484

 

 

 

33,092

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value — 5,000 shares authorized, no shares issued and outstanding at March 31, 2018 and December 31, 2017

 

 

 

 

 

 

Common stock, $0.001 par value — 495,000 shares authorized, 21,332 and 20,973 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively

 

 

21

 

 

 

21

 

Additional paid-in capital

 

 

327,562

 

 

 

323,482

 

Accumulated other comprehensive loss

 

 

(56

)

 

 

(36

)

Accumulated deficit

 

 

(218,967

)

 

 

(204,525

)

Total stockholders' equity

 

 

108,560

 

 

 

118,942

 

Total liabilities and stockholders' equity

 

$

153,044

 

 

$

152,034

 



IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

Revenue

 

$

25,068

 

 

$

31,727

 

Cost of revenue

 

 

13,306

 

 

 

14,959

 

Gross profit

 

 

11,762

 

 

 

16,768

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

8,003

 

 

 

7,343

 

Sales and marketing

 

 

8,859

 

 

 

7,336

 

General and administrative

 

 

5,225

 

 

 

4,087

 

Restructuring costs

 

 

3,927

 

 

 

 

Total operating expenses

 

 

26,014

 

 

 

18,766

 

Loss from operations

 

 

(14,252

)

 

 

(1,998

)

Other income (expense), net

 

 

90

 

 

 

269

 

Interest expense

 

 

(229

)

 

 

(374

)

Loss before income taxes

 

 

(14,391

)

 

 

(2,103

)

Income tax expense

 

 

(51

)

 

 

(57

)

Net loss

 

$

(14,442

)

 

$

(2,160

)

Net loss per share — basic and diluted

 

$

(0.68

)

 

$

(0.11

)

Weighted-average shares outstanding — basic and diluted

 

 

21,125

 

 

 

20,344

 


 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(14,442

)

 

$

(2,160

)

 

$

(14,442

)

 

$

(2,160

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized losses on investments

 

 

(20

)

 

 

(36

)

 

 

(56

)

 

 

(36

)

Total other comprehensive loss

 

 

(20

)

 

 

(36

)

 

 

(56

)

 

 

(36

)

Comprehensive loss

 

$

(14,462

)

 

$

(2,196

)

 

$

(14,498

)

 

$

(2,196

)

 



IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(14,442

)

 

$

(2,160

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,120

 

 

 

874

 

Stock-based compensation

 

 

2,065

 

 

 

1,370

 

Restructuring costs

 

 

454

 

 

 

 

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

 

 

(60

)

 

 

59

 

Amortization of debt issuance costs

 

 

21

 

 

 

23

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

5,221

 

 

 

(3,630

)

Inventory

 

 

(7,623

)

 

 

(11,455

)

Prepaid expenses and other assets

 

 

561

 

 

 

543

 

Deferred revenue

 

 

(473

)

 

 

139

 

Deferred rent

 

 

(1,123

)

 

 

925

 

Accounts payable

 

 

34

 

 

 

(50

)

Accrued compensation and benefits

 

 

(1,236

)

 

 

(3,406

)

Accrued liabilities

 

 

307

 

 

 

147

 

Accrued restructuring costs

 

 

3,638

 

 

 

 

Net cash used in operating activities

 

 

(11,536

)

 

 

(16,621

)

Investing activities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(8,857

)

 

 

(17,293

)

Proceeds from maturities of investments

 

 

17,850

 

 

 

7,861

 

Purchases of property and equipment

 

 

(698

)

 

 

(1,220

)

Net cash provided by (used in) investing activities

 

 

8,295

 

 

 

(10,652

)

Financing activities:

 

 

 

 

 

 

 

 

Payments on capital lease financing obligations

 

 

(242

)

 

 

(280

)

Payments on term loans

 

 

(2,147

)

 

 

(159

)

Proceeds from term loans, net of debt issuance costs

 

 

12,379

 

 

 

 

Proceeds from exercise of stock options and employee stock purchase plan

 

 

1,966

 

 

 

1,983

 

Payments of deferred offering costs

 

 

 

 

 

(600

)

Net cash provided by financing activities

 

 

11,956

 

 

 

944

 

Net increase (decrease) in cash and cash equivalents

 

 

8,715

 

 

 

(26,329

)

Cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

 

19,285

 

 

 

33,636

 

End of period

 

$

28,000

 

 

$

7,307

 



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 the effects of stock-based compensation, depreciation, 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 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.

Adjusted EBITDA

We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation, restructuring costs, other income (expense), net, interest expense and income tax expense. Restructuring costs relate to an effort in the first quarter of 2018 to reduce headcount and sublease office space to match strategic and financial objectives and optimize resources for long term growth. We believe that adjusted EBITDA provides meaningful supplemental information regarding our performance and liquidity.


Non-GAAP Net Income (Loss) (historical methodology)

Non-GAAP net income (loss) historically consisted of net income (loss) determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation, restructuring costs not anticipated to be paid in cash during the period (for more information about restructuring costs, please refer to description in adjusted EBITDA above), amortization of debt issuance costs and non-cash income tax 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 primarily consist of federal net operating loss carryforwards and federal research and experimentation credit carryforwards.

Non-GAAP Net Income (Loss) (new methodology)

We have redefined non-GAAP net income (loss) to consist of net income (loss) determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation, restructuring costs (for more information about restructuring costs, please refer to description in adjusted EBITDA above), amortization of debt issuance costs and non-cash income tax 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 primarily consist of federal net operating loss carryforwards and federal research and experimentation credit carryforwards. We have added back all of the net restructuring costs, whether or not cash was paid during the period, because of the non-recurring nature of restructuring costs. By better reflecting our future operating performance we believe this presentation will enhance comparability of our operating results.


IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except percentages, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

GAAP Gross profit

 

$

11,762

 

 

$

16,768

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

500

 

 

 

385

 

Stock-based compensation

 

 

83

 

 

 

46

 

Non-GAAP Gross profit

 

$

12,345

 

 

$

17,199

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin

 

 

46.9

%

 

 

52.9

%

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

2.0

%

 

 

1.2

%

Stock-based compensation

 

 

0.3

%

 

 

0.1

%

Non-GAAP Gross margin

 

 

49.2

%

 

 

54.2

%

 

 

 

 

 

 

 

 

 

GAAP Research and development expense

 

$

8,003

 

 

$

7,343

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

(385

)

 

 

(306

)

Stock-based compensation

 

 

(759

)

 

 

(483

)

Non-GAAP Research and development expense

 

$

6,859

 

 

$

6,554

 

 

 

 

 

 

 

 

 

 

GAAP Sales and marketing expense

 

$

8,859

 

 

$

7,336

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

(129

)

 

 

(119

)

Stock-based compensation

 

 

(757

)

 

 

(607

)

Non-GAAP Sales and marketing expense

 

$

7,973

 

 

$

6,610

 

 

 

 

 

 

 

 

 

 

GAAP General and administrative expense

 

$

5,225

 

 

$

4,087

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

(106

)

 

 

(64

)

Stock-based compensation

 

 

(466

)

 

 

(234

)

Non-GAAP General and administrative expense

 

$

4,653

 

 

$

3,789

 

 

 

 

 

 

 

 

 

 

GAAP Total operating expense

 

$

26,014

 

 

$

18,766

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

(620

)

 

 

(489

)

Stock-based compensation

 

 

(1,982

)

 

 

(1,324

)

Restructuring costs

 

 

(3,927

)

 

 

 

Non-GAAP Total operating expense

 

$

19,485

 

 

$

16,953

 


IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

GAAP Net loss

 

$

(14,442

)

 

$

(2,160

)

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,120

 

 

 

874

 

Stock-based compensation

 

 

2,065

 

 

 

1,370

 

Other (income) expense, net

 

 

(90

)

 

 

(269

)

Interest expense

 

 

229

 

 

 

374

 

Income tax expense

 

 

51

 

 

 

57

 

Restructuring costs

 

 

3,927

 

 

 

 

Adjusted EBITDA

 

$

(7,140

)

 

$

246

 

 

 

 

 

 

 

 

 

 

Reconciliation based on historical methodology

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(14,442

)

 

$

(2,160

)

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,120

 

 

 

874

 

Stock-based compensation

 

 

2,065

 

 

 

1,370

 

Amortization of debt issuance costs

 

 

21

 

 

 

23

 

Non-cash income tax expense

 

 

16

 

 

 

22

 

Restructuring costs not paid in cash in period presented

 

 

3,184

 

 

 

 

Non-GAAP Net income (loss)

 

$

(8,036

)

 

$

129

 

Non-GAAP Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.38

)

 

$

0.01

 

Diluted

 

$

(0.38

)

 

$

0.01

 

 

 

 

 

 

 

 

 

 

Reconciliation based on new methodology

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(14,442

)

 

$

(2,160

)

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,120

 

 

 

874

 

Stock-based compensation

 

 

2,065

 

 

 

1,370

 

Amortization of debt issuance costs

 

 

21

 

 

 

23

 

Non-cash income tax expense

 

 

16

 

 

 

22

 

Restructuring costs

 

 

3,927

 

 

 

 

Non-GAAP Net income (loss)

 

$

(7,293

)

 

$

129

 

Non-GAAP Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.35

)

 

$

0.01

 

Diluted

 

$

(0.35

)

 

$

0.01

 


IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, unaudited)

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

GAAP and non-GAAP Weighted-average shares — basic

 

 

21,125

 

 

 

20,344

 

 

 

 

 

 

 

 

 

 

GAAP Weighted-average shares — diluted

 

 

21,125

 

 

 

20,344

 

Adjustments:

 

 

 

 

 

 

 

 

Effects of dilutive securities

 

 

 

 

 

 

 

 

Unvested shares of common stock subject to repurchase

 

 

 

 

 

100

 

Stock awards

 

 

 

 

 

1,244

 

Non-GAAP Weighted-average shares — diluted

 

 

21,125

 

 

 

21,688

 

 



IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2018

 

GAAP Net loss

 

$

(11,350

)

Adjustments:

 

 

 

 

Forecasted Depreciation

 

 

1,550

 

Forecasted Stock-based compensation

 

 

2,500

 

Forecasted Other (income) expense, net

 

 

(90

)

Forecasted Interest expense

 

 

340

 

Forecasted Income tax expense

 

 

50

 

Adjusted EBITDA

 

$

(7,000

)

 

 

 

 

 

GAAP Net loss

 

$

(11,350

)

Adjustments:

 

 

 

 

Forecasted Depreciation

 

 

1,550

 

Forecasted Stock-based compensation

 

 

2,500

 

Forecasted Amortization of debt issuance costs

 

 

25

 

Forecasted Non-cash income tax expense

 

 

25

 

Non-GAAP Net loss

 

$

(7,250

)

Non-GAAP Net loss per share — basic and diluted

 

$

(0.34

)

Weighted-average shares — basic and diluted

 

 

21,450