Impinj (NASDAQ: PI) reported a narrower loss in the second quarter of 2019 helped by higher revenues as well as strong system sales. The bottom line was narrower than the analysts’ expectations while the top line exceeded consensus estimates. Also, the provider of radio frequency identification products guided third-quarter earnings and revenue in-line with the Street’s view.
Net loss was $4.16 million or $0.19 per share, narrower than a loss of $7.73 million or $0.36 per share in the previous year quarter. Adjusted earnings were $0.03 per share compared to a loss of $0.19 per share a year ago.
Revenue soared by 34% to $38.19 million. The increase was driven by solid performance in both endpoint integrated circuits and systems. The endpoint IC revenue growth was solid, with apparel retailers increasing adoption despite macro-crosscurrents and trade tensions.
For the third quarter, Impinj expects revenue in the range of $37 million to $39 million and net loss in range of $0.32 to $0.26 per share. Adjusted results are predicted to be between a loss of $0.04 and profit of $0.03 per share and adjusted EBITDA is anticipated to be between a loss of $0.8 million and profit of $0.8 million.
For the second quarter, the growing adoption by the performance apparel and footwear segment contributed meaningfully to Impinj’s results. The company’s systems business exceeded expectations, with record revenue led by reader and gateway sales into supply-chain and logistics opportunities, including that key North America project, buoyed by a broad base of other opportunities.
Also read: General Electric Q2 earnings preview
In June, Impinj filed a patent infringement lawsuit against NXP USA, citing 26 of its US patents that NXP’s UCODE 7 and UCODE 8 ICs misappropriate without a license. These patents cover key Impinj innovations such as AutoTune, Integra, Enduro, and FastID, as well as circuit designs and implementations.
For the first quarter, the company reported a narrower loss helped by a decline in costs and expenses. Revenue grew by 32% as it announced new Impinj M700 endpoint IC family. The Impinj M700 dramatically shrinks chip size while increasing the range, reliability and read speed of RAIN RFID systems.
Shares of Impinj ended Monday’s regular session down 2.27% at $35.33 on the Nasdaq. The stock has risen over 53% in the past year and over 62% in the past three months.