What a difference a year makes.
Less than 12 months ago, Seattle connected chip maker Impinj was mired a in streak of year-over-year revenue declines and was forced to delay its earnings results due to an ongoing audit investigation. Today, Impinj reported what it called a record for quarterly revenue and crushed Wall Street expectations.
Revenue: Impinj reported reported $38.2 million in revenue in the second quarter, a jump of 33.8 percent. Those figures blew away analyst expectations of $34.94 million and 22.4 percent growth.
Profits: Analysts expected losses of $0.09 per share, but the company actually turned a small profit in the quarter after factoring out items such as stock-based compensation. Impinj reported net profits of $700,000, or $0.03 per share.
Looking ahead: In the third quarter, the maker of tiny RFID chips that connect billions of items to the internet expects to post anywhere from losses of $0.09 per share to profits of $0.07 per share on revenue of $37 million to $39 million. The revenue projection is a little short of the $39.14 million analysts were expecting.
“Our second-quarter results were strong, highlighted by $38.2 million revenue and solid performance in both endpoint ICs and systems” Impinj CEO Chris Diorio said in a statement. “We set another quarterly revenue record, led by strong system sales.”
Impinj stock is down slightly in after-hours trading. Prior to today’s earnings report, Impinj stock had risen 149 percent so far this year. Skyrocketing share prices kicked into overdrive following Impinj’s last quarterly update in April when it blew away Wall Street expectations and issued rosy future projections.
In the second quarter, Impinj picked a legal fight with one of its top competitors: Dutch semi-conductor giant NXP. Impinj alleges that NXP copied patents and designs for the Seattle company’s tiny chips that connect billions of items to the internet. On a call with investors Monday, Diorio said the company’s patents are the “hard-earned fruits” of the company’s significant investment, and it will continue to invest them.
One of the biggest ongoing initiatives at the company is the introduction of what the company called it’s most exciting new product in a decade: smaller, more powerful RFID tags to connect everyday items to the internet. While he didn’t give a specific release date, Diorio said on a call with investors the new chips will begin to impact Impinj’s business next year.