INVE Technologies has no revenue left after IoT sale but posts quarterly profit

INVE Technologies, the California technology company formerly known as Identiv, said on 12 November, after US markets closed, that third-quarter revenue fell to $3.1 million from $5 million a year earlier. On 15 September it sold its internet of things (IoT) business to Trackonomy, another US company.

The company still reported net income of $0.6 million, or two cents a share, compared with a $3.5 million loss a year ago. The profit came from one-off items: a $6.1 million gain on the asset sale and a $1.8 million gain from dissolving a foreign subsidiary. Its adjusted EBITDA loss narrowed to $3 million from $3.6 million.

No revenue left

Quarterly revenue covers trading only up to 15 September. “We currently have no commercial operating revenue,” chief financial officer Ed Kirnbauer told analysts on the earnings call. The company gives no guidance. It received $50 million in Trackonomy preferred shares for the IoT business.

It had $87.1 million in cash at 30 September. Interim chief executive James Greenwell said INVE would become a “physical AI” software company and plans to spend about $30 million buying software firms in worker safety, food safety, pharmaceutical logistics and environmental monitoring. It is also buying back up to $20 million of its shares at $2.85 to $3.40 each, in an offer that ends on 19 November.