EANS-Adhoc: Identive Group Inc. / Identive Group announces third Quarter 2010 results

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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9-month report

10.11.2010

75% Sales Growth and Cost Reductions Yield Positive Adjusted EBITDA
of $1.2 million

SANTA ANA, Calif. and ISMANING, Germany, November 10, 2010 - Identive
Group, Inc. (NASDAQ: INVE; Frankfurt Stock Exchange: INV), a provider
of products, services and solutions for the security, identification
and RFID industries, today announced results for the third quarter
(Q3) of fiscal 2010, ended September 30, 2010.

Q3 2010 Results

Identive´s Q3 2010 results include the operating results of acquired
companies since the dates of their respective acquisition. These
include Hirsch Electronics Corporation, acquired April 30, 2009;
Bluehill ID AG, acquired January 4, 2010; and Multicard U.S.
(formerly RockWest Technology Group, Inc.), acquired April 14, 2010.
All figures are reported in U.S. GAAP, except as noted. A discussion
of non-GAAP measures and reconciliation to the applicable GAAP
measures is included below.

Revenue in Q3 2010 was $23.3 million, up 75% from $13.3 million in Q3
2009 and up 10% from $21.2 million in the second quarter (Q2) of
2010. The year over year increase primarily was due to the inclusion
of additional revenue from the acquired Bluehill ID and Multicard
U.S. businesses, while sequential growth primarily was driven by
strong sales of ID security solutions for government applications in
the U.S. and Germany.

Sales in the Americas accounted for 55%, sales in EMEA accounted for
36% and sales in the Asia/Pacific region accounted for 9% of total Q3
2010 revenue. Non-GAAP gross profit margin, excluding overhead
allocation, amortization and equity-based compensation expense, was
47% in Q3 2010, compared with 54% in Q3 2009 and 51% in Q2 2010.
Strong and stable margins at Hirsch and improved margins at Multicard
were offset by unfavorable product mix in the SCM business and
production ramp issues at TagStar during the quarter.

Non-GAAP overhead costs (operating expenses before amortization,
depreciation, overhead allocation, equity-based compensation,
acquisition, transition and integration costs), were $9.8 million in
Q3 2010, up 22% from $8.1 million in Q3 2009 and down 3% with $10.1
million in Q2 2010. The increase in overhead costs in Q3 2010
compared with the previous year is due to the inclusion of the
incremental expenses from the acquired businesses, offset by cost
reductions initiated at the beginning of 2010, which included
facility consolidations; reductions in headcount, executive salaries
and Board of Director fees; as well as consolidation of
administrative services and programs.

Non-GAAP adjusted EBITDA (EBITDA before equity-based compensation,
acquisition, transition and integration costs) was $1.2 million in Q3
2010, compared with adjusted EBITDA loss of $(0.9) million in Q3 2009
and positive adjusted EBITDA of $0.7 million in Q2 2010.

Non-GAAP earnings per share (earnings per share before amortization
of intangibles of acquired companies) in Q3 2010 was $0.00, compared
with non-GAAP loss per share of $(0.08) in Q3 2009 and a positive
non-GAAP EPS of $0.01 in Q2 2010.

On a GAAP basis, gross profit margin in Q3 2010 was 43%, compared
with 50% in Q3 2009 and 46% in Q2 2010. Total GAAP operating expenses
in Q3 2010 were $11.2 million, compared with $8.3 million in Q3 2009
and $11.5 million in Q2 2010. GAAP operating loss was $(1.1) million
in Q3 2010, compared with $(1.6) million in Q3 2009 and $(1.7)
million in Q2 2010.

GAAP net loss from continuing operations attributable to Identive
Group, Inc. in Q3 2010 was $(0.9) million, or $(0.02) per share,
compared with $(2.2) million, or $(0.09) per share in Q3 2009 and
$(0.7) million, or $(0.02) per share in Q2 2010.

Cash and cash equivalents at the end of Q3 2010 were $6.2 million, up
from $4.6 million at the end of the previous quarter, reflecting
funding of working capital and acquisition, transition and
integration costs, offset by early payments received for the German
eID program.

end of ad-hoc-announcement ==========================================
====================================== About Identive Group Identive
Group, Inc. (NASDAQ: INVE; Frankfurt Stock Exchange: INV) is an
international technology company focused on building the world’s
signature group in secure identification-based technologies. The
businesses within Identive Group have deep industry expertise and are
well-known global brands in their individual markets, providing
leading-edge products and solutions in the areas of physical and
logical access control, identity management and RFID systems to
governments, commercial and industrial enterprises and consumers.
Identive’s growth model is based on a combination of strong
technology-driven organic growth from the businesses within the group
and disciplined acquisitive development. For additional info visit:
www.identive-group.com.

end of announcement euro adhoc
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ots Originaltext: Identive Group Inc.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Herr Fabien B. Nestmann

Tel.: +49 89 9595-5544

E-Mail: investorrelations@identive-group.com

Branche: Computing & Information Technology
ISIN: US45170X1063
WKN: A1C0ZG
Index: Prime All Share, NASDAQ
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade
New York / regulated dealing