SEATTLE, Feb. 16, 2017 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year ended Dec. 31, 2016.

“The fourth quarter was a strong close to a landmark and transformational year for Impinj. During the year, our continued execution of our strategy and the dedication of the entire Impinj team resulted in 43% revenue growth, approximately 70% endpoint IC volume growth and improved margin,” said Chris Diorio, Impinj co-founder and CEO. “We raised a total of approximately $107 million in net proceeds in two successful equity offerings, expanding our available capital to continue investing in the massive market opportunity and enhance our leading market position.”

Fourth Quarter 2016 Financial Summary

• Revenue grew 49% year-over-year to $33.7 million
• GAAP gross margin of 54.6%; non-GAAP gross margin of 55.6%
• GAAP net income and net income attributable to common stockholders of $0.1 million, or income of $0.01 per diluted share using 20.7 million shares
• Adjusted EBITDA of $2.4 million
• Non-GAAP net income of $2.2 million, or income of $0.11 per diluted share using 20.7 million shares

Full Year 2016 Financial Summary

• Revenue grew 43% year-over-year to $112.3 million
• GAAP gross margin of 52.9%; non-GAAP gross margin of 53.9%
• GAAP net loss of $1.7 million; GAAP net loss attributable to common stockholders of $7.9 million or a loss of $0.74 per diluted share using 10.8 million shares
• Adjusted EBITDA of $5.1 million
• Non-GAAP net income of $3.7 million, or income of $0.22 per diluted share using 16.8 million shares

A reconciliation between historical GAAP and non-GAAP information, including weighted average basic and diluted shares, is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the "Non-GAAP Financial Measures" section below.

First Quarter 2017 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. For the first quarter of 2017, Impinj currently expects:

• Revenue in the range of $30.0 million to $31.5 million
• Adjusted EBITDA in the range of a loss of $1.0 million to income of $0.5 million
• Non-GAAP earnings in the range of a loss of $1.25 million to income of $0.25 million, and non-GAAP diluted earnings per share in the range of a loss of $0.06 and income of $0.01 with an expected share count in the range of 21.0 million to 22.0 million shares

All forward-looking non-GAAP financial measures in this section titled "First Quarter 2017 Financial Outlook" exclude non-cash income and expenses. Impinj has not reconciled guidance for these non-GAAP measures to their most directly comparable GAAP measures because some items that impact these measures are either not within our control or not reasonably predictable, at least not without unreasonable effort.

Conference Call Information

Impinj will host a conference call and webcast today, Feb. 16, 2017 at 5:00 p.m. ET / 2:00 p.m. PT for analysts and investors to discuss the company’s fourth quarter and full year 2016 results as well as its outlook for its first quarter of 2017. Open to the public, investors may access the call by dialing +1-412-317-6060. A live webcast of the conference call will also be accessible on the company's 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 10098908.

Management’s prepared written remarks, along with quarterly financial data for the last eight quarters, will be made available on the company’s website at investor.impinj.com commensurate with this release. Management encourages interested parties to review the prepared remarks before the conference call and submit questions via email to ir@impinj.com. Questions received prior to the call will be considered for discussion on the live conference call.

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 our financial outlook for the first quarter of 2017. 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 filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Form 10-Q filed with the SEC on November 15, 2016. 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.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which we have prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we use the following non-GAAP financial measures: non-GAAP gross margin, net income and earnings per share and Adjusted EBITDA. In computing these non-GAAP financial measures, we exclude the effects of stock-based compensation expense, depreciation and amortization, non-cash interest and other income/expense, and non-cash income tax expense not considered to be indicative of our ongoing core business operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain income, expenses and expenditures that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance. 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.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures" included at the end of this release.

About Impinj

Impinj (NASDAQ:PI) is a leading provider of RAIN RFID solutions. The Impinj Platform connects billions of everyday items such as apparel, medical supplies, automobile parts, drivers’ licenses, food and luggage to applications such as inventory management, patient safety, asset tracking and item authentication, delivering real-time information to businesses about items they create, manage, transport and sell. The Impinj Platform wirelessly delivers information about these items’ unique identity, location and authenticity, or Item Intelligence™, to the digital world, which Impinj believes is the essence of the Internet of Things. 

IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited)
		December 31,				December 31,
		2016				2015
Assets:
Current assets:
Cash and cash equivalents		$	33,636			$	10,121
Short-term investments			66,905				—
Accounts receivable, net			17,447				12,889
Inventory			27,734				11,837
Prepaid expenses and other current assets			3,004				1,095
Total current assets			148,726				35,942
Property and equipment, net			14,929				12,351
Other non-current assets			—				637
Goodwill			3,881				3,881
Other intangible assets, net			—				37
Total assets		$	167,536			$	52,848
Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit):
Current liabilities:
Accounts payable		$	7,166			$	3,182
Accrued compensation and employee related benefits			7,647				4,038
Accrued liabilities			6,098				2,895
Current portion of long-term debt			2,589				5,227
Current portion of capital lease obligations			1,130				1,190
Current portion of deferred rent			306				258
Current portion of deferred revenue			445				684
Total current liabilities			25,381				17,474
Long-term debt, net of current portion			9,676				10,683
Capital lease obligations, net of current portion			1,698				2,526
Long-term liabilities—other			770				678
Warrant liability			—				2,865
Deferred rent, net of current portion			5,022				4,984
Deferred revenue, net of current portion			966				710
Total liabilities			43,513				39,920
Commitment and contingencies
Redeemable convertible preferred stock, $0.001 par value
Series 1: none authorized and issued at December 31, 2016; 5,334 shares authorized, issued and outstanding at December 31, 2015			—				60,184
Series 2: none authorized and issued at December 31, 2016; 2,979 shares authorized and 2,557 shares issued and outstanding at December 31, 2015			—				37,779
Total redeemable convertible preferred stock			—				97,963
Stockholders' equity (deficit):
Preferred stock, $0.001 par value — 5,000 shares authorized; no shares issued and outstanding at December 31, 2016; no shares authorized, issued and outstanding at December 31, 2015			—				—
Common stock, $0.001 par value, 495,000 shares authorized; 20,336 and 4,382 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively			20				4
Additional paid-in capital			311,216				100,276
Accumulated other comprehensive income (loss)			(10	)			—
Accumulated deficit			(187,203	)			(185,315	)
Total stockholders' equity (deficit)			124,023				(85,035	)
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)		$	167,536			$	52,848

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2016				2015				2016				2015
Revenue:
Product revenue		$	33,467			$	22,224			$	111,769			$	77,389
Development, service and licensing revenue			188				403				518				1,090
Total revenue			33,655				22,627				112,287				78,479
Cost of revenue:
Cost of product revenue			15,206				10,471				52,614				37,360
Cost of development, service and licensing revenue			61				117				220				273
Total cost of revenue			15,267				10,588				52,834				37,633
Gross profit			18,388				12,039				59,453				40,846
Operating expenses:
Research and development			7,403				5,091				25,185				17,579
Sales and marketing			6,428				4,428				22,330				14,579
General and administrative			4,212				1,998				12,426				7,087
Total operating expenses			18,043				11,517				59,941				39,245
Income (loss) from operations			345				522				(488	)			1,601
Interest income (expense) and other income (expense), net
Interest expense			(311	)			(466	)			(1,633	)			(1,208	)
Interest income and other income (expense), net			139				850				616				673
Total interest income (expense) and other income (expense), net			(172	)			384				(1,017	)			(535	)
Income (loss) before tax expense			173				906				(1,505	)			1,066
Income tax expense			(70	)			(88	)			(168	)			(166	)
Net income (loss)		$	103			$	818			$	(1,673	)		$	900
Less: Accretion of preferred stock			—				(2,825	)			(6,258	)			(11,301	)
Net income (loss) attributable to common stockholders		$	103			$	(2,007	)		$	(7,931	)		$	(10,401	)
Net income (loss) per share attributable to common stockholders:
Basic		$	0.01			$	(0.49	)		$	(0.74	)		$	(2.67	)
Diluted		$	0.01			$	(0.49	)		$	(0.74	)		$	(2.67	)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic			19,078				4,127				10,778				3,893
Diluted			20,667				4,127				10,778				3,893

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2016				2015				2016				2015
Net income (loss)		$	103			$	818			$	(1,673	)		$	900
Other comprehensive income (loss):
Unrealized losses on investments			(17	)			—				(17	)			—
Foreign currency translation			7				—				7				—
Total other comprehensive income (loss)			(10	)			—				(10	)			—
Comprehensive income (loss)		$	93			$	818			$	(1,683	)		$	900

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
		Year Ended
		December 31,
		2016				2015
Operating activities:
Net income (loss)		$	(1,673	)		$	900
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			2,869				1,972
Amortization and write-off of debt issuance costs			239				152
Amortization of premium on short-term investments			31				—
Revaluation of warrant liability			(559	)			(703	)
Stock-based compensation			2,765				1,178
Changes in operating assets and liabilities:
Accounts receivable			(4,515	)			(3,327	)
Inventory			(15,897	)			(2,783	)
Prepaid expenses and other assets			(1,759	)			(360	)
Deferred revenue			17				(466	)
Deferred rent			86				4,601
Accounts payable			3,883				754
Accrued compensation and benefits			3,462				1,356
Accrued liabilities			1,554				182
Net cash provided by (used in) operating activities			(9,497	)			3,456
Investing activities:
Purchases of investments			(67,103	)			—
Purchases of property and equipment			(3,530	)			(7,450	)
Net cash used in investing activities			(70,633	)			(7,450	)
Financing activities:
Proceeds from public offerings, net of offering costs			108,096				—
Payments on capital lease financing obligations			(1,229	)			(824	)
Payments on term loans			(65,320	)			(6,115	)
Proceeds from term loans			61,436				13,899
Proceeds from exercise of stock options			600				538
Proceeds from exercise of warrants			62				—
Payments of deferred offering costs			—				(322	)
Net cash provided by (used in) financing activities			103,645				7,176
Net increase (decrease) in cash and cash equivalents			23,515				3,182
Cash and cash equivalents
Beginning of period			10,121				6,939
End of period		$	33,636			$	10,121

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2016				2015				2016				2015
GAAP Gross profit		$	18,388			$	12,039			$	59,453			$	40,846
Adjustments:
Depreciation and amortization		281				265					1,059			952
Stock-based compensation		57				5				96				31
Non-GAAP Gross profit		$	18,726			$	12,309			$	60,608			$	41,829
GAAP Gross margin			54.6	%			53.2	%			52.9	%			52.0	%
Adjustments:
Depreciation and amortization			0.8	%			1.2	%			0.9	%			1.2	%
Stock-based compensation			0.2	%			0.0	%			0.1	%			0.0	%
Non-GAAP Gross margin			55.6	%			54.4	%			53.9	%			53.2	%
GAAP Research and development expense		$	7,403			$	5,091			$	25,185			$	17,579
Adjustments:
Depreciation and amortization			(285	)			(250	)			(1,126	)			(574	)
Stock-based compensation			(567	)			(64	)			(983	)			(305	)
Non-GAAP Research and development expense		$	6,551			$	4,777			$	23,076			$	16,700
GAAP Sales and marketing expense		$	6,428			$	4,428			$	22,330			$	14,579
Adjustments:
Depreciation and amortization			(108	)			(125	)			(475	)			(325	)
Stock-based compensation			(535	)			(185	)			(1,289	)			(692	)
Non-GAAP Sales and marketing expense		$	5,785			$	4,118			$	20,566			$	13,562
GAAP General and administrative expense		$	4,212			$	1,998			$	12,426			$	7,087
Adjustments:
Depreciation and amortization			(52	)			(49	)			(209	)			(121	)
Stock-based compensation			(189	)			(39	)			(397	)			(150	)
Non-GAAP General and administrative expense		$	3,971			$	1,910			$	11,820			$	6,816
GAAP Total operating expense		$	18,043			$	11,517			$	59,941			$	39,245
Adjustments:
Depreciation and amortization			(445	)			(424	)			(1,810	)			(1,020	)
Stock-based compensation			(1,291	)			(288	)			(2,669	)			(1,147	)
Non-GAAP Total operating expense		$	16,307			$	10,805			$	55,462			$	37,078
GAAP Interest expense		$	(311	)		$	(466	)		$	(1,633	)		$	(1,208	)
Adjustments:
Non-cash interest expense			19				56				130				152
Non-GAAP Interest expense		$	(292	)		$	(410	)		$	(1,503	)		$	(1,056	)

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share data, unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2016				2015				2016				2015
GAAP Interest income and other income (expense), net		$	139			$	850			$	616			$	673
Adjustments:
Change in the fair value of preferred stock warrant liability			—				(880	)			(559	)			(703	)
Write-off of unamortized debt issuance costs			—				—				109				—
Non-GAAP Interest income and other income (expense), net		$	139			$	(30	)		$	166			$	(30	)
GAAP Income tax expense		$	(70	)		$	(88	)		$	(168	)		$	(166	)
Adjustments:
Non-cash income tax expense			23				23				91				91
Non-GAAP Income tax expense		$	(47	)		$	(65	)		$	(77	)		$	(75	)
GAAP Net income (loss)		$	103			$	818			$	(1,673	)		$	900
Adjustments:
Depreciation and amortization			726				689				2,869				1,972
Stock-based compensation			1,348				293				2,765				1,178
Interest income (expense) and other, net			172				(384	)			1,017				535
Income tax expense			70				88				168				166
Adjusted EBITDA		$	2,419			$	1,504			$	5,146			$	4,751
GAAP Net income (loss)		$	103			$	818			$	(1,673	)		$	900
Adjustments:
Depreciation and amortization			726				689				2,869				1,972
Stock-based compensation			1,348				293				2,765				1,178
Non-cash interest expense			19				56				130				152
Change in the fair value of preferred stock warrant liability			—				(880	)			(559	)			(703	)
Write-off of unamortized debt issuance costs			—				—				109				—
Non-cash income tax expense			23				23				91				91
Non-GAAP Net income (loss)		$	2,219			$	999			$	3,732			$	3,590
Non-GAAP Net income (loss) per share:
Basic		$	0.12			$	0.08			$	0.24			$	0.29
Diluted		$	0.11			$	0.07			$	0.22			$	0.26

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2016				2015				2016				2015
Weighted-average shares used to compute GAAP net income (loss) per share attributable to common stockholders — basic			19,078				4,127				10,778				3,893
Adjustments:
Weighted-average shares of common stock issuable upon conversion of mandatorily redeemable convertible preferred stock			—				8,522				4,685				8,522
Weighted-average shares used to compute non-GAAP net income (loss) per share — basic			19,078				12,649				15,463				12,415
Weighted-average shares used to compute GAAP net income (loss) per share attributable to common stockholders — diluted			20,667				4,127				10,778				3,893
Weighted-average shares of common stock issuable upon conversion of mandatorily redeemable convertible preferred stock			—				8,522				4,685				8,522
Adjustments:
Effects of dilutive securities
Warrants to purchase common stock			—				17				9				16
Warrants to purchase mandatorily redeemable convertible preferred stock			—				33				19				—
Weighted-average unvested shares of common stock subject to repurchase			—				136				118				136
Stock Options			—				911				1,150				1,083
Weighted-average shares used to compute non-GAAP net income (loss) per share — diluted			20,667				13,746				16,759				13,650

Investor Relations
Maria Riley & Chelsea Lish
The Blueshirt Group
ir@impinj.com
+1-206-315-4470

Media Relations
Erika Goodmanson
Sr. Director, Marketing and Communications 
egoodmanson@impinj.com
+1-206-812-9744