SANTA ANA, Calif. and ISMANING, Germany, June 6, 2012 (GLOBE NEWSWIRE) -- Identive Group, Inc. (Nasdaq:INVE) (Frankfurt:INV), a provider of products and services for the identification, security and RFID industries, today provided details on a series of recently-disclosed cost reduction measures to bolster the Company's cash position and support its long-term growth strategy. These measures are expected to result in savings of $4 million to $5 million in the remainder of 2012 and include an 11% reduction in the Company's global workforce, acceleration of the elimination of duplicate expenses at newly acquired companies, reductions in other general and administrative expenses, the consolidation of facilities, as well as temporary reductions of nearly $0.5 million in executive and management salaries and Board fees. The Company expects to incur charges of $0.7 million to $0.9 million in 2012 in connection with the cost reduction program.
"We believe our cost reduction program will enable us to preserve cash and reset our ongoing expense run rate to a more sustainable level," stated Ayman S. Ashour, chairman and chief executive officer of Identive. "This will not impact our ongoing investments in new NFC and cloud-based identity solutions or our ability to address opportunities in these emerging, potential hyper-growth markets."
David Wear, Identive's executive vice president Finance, stated, "Fully implementing these cost reductions will take some time; however we expect to finish our current quarter with adequate cash resources and without the need to utilize our existing debt facility. We are working diligently to remove any concerns over our liquidity and to reinforce the strength of our financial base."
Ashour added, "Particularly in light of the recent pressure on our stock price, we believe that Identive's shares are significantly undervalued. We have confidence in our long-term strategy to grow revenues and profits by investing in emerging opportunities within the secure identification market and in our ability to demonstrate performance improvements as these markets begin to ramp. Our commitment to the Company and to supporting long-term shareholder value is reflected in the recent voluntary salary reductions of our executive team and others within the company and by the significant number of shares purchased by insiders in recent weeks."
About Identive
Identive Group, Inc. (Nasdaq:INVE) (Frankfurt:INV) is focused on building the world's signature company in Secure ID. The company's products, software, systems and services address the markets for identity management, physical and logical access control, cashless payment, NFC solutions and a host of RFID-enabled applications for customers in the government, enterprise, consumer, education and healthcare sectors. Identive's mission is to build a lasting business of scale and technology based on a combination of strong technology-driven organic growth and disciplined acquisitive expansion. The company delivers up-to-date information on its activity as well as industry trends through its industry-leading social media initiatives and educational resource, AskIdentive.com. For additional information, please visit www.identive-group.com or follow on Twitter at @IdentiveGroup.
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Note Regarding Forward Looking Information: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipates," "believes," "plans," "will," "intends," "expects," and similar references to the future. Examples of such statements include, without limitation, statements we make regarding the expected savings from our cost reduction program during 2012, the amount of charges we expect to incur related to this program, our ability to preserve cash and to reduce our ongoing expense run-rate to more sustainable levels, our ability to grow revenues and profits by investing in emerging opportunities within the secure identification market and our ability to demonstrate performance improvements as these markets begin to ramp. Readers should not unduly rely on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause our actual business and operating results to differ. Factors that could cause actual results to differ materially from those in the forward-looking statements include our ability to reduce expenses as much as anticipated; whether targeted reductions will be sufficient to reduce our ongoing expenses to a sustainable level; whether the markets in which we participate or target may grow, converge or standardize at anticipated rates or at all, including the emerging markets that we are targeting; our ability to successfully integrate acquired businesses; our ability to successfully compete in the markets in which we participate or target; and general global political and economic factors which are beyond our control but may unduly impact our markets and our business. For a discussion of further risks and uncertainties related to our business, please refer to our public company reports, including our Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.