What happened
Shares of Impinj (PI 3.73%) climbed 15.5% in September, according to data from S&P Global Market Intelligence, after the radio-frequency identification specialist announced second-quarter 2018 results.
It wasn't a straight line up, however. Shares declined through the first half of the month as investors fretted over Impinj's delayed earnings announcement, which was due to an internal investigation related to a complaint filed by a former employee in early August. But then Impinj more than recouped those losses on Sept. 13, when the company formally released its results and revealed its audit committee found no credible evidence to back the employee's claims.
Image source: Getty Images.
So what
That's not to say Impinj's quarter looked good at first glance. Revenue declined 16.3% year over year to $28.5 million, driven by inventory reduction by Impinj's customers. And that translated to an adjusted net loss of $7.7 million, or $0.19 per share. Still, Impinj's top line arrived well above its financial guidance for sales in the range of $25 million to $27 million.
CEO Chris Diorio said: "We are pleased that the Audit Committee was able to complete its independent investigation, and are proud that the outcome reaffirms that we operate our business according to the highest ethical principles. We continue to see momentum building as our team focuses on executing our vision of identifying, locating, and authenticating every item in our everyday world."
Now what
If that wasn't enough, Impinj told investors to expect third-quarter revenue of $33 million to $34 million -- marking a return to growth from $32.6 million in the same year-ago period -- with its adjusted net loss narrowing to a per-share range of $0.17 to $0.12.
Impinj still has plenty of work to do before it achieves sustained growth and profitability. But given its impending return to growth, with shares still down nearly 40% over the past year, and absent the uncertainty underlying its delayed quarterly report, it certainly took a big step in the right direction last month.
