Shares of Impinj (NASDAQ:PI) soared on Tuesday following the first-quarter report by the provider of radio-frequency identification solutions. Impinj beat analyst estimates across the board and produced better-than-expected guidance, sending the stock up 25.2% by 11:05 a.m. EDT.
Impinj reported first-quarter revenue of $33.1 million, up 31.9% year over year and about $2 million above the average analyst estimate. The company pointed to strength in endpoint ICs, reader ICs, and gateways.
Non-GAAP earnings per share came in at a loss of $0.11, up from a loss of $0.35 in the prior-year period and $0.15 better than analysts were expecting. Impinj lost $0.33 per share on a GAAP basis, a bit less than half of what it lost in the first quarter of 2018. Higher revenue and slow operating expense growth, excluding a restructuring charge in the prior-year period, pushed the bottom line higher.
Impinj also announced its new M700 endpoint IC family during the first quarter, which CEO Chris Diorio called "our most exciting new-product introduction in a decade."
Impinj expects to produce between $34 million and $36 million of revenue in the second quarter, along with a non-GAAP net loss per share between $0.04 and $0.11. Analysts were expecting revenue guidance of $33 million and non-GAAP EPS guidance of a loss of $0.19.
Impinj suffered steep revenue declines in late 2017 and early 2018 due to an inventory correction at its partners. The company's growth rate in the first quarter benefited from a very easy comparison with the prior-year period. Impinj will fully lap that period of weakness after the second quarter, which means growth rates will likely slow down in the back half of the year.