What happened
Shares of Impinj (PI -2.24%) are soaring today, up by 26% as of 11 a.m. EST, after the company announced preliminary fourth-quarter results. Revenue is expected to be significantly better than forecast.
So what
Impinj said that revenue in the fourth quarter should exceed $36 million, well above its previous outlook of $26.5 million to $28.5 million in sales. The preliminary figure also crushes the consensus estimate of $27.76 million in revenue.
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The tech company, which provides radio frequency identification products, did not provide any updates for other parts of its guidance, but can likely now beat its outlook for other metrics due to the strong top-line performance. Impinj's guidance calls for an adjusted net loss of $7.8 million to $9.3 million, or $0.34 to $0.40 per share.
Now what
On the earnings call in October, management noted that it was taking a conservative approach in its fourth-quarter outlook. Unit volumes for the company's Impinj M700 product were expected to increase sequentially after shipping 100 million units in Q3. CEO Chris Diorio also said that research and development expenses are expected to rise as well due to greater hiring activity. Impinj had a "pretty ambitious hiring plan" that was mostly completed in the third quarter, so the related expenses will show up in Q4.
Impinj also said that Diorio and CFO Cary Baker will be participating in the Needham Virtual Growth Conference on Wednesday at 12:30 p.m. EST.
