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Shares of Impinj Inc. (NASDAQ: PI), a provider of radio frequency identification solutions, slumped on Friday following the company's fourth-quarter report. Impinj beat analyst estimates for revenue and earnings, but its guidance for the first quarter may have underwhelmed investors. At 11:45 a.m. EST, the stock was down about 12%.
Impinj reported fourth-quarter revenue of $33.7 million, up 48.7% year over year and a little over $1 million higher than the average analyst estimate. Growth was driven by a 70% increase in endpoint IC volume.
Image source: Impinj Inc.
Non-GAAP EPS came in at $0.11, up from $0.07 during the prior-year period and $0.02 better than analysts were expecting. GAAP EPS was $0.01, up from a loss of $0.49. Operating income declined, however, due to rapidly rising expenses. Operating margin was 1%, down from 2.3% in the prior-year period.
CEO Chris Diorio discussed how the company's recent secondary offerings will help it continue growing quickly:
While Impinj beat analyst estimates for the fourth quarter, its guidance for the first quarter may be what caused the stock to drop on Friday. Impinj expects revenue between $30 million and $31.5 million, a slight sequential drop driven by seasonality. Non-GAAP EPS is expected in the range of a loss of $0.06 to a gain of $0.01. The expected loss indicates that spending will rise faster than revenue, which may have disappointed investors.
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