Identiv Teams Up With Omnilert to Curb Gun Violence

Identiv INVE recently collaborated with Omnilert to combine Omnilert Gun Detect and INVE's Velocity Vision Ecosystem. This collaboration is aimed at curbing the frequency of gun violence in the United States. Identiv will also become the reseller of Omnilert Gun Detect.

Omnilert Gun Detect and Velocity Vision Ecosystem integrate seamlessly to ensure proactive gun detection with the use of artificial intelligence. Notably, AI will be used for monitoring the videos recorded throughout the premises and responding with proper safety measures once a weapon is detected.

The velocity vision ecosystem can be scaled to integrate 1,000 devices and supports more than 8,500 models of camera. The ecosystem also operates over a range of platforms, including on-premises, cloud, hybrid and mobile.

With this new offering, INVE will be able to expand its customer base among schools, hospitals, retail stores, public spaces, corporate offices and factories. This partnership might also become one of the factors that could aid in recovering its Premises segment, which accounts for the Velocity single-pane solution, Velocity Vision video and VisionAI. Net revenues of INVE's Premises segment declined 14.7% year over year in the first quarter of 2024.

Near-Term Headwinds

Although Identiv's Premises segment has the competitive advantage of having the technical know-how, end-to-end product line and customization, the segment relies heavily on the federal government's budget allocation. In recent times, INVE was affected by the headwinds from the federal government's budgetary uncertainty that continued till March 2024.

Identiv is also experiencing softness in its Identity segment due to weakness in RFID-enabled IoT products, mainly Lilly. Lower IT spending among larger enterprises due to the weakening of the global economy amid ongoing macroeconomic uncertainties is also a reason. INVE also faces stiff competition in the RFID market from industry giants like Avery Dennison Corp AVY, IMPINJ Inc PI and Honeywell International HON.

Avery International's Smartrac division and IMPINJ are expanding the market share of their RFID offerings in apparel, beauty, aviation, automotive and pharmaceutical space. Honeywell International, on the other hand, covers healthcare, food packaging and airline baggage space with its RFID tags and handheld technology.

These negative factors acting against Identiv have reduced investors' confidence on the stock. Shares of INVE have plunged 49% year to date compared with the Zacks Computer Peripheral Equipment industry's decline of 21.2%.

Conclusion

Although Identiv is investing in multiple capabilities to get a competitive advantage in the long run, the company faces several near-term challenges. The Zacks Consensus Estimate for INVE's second-quarter 2024 revenues is pegged at $24 million, indicating a decline of 18.81% year over year.

The Zacks Consensus Estimate for second-quarter 2024 loss per share has been widened from 12 cents to 24 cents in the past 90 days.

Identiv carries a Zacks Rank #3 (Hold) at present.

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