Identiv Goes On The Record With Disney Infinity Toys

On Thursday December 11th,  Identiv (INVE) revealed that it is indeed supplying NFC technology for Disney’s (DIS) Infinity line of toys. We have mentioned this several times in the past, but the company’s CFO, Brian Nelson, admitted this fact on December 11.  We have provided his audio presentation here in its entirety accompanied by the investor slide show.

Additionally, through our due diligence, we have learned that Identiv will likely play a major role with Disney’s Star Wars infinity toys.  These are set to be released toward the end of next year in conjunction with the new film in the series, “Star Wars: Episode VII – The Force Awakens.”  We feel the new Star Wars infinity toys will see blockbuster sales as the original Star Wars toys saw back in 1977, which should add a substantial amount of  exposure for the company and revenue  toward its top line growth next year and into 2016.

Also, in the conference Brian explains in part how Identiv handles Cisco’s (CSCO) internal security for the company. We see this development as a potential branch out for Identiv as Cisco has been gearing up more towards “The Internet of Things (IoT),” and Identity as a service (IaaDS).

In September of this year, Identive won the Security Products 2014 New Product of the Year Award for Near Field Communication (NFC) Devices, so it’s obvious why Disney and others have been choosing Identiv for its NFC needs.

Opus Bank has recently doubled Identiv’s line of credit  from $20M to $40M, and has moved the first payment on this loan from 2015 to 2017, which is highly significant as it provides additional leverage for the company moving forward. Over the years and under old managment, the company has racked up nearly $400M in deficit, which is very attractive for the right suitor to acquire the company. This allows an acquiring company with the correct means to enjoy tax free profits up to $400M, which we estimate adds about $100M in  acquisition premium for the company.

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Disclosure: I am long INVE

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