A mix of internal growth and acquisitions propelled Santa Ana-based Identive Group Inc. to No. 3 on this year’s list of fastest-growing public companies based in Orange County.
The company makes scanners, readers, cards and other security devices for buildings and computers.
It saw about $96.3 million in revenue for the 12 months through June 30, a 206% jump compared with two years earlier.
It still has to turn the corner on profits after posting a loss of about $6.2 million for the same period. The company lost $17.4 million the prior year.
This is the second consecutive year that big revenue gains have landed Identive on the fastest-growing list. It moved up three notches from the No. 6 spot last year.
The company has benefited from new demand in the public and private sector for gear to curb security breaches at businesses, schools, government buildings and others.
In many cases, Identive is the company behind the technology in identification cards, biometrics systems, tokens and mobile phones that allow users to access buildings and computers, make electronic payments and safeguard intellectual property.
“The need to do that is growing,” said Identive spokesperson Darby Dye.
A string of recent acquisitions appears to have Identive bound for more growth as it expands its niche in security systems for access to buildings. That’s a $19 billion segment of the industry, according to London-based Memoori Business Intelligence Ltd.
In July, Identive acquired Switzerland-based polyright SA, which makes identity management products for the education and healthcare markets, for $3.1 million.
A month earlier, it bought Pleasanton-based idOnDemand Inc., in a $16.1 million deal. About $10 million is based on future benchmarks, according to a filing with the Securities & Exchange Commission. IdOnDemand’s system allows businesses and organizations to use a single credential for secure access, as the company provides encoded cards and credential management services via the cloud.
The growth reflected in Identive’s revenue through June also stems in part from acquisitions. In November 2010, it paid $3.2 million for FCI Smartag Pte. Ltd., a Singapore-based manufacturer of high-frequency and ultra-high-frequency radio-frequency-identi-fication inlays, labels and smart tags.
The buy increased Identive’s manufacturing capacity for transponders while providing inroads to Asia-Pacific markets.
“All of these are important to our business,” Dye said.
A new technology could be a bigger factor in future growth.
Identive in July announced it would supply 1 million near-field communication tags to a “leading mobile handset manufacturer.”
The small tags, similar in size to a stamp, will be included in every box of NFC-enabled smart phones sold by the customer.
Near-field communications, commonly referred to as NFC, allows communication over very short distances. A user can wave a smart phone over an NFC tag and immediately get connected to a website, launch an application or make a payment at the check-out counter.
The six-month contract should give a modest boost in revenue in the coming quarters for Identive, which counts on NFC technology for a small percentage of its sales.
In another high-profile deal, its German unit, ACIG Technology, was picked earlier this year by Mountain View-based Google Inc. to be the exclusive supplier of NFC stickers for an Austin, Texas, rollout of the company’s Google Places.
Google is providing stickers for local business owners there to help them promote their products and services while encouraging consumers to review the businesses.
The stickers—manufactured by Identive’s Smartag unit—are placed on smart posters at participating business, and consumers can access information through cell phones operating the Android system.
To make NFC technology work, cell phones, tablets and other devices must be able to interact with smart tags, stickers and readers.
“Identive’s strength is to help provide that infrastructure,” Dye said. “NFC has tremendous potential for our business in the future.”
The company has about 90 workers at an office and a 20,000-square-foot factory in Santa Ana where it designs and makes devices and systems for physical access.
Other operations include sales offices throughout Europe, Asia and Australia.
Identive employs 387 employees companywide.
