We believe future demand for Impinj’s (PI) products is weakening and will continue to do so for longer than management projects. With the company trading at 3X Price/Sales and growing GAAP-losses, we see further downside.
In Q120 Impinj had a record quarter with sales of $47.82m, and management communicated that 6.2 of these were attributed to customers expediting their requests. From the Q120 earnings call, we get the following statement:
All told, COVID-19’s impacts on our endpoint IC and systems opportunities and new products, combined with headwinds from the North American project, the $6.2 million first quarter expedites and significant order pushouts from second quarter to third [emphasis added], all conspire to a second quarter challenge. – Q120 earnings call
This indiates that demand will be low during Q220 and will pick up in Q320 with significant orders pushed outwards. In the Q220 earnings call, management’s