The U.S. government and the Department of Defense sliced spending on RFID substantially in 2011. When Identive Group released its fourth quarter report on March 1 for the period ended Dec. 31, the company stated that although full year revenue increased 21 percent to $102.7 million, the company saw a $3.6 million decline in sales to the U.S. government. Company growth was offset by a decline in sales of enterprise security and identity management systems to the U.S. Government due to ongoing budget uncertainty and project delays.
“Our diverse revenue base enabled us to achieve strong growth despite an estimated $3.6 million decline in sales to the U.S. government sector, which continued to experience budget uncertainties and resulting project delays,” Ayman S. Ashour, chairman and CEO of Identive, said in a press release.
Stay tuned for this week’s issue of RFID 24-7 for the real story behind the U.S. government’s decrease in RFID spending. Not a subscriber? Click here!