Intevac, Inc. (Nasdaq: IVAC) today reported financial results
for the quarter and six months ended July 3, 2021.
“We are pleased to report revenues above forecast for the second
quarter, chiefly as a result of the acceleration of technology
upgrades by our hard disk drive (HDD) customers,” commented Wendell
Blonigan, president and chief executive officer. “We announced a
record HDD upgrade order in June, which also drove the majority of
the $15 million increase in backlog in our Thin-film Equipment
(TFE) business in the quarter. In our Photonics business, we
announced two new development program awards in June, both of which
are aimed at improving the low light level night vision performance
of the current IVAS headset.
“In addition to these announcements, we are pleased to report
positive developments on multiple other fronts during the second
quarter. First, with recent HDD industry reports indicating
continued upside in mass-capacity drives and overall HDD units, as
well as in total media units and exabytes shipped, the discussions
with our customers to add media capacity have resumed. Furthermore,
we continued to attain progress with our INTEVAC VERTEX® protective
coating programs, which increases our confidence in new orders as
well as for our overall VERTEX growth initiative. Lastly, the U.S.
Military continues to invest in Intevac Photonics as a key night
vision technology provider for all of its digital programs,
including IVAS.” Mr. Blonigan concluded, “While 2021 is a
challenging year, we continue to maintain solid financial footing,
with a strong balance sheet, increasing orders and backlog, and
continued momentum on a number of programs and growth initiatives
that put Intevac firmly on a path for growth in 2022 and
beyond.”
($ Millions, except per share amounts)
Three Months Ended
Three Months Ended
July 3, 2021
June 27, 2020
GAAP Results
Non-GAAP Results
GAAP Results
Non-GAAP Results
Net Revenues
$
13.8
$
13.8
$
28.8
$
28.8
Operating Income (Loss)
$
(6.3
)
$
(6.3
)
$
2.1
$
2.1
Net Income (Loss)
$
(6.1
)
$
(6.1
)
$
1.5
$
1.5
Net Income (Loss) per Share
$
(0.25
)
$
(0.25
)
$
0.06
$
0.06
Six Months Ended
Six Months Ended
July 3, 2021
June 27, 2020
GAAP Results
Non-GAAP Results
GAAP Results
Non-GAAP Results
Net Revenues
$
30.1
$
30.1
$
47.7
$
47.7
Operating Income (Loss)
$
(12.8
)
$
(12.8
)
$
1.0
$
1.0
Net Income (Loss)
$
(12.6
)
$
(12.6
)
$
0.3
$
0.3
Net Income (Loss) per Share
$
(0.52
)
$
(0.52
)
$
0.01
$
0.01
Intevac’s non-GAAP adjusted results
exclude the impact, where applicable, of restructuring charges. A
reconciliation of the GAAP and non-GAAP adjusted results is
provided in the financial table included in this release. See also
“Use of Non-GAAP Financial Measures” section.
Second Quarter 2021 Summary
The net loss for the quarter was $6.1 million, or $0.25 per
diluted share, compared to net income of $1.5 million, or $0.06 per
diluted share, in the second quarter of 2020.
Revenues were $13.8 million, including $5.4 million of TFE
revenues and $8.4 million of Photonics revenues. TFE revenues
consisted of upgrades, spares and service. Photonics revenues
consisted of $3.2 million of research and development contracts and
$5.3 million of product sales. In the second quarter of 2020,
revenues were $28.8 million, including $16.6 million of TFE
revenues, which consisted of two 200 Lean HDD systems, upgrades,
spares and service, and Photonics revenues of $12.2 million, which
included $6.1 million of research and development contracts and
$6.1 million of product sales.
TFE gross margin was 18.7% compared to 36.4% in the second
quarter of 2020 and 23.1% in the first quarter of 2021. The decline
from the first quarter of 2021 and the second quarter of 2020 was
primarily due to lower revenues which affected factory
utilization.
Photonics gross margin was 24.9% compared to 43.9% in the second
quarter of 2020 and 13.1% in the first quarter of 2021. The decline
from the second quarter of 2020 was primarily due to lower revenue
levels, as well as higher costs related to completing the
integration of our camera into the IVAS platform. The improvement
from the first quarter of 2021 was primarily due to a sequential
increase in revenues and higher margins on development programs.
Consolidated gross margin was 22.5%, compared to 39.6% in the
second quarter of 2020 and 18.8% in the first quarter of 2021.
R&D and SG&A expenses were $9.4 million, compared to
$9.3 million in the second quarter of 2020 and $9.6 million in the
first quarter of 2021.
Order backlog totaled $51.7 million on July 3, 2021, compared to
$43.1 million on April 3, 2021 and $69.0 million on June 27, 2020.
Backlog at July 3, 2021, April 3, 2021 and June 27, 2020 did not
include any 200 Lean HDD systems.
The Company ended the quarter with $54.1 million of total cash,
cash equivalents, restricted cash and investments and $91.7 million
in tangible book value.
First Six Months 2021 Summary
The net loss was $12.6 million, or $0.52 per diluted share,
compared to net income of $0.3 million, or $0.01 per diluted share,
for the first six months of 2020.
Revenues were $30.1 million, including $14.6 million of TFE
revenues and $15.4 million of Photonics revenues, compared to
first-half 2020 revenues of $47.7 million, which included $24.6
million of TFE revenues and $23.1 million of Photonics
revenues.
TFE gross margin declined to 21.5%, compared to 38.9% in the
first six months of 2020, primarily due to lower revenues and less
favorable product mix. Photonics gross margin declined to 19.6%,
compared to 43.4% in the first six months of 2020, primarily due to
higher costs related to completing the integration of our camera
into the IVAS platform, as well as lower product margins.
Consolidated gross margin was 20.5%, compared to 41.1% in the first
six months of 2020.
R&D and SG&A expenses were $19.0 million compared to
$18.6 million in the first six months of 2020.
Use of Non-GAAP Financial Measures
Intevac's non-GAAP results exclude the impact, where applicable,
of restructuring charges. A reconciliation of the GAAP and non-GAAP
results is provided in the financial tables included in this
release.
Management uses non-GAAP results to evaluate the Company’s
operating and financial performance in light of business objectives
and for planning purposes. These measures are not in accordance
with GAAP and may differ from non-GAAP methods of accounting and
reporting used by other companies. Intevac believes these measures
enhance investors’ ability to review the Company’s business from
the same perspective as the Company’s management and facilitate
comparisons of this period’s results with prior periods. The
presentation of this additional information should not be
considered a substitute for results prepared in accordance with
GAAP.
Conference Call Information
The Company will discuss its financial results and outlook in a
conference call today at 1:30 p.m. PDT (4:30 p.m. EDT). To
participate in the teleconference, please call toll-free (877)
407-0989 prior to the start time, and reference meeting number
13721096. For international callers, the dial-in number is +1 (201)
389-0921. You may also listen live via the Internet on the
Company's investor relations website at https://ir.intevac.com. For
those unable to attend live, an archived webcast of the call will
be available at https://ir.intevac.com.
About Intevac
Intevac was founded in 1991 and has two businesses: Thin-film
Equipment and Photonics.
In our Thin-film Equipment business, we are a leader in the
design and development of high-productivity, thin-film processing
systems. Our production-proven platforms are designed for
high-volume manufacturing of substrates with precise thin film
properties, such as the hard drive media, display cover panel,
solar photovoltaic, and advanced semiconductor packaging markets we
serve currently.
In our Photonics business, we are a recognized leading developer
of advanced high-sensitivity digital sensors, cameras and systems
that primarily serve the defense industry. We are the provider of
integrated digital imaging systems for most U.S. military night
vision programs.
For more information call 408-986-9888, or visit the Company's
website at www.intevac.com.
200 Lean®, INTEVAC MATRIX®, INTEVAC VERTEX®, ENERGi®, LIVAR®,
DiamondClad®, VERTEX Marathon®, and VERTEX Spectra® are registered
trademarks of Intevac, Inc.
Safe Harbor Statement
This press release includes statements that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 (the “Reform Act”).
Intevac claims the protection of the safe-harbor for
forward-looking statements contained in the Reform Act. These
forward-looking statements are often characterized by the terms
“may,” “believes,” “projects,” “expects,” or “anticipates,” and do
not reflect historical facts. Specific forward-looking statements
contained in this press release include, but are not limited to:
impacts related to the COVID-19 global pandemic, customer adoption
of our products, future revenue growth potential, and the future
financial performance of Intevac. The forward-looking statements
contained herein involve risks and uncertainties that could cause
actual results to differ materially from the Company’s
expectations. These risks include, but are not limited to: global
economic impacts of COVID-19 including delays in customer
evaluations, supply chain constraints and disruptions related to
COVID-19, technology risk, challenges achieving customer adoption
and revenue growth in Thin-film Equipment markets, and delays in
Photonics programs, each of which could have a material impact on
our business, our financial results, and the Company's stock price.
These risks and other factors are detailed in the Company’s
periodic filings with the U.S. Securities and Exchange
Commission.
INTEVAC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited, in thousands, except per share
amounts)
Three months ended
Six months ended
July 3, 2021
June 27, 2020
July 3, 2021
June 27, 2020
Net revenues
TFE
$
5,369
$
16,595
$
14,607
$
24,557
Photonics
8,444
12,247
15,447
23,125
Total net revenues
13,813
28,842
30,054
47,682
Gross profit
3,108
11,420
6,162
19,577
Gross margin
TFE
18.7
%
36.4
%
21.5
%
38.9
%
Photonics
24.9
%
43.9
%
19.6
%
43.4
%
Consolidated
22.5
%
39.6
%
20.5
%
41.1
%
Operating expenses
Research and development
3,894
3,707
7,519
6,991
Selling, general and administrative
5,525
5,609
11,455
11,581
Total operating expenses
9,419
9,316
18,974
18,572
Total operating income (loss)
(6,311
)
2,104
(12,812
)
1,005
Income (loss) from operations
TFE
(4,305
)
(174
)
(8,306
)
(2,705
)
Photonics
(255
)
3,536
(1,401
)
6,448
Corporate
(1,751
)
(1,258
)
(3,105
)
(2,738
)
Total operating income (loss)
(6,311
)
2,104
(12,812
)
1,005
Interest and other income (expense),
net
20
62
50
204
Income (loss) before provision for
(benefit from) income taxes
(6,291
)
2,166
(12,762
)
1,209
Provision for (benefit from) income
taxes
(165
)
642
(132
)
909
Net income (loss)
$
(6,126
)
$
1,524
$
(12,630
)
$
300
Net income (loss) per share
Basic
$
(0.25
)
$
0.06
$
(0.52
)
$
0.01
Diluted
$
(0.25
)
$
0.06
$
(0.52
)
$
0.01
Weighted average common shares
outstanding
Basic
24,241
23,561
24,137
23,522
Diluted
24,241
23,906
24,137
23,953
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except par value)
July 3, 2021
January 2, 2021
(Unaudited)
(see Note)
ASSETS
Current assets
Cash, cash equivalents and short-term
investments
$
48,661
$
44,180
Accounts receivable, net
14,356
28,646
Inventories
20,524
21,689
Prepaid expenses and other current
assets
1,691
1,893
Total current assets
85,232
96,408
Long-term investments
4,679
5,388
Restricted cash
787
787
Property, plant and equipment, net
9,683
11,004
Operating lease right-of-use-assets
6,988
8,165
Deferred income tax and other long-term
assets
5,700
5,486
Total assets
$
113,069
$
127,238
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Current operating lease liabilities
$
2,981
$
2,853
Accounts payable
3,890
4,259
Accrued payroll and related
liabilities
6,334
7,679
Other accrued liabilities
2,421
3,631
Total current liabilities
15,626
18,422
Non-current liabilities
Non-current operating lease
liabilities
5,267
6,803
Other long-term liabilities
428
457
Total non-current liabilities
5,695
7,260
Stockholders’ equity
Common stock ($0.001 par value)
24
24
Additional paid-in capital
196,064
193,173
Treasury stock, at cost
(29,551
)
(29,551
)
Accumulated other comprehensive income
571
640
Accumulated deficit
(75,360
)
(62,730
)
Total stockholders’ equity
91,748
101,556
Total liabilities and stockholders’
equity
$
113,069
$
127,238
Note: Amounts as of January 2, 2021 are
derived from the January 2, 2021 audited consolidated financial
statements.
INTEVAC, INC.
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
(Unaudited, in thousands, except per share
amounts)
Three months ended
Six months ended
July 3, 2021
June 27, 2020
July 3, 2021
June 27, 2020
Non-GAAP Income (Loss) from
Operations
Reported operating income (loss) (GAAP
basis)
$
(6,311
)
$
2,104
$
(12,812
)
$
1,005
Restructuring charges 1
—
—
43
—
Non-GAAP Operating Income (Loss)
$
(6,311
)
$
2,104
$
(12,769
)
$
1,005
Non-GAAP Net Income (Loss)
Reported net income (loss) (GAAP
basis)
$
(6,126
)
$
1,524
$
(12,630
)
$
300
Restructuring charges 1
—
—
43
—
Non-GAAP Net Income (Loss)
$
(6,126
)
$
1,524
$
(12,587
)
$
300
Non-GAAP Net Income (Loss) Per Diluted
Share
Reported net income (loss) per diluted
share (GAAP basis)
$
(0.25
)
$
0.06
$
(0.52
)
$
0.01
Restructuring charges 1
$
—
$
—
$
—
$
—
Non-GAAP Net Income (Loss) Per Diluted
Share
$
(0.25
)
$
0.06
$
(0.52
)
$
0.01
Weighted average number of diluted
shares
24,241
23,906
24,137
23,953
1Results for the six months ended July 3,
2021 include severance and other employee-related costs related to
a restructuring program.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210802005227/en/
James Moniz Chief Financial Officer (408) 986-9888
Claire McAdams Investor Relations (530) 265-9899
Intevac (NASDAQ:IVAC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Intevac (NASDAQ:IVAC)
Historical Stock Chart
From Apr 2023 to Apr 2024
