Intevac, Inc. (Nasdaq: IVAC) today reported financial results
for the first quarter ended April 1, 2023.
Q1 Highlights:
- Revenue of $11.5 million was at the upper end of expectations,
a 3% increase from the previous quarter and up 160% from Q1 of
2022;
- With gross margin of 41% and operating expenses of $9.2
million, the net loss from continuing operations was $0.16 per
share, favorable to expectations; and
- Continued progress, in partnership with our joint development
partner, developing the TRIO™ platform for the coating of consumer
electronics devices.
“We are pleased to deliver Q1 revenues at the upper end of our
expectations, which is demonstrative of our strong partnerships
with our hard disk drive (HDD) customers as we continue to enable
the successful migrations of their technology roadmaps,” commented
Nigel Hunton, president and chief executive officer. “We are
pleased with the progress made during the quarter developing our
TRIO™ platform, which we believe will be our major growth driver
for the future. We successfully completed the first system build at
Intevac headquarters, and we are now transitioning to full process
integration in advance of the qualification phase with our joint
development partner, which is a major provider of glass and glass
ceramic materials. During the quarter, we also utilized our strong
cash balance to invest in working capital in support of our
customers.
“Looking forward, our efforts are focused squarely upon two
strategic objectives, which are achieving successful results of our
joint development partnership for the TRIO, and continuing to
provide our HDD customers with the technology and capabilities to
enable their ramp of next-generation HDD media. Given the
widespread weakening of consumer demand across the electronics
industry, the overall business environment has become increasingly
challenging, especially related to forecasted growth rates for
mass-capacity drive demand.” Mr. Hunton concluded, “We are
steadfast in our focus to successfully transform Intevac into a
consistently profitable company with a strong growth trajectory. We
are making the investments necessary to enable this
transformational growth, and we look forward to delivering on
positive results and increased traction with our new TRIO partner,
while continuing to leverage our 20-year history of HDD leadership
to enable the next generation of media technology.”
($ Millions, except per share amounts)
Q1 2023
Q1 2022
GAAP Results
Non-GAAP Results
GAAP Results
Non-GAAP Results
Net Revenues
$
11.5
$
11.5
$
4.4
$
4.4
Operating Loss
$
(4.5
)
$
(4.5
)
$
(7.7
)
$
(5.0
)
Net Loss
$
(3.9
)
$
(4.2
)
$
(7.9
)
$
(5.0
)
Net Loss per Diluted Share
$
(0.15
)
$
(0.16
)
$
(0.32
)
$
(0.20
)
Intevac’s non-GAAP adjusted results exclude the impact of the
following, where applicable: (i) restructuring charges, (ii) fixed
asset disposals associated with a restructuring program and (iii)
discontinued operations. 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.
First Quarter 2023 Summary
Revenues were $11.5 million, compared to $4.4 million in the
first quarter of 2022, and consisted of HDD upgrades, spares and
service. Gross margin was 40.9%, compared to 16.3% in the first
quarter of 2022. Operating expenses were $9.2 million, compared to
$8.4 million in the first quarter of 2022. The operating loss was
$4.5 million compared to $7.7 million in the first quarter of 2022
which included $2.7 million of restructuring-related costs,
including severance and loss on fixed asset disposals.
The net loss for the quarter was $3.9 million, or $0.15 per
diluted share, compared to a net loss of $7.9 million, or $0.32 per
diluted share, in the first quarter of 2022. The non-GAAP net loss
for the first quarter of 2023 was $4.2 million, or $0.16 per
diluted share, compared to a non-GAAP net loss of was $5.0 million,
or $0.20 per diluted share, in the first quarter of 2022.
Order backlog was $120.7 million on April 1, 2023, compared to
$121.7 million on December 31, 2022 and $87.2 million on April 2,
2022. Backlog at April 1, 2023 and December 31, 2022 included
eleven 200 Lean HDD systems. Backlog at April 2, 2022 included nine
200 Lean HDD systems.
The Company ended the quarter with $84.8 million of total cash,
cash equivalents, restricted cash and investments and $119.8
million in tangible book value.
Use of Non-GAAP Financial Measures
Intevac’s non-GAAP results exclude the impact, where applicable,
of restructuring charges, fixed asset disposals associated with a
restructuring program and discontinued operations. 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
13737389. For international callers, the dial-in number is +1 (201)
389-0921. You may also listen live via the Internet at
https://www.webcast-eqs.com/intevac050323/en or on the Company's
investor relations website at https://ir.intevac.com/.
About Intevac
Founded in 1991, we are a leading provider of thin-film process
technology and manufacturing platforms for high-volume
manufacturing environments. As a long-time supplier to the hard
disk drive (HDD) industry, over the last 20 years we have delivered
over 180 of our industry-leading 200 Lean® systems, which currently
represent the majority of the world’s capacity for HDD disk media
production. Today, we believe that all of the technology upgrade
initiatives for next-generation media for the HDD industry, along
with planned media capacity additions over the next several years,
are being deployed on our 200 Lean platform. With over 30 years of
leadership in designing, developing, and manufacturing
high-productivity, thin-film processing systems, we also are
leveraging our technology and know-how for additional applications,
such as coatings for consumer devices.
For more information call 408-986-9888, or visit the Company's
website at www.intevac.com.
200 Lean® and TRIO™ are 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:
the Company’s revenue growth potential and future financial
performance. 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 shipment delays, availability of components,
supply chain constraints and other disruptions related to COVID-19,
and changes in market dynamics that could change the delivery
schedule of our systems and upgrades, 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.
All forward-looking statements in this press release are based
on information available to the Company as of the date hereof, and
Intevac does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made,
except as required by law. Any future product, service, feature, or
related specification that may be referenced in this release is for
informational purposes only and is not a commitment to deliver any
offering, technology or enhancement.
INTEVAC, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except
per share amounts)
Three months ended
April 1, 2023
April 2, 2022
Net revenues
$
11,542
$
4,445
Gross profit
4,719
723
Gross margin
40.9
%
16.3
%
Operating expenses
Research and development
3,973
4,160
Selling, general and administrative
5,200
4,249
Total operating expenses
9,173
8,409
Total operating loss
(4,454
)
(7,686
)
Interest and other income
672
(8
)
Loss before provision for income taxes
(3,782
)
(7,694
)
Provision for income taxes
386
26
Net loss from continuing operations
(4,168
)
(7,720
)
Net income (loss) from discontinued
operations
277
(135
)
Net loss
$
(3,891
)
$
(7,855
)
Net loss per share
Basic and diluted – continuing
operations
$
(0.16
)
$
(0.31
)
Basic and diluted – discontinued
operations
$
0.01
$
(0.01
)
Basic and diluted – net loss
$
(0.15
)
$
(0.32
)
Weighted average common shares
outstanding
Basic and Diluted
25,781
24,800
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except par value)
April 1, 2023
December 31, 2022
(Unaudited)
(see Note)
ASSETS
Current assets
Cash, cash equivalents and short-term
investments
$
68,074
$
94,445
Accounts receivable, net
21,885
15,823
Inventories
43,665
30,003
Prepaid expenses and other current
assets
2,244
1,898
Total current assets
135,868
142,169
Long-term investments
15,967
17,585
Restricted cash
785
786
Property, plant and equipment, net
7,319
3,658
Operating lease right-of-use assets
2,830
3,390
Intangible assets, net
1,056
1,090
Other long-term assets
4,184
4,381
Total assets
$
168,009
$
173,059
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current operating lease liabilities
$
3,214
$
3,404
Accounts payable
12,309
11,610
Accrued payroll and related
liabilities
2,998
3,087
Other accrued liabilities
4,303
5,430
Customer advances
2,959
2,444
Total current liabilities
25,783
25,975
Non-current liabilities
Non-current operating lease
liabilities
798
1,417
Customer advances
20,580
22,215
Total non-current liabilities
21,378
23,632
Stockholders’ equity
Common stock ($0.001 par value)
26
26
Additional paid-in capital
207,463
206,355
Treasury stock, at cost
(29,551
)
(29,551
)
Accumulated other comprehensive loss
(14
)
(193
)
Accumulated deficit
(57,076
)
(53,185
)
Total stockholders’ equity
120,848
123,452
Total liabilities and stockholders’
equity
$
168,009
$
173,059
Note: Amounts as of December 31, 2022 are derived from the
December 31, 2022 audited consolidated financial statements
INTEVAC, INC.
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
(Unaudited, in thousands, except per share
amounts)
Three months ended
April 1, 2023
April 2, 2022
Non-GAAP Loss from Operations
Reported operating loss (GAAP basis)
$
(4,454
)
$
(7,686
)
Restructuring and other charges1
—
1,232
Loss on fixed asset disposals2
—
1,453
Non-GAAP Operating Loss
$
(4,454
)
$
(5,001
)
Non-GAAP Net Loss
Reported net loss (GAAP basis)
$
(3,891
)
$
(7,855
)
Continuing operations:
Restructuring and other charges1
—
1,232
Loss on fixed asset disposals2
—
1,453
Income tax effect of non-GAAP
adjustments3
—
—
Discontinued operations4
(277
)
135
Non-GAAP Net Loss
$
(4,168
)
$
(5,035
)
Non-GAAP Net Loss Per Share
Reported net loss per share (GAAP
basis)
$
(0.15
)
$
(0.32
)
Continuing operations:
Restructuring charges1
—
0.05
Loss on fixed asset disposals 2
—
0.06
Discontinued operations4:
(0.01
)
0.01
Non-GAAP Net Loss Per Share
$
(0.16
)
$
(0.20
)
Weighted average number of diluted shares
outstanding
25,781
24,800
1Results for the three months ended April 2, 2022 include
severance and other employee-related costs related to a
restructuring program. Restructuring costs for the three months
ended April 2, 2022 include $1.2 million for estimated severance
and the related modification of certain stock-based awards. 2The
amount represents fixed asset disposals under the 2022
restructuring plan. 3The amount represents the estimated income tax
effect of the non-GAAP adjustments. The Company calculated the tax
effect of non-GAAP adjustments by applying an applicable estimated
jurisdictional tax rate to each specific non-GAAP item. 4The amount
represents discontinued operations of the Photonics business that
was sold on December 30, 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005448/en/
James Moniz Chief Financial Officer (408) 986-9888
Claire McAdams Investor Relations (530) 265-9899
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