The net loss for the quarter was $4.9 million, or $0.19 per diluted share, compared to a net loss of
$2.8 million, or $0.11 per diluted share, in the second quarter of 2022. The non-GAAP net loss for the second quarter of 2023 was $4.9 million, or $0.19 per diluted share, compared to a non-GAAP net loss of $2.6 million, or $0.10 per diluted share, in the second quarter of 2022.
Order backlog was
$58.2 million on July 1, 2023, compared to $120.7 million on April 1, 2023 and $100.2 million on July 2, 2022. Backlog at July 1, 2023 included two 200 Lean HDD systems. Backlog at April 1, 2023 and at
July 2, 2022 included eleven 200 Lean HDD systems.
The Company ended the quarter with $73.9 million of total cash, cash equivalents, restricted
cash and investments and $116.0 million in tangible book value.
First Six Months 2023 Summary
Revenues were $21.8 million, compared to first-half 2022 revenues of $13.8 million, and consisted of one 200 Lean HDD system, one refurbished 200
Lean HDD system, HDD upgrades, spares and service. Gross margin was 33.4%, compared to 37.9% in the first six months of 2022. Operating expenses were $17.2 million, compared to $15.3 million in the first six months of 2022. The net loss
was $8.8 million, or $0.34 per diluted share, compared to a net loss of $10.7 million, or $0.43 per diluted share, for the first six months of 2022.
Subsequent Event
During the third quarter of fiscal
2023, Intevac substantially completed implementation of a cost reduction plan (the 2023 Cost Reduction Plan), which is intended to reduce expenses by reducing our workforce by approximately 25 percent including employees and
contractors. Intevac expects to incur restructuring costs of $1.8 million in estimated severance and other employee-related expenses associated with the 2023 Cost Reduction Plan. Substantially all cash outlays in connection with the 2023 Cost
Reduction Plan are expected to occur in the third quarter of fiscal 2023. Implementation of the 2023 Cost Reduction Plan is expected to reduce salary, wages, and other employee-related expenses and contractor payments by approximately
$4.0 million on an annual basis.
Use of Non-GAAP Financial Measures
Intevacs 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 Companys 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 Companys business from the same perspective as the Companys management and facilitate comparisons of this periods 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 13739934. 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/register/intevac080223/en or on the Companys investor relations website at
https://ir.intevac.com/. For those unable to attend live, an archived webcast of the call will be available at the same link.
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 worlds capacity for HDD disk media production. Today, we believe that all of the technology upgrade initiatives for next-generation media for the HDD industry, 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
Companys website at www.intevac.com.