Intevac, Inc. (Nasdaq: IVAC) today reported financial results
for the quarter and six months ended June 29, 2024.
“We witnessed strengthening demand for hard disk drive (HDD)
media technology upgrades during the second quarter, and our team
in Singapore provided solid execution, which led to revenues well
ahead of expectations,” commented Nigel Hunton, president and chief
executive officer. “Today’s media upgrade initiatives, including
those in support of the HAMR (heat-assisted magnetic recording)
technology transitions now underway, demonstrate Intevac’s critical
role within the HDD ecosystem. Our flagship 200 Lean® is the
world’s leading platform for media production, both today and for
the years to come, providing strong visibility for a solid base of
business as we drive incremental growth with our groundbreaking
TRIO™ platform, which will serve multiple markets, including the
display cover glass coating market. We are now in the process of
qualifying our first TRIO system, which has been successfully
installed at a new customer facility in Asia and is currently
demonstrating the benefits of its modular and flexible design. Our
focus is now on completing the field qualification and securing
initial orders. Strong collections in the quarter drove an increase
in total cash, restricted cash, and investments to over $70 million
at quarter-end, and we remain steadfast in our commitment to
maintain the strength of the balance sheet while still aggressively
pursuing the strong growth opportunities ahead. Overall, an
excellent quarter for Intevac across all fronts.”
($ Millions, except per share amounts)
Three Months Ended
Three Months Ended
June 29, 2024
July 1, 2023
GAAP Results
Non-GAAP Results
GAAP Results
Non-GAAP Results
Net Revenues
$
14.5
$
14.5
$
10.3
$
10.3
Operating Loss
$
(3.3
)
$
(3.3
)
$
(5.5
)
$
(5.5
)
Net Loss
$
(3.3
)
$
(3.3
)
$
(4.9
)
$
(4.9
)
Net Loss per Share
$
(0.12
)
$
(0.12
)
$
(0.19
)
$
(0.19
)
Six Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
GAAP Results
Non-GAAP Results
GAAP Results
Non-GAAP Results
Net Revenues
$
24.2
$
24.2
$
21.8
$
21.8
Operating Loss
$
(7.7
)
$
(7.7
)
$
(9.9
)
$
(9.9
)
Net Loss
$
(4.9
)
$
(6.0
)
$
(8.8
)
$
(9.1
)
Net Loss per Share
$
(0.18
)
$
(0.22
)
$
(0.34
)
$
(0.35
)
Intevac’s non-GAAP adjusted results
exclude the impact of the following, where applicable: 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.
Second Quarter 2024 Summary
Revenues were $14.5 million, compared to $10.3 million in the
second quarter of 2023, and consisted of HDD upgrades, spares and
service. Gross margin was 38.2%, compared to 24.9% in the second
quarter of 2023. Operating expenses were $8.8 million, compared to
$8.0 million in the second quarter of 2023. The operating loss was
$3.3 million compared to $5.5 million in the second quarter of
2023.
The net loss for the quarter was $3.3 million, or $0.12 per
diluted share, compared to a net loss of $4.9 million, or $0.19 per
diluted share, in the second quarter of 2023. The non-GAAP net loss
for the second quarter of 2024 was $3.3 million, or $0.12 per
diluted share, compared to a non-GAAP net loss of $4.9 million, or
$0.19 per diluted share, in the second quarter of 2023.
Order backlog was $42.5 million on June 29, 2024, compared to
$53.1 million on March 30, 2024, and $58.2 million on July 1, 2023.
Backlog at June 29, 2024 and at March 30, 2024 did not include any
200 Lean HDD systems. Backlog at July 1, 2023 included two 200 Lean
HDD systems.
The Company ended the quarter with $70.4 million of total cash,
cash equivalents, restricted cash and investments and $111.7
million in tangible book value.
First Six Months 2024 Summary
Revenues were $24.2 million, compared to first-half 2023
revenues of $21.8 million, and consisted of HDD upgrades, spares
and service. Gross margin was 40.4%, compared to 33.4% in the first
six months of 2023. Operating expenses were $17.5 million, compared
to $17.2 million in the first six months of 2023. The net loss was
$4.9 million, or $0.18 per diluted share, compared to a net loss of
$8.8 million, or $0.34 per diluted share, for the first six months
of 2023.
Use of Non-GAAP Financial Measures
Intevac’s non-GAAP results exclude the impact, where applicable,
of 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
13747605. 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/login/intevac080524 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, our industry-leading 200 Lean® platform
supports the majority of the world’s capacity for HDD disk media
production, as well as all technology upgrade initiatives currently
underway in support of next-generation HAMR (heat-assisted magnetic
recording) media. 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 markets with our groundbreaking TRIO™
platform, which enables high-value coatings to be deployed
cost-effectively on an array of glass displays and other
substrates, including for consumer devices.
For more information call 408-986-9888, or visit the Company's
website at www.intevac.com.
200 Lean® is a registered trademark of Intevac, Inc. and TRIO™
is a trademark 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 macroeconomic conditions
and supply chain challenges including shipment delays, availability
of components, and freight, logistics and other disruptions, and
changes in market dynamics that could change the forecasts and
delivery schedules for both 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
Six months ended
June 29,
2024
July 1,
2023
June 29,
2024
July 1,
2023
Net revenues
$
14,526
$
10,301
$
24,156
$
21,843
Gross profit
5,548
2,570
9,752
7,289
Gross margin
38.2
%
24.9
%
40.4
%
33.4
%
Operating expenses
Research and development
3,511
3,647
7,880
7,620
Selling, general and administrative
5,308
4,375
9,588
9,575
Total operating expenses
8,819
8,022
17,468
17,195
Total operating loss
(3,271
)
(5,452
)
(7,716
)
(9,906
)
Interest and other income (expense),
net
759
650
2,979
1,322
Loss from continuing operations before
provision for income taxes
(2,512
)
(4,802
)
(4,737
)
(8,584
)
Provision for income taxes
751
116
1,227
502
Net loss from continuing operations
(3,263
)
(4,918
)
(5,964
)
(9,086
)
Net income from discontinued operations,
net of taxes
—
40
1,095
317
Net loss
$
(3,263
)
$
(4,878
)
$
(4,869
)
$
(8,769
)
Net income (loss) per share
Basic and diluted - continuing
operations
$
(0.12
)
$
(0.19
)
$
(0.22
)
$
(0.35
)
Basic and diluted - discontinued
operations
$
0.00
$
0.00
$
0.04
$
0.01
Basic and diluted - net loss
$
(0.12
)
$
(0.19
)
$
(0.18
)
$
(0.34
)
Weighted average common shares
outstanding
Basic and diluted
26,668
26,032
26,595
25,907
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except par value)
June 29, 2024
December 30, 2023
(Unaudited)
(see Note)
ASSETS
Current assets
Cash, cash equivalents and short-term
investments
$
64,783
$
68,846
Accounts receivable, net
17,592
18,613
Inventories
45,561
43,795
Prepaid expenses and other current
assets
2,421
2,123
Total current assets
130,357
133,377
Long-term investments
4,919
2,687
Restricted cash
700
700
Property, plant and equipment, net
7,626
7,664
Operating lease right-of-use assets
6,839
7,658
Intangible assets, net
885
954
Other long-term assets
2,643
3,466
Total assets
$
153,969
$
156,506
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current operating lease liabilities
$
1,202
$
1,008
Accounts payable
4,417
5,800
Accrued payroll and related
liabilities
3,959
3,475
Other accrued liabilities
2,487
1,820
Customer advances
21,629
20,407
Total current liabilities
33,694
32,510
Non-current liabilities
Non-current operating lease
liabilities
6,197
6,976
Customer advances
1,482
1,482
Other non-current liabilities
7
21
Total non-current liabilities
7,686
8,479
Stockholders’ equity
Common stock ($0.001 par value)
27
26
Additional paid-in capital
212,315
210,320
Treasury stock, at cost
(29,551
)
(29,551
)
Accumulated other comprehensive income
42
97
Accumulated deficit
(70,244
)
(65,375
)
Total stockholders’ equity
112,589
115,517
Total liabilities and stockholders’
equity
$
153,969
$
156,506
Note: Amounts as of December 30, 2023 are
derived from the December 30, 2023 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
June 29,
2024
July 1,
2023
June 29,
2024
July 1,
2023
Non-GAAP Loss from Operations
Reported operating loss (GAAP basis)
$
(3,271
)
$
(5,452
)
$
(7,716
)
$
(9,906
)
Non-GAAP Operating Loss
$
(3,271
)
$
(5,452
)
$
(7,716
)
$
(9,906
)
Non-GAAP Net Loss
Reported net loss (GAAP basis)
$
(3,263
)
$
(4,878
)
$
(4,869
)
$
(8,769
)
Discontinued operations1
—
(40
)
(1,095
)
(317
)
Non-GAAP Net Loss
$
(3,263
)
$
(4,918
)
$
(5,964
)
$
(9,086
)
Non-GAAP Net Loss Per Diluted
Share
Reported net loss per diluted share (GAAP
basis)
$
(0.12
)
$
(0.19
)
$
(0.18
)
$
(0.34
)
Discontinued operations1
0.00
(0.00
)
(0.04
)
(0.01
)
Non-GAAP Net Loss Per Diluted Share
$
(0.12
)
$
(0.19
)
$
(0.22
)
$
(0.35
)
Weighted average number of diluted
shares
26,668
26,032
26,595
25,907
1 The 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/20240805009679/en/
Cameron McAulay Chief Financial Officer (408) 986-9888
Claire McAdams Investor Relations (530) 265-9899
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