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Intevac Announces Second Quarter 2024 Financial Results

Mon, August 5 2024

SANTA CLARA, Calif.--(BUSINESS WIRE)-- 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.

 

Cameron McAulay
Chief Financial Officer
(408) 986-9888

Claire McAdams
Investor Relations
(530) 265-9899

Source: Intevac, Inc.