Intevac Announces Multi-System Capacity Order for VERTEX Systems

Tue, June 7 2016

Leading Display Cover Panel Manufacturer to Add Three Systems by Year-End 2016

Successful Execution of Growth Strategy Yields Inflection Point for the Company

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Intevac, Inc. (Nasdaq: IVAC), a leading supplier of thin-film processing systems, today announces a multi-system order for three INTEVAC VERTEX™ systems from a Tier-1 display cover panel company in China. Scheduled to ship in the fourth quarter of 2016, these systems will be used to provide production capacity for the deposition of Intevac’s oDLC enhanced scratch protection film on mobile device displays, camera lenses, and glass covers.

“Following the successful sign-off of our customer’s first VERTEX system, volume quantities of mobile phones with Intevac’s optical diamond-like carbon (oDLC) protective coating will begin shipping later this summer,” commented Jay Cho, executive vice president and general manager of Intevac’s Thin-Film Equipment business. “Based on the activity our customer is seeing with multiple end customer evaluations, we are pleased to receive this follow-on order for multiple systems that increase their manufacturing capacity and enable them to execute on large-volume production orders.”

The first of three systems is scheduled to ship in October, with two additional systems scheduled to ship in December. While the majority of the payment for these systems will be received at shipment, the first tool will require customer sign-off for revenue recognition.

“This production capacity order for multiple VERTEX systems is an exciting milestone for the company, and an inflection point for the future growth of Intevac,” added Wendell Blonigan, president and chief executive officer of Intevac. “This order supports our growth and cash flow objectives for 2016, and is the culmination of over two years of successful execution of our strategic growth initiative in protective films. Our oDLC coating solution is a new application that is witnessing increasing market interest, and holds significant revenue growth potential as we expand our Thin-Film Equipment business into the large and growing mobility marketplace.”

Intevac capitalized on its expertise in small-substrate processing and protective coatings from the hard drive media market to develop the INTEVAC VERTEX™ system, offering a high-throughput manufacturing solution with precise thin-film deposition, on small substrates. Our protective coating delivers unmatched performance as a cost-effective, optically-transparent, scratch-protective film for the display cover panel market.

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, and solar photovoltaic 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.

INTEVAC VERTEX™ 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 timing of the VERTEX shipments, revenue recognition, and cash flow. 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: the failure to meet planned shipment dates, 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.
James Moniz, 408-986-9888
Chief Financial Officer
Claire McAdams, 530-265-9899
Investor Relations

Source: Intevac, Inc.