Intevac Announces Fourth Quarter and Full Year 2023 Financial Results
Mon, February 5 2024
Q4 and Fiscal 2023 Highlights
- Successfully completed TRIO™ development program and achieved qualification of initial TRIO system before year-end 2023.
-
Q4 sales of
$12.9 million exceeded prior expectations due to the acceleration of heat-assisted magnetic recording (HAMR) technology upgrades for our hard disk drive (HDD) customers. Total revenues of$52.7 million for fiscal 2023 represented very strong growth of 47% year-over-year. - Achieved all-time record sales of HDD upgrades – for both the fiscal third quarter and full year 2023 – in support of the HAMR technology transition currently underway on our industry-leading 200 Lean® flagship platform.
- Successfully re-negotiated order backlog for two capacity-adding 200 Lean systems during Q4, in favor of additional HAMR process module upgrades.
-
Ended 2023 with
$72.2 million in cash, restricted cash, and investments, which was slightly below forecast due to delayed collections from our largest customer.
“We are pleased to announce a strong finish for fiscal 2023, within both of our primary served markets,” commented
“Looking forward, the most important new driver of Intevac’s future revenue growth is our groundbreaking TRIO platform, and our first system achieved qualification in the fourth quarter. This is a key milestone in the growth trajectory of
“The achievements of 2023 place
($ Millions, except per share amounts) |
Q4 2023 |
Q4 2022 |
|||||||||||||
GAAP Results |
Non-GAAP Results |
GAAP Results |
Non-GAAP Results |
||||||||||||
Net Revenues |
$ |
12.9 |
|
$ |
12.9 |
|
$ |
11.3 |
|
$ |
11.3 |
|
|||
Operating Loss |
$ |
(1.9 |
) |
$ |
(1.9 |
) |
$ |
(3.3 |
) |
$ |
(3.3 |
) |
|||
Net Loss |
$ |
(1.8 |
) |
|
$ |
(1.9 |
) |
|
$ |
(3.2 |
) |
|
$ |
(3.2 |
) |
Net Loss per Share – Basic and Diluted |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
|
Year Ended |
Year Ended |
|||||||||||||
|
|
||||||||||||||
GAAP Results |
Non-GAAP Results |
GAAP Results |
Non-GAAP Results |
||||||||||||
Net Revenues |
$ |
52.7 |
|
$ |
52.7 |
|
$ |
35.8 |
|
$ |
35.8 |
|
|||
Operating Loss |
$ |
(13.2 |
) |
$ |
(11.3 |
) |
$ |
(16.5 |
) |
$ |
(13.8 |
) |
|||
Net Loss |
$ |
(12.2 |
) |
|
$ |
(10.9 |
) |
|
$ |
(17.1 |
) |
|
$ |
(14.1 |
) |
Net Loss per Share – Basic and Diluted |
$ |
(0.47 |
) |
$ |
(0.42 |
) |
$ |
(0.68 |
) |
$ |
(0.56 |
) |
|||
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, (iii) discontinued operations and (iv) litigation settlements. 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.
Fourth Quarter Fiscal 2023 Summary
Revenues were
The net loss for the quarter was
Order backlog was
The Company ended the year with
Fiscal Year 2023 Summary
Revenues were
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, discontinued operations and litigation settlements. 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.
Conference Call Information
The Company will discuss its financial results and outlook in a conference call today at
About
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
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”).
All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except percentages and per share amounts) |
|||||||||||||
|
Three months ended |
Year ended |
|||||||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||||||
Net revenues |
$ |
12,906 |
|
$ |
11,259 |
|
|
$ |
52,665 |
|
$ |
35,761 |
|
|
|
|
|
|
|
||||||||
Gross profit |
|
5,938 |
|
|
4,986 |
|
|
|
20,226 |
|
|
15,086 |
|
|
|
|
|
|
|
||||||||
Gross margin |
|
46.0 |
% |
|
44.3 |
% |
|
38.4 |
% |
|
42.2 |
% |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
||||||||
Research and development |
|
3,785 |
|
|
3,383 |
|
|
|
15,125 |
|
|
13,722 |
|
Selling, general and administrative |
|
4,063 |
|
|
4,869 |
|
|
|
18,345 |
|
|
17,876 |
|
Total operating expenses |
|
7,848 |
|
|
8,252 |
|
|
|
33,470 |
|
|
31,598 |
|
|
|
|
|
|
|
||||||||
Operating loss |
|
(1,910 |
) |
|
(3,266 |
) |
|
|
(13,244 |
) |
|
(16,512 |
) |
|
|
|
|
|
|
||||||||
Interest income and other income (expense), net |
|
534 |
|
|
362 |
|
|
|
2,456 |
|
|
1,085 |
|
Loss from continuing operations before provision for income taxes |
|
(1,376 |
) |
|
(2,904 |
) |
|
|
(10,788 |
) |
|
(15,427 |
) |
Provision for income taxes |
|
524 |
|
|
335 |
|
|
|
1,822 |
|
|
1,327 |
|
Net loss from continuing operations |
|
(1,900 |
) |
|
(3,239 |
) |
|
|
(12,610 |
) |
|
(16,754 |
) |
Income (loss) from discontinued operations, net of tax |
|
55 |
|
|
73 |
|
|
|
420 |
|
|
(321 |
) |
Net loss |
$ |
(1,845 |
) |
$ |
(3,166 |
) |
|
$ |
(12,190 |
) |
$ |
(17,075 |
) |
|
|
|
|
|
|
||||||||
Net income (loss) per share (basic and diluted) |
|
|
|
|
|||||||||
Continuing operations |
$ |
(0.07 |
) |
$ |
(0.13 |
) |
|
$ |
(0.48 |
) |
$ |
(0.67 |
) |
Discontinued operations |
$ |
0.00 |
|
$ |
0.00 |
|
|
$ |
0.02 |
|
$ |
(0.01 |
) |
Net loss |
$ |
(0.07 |
) |
$ |
(0.12 |
) |
|
$ |
(0.47 |
) |
$ |
(0.68 |
) |
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
||||||||
Basic and Diluted |
|
26,385 |
|
|
25,457 |
|
|
|
26,121 |
|
|
25,192 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) |
||||||||
|
|
2023 |
|
2022 |
||||
|
|
(Unaudited) |
|
(see Note) |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash, cash equivalents and short-term investments |
|
$ |
68,846 |
|
|
$ |
94,445 |
|
Accounts receivable, net |
|
|
18,613 |
|
|
|
15,823 |
|
Inventories |
|
|
43,795 |
|
|
|
30,003 |
|
Prepaid expenses and other current assets |
|
|
2,123 |
|
|
|
1,898 |
|
Total current assets |
|
|
133,377 |
|
|
|
142,169 |
|
Long-term investments |
|
|
2,687 |
|
|
|
17,585 |
|
Restricted cash |
|
|
700 |
|
|
|
786 |
|
Property, plant and equipment, net |
|
|
7,664 |
|
|
|
3,658 |
|
Operating lease right-of-use-assets |
|
|
7,658 |
|
|
|
3,390 |
|
Intangible assets, net |
|
|
954 |
|
|
|
1,090 |
|
Deferred income tax and other long-term assets |
|
|
3,466 |
|
|
|
4,381 |
|
Total assets |
|
$ |
156,506 |
|
|
$ |
173,059 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Current operating lease liabilities |
|
$ |
1,008 |
|
|
$ |
3,404 |
|
Accounts payable |
|
|
5,800 |
|
|
|
11,610 |
|
Accrued payroll and related liabilities |
|
|
3,475 |
|
|
|
3,087 |
|
Other accrued liabilities |
|
|
1,820 |
|
|
|
5,430 |
|
Contract advances |
|
|
20,407 |
|
|
|
2,444 |
|
Total current liabilities |
|
|
32,510 |
|
|
|
25,975 |
|
Non-current liabilities |
|
|
|
|
|
|
||
Non-current operating lease liabilities |
|
|
6,976 |
|
|
|
1,417 |
|
Contract advances |
|
|
1,482 |
|
|
|
22,215 |
|
Other non-current liabilities |
|
|
21 |
|
|
|
— |
|
Total non-current liabilities |
|
|
8,479 |
|
|
|
23,632 |
|
Stockholders’ equity |
|
|
|
|
|
|
||
Common stock ( |
|
|
26 |
|
|
|
26 |
|
Additional paid-in capital |
|
|
210,320 |
|
|
|
206,355 |
|
|
|
|
(29,551 |
) |
|
|
(29,551 |
) |
Accumulated other comprehensive income (loss) |
|
|
97 |
|
|
|
(193 |
) |
Accumulated deficit |
|
|
(65,375 |
) |
|
|
(53,185 |
) |
Total stockholders’ equity |
|
|
115,517 |
|
|
|
123,452 |
|
Total liabilities and stockholders’ equity |
|
$ |
156,506 |
|
|
$ |
173,059 |
|
Note: Amounts as of
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited, in thousands, except per share amounts) |
|||||||||||||
|
Three months ended |
Year ended |
|||||||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||||||
Non-GAAP Loss from Operations |
|
|
|
|
|
||||||||
Reported operating loss (GAAP basis) |
$ |
(1,910 |
) |
$ |
(3,266 |
) |
|
$ |
(13,244 |
) |
$ |
(16,512 |
) |
Restructuring charges1 |
|
— |
|
|
— |
|
|
|
1,950 |
|
|
1,232 |
|
Loss on fixed asset disposals2 |
|
— |
|
|
— |
|
|
|
— |
|
|
1,453 |
|
Litigation settlement3 |
|
— |
|
|
12 |
|
|
|
— |
|
|
12 |
|
Non-GAAP Operating Loss |
$ |
(1,910 |
) |
$ |
(3,254 |
) |
|
$ |
(11,294 |
) |
$ |
(13,815 |
) |
|
|
|
|
|
|
||||||||
Non-GAAP Net Loss |
|
|
|
|
|
||||||||
Reported net loss (GAAP basis) |
$ |
(1,845 |
) |
$ |
(3,166 |
) |
|
$ |
(12,190 |
) |
$ |
(17,075 |
) |
Continuing operations: |
|
|
|
|
|
||||||||
Restructuring charges1 |
|
— |
|
|
— |
|
|
|
1,950 |
|
|
1,232 |
|
Loss on fixed asset disposals2 |
|
— |
|
|
— |
|
|
|
— |
|
|
1,453 |
|
Litigation settlement3 |
|
— |
|
|
12 |
|
|
|
— |
|
|
12 |
|
Income tax effect of non-GAAP adjustments4 |
|
— |
|
|
— |
|
|
|
(275 |
) |
|
— |
|
Discontinued operations5 |
|
(55 |
) |
|
(73 |
) |
|
|
(420 |
) |
|
321 |
|
Non-GAAP Net Loss |
$ |
(1,900 |
) |
$ |
(3,227 |
) |
|
$ |
(10,935 |
) |
$ |
(14,057 |
) |
|
|
|
|
|
|
||||||||
Non-GAAP Net Loss Per Diluted Share |
|
|
|
|
|
||||||||
Reported net loss per diluted share (GAAP basis) |
$ |
(0.07 |
) |
$ |
(0.12 |
) |
|
$ |
(0.47 |
) |
$ |
(0.68 |
) |
Continuing operations: |
|
|
|
|
|
||||||||
Restructuring charges1 |
$ |
— |
|
$ |
— |
|
|
$ |
0.06 |
|
$ |
0.05 |
|
Loss on fixed asset disposals2 |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
0.06 |
|
Litigation settlement3 |
$ |
— |
|
$ |
0.00 |
|
|
$ |
— |
|
$ |
0.00 |
|
|
|
|
|
|
|
||||||||
Discontinued operations:5 |
$ |
(0.00 |
) |
$ |
(0.00 |
) |
|
$ |
(0.02 |
) |
$ |
0.01 |
|
Non-GAAP Net Loss Per Diluted Share |
$ |
(0.07 |
) |
$ |
(0.13 |
) |
|
$ |
(0.42 |
) |
$ |
(0.56 |
) |
Weighted average number of diluted shares |
|
26,385 |
|
|
25,457 |
|
|
|
26,121 |
|
|
25,192 |
|
1Results for the years ended
2The amount represents fixed asset disposals under the 2022 restructuring plan.
3The amount represents incremental charges associated with the settlement of the Private Attorneys General Act (“PAGA”) lawsuit. The Company participated in a confidential mediation on
4The 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.
5The amount represents discontinued operations of the Photonics business that was sold on
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205594236/en/
Chief Financial Officer
(408) 986-9888
Investor Relations
(530) 265-9899
Source: