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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
April 28, 2008
Date of Report (date of earliest event reported)
INTEVAC, INC.
(Exact name of Registrant as specified in its charter)
         
State of Delaware
(State or other jurisdiction
of incorporation or organization) 		  0-26946
(Commission File Number) 		  94-3125814
(IRS Employer
Identification Number)
3560 Bassett Street
Santa Clara, CA 95054
(Address of principal executive offices)
(408) 986-9888
(Registrant’s telephone number, including area code)
N/A
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
EXHIBIT 99.1

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Item 2.02. Results of Operations and Financial Condition
     On April 28, 2008, Intevac, Inc. issued a press release reporting its financial results for the three months ended March 29, 2008. A copy of the press release issued by the Company concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
     The foregoing information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
     (c) Exhibits
          99.1 Press Release.

 

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     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  INTEVAC, INC.
  		 
Date: April 28, 2008  By:   /s/ JEFFREY ANDRESON    
    Jeffrey Andreson   
    Vice President, Finance and Administration,
Chief Financial Officer, Treasurer and Secretary  		 
 

 

 

EXHIBIT 99.1
     
(INTEVAC LOGO)   3560 Bassett Street, Santa Clara CA 95054
     
Jeff Andreson
  Claire McAdams
Chief Financial Officer
  Headgate Partners LLC
(408) 986-9888
  (530) 274-0551
INTEVAC ANNOUNCES FIRST QUARTER 2008 FINANCIAL RESULTS
Profitable Quarter Exceeding Expectations
Santa Clara, Calif.—April 28, 2008—Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the quarter ended March 29, 2008.
Net income for the quarter was $1.6 million, or $0.07 per diluted share, on 22.1 million weighted-average shares outstanding. Net income included $1.6 million of pre-tax stock-based compensation expense, equivalent to $0.04 per diluted share. First quarter earnings included a $1.3 million net tax benefit, equivalent to $0.06 per diluted share. For the first quarter of 2007, net income was $9.8 million, or $0.44 per diluted share, on 22.2 million weighted average shares outstanding, which included $1.4 million of pre-tax stock-based compensation expense, equivalent to $0.04 per diluted share.
Revenues for the quarter were $33.2 million, including $27.0 million of Equipment revenues and record Imaging revenues of $6.2 million. Equipment revenues consisted of two 200 Lean ® systems as well as disk lubrication systems, equipment upgrades, spares, consumables and service. Imaging revenues consisted of $4.1 million of research and development contracts and a record $2.1 million of product sales. In the first quarter of 2007, revenues were $76.4 million, including $72.5 million of Equipment revenues and $3.9 million of Imaging revenues, which included $1.1 million of product sales.
Equipment gross margins grew to 47.1%, from 43.3% in the first quarter of 2007, primarily due to the high proportion of technology upgrades and spares relative to system sales. Imaging gross margins increased to 42.0%, from 36.6% in the first quarter of 2007, primarily as a result of securing higher-margin development contracts and an increased percentage of revenue derived from higher-margin product shipments. Consolidated gross margins improved to 46.2%, from 42.9% in the first quarter of 2007.
Operating expenses for the quarter totaled $16.5 million, or 50% of revenues, versus $19.7 million, or 26% of revenues, in the first quarter of 2007. Total operating expenses decreased versus the first quarter of 2007 as a result of lower R&D expenditures and legal costs as well as overall cost-reduction initiatives.
Order backlog totaled $43.5 million on March 29, 2008, compared to $34.2 million on December 31, 2007 and $92.8 million on March 31, 2007. Backlog at quarter end includes seven 200 Lean ® systems, compared to two on December 31, 2007 and fourteen on March 31, 2007.
“In this challenging business environment, we delivered strong results for the first quarter. We increased our backlog for 200 Leans ® from two to seven systems and announced orders for our first 200 Lean ® Gen II systems,” commented Kevin Fairbairn, president and chief executive officer of Intevac. “Imaging continues to grow and achieve record revenues for the business. We continue to work to fully integrate Creative Display Systems and expect this acquisition to be accretive to our Imaging Instrumentation business within a year.”

 

 

Conference Call Information
The Company will discuss its financial results and outlook in a conference call today at 1:30 p.m. PT (4:30 p.m. ET). To participate in the teleconference, please call toll-free (800) 291-8929 prior to the start time. For international callers, the dial-in number is (706) 634-0478. You may also listen live via the Internet at the Company’s website, www.Intevac.com, under the Investors link, or at www.earnings.com. For those unable to attend, these web sites will host an archive of the call. Additionally, a telephone replay of the call will be available for 48 hours beginning today at 7:30 p.m. ET. You may access the playback by calling (800) 642-1687, or for international callers (706) 645-9291, and providing conference ID 41854048.
About Intevac
Intevac was founded in 1991 and has two businesses: Equipment Products and Imaging Instrumentation.
Equipment Products: Intevac is a leader in the design, manufacture and marketing of high-productivity “lean” manufacturing systems and has been producing “Lean Thinking” platforms since 1994. We are the leading supplier of magnetic media sputtering equipment to the hard disk drive industry and offer leading-edge, high-productivity etch systems to the semiconductor industry.
Imaging Instrumentation: Intevac is a leader in the development of compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images and the optical analysis of materials. We provide sensors, cameras and systems for commercial applications in the inspection, medical, scientific and security industries, and for government applications such as night vision and long-range target identification.
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.
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; expected revenue growth of its products, success of the CDS acquisition and management of the Company’s operating expenses. 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: failure to increase Imaging Instrumentation revenues, manage operating expenses or introduce new products, 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 regular filings with the U.S. Securities and Exchange Commission.
[Financial tables on following pages]

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
                 
    3 months ended
    Mar. 29,     March 31,  
    2008     2007  
     
 
  (Unaudited)   (Unaudited)
Net revenues
               
Equipment
  $ 26,973     $ 72,446  
Imaging
    6,202       3,928  
     
Total net revenues
    33,175       76,374  
 
               
Gross profit
    15,311       32,782  
Gross margin
               
Equipment
    47.1 %     43.3 %
Imaging
    42.0 %     36.6 %
     
Consolidated
    46.2 %     42.9 %
Operating expenses
               
Research and development
    9,388       12,192  
Selling, general and administrative
    7,064       7,513  
     
Total operating expenses
    16,452       19,705  
Operating income (loss)
               
Equipment
    496       14,989  
Imaging
    (821 )     (1,600 )
Corporate
    (816 )     (312 )
     
Total operating income (loss)
    (1,141 )     13,077  
 
               
Other income
    1,411       1,320  
     
Income before income taxes
    270       14,397  
Provision for (benefit from) income taxes
    (1,293 )     4,552  
     
Net income
  $ 1,563     $ 9,845  
 
           
 
               
Income per share
               
Basic
  $ 0.07     $ 0.46  
Diluted
  $ 0.07     $ 0.44  
Weighted average common shares outstanding
               
Basic
    21,647       21,293  
Diluted
    22,053       22,188  
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    Mar. 29,     Dec. 31,  
    2008     2007  
     
 
  (Unaudited)   (see Note)
ASSETS
               
Current assets
               
Cash, cash equivalents and short term investments
  $ 46,163     $ 138,658  
Accounts receivable, net
    22,831       14,142  
Inventories
    22,203       22,133  
Deferred tax assets
    4,450       3,609  
Prepaid expenses and other current assets
    3,266       4,162  
     
Total current assets
    98,913       182,704  
 
               
Long term investments
    78,788       2,009  
Property, plant and equipment, net
    15,604       15,402  
Deferred tax assets
    4,614       3,740  
Goodwill
    7,905       7,905  
Other long-term assets
    3,417       3,653  
     
Total assets
  $ 209,241     $ 215,413  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities
               
Notes payable
  $ 1,929     $ 1,992  
Accounts payable
    6,825       7,678  
Accrued payroll and related liabilities
    3,478       8,610  
Other accrued liabilities
    5,185       5,454  
Customer advances
    3,910       4,340  
     
Total current liabilities
    21,327       28,074  
 
               
Other long-term liabilities
    190       2,176  
Shareholders’ equity
               
Common stock ($0.001 par value)
    22       22  
Paid in capital
    122,389       120,056  
Accumulated other comprehensive income (loss)
    (764 )     571  
Retained earnings
    66,077       64,514  
     
Total shareholders’ equity
    187,724       185,163  
     
Total liabilities and shareholders’ equity
  $ 209,241     $ 215,413  
 
           
Note: Amounts as of December 31, 2007 are derived from the December 31, 2007 audited consolidated financial statements.
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SUPPLEMENTAL INFORMATION REGARDING IMPACT OF THE ADOPTION OF SFAS 123(R)
The effect of recording stock-based compensation for the three-month periods ended March 29, 2008 and March 31, 2007 were as follows (in thousands, except per share amounts):
                 
    Three Months Ended  
    Mar. 29,     Mar. 31  
    2008     2007  
    (Unaudited)     (Unaudited)  
Stock-based compensation by type of award:
               
Stock options
  $ 1,325     $ 1,145  
Employee Stock Purchase Plan
    202       213  
Amounts (capitalized to) charged from inventory
    69       (4 )
 
           
Total stock-based compensation
    1,596       1,354  
Tax effect on stock-based compensation
    626       428  
 
           
Net effect on net income
  $ 970     $ 926  
 
           
 
               
Effect on earnings per share:
               
Basic
  $ 0.04     $ 0.04  
Diluted
  $ 0.04     $ 0.04  
Approximately $69,000 of stock-based compensation was charged to cost of sales during the three-months ending March 29, 2008 and $4,000 of stock-based compensation was capitalized to inventory during the three-months ending March 31, 2007.