☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
94-3125814
|
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer
Identification No.)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Common Stock ($0.001 par value)
|
IVAC
|
The Nasdaq Stock Market LLC (Nasdaq) Global Select
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☒
|
|||
Non-accelerated
filer
|
☐
|
Smaller reporting company
|
☒
|
|||
Emerging growth company
|
☐
|
No.
|
Page
|
|||||
Item 1.
|
||||||
Condensed Consolidated Balance Sheets | 3 | |||||
Condensed Consolidated Statements of Operations | 4 | |||||
Condensed Consolidated Statements of Comprehensive Loss | 5 | |||||
Condensed Consolidated Statements of Cash Flows | 6 | |||||
Notes to Condensed Consolidated Financial Statements | 7 | |||||
Item 2.
|
21 | |||||
Item 3.
|
28 | |||||
Item 4.
|
28 | |||||
Item 1.
|
29 | |||||
Item 1A.
|
29 | |||||
Item 2.
|
35 | |||||
Item 3.
|
35 | |||||
Item 4.
|
35 | |||||
Item 5.
|
35 | |||||
Item 6.
|
36 | |||||
37 |
Item 1.
|
Financial Statements
|
April 3,
2021
|
January 2,
2021
|
|||||||
(Unaudited)
|
||||||||
(In thousands, except par value)
|
||||||||
ASSETS
|
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 32,816 | $ | 29,341 | ||||
Short-term investments
|
16,077 | 14,839 | ||||||
Trade and other accounts receivable, net of allowances of $0 at both April 3, 2021 and January 2, 2021
|
18,229 | 28,646 | ||||||
Inventories
|
20,501 | 21,689 | ||||||
Prepaid expenses and other current assets
|
1,789 | 1,893 | ||||||
|
|
|
|
|||||
Total current assets
|
89,412 | 96,408 | ||||||
Long-term investments
|
3,919 | 5,388 | ||||||
Restricted cash
|
787 | 787 | ||||||
Property, plant and equipment, net
|
10,456 | 11,004 | ||||||
Operating lease
right-of-use-assets
|
7,582 | 8,165 | ||||||
Deferred income taxes and other long-term assets
|
5,485 | 5,486 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 117,641 | $ | 127,238 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|||||||
Current liabilities:
|
||||||||
Current operating lease liabilities
|
$ | 2,913 | $ | 2,853 | ||||
Accounts payable
|
2,765 | 4,259 | ||||||
Accrued payroll and related liabilities
|
5,150 | 7,679 | ||||||
Other accrued liabilities
|
3,136 | 3,598 | ||||||
Customer advances
|
42 | 33 | ||||||
|
|
|
|
|||||
Total current liabilities
|
14,006 | 18,422 | ||||||
Noncurrent liabilities:
|
||||||||
Noncurrent operating lease liabilities
|
6,045 | 6,803 | ||||||
Other long-term liabilities
|
435 | 457 | ||||||
|
|
|
|
|||||
Total noncurrent liabilities
|
6,480 | 7,260 | ||||||
Stockholders’ equity:
|
||||||||
Common stock, $0.001 par value
|
24 | 24 | ||||||
Additional
paid-in
capital
|
195,364 | 193,173 | ||||||
Treasury stock, 5,087 shares at both April 3, 2021 and at January 2, 2021
|
(29,551 | ) | (29,551 | ) | ||||
Accumulated other comprehensive income
|
552 | 640 | ||||||
Accumulated deficit
|
(69,234 | ) | (62,730 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity
|
97,155 | 101,556 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity
|
$ | 117,641 | $ | 127,238 | ||||
|
|
|
|
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(Unaudited)
|
||||||||
(In thousands, except per
share amounts) |
||||||||
Net revenues:
|
||||||||
Systems and components
|
$ | 13,060 | $ | 13,836 | ||||
Technology development
|
3,181 | 5,004 | ||||||
|
|
|
|
|||||
Total net revenues
|
16,241 | 18,840 | ||||||
Cost of net revenues:
|
||||||||
Systems and components
|
9,964 | 7,767 | ||||||
Technology development
|
3,223 | 2,917 | ||||||
|
|
|
|
|||||
Total cost of net revenues
|
13,187 | 10,684 | ||||||
|
|
|
|
|||||
Gross profit
|
3,054 | 8,156 | ||||||
Operating expenses:
|
||||||||
Research and development
|
3,625 | 3,284 | ||||||
Selling, general and administrative
|
5,930 | 5,972 | ||||||
|
|
|
|
|||||
Total operating expenses
|
9,555 | 9,256 | ||||||
|
|
|
|
|||||
Loss from operations
|
(6,501 | ) | (1,100 | ) | ||||
Interest income and other income (expense), net
|
29 | 142 | ||||||
|
|
|
|
|||||
Loss before provision for income taxes
|
(6,472 | ) | (958 | ) | ||||
Provision for income taxes
|
32 | 266 | ||||||
|
|
|
|
|||||
Net loss
|
$ | (6,504 | ) | $ | (1,224 | ) | ||
|
|
|
|
|||||
Net loss per share:
|
||||||||
Basic and Diluted
|
$ | (0.27 | ) | $ | (0.05 | ) | ||
Weighted average common shares outstanding:
|
||||||||
Basic and Diluted
|
24,033 | 23,483 |
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
Net loss
|
$ | (6,504 | ) | $ | (1,224 | ) | ||
|
|
|
|
|||||
Other comprehensive loss, before tax:
|
||||||||
Change in unrealized net gain (loss) on
available-for-sale
|
(20 | ) | 2 | |||||
Foreign currency translation losses
|
(68 | ) | (95 | ) | ||||
|
|
|
|
|||||
Other comprehensive loss, before tax
|
(88 | ) | (93 | ) | ||||
|
|
|
|
|||||
Income tax provision related to items in other comprehensive loss
|
— | — | ||||||
|
|
|
|
|||||
Other comprehensive loss, net of tax
|
(88 | ) | (93 | ) | ||||
|
|
|
|
|||||
Comprehensive loss
|
$ | (6,592 | ) | $ | (1,317 | ) | ||
|
|
|
|
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
Operating activities
|
||||||||
Net loss
|
$ | (6,504 | ) | $ | (1,224 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
791 | 858 | ||||||
Net amortization (accretion) of investment premiums and discounts
|
33 | (19 | ) | |||||
Equity-based compensation
|
968 | 672 | ||||||
Straight-line rent adjustment and amortization of lease incentives
|
(115 | ) | (74 | ) | ||||
Deferred income taxes
|
(40 | ) | 114 | |||||
Changes in operating assets and liabilities
|
7,399 | 786 | ||||||
|
|
|
|
|||||
Total adjustments
|
9,036 | 2,337 | ||||||
|
|
|
|
|||||
Net cash provided by operating activities
|
2,532 | 1,113 | ||||||
Investing activities
|
||||||||
Purchases of investments
|
(5,962 | ) | (4,242 | ) | ||||
Proceeds from sales and maturities of investments
|
6,140 | 5,530 | ||||||
Purchases of leasehold improvements and equipment
|
(243 | ) | (1,145 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities
|
(65 | ) | 143 | |||||
Financing activities
|
||||||||
Proceeds from issuance of common stock
|
1,096 | 950 | ||||||
Common stock repurchases
|
— | (393 | ) | |||||
Taxes paid related to net share settlement
|
(20 | ) | (36 | ) | ||||
|
|
|
|
|||||
Net cash provided by financing activities
|
1,076 | 521 | ||||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(68 | ) | (94 | ) | ||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash
|
3,475 | 1,683 | ||||||
Cash, cash equivalents and restricted cash at beginning of period
|
30,128 | 20,554 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$ | 33,603 | $ | 22,237 | ||||
|
|
|
|
1.
|
Description of Business and Basis of Presentation
|
2.
|
Revenue
|
TFE
|
Three Months Ended April 3, 2021
|
Three Months Ended March 28, 2020
|
||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
HDD
|
DCP
|
PV
|
ASP
|
Total
|
HDD
|
PV
|
Total
|
|||||||||||||||||||||||||
Systems, upgrades and spare parts
|
$ | 3,585 | $ | — | $ | 111 | $ | 3,850 | $ | 7,546 | $ | 6,361 | $ | 208 | $ | 6,569 | ||||||||||||||||
Field service
|
1,636 | 14 | 42 | — | 1,692 | 1,393 | — | 1,393 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total TFE net revenues
|
$ | 5,221 | $ | 14 | $ | 153 | $ | 3,850 | $ | 9,238 | $ | 7,754 | $ | 208 | $ | 7,962 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||
Photonics
|
April 3,
2021
|
March 28,
2020
|
||||||
(In thousands)
|
||||||||
Products:
|
||||||||
Military products
|
$ | 3,252 | $ | 5,365 | ||||
Commercial products
|
128 | 79 | ||||||
Repair and other services
|
442 | 430 | ||||||
|
|
|
|
|||||
Total Photonics product net revenues
|
3,822 | 5,874 |
Three Months Ended
|
||||||||
Photonics
|
April 3,
2021
|
March 28,
2020
|
||||||
(In thousands)
|
||||||||
Technology development:
|
||||||||
Firm Fixed Price (“FFP”)
|
1,804 | 4,430 | ||||||
Cost Plus Fixed Fee (“CPFF”)
|
1,377 | 574 | ||||||
Time and materials
|
— | — | ||||||
|
|
|
|
|||||
Total technology development net revenues
|
3,181 | 5,004 | ||||||
|
|
|
|
|||||
Total Photonics net revenues
|
$ | 7,003 | $ | 10,878 | ||||
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||
April 3, 2021
|
March 28, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | ||||||||||||
Asia
|
5,021 | — | 5,021 | 7,443 | — | 7,443 | ||||||||||||||||||
Europe
|
3,850 | 43 | 3,893 | — | 22 | 22 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||
April 3, 2021
|
March 28, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
Products transferred at a point in time
|
$ | 9,238 | $ | 442 | $ | 9,680 | $ | 7,962 | $ | 430 | $ | 8,392 | ||||||||||||
Products and services transferred over time
|
— | 6,561 | 6,561 | — | 10,448 | 10,448 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
April 3,
2021
|
January 2,
2021
|
Three Months
Change
|
||||||||||
(In thousands)
|
||||||||||||
TFE:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | — | $ | 369 | $ | (369 | ) | |||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 276 | $ | 482 | $ | (206 | ) | |||||
Customer advances
|
42 | 33 | 9 | |||||||||
|
|
|
|
|
|
|||||||
$ | 318 | $ | 515 | $ | (197 | ) | ||||||
|
|
|
|
|
|
|||||||
Photonics:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | 4,689 | $ | 5,439 | $ | (750 | ) | |||||
Retainage
|
130 | 126 | 4 | |||||||||
|
|
|
|
|
|
|||||||
$ | 4,819 | $ | 5,565 | $ | (746 | ) | ||||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 1,126 | $ | 779 | $ | 347 | ||||||
|
|
|
|
|
|
3.
|
Inventories
|
April 3,
2021 |
January 2,
2021 |
|||||||
(In thousands)
|
||||||||
Raw materials
|
$ | 10,422 | $ | 9,999 | ||||
Work-in-progress
|
5,885 | 4,832 | ||||||
Finished goods
|
4,194 | 6,858 | ||||||
|
|
|
|
|||||
$ | 20,501 | $ | 21,689 | |||||
|
|
|
|
4.
|
Equity-Based Compensation
|
Three Months Ended
|
||||||||
April 3, 2021
|
March 28, 2020
|
|||||||
(In thousands)
|
||||||||
Equity-based compensation by type of award:
|
||||||||
Stock options
|
$ | 75 | $ | 215 | ||||
RSUs
|
543 | 366 | ||||||
Employee stock purchase plan
|
350 | 91 | ||||||
|
|
|
|
|||||
Total equity-based compensation
|
$ | 968 | $ | 672 | ||||
|
|
|
|
Shares
|
Weighted-Average
Exercise Price
|
|||||||
Options outstanding at January 2, 2021
|
1,814,467 | $ | 6.66 | |||||
Options granted
|
— | $ | — | |||||
Options cancelled and forfeited
|
(50,250 | ) | $ | 8.32 | ||||
Options exercised
|
(28,399 | ) | $ | 6.78 | ||||
|
|
|||||||
Options outstanding at April 3, 2021
|
1,735,818 | $ | 6.60 | |||||
|
|
|||||||
Options exercisable at April 3, 2021
|
1,317,348 | $ | 6.71 |
|
|
Three Months Ended
|
||||||
|
|
April 3, 2021
|
|
|
March 28, 2020
|
|
||
Stock Options:
|
|
|
||||||
Weighted-average fair value of grants per share
|
|
|
—
|
|
|
$
|
1.82
|
|
Expected volatility
|
|
|
—
|
|
|
|
46.06
|
%
|
Risk-free interest rate
|
|
|
—
|
|
|
|
0.44
|
%
|
Expected term of options (in years)
|
|
|
—
|
|
|
|
4.39
|
|
Dividend yield
|
|
|
—
|
|
|
|
None
|
|
ESPP Purchase Rights:
|
|
|
||||||
Weighted-average fair value of grants per share
|
|
$
|
2.69
|
|
|
$
|
1.66
|
|
Expected volatility
|
|
|
58.56
|
%
|
|
|
36.69
|
%
|
Risk-free interest rate
|
|
|
0.08
|
%
|
|
|
1.56
|
%
|
Expected term of purchase rights (in years)
|
|
|
1.0
|
|
|
|
0.5
|
|
Dividend yield
|
|
|
None
|
|
|
|
None
|
|
|
|
Shares
|
|
|
Weighted-Average
Grant Date
Fair Value
|
|
||
Non-vested
|
|
|
901,634
|
|
|
$
|
5.30
|
|
Granted
|
|
|
9,603
|
|
|
$
|
6.45
|
|
Vested
|
|
|
(9,320
|
)
|
|
$
|
6.72
|
|
Cancelled and forfeited
|
|
|
(11,051
|
)
|
|
$
|
5.36
|
|
|
|
|
|
|
||||
Non-vested
|
|
|
890,866
|
|
|
$
|
5.29
|
|
|
|
|
|
|
5.
|
Warranty
|
Three Months
Ended |
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(In thousands)
|
||||||||
Opening balance
|
$ | 480 | $ | 1,022 | ||||
Expenditures incurred under warranties
|
(199 | ) | (120 | ) | ||||
Accruals for product warranties issued during the reporting period
|
275 | 25 | ||||||
Adjustments to previously existing warranty accruals
|
34 | (202 | ) | |||||
|
|
|
|
|||||
Closing balance
|
$ | 590 | $ | 725 | ||||
|
|
|
|
April 3
|
January 2,
|
|||||||
2021
|
2021
|
|||||||
(In thousands)
|
||||||||
Other accrued liabilities
|
$ | 537 | $ | 405 | ||||
Other long-term liabilities
|
53 | 75 | ||||||
|
|
|
|
|||||
Total warranty provision
|
$ | 590 | $ | 480 | ||||
|
|
|
|
6.
|
Guarantees
|
7.
|
Cash, Cash Equivalents and Investments
|
April 3, 2021
|
||||||||||||||||
Amortized Cost
|
Unrealized
Holding Gains
|
Unrealized
Holding Losses |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 27,929 | $ | — | $ | — | $ | 27,929 | ||||||||
Money market funds
|
4,387 | — | — | 4,387 | ||||||||||||
Certificates of deposit
|
500 | — | — | 500 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$ | 32,816 | $ | — | $ | — | $ | 32,816 | ||||||||
Short-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 6,750 | $ | 1 | $ | — | $ | 6,751 | ||||||||
Corporate bonds and medium-term notes
|
4,714 | 3 | — | 4,717 | ||||||||||||
Municipal bonds
|
595 | — | — | 595 | ||||||||||||
U.S. treasury and agency securities
|
3,998 | 16 | — | 4,014 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments
|
$ | 16,057 | $ | 20 | $ | — | $ | 16,077 | ||||||||
Long-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 500 | $ | — | $ | 2 | $ | 498 | ||||||||
Corporate bonds and medium-term notes
|
2,012 | — | 1 | 2,011 | ||||||||||||
U.S. treasury and agency securities
|
1,409 | 1 | — | 1,410 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total long-term investments
|
$ | 3,921 | $ | 1 | $ | 3 | $ | 3,919 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and investments
|
$ | 52,794 | $ | 21 | $ | 3 | $ | 52,812 | ||||||||
|
|
|
|
|
|
|
|
January 2, 2021
|
||||||||||||||||
Amortized Cost
|
Unrealized
Holding Gains
|
Unrealized
Holding Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 24,729 | $ | — | $ | — | $ | 24,729 | ||||||||
Money market funds
|
3,612 | — | — | 3,612 | ||||||||||||
Certificates of deposit
|
1,000 | — | — | 1,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$ | 29,341 | $ | — | $ | — | $ | 29,341 | ||||||||
Short-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 6,450 | $ | 2 | $ | — | $ | 6,452 | ||||||||
Commercial paper
|
500 | — | — | 500 | ||||||||||||
Corporate bonds and medium-term notes
|
2,929 | 6 | — | 2,935 | ||||||||||||
Municipal bonds
|
400 | — | — | 400 | ||||||||||||
U.S. treasury and agency securities
|
4,527 | 25 | — | 4,552 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments
|
$ | 14,806 | $ | 33 | $ | — | $ | 14,839 | ||||||||
Long-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 500 | $ | — | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes
|
3,474 | 4 | — | 3,478 | ||||||||||||
U.S. treasury and agency securities
|
1,409 | 1 | — | 1,410 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total long-term investments
|
$ | 5,383 | $ | 5 | $ | — | $ | 5,388 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and investments
|
$ | 49,530 | $ | 38 | $ | — | $ | 49,568 | ||||||||
|
|
|
|
|
|
|
|
Amortized Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Due in one year or less
|
$ | 20,944 | $ | 20,964 | ||||
Due after one through five years
|
3,921 | 3,919 | ||||||
|
|
|
|
|||||
$ | 24,865 | $ | 24,883 | |||||
|
|
|
|
April 3, 2021
|
||||||||||||||||
In Loss Position for
Less than 12 Months
|
In Loss Position for
Greater than 12 Months
|
|||||||||||||||
Fair Value
|
Gross
Unrealized
Losses
|
Fair Value
|
Gross
Unrealized
Losses
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Certificates of deposit
|
$ | 1,498 | $ | 2 | $ | — | $ | — | ||||||||
Corporate bonds and medium-term notes
|
2,686 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,184 | $ | 3 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
Fair Value Measurements
at April 3, 2021
|
||||||||||||
Total
|
Level 1
|
Level 2
|
||||||||||
(In thousands)
|
||||||||||||
Recurring fair value measurements:
|
||||||||||||
Available-for-sale
|
||||||||||||
Money market funds
|
$ | 4,387 | $ | 4,387 | $ | — | ||||||
U.S. treasury and agency securities
|
5,424 | 5,424 | — | |||||||||
Certificates of deposit
|
7,749 | — | 7,749 | |||||||||
Corporate bonds and medium-term notes
|
6,728 | — | 6,728 | |||||||||
Municipal bonds
|
595 | — | 595 | |||||||||
|
|
|
|
|
|
|||||||
Total recurring fair value measurements
|
$ | 24,883 | $ | 9,811 | $ | 15,072 | ||||||
|
|
|
|
|
|
8.
|
Derivative Instruments
|
Notional Amounts
|
Derivative Liabilities
|
|||||||||||||||||||||||
Derivative Instrument
|
April 3,
2021
|
January 2,
2021
|
April 3,
2021
|
January 2,
2021
|
||||||||||||||||||||
Balance
Sheet
Line
|
Fair
Value
|
Balance
Sheet
Line
|
Fair
Value
|
|||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Undesignated Hedges:
|
||||||||||||||||||||||||
Forward Foreign Currency Contracts
|
$ | 594 | 983 |
*
|
$ | 1 |
*
|
$ | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Hedges
|
$ | 594 | 983 | $ | 1 | $ | 3 | |||||||||||||||||
|
|
|
|
|
|
|
|
* |
Other accrued liabilities
|
Three Months Ended April 3, 2021
|
||||||||||||||||||||
Common
Stock and
Additional
Paid-in
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
||||||||||||||||
Balance at January 2, 2021
|
$ | 193,197 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||
Common stock issued under employee plans
|
1,223 | — | — | — | 1,223 | |||||||||||||||
Equity-based compensation expense
|
968 | — | — | — | 968 | |||||||||||||||
Net loss
|
— | — | — | (6,504 | ) | (6,504 | ) | |||||||||||||
Other comprehensive loss
|
— | — | (88 | ) | — | (88 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at April 3, 2021
|
$ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended March 28, 2020
|
||||||||||||||||||||
Common
Stock and
Additional
Paid-in
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
||||||||||||||||
Balance at December 29, 2018
|
$ | 188,313 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||
Common stock issued under employee plans
|
914 | — | — | — | 914 | |||||||||||||||
Equity-based compensation expense
|
672 | — | — | — | 672 | |||||||||||||||
Net loss
|
— | — | — | (1,224 | ) | (1,224 | ) | |||||||||||||
Other comprehensive loss
|
— | — | (93 | ) | — | (93 | ) | |||||||||||||
Common stock repurchases
|
— | (393 | ) | — | — | (393 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at March 28, 2020
|
$ | 189,899 | $ | (29,551 | ) | $ | 331 | $ | (65,010 | ) | $ | 95,669 | ||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||
April 3, 2021
|
March 28, 2020
|
|||||||||||||||||||||||
Foreign
currency |
Unrealized
holding gains
(losses) on
available-
for-sale
investments
|
Total
|
Foreign
currency
|
Unrealized
holding gains
(losses) on
available-
for-sale
investments
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Beginning balance
|
$ | 602 | $ | 38 | $ | 640 | $ | 381 | $ | 43 | $ | 424 | ||||||||||||
Other comprehensive income (loss) before reclassification
|
(68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||
Amounts reclassified from other comprehensive income (loss)
|
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net current-period other comprehensive income (loss)
|
(68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending balance
|
$ | 534 | $ | 18 | $ | 552 | $ | 286 | $ | 45 | $ | 331 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||
April 3, 2021
|
March 28, 2020
|
|||||||
(In thousands, except per share amounts)
|
||||||||
Shares of common stock repurchased
|
— | 98 | ||||||
Cost of stock repurchased
|
$ | — | $ | 393 | ||||
Average price paid per share share
|
$ | — | $ | 3.97 |
10.
|
Net Loss Per Share
|
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(In thousands)
|
||||||||
Net loss
|
$ | (6,504 | ) | $ | (1,224 | ) | ||
|
|
|
|
|||||
Weighted-average shares – basic
|
24,033 | 23,483 | ||||||
Effect of dilutive potential common shares
|
— | — | ||||||
|
|
|
|
|||||
Weighted-average shares – diluted
|
24,033 | 23,483 | ||||||
|
|
|
|
|||||
Net loss per share – basic and diluted
|
$ | (0.27 | ) | $ | (0.05 | ) | ||
|
|
|
|
11.
|
Segment Reporting
|
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(In thousands)
|
||||||||
TFE
|
$ | 9,238 | $ | 7,962 | ||||
Photonics
|
7,003 | 10,878 | ||||||
|
|
|
|
|||||
Total segment net revenues
|
$ | 16,241 | $ | 18,840 | ||||
|
|
|
|
Three Months Ended
|
||||||||
April 3,
2021
|
March 28,
2020
|
|||||||
(In thousands)
|
||||||||
TFE
|
$ | (4,002 | ) | $ | (2,531 | ) | ||
Photonics
|
(1,146 | ) | 2,912 | |||||
|
|
|
|
|||||
Total segment operating income (loss)
|
(5,148 | ) | 381 | |||||
Unallocated costs
|
(1,353 | ) | (1,481 | ) | ||||
|
|
|
|
|||||
Loss from operations
|
(6,501 | ) | (1,100 | ) | ||||
Interest income and other income (expense), net
|
29 | 142 | ||||||
|
|
|
|
|||||
Loss before provision for income taxes
|
$ | (6,472 | ) | $ | (958 | ) | ||
|
|
|
|
April 3,
2021
|
January 2,
2021
|
|||||||
(In thousands)
|
||||||||
TFE
|
$ | 33,042 | $ | 44,335 | ||||
Photonics
|
21,474 | 22,923 | ||||||
|
|
|
|
|||||
Total segment assets
|
54,516 | 67,258 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and investments
|
52,812 | 49,568 | ||||||
Restricted cash
|
787 | 787 | ||||||
Deferred income taxes
|
5,375 | 5,335 | ||||||
Other current assets
|
1,194 | 1,093 | ||||||
Common property, plant and equipment
|
1,355 | 1,443 | ||||||
Common operating lease
right-of-use
|
1,493 | 1,603 | ||||||
Other assets
|
109 | 151 | ||||||
|
|
|
|
|||||
Consolidated total assets
|
$ | 117,641 | $ | 127,238 | ||||
|
|
|
|
12.
|
Income Taxes
|
13.
|
Restructuring Charges
|
Three Months
Ended |
||||
April 3,
|
||||
2021
|
||||
(In thousands)
|
||||
Beginning balance
|
$ | — | ||
Provision for restructuring reserves
|
43 | |||
Cash payments made
|
(43 | ) | ||
|
|
|||
Ending balance
|
$ | — | ||
|
|
14.
|
Commitments and Contingencies
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands, except percentages and per share
amounts)
|
||||||||||||
Net revenues
|
$ | 16,241 | $ | 18,840 | $ | (2,599 | ) | |||||
Gross profit
|
$ | 3,054 | $ | 8,156 | $ | (5,102 | ) | |||||
Gross margin percent
|
18.8 | % | 43.3 | % | (24.5) points | |||||||
Loss from operations
|
$ | (6,501 | ) | $ | (1,100 | ) | $ | (5,401 | ) | |||
Net loss
|
$ | (6,504 | ) | $ | (1,224 | ) | $ | (5,280 | ) | |||
Net loss per diluted share
|
$ | (0.27 | ) | $ | (0.05 | ) | $ | (0.22 | ) |
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands)
|
||||||||||||
TFE
|
$ | 9,238 | $ | 7,962 | $ | 1,276 | ||||||
Photonics
|
||||||||||||
Products
|
3,822 | 5,874 | (2,052 | ) | ||||||||
Contract R&D
|
3,181 | 5,004 | (1,823 | ) | ||||||||
|
|
|
|
|
|
|||||||
7,003 | 10,878 | (3,875 | ) | |||||||||
|
|
|
|
|
|
|||||||
Total net revenues
|
$ | 16,241 | $ | 18,840 | $ | (2,599 | ) | |||||
|
|
|
|
|
|
April 3,
2021
|
January 2,
2021
|
March 28,
2020
|
||||||||||
(In thousands)
|
||||||||||||
TFE
|
$ | 4,221 | $ | 5,623 | $ | 22,386 | ||||||
Photonics
|
38,917 | 41,317 | 64,787 | |||||||||
|
|
|
|
|
|
|||||||
Total backlog
|
$ | 43,138 | $ | 46,940 | $ | 87,173 | ||||||
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||
April 3, 2021
|
March 28, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | ||||||||||||
Asia
|
5,021 | — | 5,021 | 7,443 | — | 7,443 | ||||||||||||||||||
Europe
|
3,850 | 43 | 3,893 | — | 22 | 22 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands, except percentages)
|
||||||||||||
TFE gross profit
|
$ | 2,134 | $ | 3,500 | $ | (1,366 | ) | |||||
% of TFE net revenues
|
23.1 | % | 44.0 | % | ||||||||
Photonics gross profit
|
$ | 920 | $ | 4,656 | $ | (3,736 | ) | |||||
% of Photonics net revenues
|
13.1 | % | 42.8 | % | ||||||||
Total gross profit
|
$ | 3,054 | $ | 8,156 | $ | (5,102 | ) | |||||
% of net revenues
|
18.8 | % | 43.3 | % |
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands)
|
||||||||||||
Research and development expense
|
$ | 3,625 | $ | 3,284 | $ | 341 |
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands)
|
||||||||||||
Selling, general and administrative expense
|
$ | 5,930 | $ | 5,972 | $ | (42 | ) |
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands)
|
||||||||||||
Interest income and other income (expense), net
|
$ | 29 | $ | 142 | $ | (113 | ) |
Three Months Ended
|
||||||||||||
April 3,
2021
|
March 28,
2020
|
Change over
prior period
|
||||||||||
(In thousands)
|
||||||||||||
Income tax provision
|
$ | 32 | $ | 266 | $ | (234 | ) |
April 3,
2021
|
January 2,
2021
|
|||||||
(In thousands)
|
||||||||
Cash and cash equivalents
|
$ | 32,816 | $ | 29,341 | ||||
Restricted cash
|
787 | 787 | ||||||
Short-term investments
|
16,077 | 14,839 | ||||||
Long-term investments
|
3,919 | 5,388 | ||||||
|
|
|
|
|||||
Total cash, cash equivalents, restricted cash and investments
|
$ | 53,599 | $ | 50,355 | ||||
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number |
Description | |
31.1 | Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Executive Vice President, Finance and Administration, Chief Financial Officer, and Treasurer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certifications Pursuant to U.S.C. 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | Inline XBRL Schema Document | |
101.CAL | Inline XBRL Calculation Linkbase Document | |
101.DEF | Inline XBRL Definition Linkbase Document | |
101.LAB | Inline XBRL Label Linkbase Document | |
101.PRE | Inline XBRL Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* |
The certification attached as Exhibit 32.1 is deemed “furnished” and not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference.
|
INTEVAC, INC.
|
||||||
Date: May 4, 2021
|
By:
|
/s/ WENDELL T. BLONIGAN
|
||||
Wendell T. Blonigan
|
||||||
President, Chief Executive Officer and Director
|
||||||
(Principal Executive Officer)
|
||||||
Date: May 4, 2021
|
By:
|
/s/ JAMES MONIZ
|
||||
James Moniz
|
||||||
Executive Vice President, Finance and Administration,
|
||||||
Chief Financial Officer, Secretary and Treasurer
|
||||||
(Principal Financial and Accounting Officer)
|
Exhibit 31.1
I, Wendell Blonigan, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of Intevac, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. |
The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: May 4, 2021
/s/ WENDELL T. BLONIGAN |
Wendell T. Blonigan |
President, Chief Executive Officer and Director |
Exhibit 31.2
I, James Moniz, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of Intevac, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. |
The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: May 4, 2021
/s/ JAMES MONIZ |
James Moniz |
Executive Vice President, Finance and Administration, |
Chief Financial Officer, Secretary and Treasurer |
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Wendell Blonigan, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Intevac, Inc. on Form 10-Q for the quarterly period ended April 3, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: May 4, 2021
/s/ WENDELL T. BLONIGAN |
Wendell T. Blonigan |
President, Chief Executive Officer and Director |
I, James Moniz, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Intevac, Inc. on Form 10-Q for the quarterly period ended April 3, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: May 4, 2021
/s/ JAMES MONIZ |
James Moniz |
Executive Vice President, Finance and Administration, |
Chief Financial Officer, Secretary and Treasurer |
A signed original of this written statement required by Section 906 has been provided to Intevac, Inc. and will be retained by Intevac, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
This certification accompanies the report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.