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
May 2, 2011
 
Date of Report (date of earliest event reported)
INTEVAC, INC.
 
(Exact name of Registrant as specified in its charter)
         
State of California
(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))
 
 

 

 

Item 2.02.   Results of Operations and Financial Condition
     On May 2, 2011, Intevac, Inc. issued a press release reporting its financial results for the three months ended April 2, 2011. 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.

 

 

     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: May 2, 2011  /s/ JEFFREY ANDRESON    
  Jeffrey Andreson   
  Executive 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
Chief Financial Officer
(408) 986-9888
  Claire McAdams
Investor Relations
(530) 265-9899
INTEVAC ANNOUNCES FIRST QUARTER 2011 FINANCIAL RESULTS
Santa Clara, Calif.—May 2, 2011—Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the first quarter ended April 2, 2011.
“In a difficult quarter, we exceeded both our revenue and our earnings per share guidance,” commented Kevin Fairbairn, president and chief executive officer of Intevac. “With the two significant acquisitions announced recently in the hard drive market, we are clearly approaching an end state of consolidation. The enhanced scale of these companies will better enable them to fund the expenditures required to develop and deploy the next generation of higher areal density products. In the long-term, this consolidation bodes well for the hard drive industry, with numerous positive drivers for continued growth. Intevac’s technology leadership and operational flexibility position us well to support the industry’s growth and advanced technologies.
“In early April, we shipped our first LEAN SOLAR™ crystalline silicon deposition system and continued to make progress on expanding our product portfolio for the large solar cell manufacturing equipment market. In our Photonics business, we achieved record product shipments representing over 70% of Photonics revenue,” concluded Mr. Fairbairn.
First Quarter 2011 Summary
The net loss for the quarter was $7.0 million, or $0.31 per diluted share, compared to net income of $1.4 million, or $0.06 per diluted share, in the first quarter of 2010.
Revenues for the quarter were $17.4 million, including $10.2 million of Equipment revenues and Intevac Photonics revenues of $7.2 million. Equipment revenues consisted of upgrades, spares and service. Intevac Photonics revenues consisted of $1.9 million of research and development contracts and $5.3 million of product sales or 73.3% of Photonics revenues. In the first quarter of 2010, revenues were $33.1 million, including $25.6 million of Equipment revenues and $7.6 million of Intevac Photonics revenues which included $3.4 million of product sales or 44.2% of Photonics revenues.
Equipment gross margin in the quarter was 45.3%, compared to 48.7% in the first quarter of 2010. The decrease in gross margin was primarily as a result of lower revenues and lower factory utilization. Intevac Photonics gross margin was 24.5% compared to 26.7% in the first quarter of 2010 and 19.1% in the fourth quarter of 2010. The increase from the fourth quarter was a result of improved yields related to our night vision camera module for our NATO customer. Consolidated gross margin was 36.6%, compared to 43.7% in the first quarter of 2010.
Operating expenses for the quarter totaled $15.9 million, compared to $13.1 million in the first quarter of 2010 and $14.5 million in the fourth quarter of 2010, driven by increased development expenses for our new equipment products.

 

 

Order backlog totaled $41.7 million on April 2, 2011, compared to $46.7 million on December 31, 2010 and $152.3 million on April 3, 2010. Backlog at quarter end included two 200 Lean ® systems, compared to two on December 31, 2010 and twenty-six on April 3, 2010.
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) 334-0811 prior to the start time. For international callers, the dial-in number is (408) 427-3734. 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. EDT. You may access the replay by calling (800) 642-1687 or, for international callers, (706) 645-9291, and providing Replay Passcode 58264463.
About Intevac
Intevac was founded in 1991 and has two businesses: Equipment and Intevac Photonics.
Equipment Business: We are a leader in the design, development and marketing of high productivity lean manufacturing systems and have been producing Lean Thinking platforms since 1994. We provide process manufacturing equipment solutions to the hard disk drive industry, high-productivity process manufacturing equipment and inspection solutions to the solar photovoltaic industry and wafer handling platforms to the semiconductor industry.
Intevac Photonics: We are a leader in the development and manufacture of leading edge, high-sensitivity imaging products and vision systems, as well as table-top and handheld Raman instruments. Markets addressed include military, industrial, medical and scientific.
For more information call 408-986-9888, or visit the company’s website at www.intevac.com.
200 Lean ® is a registered trademark, and LEAN SOLAR TM 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: expected demand for hard drives, the technology leadership and lead-time advantages of our systems, and the expansion of our product portfolio for the solar cell manufacturing market. 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: oversupply in the media industry, a slowdown in demand for hard drives and the failure to introduce new products for the solar market, 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.

 

 

INTEVAC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
                 
    Three months ended  
    April 2,     April 3,  
    2011     2010  
Net revenues
               
Equipment
  $ 10,180     $ 25,557  
Intevac Photonics
    7,243       7,585  
 
           
Total net revenues
    17,423       33,142  
 
               
Gross profit
    6,380       14,478  
Gross margin
               
Equipment
    45.3 %     48.7 %
Intevac Photonics
    24.5 %     26.7 %
 
           
Consolidated
    36.6 %     43.7 %
 
               
Operating expenses
               
Research and development
    9,012       6,544  
Selling, general and administrative
    6,885       6,567  
 
           
Total operating expenses
    15,897       13,111  
 
               
Operating income (loss)
               
Equipment
    (6,270 )     3,880  
Intevac Photonics
    (1,583 )     (1,184 )
Corporate
    (1,664 )     (1,329 )
 
           
Total operating income (loss)
    (9,517 )     1,367  
 
               
Interest and other income
    129       391  
 
           
Profit (loss) before income taxes
    (9,388 )     1,758  
Provision (benefit) for income taxes
    (2,357 )     328  
 
           
Net income (loss)
  $ (7,031 )   $ 1,430  
 
           
 
               
Income (loss) per share
               
Basic
  $ (0.31 )   $ 0.06  
Diluted
  $ (0.31 )   $ 0.06  
Weighted average common shares outstanding
               
Basic
    22,727       22,196  
Diluted
    22,727       22,975  

 

 

INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
                 
ASSETS   April 2,     December 31,  
    2011     2010  
             
    (Unaudited)     (see Note)  
Current assets
               
Cash, cash equivalents and short-term investments
  $ 76,142     $ 114,514  
Accounts receivable, net
    17,560       25,911  
Inventories
    21,764       20,671  
Deferred tax assets
    3,304       3,124  
Prepaid expenses and other current assets
    6,890       6,630  
 
           
Total current assets
    125,660       170,850  
 
               
Long-term investments
    52,294       22,866  
Property, plant and equipment, net
    15,252       13,918  
Deferred tax assets
    16,416       14,594  
Goodwill
    18,389       18,389  
Other intangible assets, net
    6,848       6,984  
Other long-term assets
    3,917       4,170  
 
           
Total assets
  $ 238,776     $ 251,771  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current liabilities
               
Accounts payable
  $ 5,147     $ 5,562  
Accrued payroll and related liabilities
    4,578       11,365  
Other accrued liabilities
    10,612       11,104  
Customer advances
    4,805       4,867  
 
           
Total current liabilities
    25,142       32,898  
 
               
Other long-term liabilities
    10,973       11,630  
Stockholders’ equity
               
Common stock ($0.001 par value)
    23       23  
Additional paid in capital
    142,281       139,824  
Accumulated other comprehensive income
    247       255  
Retained earnings
    60,110       67,141  
 
           
Total stockholders’ equity
    202,661       207,243  
 
           
Total liabilities and stockholders’ equity
  $ 238,776     $ 251,771  
 
           
Note: Amounts as of December 31, 2010 are derived from the December 31, 2010 audited consolidated financial statements.