☒ |
ANNUAL 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)
|
(I.R.S. 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 | ☐ |
Item 1.
|
Business
|
TFE Products
|
Applications and Features
|
|
HDD Equipment Market
|
||
200 Lean
®
Disk Sputtering System
|
• Uses PVD and chemical vapor deposition (“CVD”) technologies.
• Deposits magnetic films,
non-magnetic
films and protective carbon-based overcoats.
• Provides high-throughput for small-substrate processing.
• Over 164 units installed.
|
|
Upgrades, spares, consumables and services
(non-systems
business)
|
• Upgrades to the installed base to support the continued growth in areal density or reduce the manufacturing cost per disk.
|
|
DCP Market
|
||
INTEVAC VERTEX
®
System
|
• Utilizes vertical sputtering for multiple film types.
• Provides high-throughput for small-substrate processing.
• Uses patented carbon deposition source.
• Modular design enables expandability.
• Enables
low-temperature
processing.
|
|
INTEVAC VERTEX
®
Spectra System
|
• Extension of the VERTEX system.
• Incorporates multiple source technologies in a single system.
• Uses proprietary ion beam processing for deposition and etching.
• Enables unique patterned NCVM and hard AR coatings.
|
|
INTEVAC VERTEX
®
Marathon System
|
• Versatile platform for high volume manufacturing of multi-step, multi-layer optical coatings.
• Enables diverse coatings — DiamondClad, patterned NCVM and AR films.
|
|
DIAMOND DOG
®
|
• Screen protectors for mobile devices, a consumer product line with DiamondClad tempered glass.
• Provides long lasting protection against scratches and abrasion.
• Preserves screen clarity and anti-fingerprint performance.
|
|
Solar PV Market
|
||
INTEVAC MATRIX PVD System
|
• Deposits electrical contacts and conductor layers, reflective layers, and transparent conductive oxide layers, all of which are critical to the efficiency of solar cells.
• Includes patented Linear Scanning Magnetic Array (“LSMA”) magnetron source, with industry-leading target utilization rate of over 65 percent.
• Provides high-throughput for small-substrate processing.
|
|
INTEVAC MATRIX Implant System
|
• Utilizes the chambers and transport mechanism of the MATRIX platform while using the implant sources from the ENERG
i
|
|
ENERG
i
®
Implant System
|
• Supports both phosphorus and boron dopant technologies.
• Extendable to new advanced solar cell structures.
|
|
TFE Products
|
Applications and Features
|
|
Fan-Out
Packaging Market
|
||
INTEVAC MATRIX PVD System
|
• Deposits barrier/seed layers for
fan-out
RDL.
• Includes LSMA magnetron source, with industry-leading target utilization rate of over 65 percent.
• Provides high-throughput and low cost of ownership for small-substrate or large panel processing.
• Provides flexibility for handling round, square, or rectangular substrates for
fan-out
packaging.
|
|
Adjacent Markets
|
||
INTEVAC MATRIX System
|
• Incorporates multiple thin-film deposition techniques such as PVD, CVD, Etch, Implant, heating and cooling.
• Consists of high-speed linear transport.
• Flexible design enables handling of various different small substrate sizes and shapes.
• Performs double-sided coating within vacuum.
|
2020
|
2019
|
|||||||
Seagate Technology
|
42 | % | 49 | % | ||||
U.S. Government
|
29 | % | 20 | % | ||||
Elbit Systems of America
|
12 | % | * | |||||
Jolywood (Hongkong) Industrial Holdings Co., Limited
|
* | 14 | % |
Name
|
Age
|
Position
|
||||
Executive Officers:
|
||||||
Wendell T. Blonigan
|
59 |
President and Chief Executive Officer
|
||||
James Moniz
|
63 |
Executive Vice President, Finance and Administration, Chief Financial Officer, Secretary and Treasurer
|
||||
Timothy Justyn
|
58 |
Executive Vice President and General Manager, Photonics
|
||||
Jay Cho
|
56 |
Executive Vice President and General Manager, TFE
|
||||
Other Key Officers:
|
||||||
Verle Aebi
|
66 |
Chief Technology Officer, Photonics
|
||||
Terry Bluck
|
61 |
Chief Technology Officer, TFE
|
||||
Kimberly Burk
|
55 |
Senior Vice President, Global Human Resources
|
Item 1A.
|
Risk Factors
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Location
|
Square Footage
|
Principal Use
|
||||
Santa Clara, California
|
169,583 |
Corporate Headquarters;
TFE and Photonics Marketing, Manufacturing, Engineering and Customer Support
|
||||
Singapore
|
31,947 | TFE Manufacturing and Customer Support | ||||
Malaysia
|
1,291 | TFE Customer Support | ||||
Shenzhen, China
|
2,568 | TFE Customer Support |
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Item 6.
|
Selected Financial Data
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• |
Overview:
|
• |
Results of Operations:
|
• |
Liquidity and Capital Resources:
|
• |
Critical Accounting Policies:
|
Fiscal Year
|
2020
|
2019
|
Change
2020 vs. 2019
|
|||||||||
(in thousands, except percentages and per share amounts)
|
||||||||||||
Net revenues
|
$ | 97,824 | $ | 108,885 | $ | (11,061 | ) | |||||
Gross profit
|
$ | 40,545 | $ | 40,868 | $ | (323 | ) | |||||
Gross margin percent
|
41.4 | % | 37.5 | % | 3.9 points | |||||||
Operating income
|
$ | 2,555 | $ | 3,925 | $ | (1,370 | ) | |||||
Net income
|
$ | 1,056 | $ | 1,148 | $ | (92 | ) | |||||
Net income per diluted share
|
$ | 0.04 | $ | 0.05 | $ | (0.01 | ) |
2020
|
2019
|
Change
2020 vs. 2019
|
||||||||||
(in thousands)
|
||||||||||||
TFE
|
$ | 52,128 | $ | 73,678 | $ | (21,550 | ) | |||||
Photonics
|
||||||||||||
Contract R&D
|
22,945 | 19,657 | 3,288 | |||||||||
Products
|
22,751 | 15,550 | 7,201 | |||||||||
|
|
|
|
|
|
|||||||
45,696 | 35,207 | 10,489 | ||||||||||
|
|
|
|
|
|
|||||||
Total net revenues
|
$ | 97,824 | $ | 108,885 | $ | (11,061 | ) | |||||
|
|
|
|
|
|
January 2, 2021
|
December 28, 2019
|
|||||||
(in thousands)
|
||||||||
TFE
|
$ | 5,623 | $ | 21,391 | ||||
Photonics
|
41,317 | 71,015 | ||||||
|
|
|
|
|||||
Total backlog
|
$ | 46,940 | $ | 92,406 | ||||
|
|
|
|
2020
|
2019
|
|||||||
Seagate Technology
|
42 | % | 49 | % | ||||
U.S. Government
|
29 | % | 20 | % | ||||
Elbit Systems of America
|
12 | % | * | |||||
Jolywood (Hongkong) Industrial Holdings Co., Limited
|
* | 14 | % |
2020
|
2019
|
|||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 6,450 | $ | 45,363 | $ | 51,813 | $ | 1,306 | $ | 34,664 | $ | 35,970 | ||||||||||||
Asia
|
45,611 | — | 45,611 | 72,372 | — | 72,372 | ||||||||||||||||||
Europe
|
67 | 333 | 400 | — | 543 | 543 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 52,128 | $ | 45,696 | $ | 97,824 | $ | 73,678 | $ | 35,207 | $ | 108,885 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
Change
2020 vs. 2019
|
|||||||||||
2020
|
2019
|
|||||||||||
(in thousands, except percentages)
|
||||||||||||
TFE gross profit
|
$ | 22,417 | $ | 27,377 | $ | (4,960 | ) | |||||
% of TFE net revenues
|
43.0 | % | 37.2 | % | ||||||||
Photonics gross profit
|
$ | 18,128 | $ | 13,491 | $ | 4,637 | ||||||
% of Photonics net revenues
|
39.7 | % | 38.3 | % | ||||||||
Total gross profit
|
$ | 40,545 | $ | 40,868 | $ | (323 | ) | |||||
% of net revenues
|
41.4 | % | 37.5 | % |
Fiscal Year
|
Change
2020 vs. 2019
|
|||||||||||
2020
|
2019
|
|||||||||||
(in thousands)
|
||||||||||||
Research and development expense
|
$ | 14,093 | $ | 14,309 | $ | (216 | ) |
Fiscal Year
|
Change
2020 vs. 2019
|
|||||||||||
2020
|
2019
|
|||||||||||
(in thousands)
|
||||||||||||
Selling, general and administrative expense
|
$ | 23,897 | $ | 22,634 | $ | 1,263 |
Fiscal Year
|
Change
2020 vs. 2019
|
|||||||||||
2020
|
2019
|
|||||||||||
(in thousands)
|
||||||||||||
Interest income and other income (expense), net
|
$ | 212 | $ | 582 | $ | (370 | ) |
Fiscal Year
|
Change
2020 vs. 2019
|
|||||||||||
2020
|
2019
|
|||||||||||
(in thousands)
|
||||||||||||
Provision for income taxes
|
$ | 1,711 | $ | 3,359 | $ | (1,648 | ) |
January 2, 2021
|
December 28, 2019
|
|||||||
(in thousands)
|
||||||||
Cash and cash equivalents
|
$ | 29,341 | $ | 19,767 | ||||
Restricted cash
|
787 | 787 | ||||||
Short-term investments
|
14,839 | 16,720 | ||||||
Long-term investments
|
5,388 | 5,537 | ||||||
|
|
|
|
|||||
Total cash, cash-equivalents, restricted cash and investments
|
$ | 50,355 | $ | 42,811 | ||||
|
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statements and Supplementary Data
|
Page
|
||||
35 | ||||
37 | ||||
38 | ||||
39 | ||||
40 | ||||
41 | ||||
42 |
/s/ BPM LLP
|
We have served as the Company’s auditor since 2015.
|
San Jose, California
|
February 17, 2021
|
January 2,
2021 |
December 28,
2019 |
|||||||
(In thousands, except
par
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 29,341 | $ | 19,767 | ||||
Short-term investments
|
14,839 | 16,720 | ||||||
Trade and other accounts receivable, net of allowances of $0 at both January 2, 2021 and December 28, 2019
|
28,646 | 28,619 | ||||||
Inventories
|
21,689 | 24,907 | ||||||
Prepaid expenses and other current assets
|
1,893 | 1,504 | ||||||
|
|
|
|
|||||
Total current assets
|
96,408 | 91,517 | ||||||
Property, plant and equipment, net
|
11,004 | 11,598 | ||||||
Operating lease
right-of-use-assets
|
8,165 | 10,279 | ||||||
Long-term investments
|
5,388 | 5,537 | ||||||
Restricted cash
|
787 | 787 | ||||||
Deferred income taxes and other long-term assets
|
5,486 | 6,604 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 127,238 | $ | 126,322 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current operating lease liabilities
|
$ | 2,853 | $ | 2,524 | ||||
Accounts payable
|
4,259 | 4,199 | ||||||
Accrued payroll and related liabilities
|
7,679 | 6,488 | ||||||
Other accrued liabilities
|
3,598 | 3,593 | ||||||
Customer advances
|
33 | 4,007 | ||||||
|
|
|
|
|||||
Total current liabilities
|
18,422 | 20,811 | ||||||
Noncurrent liabilities:
|
||||||||
Noncurrent operating lease liabilities
|
6,803 | 9,532 | ||||||
Other long-term liabilities
|
457 | 186 | ||||||
|
|
|
|
|||||
Total noncurrent liabilities
|
7,260 | 9,718 | ||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Undesignated preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding
|
— | — | ||||||
Common stock, $0.001 par value :
|
||||||||
Authorized shares
—
50,000 issued and outstanding shares
—
23,874 and 23,346 at January 2, 2021 and December 28, 2019, respectively
|
24 | 23 | ||||||
Additional
paid-in
capital
|
193,173 | 188,290 | ||||||
Treasury stock, 5,087 shares at January 2, 2021 and 4,989 shares at December 28, 2019
|
(29,551 | ) | (29,158 | ) | ||||
Accumulated other comprehensive income
|
640 | 424 | ||||||
Accumulated deficit
|
(62,730 | ) | (63,786 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity
|
101,556 | 95,793 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity
|
$ | 127,238 | $ | 126,322 | ||||
|
|
|
|
Year Ended,
|
||||||||
January 2,
2021 |
December 28,
2019 |
|||||||
(In thousands, except per share
amounts) |
||||||||
Net revenues:
|
||||||||
Systems and components
|
$ | 74,879 | $ | 89,228 | ||||
Technology development
|
22,945 | 19,657 | ||||||
|
|
|
|
|||||
Total net revenues
|
97,824 | 108,885 | ||||||
Cost of net revenues:
|
||||||||
Systems and components
|
42,231 | 55,678 | ||||||
Technology development
|
15,048 | 12,339 | ||||||
|
|
|
|
|||||
Total cost of net revenues
|
57,279 | 68,017 | ||||||
Gross profit
|
40,545 | 40,868 | ||||||
Operating expenses:
|
||||||||
Research and development
|
14,093 | 14,309 | ||||||
Selling, general and administrative
|
23,897 | 22,634 | ||||||
|
|
|
|
|||||
Total operating expenses
|
37,990 | 36,943 | ||||||
|
|
|
|
|||||
Operating income
|
2,555 | 3,925 | ||||||
|
|
|
|
|||||
Interest income
|
284 | 574 | ||||||
Other income (expense), net
|
(72 | ) | 8 | |||||
|
|
|
|
|||||
Income before provision for income taxes
|
2,767 | 4,507 | ||||||
Provision for income taxes
|
1,711 | 3,359 | ||||||
|
|
|
|
|||||
Net income
|
$ | 1,056 | $ | 1,148 | ||||
|
|
|
|
|||||
Net income per share:
|
||||||||
Basic
|
$ | 0.04 | $ | 0.05 | ||||
Diluted
|
$ | 0.04 | $ | 0.05 | ||||
Weighted average shares outstanding:
|
||||||||
Basic
|
23,669 | 23,063 | ||||||
Diluted
|
24,151 | 23,340 |
Year Ended,
|
||||||||
January 2,
2021 |
December 28,
2019 |
|||||||
(In thousands)
|
||||||||
Net income
|
$ | 1,056 | $ | 1,148 | ||||
Other comprehensive income (loss), before tax
|
||||||||
Change in unrealized net gain on
available-for-sale
|
(5 | ) | 70 | |||||
Foreign currency translation gains and (losses)
|
221 | (24 | ) | |||||
|
|
|
|
|||||
Other comprehensive income, before tax
|
216 | 46 | ||||||
Income tax expense related to items in other comprehensive income
|
— | — | ||||||
|
|
|
|
|||||
Other comprehensive income, net of tax
|
216 | 46 | ||||||
|
|
|
|
|||||
Comprehensive income
|
$ | 1,272 | $ | 1,194 | ||||
|
|
|
|
Common Stock
|
Additional
Paid-In
Capital
|
Treasury Stock
|
Accumulated
Other Comprehensive
Income
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||
Balance at December 28, 2019
|
22,700 | $ | 23 | $ | 183,204 | 4,965 | $ | (29,047 | ) | $ | 378 | $ | (64,934 | ) | $ | 89,624 | ||||||||||||||||
Shares issued in connection with:
|
||||||||||||||||||||||||||||||||
Exercise of stock options
|
175 | — | 799 | — | — | — | — | 799 | ||||||||||||||||||||||||
Settlement of RSUs
|
199 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Employee stock purchase plan
|
370 | — | 1,466 | — | — | — | — | 1,466 | ||||||||||||||||||||||||
Shares withheld in connection with net share settlement of RSUs
|
(74 | ) | — | (404 | ) | — | — | — | — | (404 | ) | |||||||||||||||||||||
Equity-based compensation expense
|
— | — | 3,225 | — | — | — | — | 3,225 | ||||||||||||||||||||||||
Net income
|
— | — | — | — | — | — | 1,148 | 1,148 | ||||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 46 | — | 46 | ||||||||||||||||||||||||
Common stock repurchases
|
(24 | ) | — | — | 24 | (111 | ) | — | — | (111 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 28, 2019
|
23,346 | $ | 23 | $ | 188,290 | 4,989 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||||||||||
Shares issued in connection with:
|
||||||||||||||||||||||||||||||||
Exercise of stock options
|
67 | — | 326 | — | — | — | — | 326 | ||||||||||||||||||||||||
Settlement of RSUs
|
244 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Employee stock purchase plan
|
392 | 1 | 1,570 | — | — | — | — | 1,571 | ||||||||||||||||||||||||
Shares withheld in connection with net share settlement of RSUs
|
(77 | ) | — | (402 | ) | — | — | — | — | (402 | ) | |||||||||||||||||||||
Equity-based compensation expense
|
— | — | 3,389 | — | — | — | — | 3,389 | ||||||||||||||||||||||||
Net income
|
— | — | — | — | — | — | 1,056 | 1,056 | ||||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 216 | — | 216 | ||||||||||||||||||||||||
Common stock repurchases
|
(98 | ) | — | — | 98 | (393 | ) | — | — | (393 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at January 2, 2021
|
23,874 | $ | 24 | $ | 193,173 | 5,087 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
||||||||
January 2,
2021 |
December 28,
2019 |
|||||||
(In thousands)
|
||||||||
Operating activities
|
||||||||
Net income
|
$ | 1,056 | $ | 1,148 | ||||
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,206 | 2,976 | ||||||
Net amortization (accretion) of investment premiums and discounts
|
12 | (75 | ) | |||||
Amortization of intangible assets
|
274 | 615 | ||||||
Equity-based compensation
|
3,389 | 3,225 | ||||||
Straight-line rent adjustment and amortization of lease incentives
|
(286 | ) | (289 | ) | ||||
Deferred income taxes
|
917 | 1,661 | ||||||
Change in the fair value of acquisition-related contingent consideration
|
— | 7 | ||||||
Loss on disposal of equipment
|
— | 120 | ||||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
(27 | ) | (902 | ) | ||||
Inventories
|
3,218 | 6,301 | ||||||
Prepaid expenses and other assets
|
(462 | ) | 1,621 | |||||
Accounts payable
|
60 | (1,850 | ) | |||||
Accrued payroll and other accrued liabilities
|
1,467 | 694 | ||||||
Customer advances
|
(3,974 | ) | (10,307 | ) | ||||
|
|
|
|
|||||
Total adjustments
|
7,794 | 3,797 | ||||||
|
|
|
|
|||||
Net cash and cash equivalents provided by operating activities
|
8,850 | 4,945 | ||||||
Investing activities
|
||||||||
Purchase of investments
|
(23,342 | ) | (23,306 | ) | ||||
Proceeds from sales and maturities of investments
|
25,355 | 21,642 | ||||||
Purchase of leasehold improvements and equipment
|
(2,612 | ) | (4,107 | ) | ||||
|
|
|
|
|||||
Net cash and cash equivalents used in investing activities
|
(599 | ) | (5,771 | ) | ||||
Financing activities
|
||||||||
Proceeds from issuance of common stock
|
1,897 | 2,265 | ||||||
Common stock repurchases
|
(393 | ) | (111 | ) | ||||
Taxes paid related to net share settlement
|
(402 | ) | (404 | ) | ||||
Payment of acquisition-related contingent consideration
|
— | (230 | ) | |||||
|
|
|
|
|||||
Net cash and cash equivalents provided by financing activities
|
1,102 | 1,520 | ||||||
Effect of exchange rate changes on cash
|
221 | (24 | ) | |||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash
|
9,574 | 670 | ||||||
Cash, cash equivalents and restricted cash at beginning of period
|
20,554 | 19,884 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$ | 30,128 | $ | 20,554 | ||||
|
|
|
|
|||||
Cash paid (received) for:
|
||||||||
Income taxes
|
$ | 850 | $ | 1,016 | ||||
Income tax refund
|
$ | (157 | ) | $ | (157 | ) |
Foreign
currency |
Unrealized holding
gains (losses) on
available-for-sale
investments |
Total
|
||||||||||
(in thousands)
|
||||||||||||
Balance at December 29, 2018
|
$ | 405 | $ | (27 | ) | $ | 378 | |||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) before reclassification
|
(24 | ) | 70 | 46 | ||||||||
Amounts reclassified from other comprehensive income (loss)
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net current-period other comprehensive income (loss)
|
(24 | ) | 70 | 46 | ||||||||
|
|
|
|
|
|
|||||||
Balance at December 28, 2019
|
$ | 381 | $ | 43 | $ | 424 | ||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) before reclassification
|
221 | (5 | ) | 216 | ||||||||
Amounts reclassified from other comprehensive income (loss)
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net current-period other comprehensive income (loss)
|
221 | (5 | ) | 216 | ||||||||
|
|
|
|
|
|
|||||||
Balance at January 2, 2021
|
$ | 602 | $ | 38 | $ | 640 | ||||||
|
|
|
|
|
|
TFE
|
2020
|
2019
|
||||||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
HDD
|
DCP
|
PV
|
Total
|
HDD
|
DCP
|
PV
|
Total
|
|||||||||||||||||||||||||
Systems, upgrades and spare parts
|
$ | 45,620 | $ | — | $ | 426 | $ | 46,046 | $ | 52,759 | $ | — | $ | 15,653 | $ | 68,412 | ||||||||||||||||
Field service
|
6,080 | — | 2 | 6,082 | 5,210 | 2 | 54 | 5,266 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total TFE net revenues
|
$ | 51,700 | $ | — | $ | 428 | $ | 52,128 | $ | 57,969 | $ | 2 | $ | 15,707 | $ | 73,678 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Photonics
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
Products:
|
||||||||
Military products
|
$ | 20,409 | $ | 12,480 | ||||
Commercial products
|
395 | 640 | ||||||
Repair and other services
|
1,947 | 2,430 | ||||||
|
|
|
|
|||||
Total Photonics product net revenues
|
22,751 | 15,550 | ||||||
Technology development:
|
||||||||
FFP
|
19,648 | 12,521 | ||||||
CPFF
|
3,297 | 7,134 | ||||||
Time and materials
|
— | 2 | ||||||
|
|
|
|
|||||
Total technology development net revenues
|
22,945 | 19,657 | ||||||
|
|
|
|
|||||
Total Photonics net revenues
|
$ | 45,696 | $ | 35,207 | ||||
|
|
|
|
2020
|
2019
|
|||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 6,450 | $ | 45,363 | $ | 51,813 | $ | 1,306 | $ | 34,664 | $ | 35,970 | ||||||||||||
Asia
|
45,611 | — | 45,611 | 72,372 | — | 72,372 | ||||||||||||||||||
Europe
|
67 | 333 | 400 | — | 543 | 543 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 52,128 | $ | 45,696 | $ | 97,824 | $ | 73,678 | $ | 35,207 | $ | 108,885 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
|||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
Products transferred at a point in time
|
$ | 52,128 | $ | 1,947 | $ | 54,075 | $ | 73,678 | $ | 2,430 | $ | 76,108 | ||||||||||||
Products and services transferred over time
|
— | 43,749 | 43,749 | — | 32,777 | 32,777 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$52,128 | $ | 45,696 | $ | 97,824 | $ | 73,678 | $ | 35,207 | $ | 108,885 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
January 2,
2021 |
December 28,
2019 |
Change
|
||||||||||
(In thousands)
|
||||||||||||
TFE:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | 369 | $ | 760 | $ | (391 | ) | |||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 482 | $ | 320 | $ | 162 | ||||||
Customer advances
|
33 | 4,007 | (3,974 | ) | ||||||||
|
|
|
|
|
|
|||||||
$ | 515 | $ | 4,327 | $ | (3,812 | ) | ||||||
|
|
|
|
|
|
|||||||
Photonics:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | 5,439 | $ | 3,210 | $ | 2,229 | ||||||
Retainage
|
126 | 99 | 27 | |||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 5,565 | $ | 3,309 | $ | 2,256 | |||||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 779 | $ | — | $ | 779 | ||||||
|
|
|
|
|
|
2020
|
2019
|
|||||||
Equity-based compensation by type of award:
|
||||||||
Stock options
|
$504 | $819 | ||||||
RSUs
|
1,936 | 1,657 | ||||||
Employee stock purchase plan
|
949 | 749 | ||||||
|
|
|
|
|||||
Total equity-based compensation
|
$ | 3,389 | $ | 3,225 | ||||
|
|
|
|
2020
|
2019
|
|||||||
Stock Options:
|
||||||||
Weighted-average fair value of grants per share
|
$ | 1.82 | $ | 2.06 | ||||
Expected volatility
|
46.06 | % | 43.23 | % | ||||
Risk free interest rate
|
0.44% | 1.86% | ||||||
Expected term of options (in years)
|
4.39 | 4.60 | ||||||
Dividend yield
|
None | None |
Shares
|
Weighted Average
Exercise Price
|
Weighted
Average
Remaining Contractual Term (years) |
Aggregate
Intrinsic
Value
|
|||||||||||||
Options outstanding at December 28, 2019
|
2,096,610 | $ | 6.63 | 3.75 | $ | 2,048,964 | ||||||||||
Options granted
|
6,000 | $ | 4.88 | |||||||||||||
Options cancelled and forfeited
|
(220,971 | ) | $ | 6.88 | ||||||||||||
Options exercised
|
(67,172 | ) | $ | 4.85 | ||||||||||||
|
|
|||||||||||||||
Options outstanding at January 2, 2021
|
1,814,467 | $ | 6.66 | 3.08 | $ | 2,520,722 | ||||||||||
|
|
|||||||||||||||
Options exercisable at January 2, 2021
|
1,372,871 | $ | 6.77 | 2.52 | $ | 1,798,938 |
Shares
|
Weighted
Average Grant Date Fair Value |
Weighted
Average
Remaining Contractual Term (years) |
Aggregate
Intrinsic Value |
|||||||||||||
Non-vested
RSUs at December 28, 2019
|
553,355 | $ | 6.15 | 1.30 | $ | 3,713,012 | ||||||||||
Granted
|
668,413 | $ | 4.87 | |||||||||||||
Vested
|
(243,312 | ) | $ | 6.38 | ||||||||||||
Cancelled
|
(76,822 | ) | $ | 4.26 | ||||||||||||
|
|
|||||||||||||||
Non-vested
RSUs at January 2, 2021
|
901,634 | $ | 5.30 | 1.50 | $ | 6,500,781 | ||||||||||
|
|
2020
|
||||
Weighted-average fair value of grants per share
|
$ | 3.16 | ||
Expected volatility
|
46.7 | % | ||
Risk-free interest rate
|
0.25 | % | ||
Dividend yield
|
None |
2020
|
2019
|
|||||||
Stock Purchase Rights:
|
||||||||
Weighted-average fair value of grants per share
|
$ | 2.20 | $ | 1.73 | ||||
Expected volatility
|
51.49 | % | 45.81 | % | ||||
Risk free interest rate
|
0.14 | % | 2.28 | % | ||||
Expected term of purchase rights (in years)
|
1.24 | 0.91 | ||||||
Dividend yield
|
None | None |
2020
|
2019
|
|||||||
(in thousands, except per share amounts)
|
||||||||
Shares purchased
|
392 | 370 | ||||||
Weighted-average purchase price per share
|
$ | 4.01 | $ | 3.96 | ||||
Aggregate intrinsic value of purchase rights exercised
|
$ | 765 | $ | 513 |
2020
|
2019
|
|||||||
(in thousands, except per share amounts)
|
||||||||
Net income
|
$ | 1,056 | $ | 1,148 | ||||
|
|
|
|
|||||
Weighted-average shares – basic
|
23,669 | 23,063 | ||||||
Effect of dilutive potential common shares
|
482 | 277 | ||||||
|
|
|
|
|||||
Weighted-average shares – diluted
|
24,151 | 23,340 | ||||||
|
|
|
|
|||||
Net income per share –basic
|
$ | 0.04 | $ | 0.05 | ||||
|
|
|
|
|||||
Net income per share –diluted
|
$ | 0.04 | $ | 0.05 | ||||
|
|
|
|
2020
|
2019
|
|||||||
(in thousands)
|
||||||||
Stock options to purchase common stock
|
935 | 1,235 | ||||||
RSUs
|
5 | 5 | ||||||
Employee stock purchase plan
|
103 | 3 |
2020
|
2019
|
|||||||
Seagate Technology
|
45 | % | 60 | % | ||||
U.S. Government
|
26 | % | 25 | % | ||||
HGST
|
14 | % | * |
* |
Less than 10%
|
2020
|
2019
|
|||||||
Seagate Technology
|
42 | % | 49 | % | ||||
U.S. Government
|
29 | % | 20 | % | ||||
Elbit Systems of America
|
12 | % | * | |||||
Jolywood (Hongkong) Industrial Holdings Co., Limited
|
* | 14 | % |
* |
Less than 10%
|
January 2,
|
December 28,
|
|||||||
2021
|
2019
|
|||||||
(in thousands)
|
||||||||
Trade receivables and other
|
$ | 22,712 | $ | 24,472 | ||||
Unbilled costs and accrued profits
|
5,934 | 4,069 | ||||||
Income tax receivable
|
— | 78 | ||||||
Less: allowance for doubtful accounts
|
— | — | ||||||
|
|
|
|
|||||
$ | 28,646 | $ | 28,619 | |||||
|
|
|
|
January 2,
|
December 28,
|
|||||||
2021
|
2019
|
|||||||
(in thousands)
|
||||||||
Raw materials
|
$ | 9,999 | $ | 15,286 | ||||
Work-in-progress
|
4,832 | 4,748 | ||||||
Finished goods
|
6,858 | 4,873 | ||||||
|
|
|
|
|||||
$ | 21,689 | $ | 24,907 | |||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
(in thousands)
|
||||||||
Leasehold improvements
|
$ | 16,323 | $ | 15,037 | ||||
Machinery and equipment
|
46,846 | 46,674 | ||||||
|
|
|
|
|||||
63,169 | 61,711 | |||||||
Less accumulated depreciation and amortization
|
52,165 | 50,113 | ||||||
|
|
|
|
|||||
Total property, plant and equipment, net
|
$ | 11,004 | $ | 11,598 | ||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
(in thousands)
|
||||||||
Deferred income taxes
|
$ | 5,335 | $ | 6,252 | ||||
Prepaid expenses
|
151 | — | ||||||
Purchased intangible assets, net
|
— | 274 | ||||||
Income tax receivable
|
— | 78 | ||||||
|
|
|
|
|||||
$ | 5,486 | $ | 6,604 | |||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
(in thousands)
|
||||||||
Deferred revenue
|
$ | 1,261 | $ | 320 | ||||
Other taxes payable
|
935 | 1,155 | ||||||
Accrued product warranties
|
405 | 846 | ||||||
Income taxes payable
|
263 | 403 | ||||||
Other
|
734 | 869 | ||||||
|
|
|
|
|||||
Total other accrued liabilities
|
$ | 3,598 | $ | 3,593 | ||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
(in thousands)
|
||||||||
Employer payroll taxes
|
$ | 382 | $ | — | ||||
Accrued product warranties
|
75 | 176 | ||||||
Accrued income taxes
|
— | 10 | ||||||
|
|
|
|
|||||
Total other long-term liabilities
|
$ | 457 | $ | 186 | ||||
|
|
|
|
December 28, 2019
|
||||||||||||
Gross Carrying
Amount |
Accumulated
Amortization |
Net Carrying
Amount |
||||||||||
(in thousands)
|
||||||||||||
Customer relationships
|
$ | 560 | $ | 524 | $ | 36 | ||||||
Purchased technology
|
4,000 | 3,762 | 238 | |||||||||
|
|
|
|
|
|
|||||||
Total amortizable intangible assets
|
$ | 4,560 | $ | 4,286 | $ | 274 | ||||||
|
|
|
|
|
|
2019
|
||||
(in thousands)
|
||||
Beginning balance
|
$ | 223 | ||
Changes in fair value
|
7 | |||
Cash payments made
|
(230 | ) | ||
|
|
|||
Ending balance
|
$ | — | ||
|
|
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 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 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 | ||||||||
|
|
|
|
|
|
|
|
December 28, 2019
|
||||||||||||||||
Amortized Cost
|
Unrealized
Holding Gains |
Unrealized
Holding Losses |
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 16,512 | $ | — | $ | — | $ | 16,512 | ||||||||
Money market funds
|
3,255 | — | — | 3,255 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$ | 19,767 | $ | — | $ | — | $ | 19,767 | ||||||||
Short-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 3,000 | $ | 1 | $ | — | $ | 3,001 | ||||||||
Commercial paper
|
1,891 | 2 | — | 1,893 | ||||||||||||
Corporate bonds and medium-term notes
|
6,383 | 25 | — | 6,408 | ||||||||||||
U.S. treasury securities
|
5,417 | 1 | — | 5,418 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments
|
$ | 16,691 | $ | 29 | $ | — | $ | 16,720 | ||||||||
Long-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 499 | $ | 1 | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes
|
2,530 | 12 | — | 2,542 | ||||||||||||
U.S. treasury securities
|
2,494 | 1 | — | 2,495 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total long-term investments
|
$ | 5,523 | $ | 14 | $ | — | $ | 5,537 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and investments
|
$ | 41,981 | $ | 43 | $ | — | $ | 42,024 | ||||||||
|
|
|
|
|
|
|
|
Amortized Cost
|
Fair Value
|
|||||||
(in thousands)
|
||||||||
Due in one year or less
|
$ | 19,418 | $ | 19,451 | ||||
Due after one through five years
|
5,383 | 5,388 | ||||||
|
|
|
|
|||||
$ | 24,801 | $ | 24,839 | |||||
|
|
|
|
Fair Value Measurements
at January 2, 2021
|
||||||||||||
Total
|
Level 1
|
Level 2
|
||||||||||
(in thousands)
|
||||||||||||
Recurring fair value measurements:
|
||||||||||||
Available-for-sale
|
||||||||||||
Money market funds
|
$ | 3,612 | $ | 3,612 | $ | — | ||||||
U.S. treasury securities
|
5,962 | 5,962 | — | |||||||||
Certificates of deposit
|
7,952 | — | 7,952 | |||||||||
Commercial paper
|
500 | — | 500 | |||||||||
Corporate bonds and medium-term notes
|
6,413 | — | 6,413 | |||||||||
Municipal bonds
|
400 | — | 400 | |||||||||
|
|
|
|
|
|
|||||||
Total recurring fair value measurements
|
$ | 24,839 | $ | 9,574 | $ | 15,265 | ||||||
|
|
|
|
|
|
* |
Other accrued liabilities
|
2020
|
2019
|
|||||||
(in thousands, except per share amounts)
|
||||||||
Shares of common stock repurchased
|
98 | 24 | ||||||
Cost of stock repurchased
|
$ | 393 | $ | 111 | ||||
Average price paid per share
|
$ | 3.97 | $ | 4.67 |
2020
|
2019
|
|||||||
Federal:
|
||||||||
Current
|
$ | (915 | ) | $ | — | |||
Deferred
|
— | — | ||||||
|
|
|
|
|||||
(915 | ) | — | ||||||
State:
|
||||||||
Current
|
4 | 4 | ||||||
Deferred
|
— | — | ||||||
|
|
|
|
|||||
4 | 4 | |||||||
Foreign:
|
||||||||
Current
|
1,705 | 1,694 | ||||||
Deferred
|
917 | 1,661 | ||||||
|
|
|
|
|||||
2,622 | 3,355 | |||||||
Total
|
$ | 1,711 | $ | 3,359 | ||||
|
|
|
|
2020
|
2019
|
|||||||
U.S
|
$ | (3,293 | ) | $ | (4,875 | ) | ||
Foreign
|
6,060 | 9,382 | ||||||
|
|
|
|
|||||
$ | 2,767 | $ | 4,507 | |||||
|
|
|
|
|||||
Effective tax rate
|
61.8 | % | 74.5 | % | ||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
Deferred tax assets:
|
||||||||
Vacation, warranty and other accruals
|
$ | 651 | $ | 635 | ||||
Depreciation and amortization
|
— | 89 | ||||||
Intangible amortization
|
551 | 804 | ||||||
Purchased technology
|
14 | — | ||||||
Inventory valuation
|
1,101 | 1,288 | ||||||
Equity-based compensation
|
1,494 | 1,593 | ||||||
Net operating loss, research and other tax credit carryforwards
|
55,322 | 54,818 | ||||||
Other
|
30 | 43 | ||||||
|
|
|
|
|||||
59,163 | 59,270 | |||||||
Valuation allowance for deferred tax assets
|
(52,088 | ) | (52,099 | ) | ||||
|
|
|
|
|||||
Total deferred tax assets
|
7,075 | 7,171 | ||||||
|
|
|
|
|||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
(341 | ) | — | |||||
Purchased technology
|
— | (45 | ) | |||||
Unbilled revenue
|
(1,399 | ) | (874 | ) | ||||
|
|
|
|
|||||
Total deferred tax liabilities
|
(1,740 | ) | (919 | ) | ||||
|
|
|
|
|||||
Net deferred tax assets
|
$ | 5,335 | $ | 6,252 | ||||
|
|
|
|
|||||
As reported on the balance sheet:
|
||||||||
Non-current
deferred tax assets
|
$ | 5,335 | $ | 6,252 | ||||
|
|
|
|
2020
|
2019
|
|||||||
Income tax at the federal statutory rate
|
$ | 581 | $ | 947 | ||||
State income taxes, net of federal benefit
|
4 | 4 | ||||||
Change in valuation allowance:
|
||||||||
U.S
|
(416 | ) | (689 | ) | ||||
Foreign
|
— | — | ||||||
Effect of foreign operations taxed at various rates
|
(235 | ) | (397 | ) | ||||
Research tax credits
|
(1,306 | ) | (1,710 | ) | ||||
Effect of tax rate changes, permanent differences and adjustments of prior deferrals
|
2,504 | 3,685 | ||||||
Unrecognized tax benefits
|
579 | 1,519 | ||||||
|
|
|
|
|||||
Total
|
$ | 1,711 | $ | 3,359 | ||||
|
|
|
|
2020
|
2019
|
|||||||
Beginning balance
|
$ | 7,683 | $ | 6,164 | ||||
Additions based on tax positions related to the current year
|
589 | 1,519 | ||||||
Settlements
|
— | — | ||||||
Lapse of statute of limitations
|
(945 | ) | — | |||||
|
|
|
|
|||||
Ending balance
|
$ | 7,327 | $ | 7,683 | ||||
|
|
|
|
January 2,
2021
|
December 28,
2019
|
|||||||
(in thousands)
|
||||||||
Assets:
|
||||||||
Operating lease
right-of-use
|
$ | 8,165 | $ | 10,279 | ||||
Liabilities:
|
||||||||
Current operating lease liabilities
|
$ | 2,853 | $ | 2,524 | ||||
Noncurrent operating lease liabilities
|
6,803 | 9,532 | ||||||
|
|
|
|
|||||
$ | 9,656 | $ | 12,056 | |||||
|
|
|
|
2020
|
2019
|
|||||||
(in thousands)
|
||||||||
Operating lease cost
|
$ | 2,942 | $ | 3,112 | ||||
Short-term lease cost
|
93 | 78 | ||||||
|
|
|
|
|||||
Total lease cost
|
$ | 3,035 | $ | 3,190 | ||||
|
|
|
|
(In thousands)
|
||||
2021
|
$ | 3,388 | ||
2022
|
3,474 | |||
2023
|
3,289 | |||
2024
|
541 | |||
|
|
|||
Total lease payments
|
10,692 | |||
Less: Interest
|
(1,036 | ) | ||
|
|
|||
Present value of lease liabilities
|
$ | 9,656 | ||
|
|
January 2,
2021
|
December 28,
2019
|
|||||||
Weighted-average remaining lease term (in years)
|
3.09 | 4.08 | ||||||
Weighted-average discount rate
|
6.39 | % | 6.37 | % |
2020
|
2019
|
|||||||
(in thousands)
|
||||||||
Operating cash outflows from operating leases
|
$ | 3,332 | $ | 3,484 | ||||
|
|
|
|
|||||
Right-of-use
|
$ | 128 | $ | 934 | ||||
|
|
|
|
2020
|
2019
|
|||||||
(in thousands)
|
||||||||
Beginning balance
|
$ | 1,022 | $ | 997 | ||||
Expenditures incurred under warranties
|
(512 | ) | (625 | ) | ||||
Accruals for product warranties
|
280 | 955 | ||||||
Adjustments to previously existing warranty accruals
|
(310 | ) | (305 | ) | ||||
|
|
|
|
|||||
Ending balance
|
$ | 480 | $ | 1,022 | ||||
|
|
|
|
Net Revenues
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
TFE
|
$ | 52,128 | $ | 73,678 | ||||
Photonics
|
45,696 | 35,207 | ||||||
|
|
|
|
|||||
Total segment net revenues
|
$ | 97,824 | $ | 108,885 | ||||
|
|
|
|
Operating Profit (Loss)
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
TFE
|
$ | (1,978 | ) | $ | 1,747 | |||
Photonics
|
10,064 | 6,434 | ||||||
|
|
|
|
|||||
Total segment operating profit
|
8,086 | 8,181 | ||||||
|
|
|
|
|||||
Unallocated costs
|
(5,531 | ) | (4,256 | ) | ||||
|
|
|
|
|||||
Operating income
|
2,555 | 3,925 | ||||||
|
|
|
|
|||||
Interest income
|
284 | 574 | ||||||
Other income (expense), net
|
(72 | ) | 8 | |||||
|
|
|
|
|||||
Income before provision for income taxes
|
$ | 2,767 | $ | 4,507 | ||||
|
|
|
|
Depreciation and Amortization
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
TFE
|
$ | 1,817 | $ | 1,909 | ||||
Photonics
|
1,159 | 1,310 | ||||||
|
|
|
|
|||||
Total segment depreciation and amortization
|
2,976 | 3,219 | ||||||
|
|
|
|
|||||
Unallocated costs
|
504 | 372 | ||||||
|
|
|
|
|||||
Total consolidated depreciation and amortization
|
$ | 3,480 | $ | 3,591 | ||||
|
|
|
|
Capital Additions
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
TFE
|
$ | 1,336 | $ | 2,611 | ||||
Photonics
|
636 | 832 | ||||||
|
|
|
|
|||||
Total segment capital additions
|
1,972 | 3,443 | ||||||
|
|
|
|
|||||
Unallocated
|
640 | 664 | ||||||
|
|
|
|
|||||
Total consolidated capital additions
|
$ | 2,612 | $ | 4,107 | ||||
|
|
|
|
Segment Assets
|
2020
|
2019
|
||||||
(in thousands)
|
||||||||
TFE
|
$ | 44,335 | $ | 51,153 | ||||
Photonics
|
22,923 | 22,071 | ||||||
|
|
|
|
|||||
Total segment assets
|
67,258 | 73,224 | ||||||
|
|
|
|
|||||
Cash and investments
|
49,568 | 42,024 | ||||||
Restricted cash
|
787 | 787 | ||||||
Deferred income taxes
|
5,335 | 6,252 | ||||||
Other current assets
|
1,093 | 752 | ||||||
Common property, plant and equipment
|
1,443 | 1,307 | ||||||
Common operating lease
right-of-use
|
1,603 | 1,898 | ||||||
Other assets
|
151 | 78 | ||||||
|
|
|
|
|||||
Consolidated total assets
|
$ | 127,238 | $ | 126,322 | ||||
|
|
|
|
January 2,
2021 |
December 28,
2019 |
|||||||
(in thousands)
|
||||||||
United States
|
$ | 10,678 | $ | 11,420 | ||||
Asia
|
326 | 178 | ||||||
|
|
|
|
|||||
Net property, plant & equipment
|
$ | 11,004 | $ | 11,598 | ||||
|
|
|
|
2020
|
||||
(in thousands)
|
||||
Balance at the beginning of the year
|
$ | — | ||
Provision for restructuring charges
|
103 | |||
Cash payments made
|
(103 | ) | ||
|
|
|||
Balance at the end of the year
|
$ | — | ||
|
|
Item 9.
|
Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
|
/s/ BPM LLP
|
San Jose, California
|
February 17, 2021
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statements
|
(1) |
Previously filed as an exhibit to the Company’s Report on Form
8-K
filed July 23, 2007
|
(2) |
Previously filed as an exhibit to the Company’s Report on Form
8-K
filed March 15, 2012
|
(3) |
Previously filed as an exhibit to the Registration Statement on Form
S-1
(No.
33-97806)
|
(4) |
Previously filed as an exhibit to the Company’s Form
10-K
filed February 12, 2020
|
(5) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed May 3, 2011
|
(6) |
Previously filed as an exhibit to the Company’s Definitive Proxy Statement filed April 6, 2020.
|
(7) |
Previously filed as an exhibit to the Company’s Definitive Proxy Statement filed April 11, 2018
|
(8) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed May 1, 2012
|
(9) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed July 30, 2019
|
(10) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed April 29, 2014
|
(11) |
Previously filed as an exhibit to the Registration Statement on Form
S-8
filed May 14, 2020 (No.
33-238262)
|
(12) |
Previously filed as an exhibit to the Company’s Form
10-K
filed March 14, 2008
|
(13) |
Previously filed as an exhibit to the Company’s Report on Form
8-K
filed July 9, 2013
|
(14) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed October 28, 2014
|
(15) |
Previously filed as an exhibit to the Company’s Report on Form
8-K
filed October 31, 2014
|
(16) |
Previously filed as an exhibit to the Company’s Form
10-Q
filed May 1, 2018
|
(17) |
Previously filed as an exhibit to the Company’s Report on Form
8-K
filed November 15, 2016
|
(P) |
Paper exhibit.
|
+ |
Management compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 15(b) of Form
10-K
|
INTEVAC, INC.
|
/s/ JAMES MONIZ
|
James Moniz
|
Executive Vice President, Finance and Administration
|
Chief Financial Officer, Secretary and Treasurer
|
Signature
|
Title
|
Date
|
||
/s/ WENDELL T. BLONIGAN
|
President,
|
February 17, 2021
|
||
(Wendell T. Blonigan)
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
|||
/s/ JAMES MONIZ
|
Executive Vice President, Finance and
|
February 17, 2021
|
||
(James Moniz)
|
Administration, Chief Financial Officer, Secretary
and Treasurer (Principal Financial
and Accounting Officer)
|
|||
/s/ DAVID S. DURY
|
Chairman of Board
|
February 17, 2021
|
||
(David S. Dury)
|
||||
/s/ KEVIN D. BARBER
|
Director
|
February 17, 2021
|
||
(Kevin D. Barber)
|
||||
/s/ DOROTHY D. HAYES
|
Director
|
February 17, 2021
|
||
(Dorothy D. Hayes)
|
||||
/s/ STEPHEN A. JAMISON
|
Director
|
February 17, 2021
|
||
(Stephen A. Jamison)
|
||||
/s/ MICHELE F. KLEIN
|
Director
|
February 17, 2021
|
||
(Michele F. Klein)
|
||||
/s/ MARK P. POPOVICH
|
Director
|
February 17, 2021
|
||
(Mark P. Popovich)
|
||||
/s/ THOMAS M. ROHRS
|
Director
|
February 17, 2021
|
||
(Thomas M. Rohrs)
|
Exhibit 21.1
SUBSIDIARIES OF THE REGISTRANT
1. |
Intevac Photonics, Inc. |
2. |
Intevac Pacific Group Holdings Ltd. Pte Singapore |
3. |
Lotus Technologies, Inc. Santa Clara, California |
4. |
IRPC, Inc. Santa Clara, California |
5. |
Solar Implant Technologies, Inc. California |
6. |
Intevac Foreign Sales Corporation Barbados |
7. |
Intevac Asia Private Limited Singapore |
8. |
Intevac Malaysia Sdn Bhd Malaysia |
9. |
Intevac Limited Hong Kong |
10. |
Intevac (Shenzhen) Co. Ltd. China |
11. |
IVAC Co. Ltd. Korea |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-238262, 333-232730, 333-226262, 333-219405, 333-212647, 333-205368, 333-197700, 333-190250, 333-181929, 333-175979, 333-168505, 333-160596, 333-152773, 333-143418, 333-134422, 333-125523, 333-109260, 333-106960, 333-50166 and 333-65421) of Intevac, Inc. of our reports dated February 17, 2021 relating to the consolidated financial statements and internal control over financial reporting, which appear in this Annual Report on Form 10-K.
/s/ BPM LLP |
San Jose, California |
February 17, 2021 |
Exhibit 31.1
Certifications
I, Wendell T. Blonigan, certify that:
1. |
I have reviewed this Annual Report on Form 10-K 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 controls 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;
(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 controls 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: February 17, 2021
/s/ Wendell T. Blonigan |
Wendell T. Blonigan |
President, Chief Executive Officer and Director |
Exhibit 31.2
Certifications
I, James Moniz, certify that:
1. |
I have reviewed this Annual Report on Form 10-K 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 controls 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;
(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 controls 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: February 17, 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 T. 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 Annual Report of Intevac, Inc. on Form 10-K for the period ended January 2, 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-K fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: February 17, 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 Annual Report of Intevac, Inc. on Form 10-K for the period ended January 2, 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-K fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: February 17, 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.