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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
February 6, 2008
Date of Report (date of earliest event reported)
INTEVAC, INC.
 
(Exact name of Registrant as specified in its charter)
         
Delaware   0-26946   94-3125814
(State or other jurisdiction   (Commission File Number)   (IRS Employer
of incorporation or organization)       Identification Number)
3560 Bassett Street
Santa Clara, CA 95054
(Address of principal executive offices)
(408) 986-9888
(Registrant’s telephone number, including area code)
N/A
 
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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Item 7.01 Regulation FD Disclosure
Item 9.01. Financial Statements and Exhibits
EXHIBIT 99.1

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Item 7.01   Regulation FD Disclosure
     Please find the February 2008 Thomas Weisel Partners Conference Presentation attached as Exhibit 99.1. This Current Report on Form 8-K and the attached exhibit are furnished to, but not filed with, the Securities Exchange Commission (“SEC”) and shall not be deemed to be incorporated by reference into any of the Company’s filings with the SEC under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended.
Item 9.01.   Financial Statements and Exhibits
(c)   Exhibits
         
       
 
  99.1    
Thomas Weisel Partners Conference Presentation.

 

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     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
    INTEVAC, INC.
  		 
Date: February 6, 2008  By:   /s/ JEFFREY ANDRESON    
    Jeffrey Andreson   
    Vice President, Finance and Administration,
Chief Financial Officer, Treasurer and Secretary  		 
 

 

 

Thomas Weisel Partners Technology Telecom Internet Conference February 2008 Joe Pietras VP and GM Imaging Jeff Andreson Chief Financial Officer

 

Cautionary Disclaimer During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow and income tax expense. We will discuss our business strategy, our products, the markets our products address, our position in those markets, expected market acceptance of those products and production capacity. We wish to caution you that these are forward looking statements that are based upon our current expectations, and that actual results could differ materially as a result of various risks and uncertainties, including, without limitation, the following: inability to develop and deliver new products as planned; inability to accurately forecast the demand for our products and services; the possibility that orders in backlog may be cancelled, delayed or rescheduled; inability to achieve gross margin and expense goals and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update the forward-looking statements made during this presentation.

 

Intevac Investment Thesis Established Company With Significant Opportunities for Growth Share Leader in ~$350M1 Disk Media Deposition Market Growth driven by continuously increasing demand for hard drives Entering $2B Semiconductor Dielectric Etch Market Revolutionary approach, competing on technology and cost Team with proven track record in launching successful semiconductor equipment products Achieving Rapid Growth in Imaging Instrumentation Business Profitable business serving markets exceeding $2 billion Successful record of both organic and acquisitive growth Record of Operational Excellence Continued margin expansion in fluctuating market conditions Record of generating significant cash flow from operations; $6.50 per share in cash * 1 Estimate Average FY06 - 07

 

Multiple Growth Opportunities Goal: 30% CAGR Actual: 56% CAGR (2003 - 2007) HDD Today 2009 2012 Hard Drive Media Imaging Semiconductor Equipment

 

Leading Position in Media Deposition Market Leading Position in Media Deposition Market Ever-Increasing Demand for Hard Drives Computing Consumer Future Capacity Requirements 2002 2003 2004 2005 2006 2007 IVAC HDD Equipment Revenue 27.1 26.7 60.5 129.3 248.5 196.7 Intevac Equipment Revenues ($M) 49% CAGR 2002-2007 Market Share Leader IVAC's Growth Record IVAC's Growth Record Intevac Others Future Capacity Requirements Drive Demand 2010 750M* Disk Capacity Needed 1200M IVAC Customers' Share 800M # Leans, ea. Making 3.5M Disks/Yr: 235 Less: 200 Lean(r) Tools Shipped (110) 200 Leans Deployed 2008-10 125 * Source: TrendFocus 03/07 Leans >2010, at 10% Disk Growth Per Year 23

 

Intevac Strategy: Become $1 Billion Revenue Company by Expanding Served Markets Current Disk Media Deposition Equipment ~$350 Million SAM Dielectric Etch $2.1B Silicon Etch $0.7B Metal Etch $0.4B Thin Films Future Semiconductor Plasma Process Equipment ~$8 Billion SAM Intevac Others AMAT LAM TEL

 

Addressing Market Need for Lower Semiconductor Costs Shrinks (Moore's Law) ~ 30% Reduction Per Generation Wafer Size Increase ~ 30% Reduction Productivity Innovation 65nm 45nm 32nm 200mm 300mm ~1990 ~2000 Lithography Costs 450mm No Financial Sponsor to Cover Investment Costs Single Wafer Processing Cluster Tools 30% Reduction Late 80s 90s Improved Process Control / Yields

 

Enabling Etch Technology for 45nm and Beyond Addressing Need for Significant Productivity Improvements Designed With "Lean Thinking" Principles Universal Etch System Enabling Technology, Double the Throughput

 

Memory Market Most in Demand of Aggressive Cost Reduction Strategies Source: Lam Research, ISS January 2008 Price/Cost Gap Addressed by Intevac's Lean Etch(tm)

 

Formula for Success in Dielectric Etch Value Proposition Leading-Edge Process Technology Revolutionary Approach to System Productivity Lowering the Cost Equation for Markets With Accelerating Price Declines Intevac Strategy Focus on Leading Memory Companies Assemble World-Class Team With Proven Track Record in the Industry Work Closely With Customers to Address Their Needs Achieve Tool Qualification in 2008 Revenue Ramp 2009 Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market Add Other Applications on Lean Mainframe to Expand Served Market

 

Intevac Imaging Instrumentation Successful Record of Organic and Acquisitive Growth NIGHT VISION SYSTEMS Intevac Solution Used for 1st Major Deployment (NATO Country) U.S. Army - Engaged on Multi Fronts Potential Market >$400M Per Year LIVAR AND LOW-LIGHT CAMERAS Qualifying on Multiple Programs Potential Sales of > $100M Over Ten Years DELTA NU Acquired Q1'07 Raman Systems and Chemical Analyzers Medical, Life Sciences, Military, Industrial Markets Accretive to Earnings in 2H'07 Low-Power, High-Resolution Display Technology Medical, Sim/Training, Veterinary, Military Markets Accretive to Earnings by Year End 2008 CREATIVE DISPLAY SYSTEMS Acquired Q4'07

 

Imaging Business Ramping Imaging Business Ramping Imaging Business Ramping Imaging Business Ramping Leading Thermal Imaging Company Intevac Imaging Instrumentation Business 02-07 CAGR 23% 05-07 CAGR 55% 06-08E CAGR 75% 93-98 CAGR 31% 96-98 CAGR 53%

 

Significant Value in Imaging Business Significant Value in Imaging Business Significant Value in Imaging Business Significant Value in Imaging Business Leading Thermal Imaging Company Intevac Imaging Instrumentation Business Business Business Business Business Significant Revenue Growth Opportunity

 

Intevac Record of Operational Excellence Intevac Record of Operational Excellence Significant Gross Margin Expansion in Fluctuating Market Conditions in Fluctuating Market Conditions in Fluctuating Market Conditions in Fluctuating Market Conditions in Fluctuating Market Conditions Consistently Generating Cash in Fluctuating Market Conditions 12 Percentage Points Added to Gross Margin Q1'06-Q4'07 Generated $100M In Cash From Operations '06 - '07 Operations '06 - '07 Operations '06 - '07 Operations '06 - '07 Operations '06 - '07 Operations '06 - '07 Operations '06 - '07 Revenues ($M) Gross Margin % Op. Income and Cash from Ops ($M) Cash and Investments ($M) 0 0

 

Business Model Trends and Goals Revenue ($M) Long Term Goal Improvement Initiatives 2006 Gross Margin Operating Expense Other Income Profit / (Loss) Before Tax 39% >45% Continued Margin Expansion in Equipment and Imaging Products Continue to Increase Manufacturing in Asia 20% <25% 1% 3% 20% > 20% Lean Thinking Business Principles Consistently eliminate waste Reduce cycle times 260 120-150 41-44% 45-53% (8%)- 2% 2007 4% 216 45% 32% 16% 1 Based Upon February 5, 2008 Conference Call 2008 Est. 1

 

Investment Rationale Significant Growth Opportunities Growth in Digital Storage Requires Continued Capacity Additions Entering Large Semiconductor Equipment Market Imaging Instrumentation Products Ramping Team with Proven Track Record Developing and Managing Global Billion Dollar Businesses Developing Advanced Equipment and Imaging Solutions Marketing to Industry Leaders Grew Business by 500% Since 2003 Attractive Value Proposition Record of Expanding Gross Margins and Cash Flow Generation $6.50 Per Share in Cash, Tangible Book $8.20 Per Share Semiconductor and Imaging Investments Offer Opportunity for Future Enhanced Valuations

 

Thomas Weisel Partners Technology Telecom Internet Conference February 2008 Joe Pietras VP and GM Imaging Jeff Andreson Chief Financial Officer