INTEVAC INC false 0001001902 0001001902 2024-04-25 2024-04-25

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

April 25, 2024

Date of Report (date of earliest event reported)

 

 

INTEVAC, INC.

(Exact name of Registrant as specified in its charter)

 

 

 

State of Delaware   0-26946   94-3125814

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

  (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:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition

On April 25, 2024, Intevac, Inc. issued a press release reporting its financial results for the three months ended March 30, 2024. 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

 

 

(d)

Exhibits

 

99.1

  

Press Release.

104

  

The cover page from this Current Report on Form 8-K, formatted in Inline XBRL


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

     

INTEVAC, INC.

Date: April 25, 2024

     

/s/ KEVIN SOULSBY

     

Kevin Soulsby

     

Interim Chief Financial Officer, Secretary and Treasurer

Exhibit 99.1

 

LOGO   

3560 Bassett Street, Santa Clara CA 95054

 

 

Kevin Soulsby

  

Claire McAdams

Chief Financial Officer

  

Investor Relations

(408) 986-9888

  

(530) 265-9899

Intevac Announces First Quarter 2024 Financial Results

Santa Clara, Calif.—April 25, 2024—Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the first quarter ended March 30, 2024.

Q1 Highlights:

 

   

Continued strong demand for technology upgrades for hard disk drive (HDD) media resulted in sales of nearly $10 million and gross margin approaching 44% for the quarter.

 

   

New orders exceeded $20 million for the quarter, and included HDD technology upgrade bookings from multiple customers, including initial HAMR (heat-assisted magnetic recording) upgrade orders from a leading data storage company.

 

   

Completed agreement related to payment terms with a major HDD customer.

 

   

Resolved our JDA agreement in order to work directly with key OEMs and their direct suppliers, which led to the April shipment of an initial TRIO system to a display cover glass finishing facility in Asia.

 

   

Total cash, restricted cash and investments were $65 million at quarter end, and with more meaningful accounts receivable collections quarter-to-date the current balance is over $75 million.

“We are pleased to demonstrate our critical role in the HDD ecosystem with Q1 revenues approaching $10 million, consisting primarily of HAMR technology upgrade sales,” commented Nigel Hunton, president and chief executive officer. “Our HDD backlog of $53 million at quarter-end reflects continued strong bookings for upgrades in support of our customers’ strategic technology roadmaps, and supports the visibility and longevity of a multi-year HAMR investment cycle, which in Q1 expanded for the first time to multiple HDD customers. We expect these strategic investments to boost areal density will continue to drive strength in our HDD business for several years, and with continued advancements in reducing the cost-per-bit of HDD storage we agree with industry expectations of robust demand for hard drive media.

“With our first TRIO shipping into the field earlier this month, the level of excitement amongst Intevac employees is real,” continued Mr. Hunton. “Since achieving qualification of the initial TRIO system just prior to year-end 2023, we have continued to navigate the complexities of the display cover glass ecosystem for consumer electronics. We successfully reached an agreement to deliver our first TRIO system in April, which is expected to convert to revenue upon successful end-customer qualification. We continue to believe the TRIO platform will be our major growth driver for the future, and the strong end-market customer demand and pull for the impressive capabilities and performance of our system helped drive the successful shipment of the first system earlier this month.” Mr. Hunton concluded, “We remain steadfast in our focus to successfully transform Intevac into a consistently profitable company with a strong growth trajectory, and our decision to focus on the long-term potential of each of our flagship systems during the first quarter culminated in both an immediate return to HDD upgrade deliveries and the collection of overdue of receivables, as well as the shipment of our first TRIO. I wish to thank the incredible Intevac team of employees who are executing phenomenally and we also wish to thank our stockholders for their continued support.”


($ Millions, except per share amounts)    Q1 2024     Q1 2023  
     GAAP Results     Non-GAAP Results     GAAP Results     Non-GAAP Results  

Net Revenues

   $ 9.6     $ 9.6     $ 11.5     $ 11.5  

Operating Loss

   $ (4.4   $ (4.4   $ (4.5   $ (4.5

Net Loss

   $ (1.6   $ (2.7   $ (3.9   $ (4.2

Net Loss per Diluted Share

   $ (0.06   $ (0.10   $ (0.15   $ (0.16

Intevac’s non-GAAP adjusted results exclude the impact of the following, where applicable: discontinued operations. A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial table included in this release. See also “Use of Non-GAAP Financial Measures” section.

First Quarter 2024 Summary

Revenues were $9.6 million, compared to $11.5 million in the first quarter of 2023, and consisted of HDD upgrades, spares and service. Gross margin was 43.7%, compared to 40.9% in the first quarter of 2023. Operating expenses were $8.7 million, compared to $9.2 million in the first quarter of 2023. The operating loss was $4.4 million compared to $4.5 million in the first quarter of 2023.

The net loss for the quarter was $1.6 million, or $0.06 per diluted share, compared to a net loss of $3.9 million, or $0.15 per diluted share, in the first quarter of 2023. The non-GAAP net loss for the first quarter of 2024 was $2.7 million, or $0.10 per diluted share, compared to a non-GAAP net loss of was $4.2 million, or $0.16 per diluted share, in the first quarter of 2023.

Order backlog was $53.1 million on March 30, 2024, compared to $42.4 million on December 30, 2023 and $120.7 million on April 1, 2023. Backlog at March 30, 2024 and December 30, 2023 did not include any 200 Lean HDD systems. Backlog at April 1, 2023 included eleven 200 Lean HDD systems.

The Company ended the quarter with $65.5 million of total cash, cash equivalents, restricted cash and investments and $114.0 million in tangible book value.

Use of Non-GAAP Financial Measures

Intevac’s non-GAAP results exclude the impact, where applicable, of discontinued operations. A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release.

Management uses non-GAAP results to evaluate the Company’s operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Intevac believes these measures enhance investors’ ability to review the Company’s business from the same perspective as the Company’s management and facilitate comparisons of this period’s results with prior periods. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP.

Conference Call Information

The Company will discuss its financial results and outlook in a conference call today at 5:30 a.m. PDT (8:30 a.m. EDT). To participate in the teleconference, please call toll-free (877) 407-0989 prior to the start time, and reference meeting number 13745582. For international callers, the dial-in number is +1 (201) 389-0921. You may also listen live via the Internet at https://www.webcast-eqs.com/login/intevac042524 or on the Company’s investor relations website at https://ir.intevac.com/.

About Intevac

Founded in 1991, we are a leading provider of thin-film process technology and manufacturing platforms for high-volume manufacturing environments. As a long-time supplier to the hard disk drive (HDD) industry, our industry-leading 200 Lean® platform supports the majority of the world’s capacity for HDD disk media production, as well as all technology upgrade initiatives currently underway in support of next-generation HAMR (heat-assisted magnetic recording) media. With over 30 years of leadership in designing, developing, and manufacturing high-productivity, thin-film processing systems, we also are leveraging our technology and know-how for additional markets with our groundbreaking TRIO platform, which enables high-value coatings to be deployed cost-effectively on an array of glass displays and other substrates, including for consumer devices.

For more information call 408-986-9888, or visit the Company’s website at www.intevac.com.

200 Lean® and TRIO are trademarks 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: the Company’s revenue growth potential and future financial performance. 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, global macroeconomic conditions and supply chain challenges including shipment delays, availability of components, and freight, logistics and other disruptions, and changes in market dynamics that could change the forecasts and delivery schedules for both our systems and upgrades, 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 periodic filings with the U.S. Securities and Exchange Commission.

All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Intevac does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law. Any future product, service, feature, or related specification that may be referenced in this release is for informational purposes only and is not a commitment to deliver any offering, technology or enhancement.


INTEVAC, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

 

     Three months ended  
     March 30,
2024
    April 1,
2023
 

Net revenues

   $ 9,631     $ 11,542  

Gross profit

     4,204       4,719  

Gross margin

     43.7     40.9

Operating expenses

    

Research and development

     4,369       3,973  

Selling, general and administrative

     4,281       5,200  
  

 

 

   

 

 

 

Total operating expenses

     8,650       9,173  
  

 

 

   

 

 

 

Total operating loss

     (4,446     (4,454

Interest and other income

     2,221       672  
  

 

 

   

 

 

 

Loss before provision for income taxes

     (2,225     (3,782

Provision for income taxes

     476       386  
  

 

 

   

 

 

 

Net loss from continuing operations

     (2,701     (4,168

Net income from discontinued operations

     1,095       277  
  

 

 

   

 

 

 

Net loss

   $  (1,606   $  (3,891
  

 

 

   

 

 

 

Net loss per share

    

Basic and diluted – continuing operations

   $ (0.10   $ (0.16

Basic and diluted – discontinued operations

   $ 0.04     $ 0.01  

Basic and diluted – net loss

   $ (0.06   $ (0.15

Weighted average common shares outstanding

    

Basic and Diluted

     26,522       25,781  


INTEVAC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

 

      March 30, 
2024
    December 30,
2023
 
     (Unaudited)     (see Note)  

ASSETS

    

Current assets

    

Cash, cash equivalents and short-term investments

   $ 63,844     $ 68,846  

Accounts receivable, net

     25,136       18,613  

Inventories

     45,808       43,795  

Prepaid expenses and other current assets

     2,387       2,123  
  

 

 

   

 

 

 

Total current assets

     137,175       133,377  

Long-term investments

     922       2,687  

Restricted cash

     700       700  

Property, plant and equipment, net

     7,149       7,664  

Operating lease right-of-use assets

     7,182       7,658  

Intangible assets, net

     920       954  

Other long-term assets

     3,194       3,466  
  

 

 

   

 

 

 

Total assets

   $ 157,242     $ 156,506  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities

    

Current operating lease liabilities

   $ 902     $ 1,008  

Accounts payable

     5,494       5,800  

Accrued payroll and related liabilities

     2,837       3,475  

Other accrued liabilities

     1,955       1,820  

Customer advances

     23,044       20,407  
  

 

 

   

 

 

 

Total current liabilities

     34,232       32,510  

Non-current liabilities

    

Non-current operating lease liabilities

     6,591       6,976  

Customer advances

     1,482       1,482  

Other non-current liabilities

     14       21  
  

 

 

   

 

 

 

Total non-current liabilities

     8,087       8,479  

Stockholders’ equity

    

Common stock ($0.001 par value)

     27       26  

Additional paid-in capital

     211,398       210,320  

Treasury stock, at cost

     (29,551     (29,551

Accumulated other comprehensive income

     30       97  

Accumulated deficit

     (66,981     (65,375
  

 

 

   

 

 

 

Total stockholders’ equity

     114,923       115,517  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $  157,242     $ 156,506  
  

 

 

   

 

 

 

Note: Amounts as of December 30, 2023 are derived from the December 30, 2023 audited consolidated financial statements


INTEVAC, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(Unaudited, in thousands, except per share amounts)

 

     Three months ended  
     March 30,
2024
    April 1,
2023
 

Non-GAAP Loss from Operations

    

Reported operating loss (GAAP basis)

   $  (4,446   $  (4,454
  

 

 

   

 

 

 

Non-GAAP Operating Loss

   $ (4,446   $ (4,454

Non-GAAP Net Loss

    

Reported net loss (GAAP basis)

   $ (1,606   $ (3,891

Discontinued operations1

     (1,095     (277
  

 

 

   

 

 

 

Non-GAAP Net Loss

   $ (2,701   $ (4,168

Non-GAAP Net Loss Per Share

    

Reported net loss per share (GAAP basis)

   $ (0.06   $ (0.15

Discontinued operations1:

     (0.04     (0.01

Non-GAAP Net Loss Per Share

   $ (0.10   $ (0.16

Weighted average number of diluted shares outstanding

     26,522       25,781  

 

1 

The amount represents discontinued operations of the Photonics business that was sold on December 30, 2021.