SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
March 5, 2003
INTEVAC, INC.
State of California | 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
(408) 986-9888
N/A
Item 9. | ||||||||
Item 7. Financial Statements and Exhibits | ||||||||
EXHIBIT 99.1 |
Item 9.
Please find the March 2003 Business Presentation attached as Exhibit 99.1.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 | Investor Presentation. |
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: March 5, 2003 | By: |
/s/ CHARLES B. EDDY III
Charles B. Eddy III Vice President, Finance and Administration, Chief Financial Officer, Treasurer and Secretary |
EXHIBIT INDEX
(c) Exhibits
99.1
Investor Presentation.
Intevac, Inc. |
Investment Presentation March 2003 Kevin Fairbairn, CEO Charles Eddy, CFO |
Cautionary Disclaimer During the course of this presentation, we will comment upon future events and make projections about the future financial performance of the Company, including statements related to the Companys expected sales, product shipments and acceptance, gross margins, operating expenses, profits, cash flow, and income tax expense. We will discuss our products, the markets they address and acceptance of those products by the market. 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 and technologies 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; and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update the forward-looking statements made during this presentation. |
Intevac Profile LBO From Varian Associates 1991 IPO 1995 Imaging Business Photonic Technology Division Military market focus Break through technologies for next generation intensified imaging Commercial Imaging Division Apply technologies developed for military to commercial applications Equipment Systems Business Principally focused on hard drive disk coating equipment Presence in flat panel display sputtering equipment market |
Intevac Opportunity $25.00 140 |
120 $20.00 100 NASDAQ NM IVAC |
$15.00 |
80 Shares Outstanding 12.1M |
60 $10.00 |
40 Share Price $ Float 5.7M Revenue $Millions$5.00 20 |
0 $- |
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 |
Revenue Hi Low |
Imaging Business Revenue driven by contract R&D, average $7 million annually last 3 years Transition from R&D to products in 2003/2004 Significant military revenues in future Commercial market represents large shorter term opportunity Equipment Systems Business Peak revenues in 97driven by hard disk drive capacity tool buys Market share leader Next wave of buys in 03-05 driven by technology and capacity needs |
Intensified Imaging History |
Intevac Founded |
1st Airborne LIVAR® Shipment Portable LIVAR® System |
Night Vision Business Sold |
1st Model 120 $120M Shipments of Camera |
Gen III Tubes Photon-Processor Shipment Demonstration Manufacturing Development Beta Manufacturing |
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 |
>$60 Million Spent On Development Of Next Generation Technology |
Military Intensified Imaging Products |
Military Prefers to Fight In The Dark Military Is Evolving to Network Centric Warfare |
Information Grid |
Sensors Information Objects Command & Control Control Sensor Grid Shooters Information Negated Objects Shooter Grid |
Source: Observation on the Emergence of Network Centrix Warfare; Stein, Fred P. |
Intevac Has Developed Revolutionary Digital Based Intensified Imaging Products That Address These Military Needs |
Cost Effective Digital Intensified Imaging Solution Long Range: LIVAR® |
- Covert target ID at significantly longer ranges than Forward Looking Infra Red Systems Compact and man portable Retrofitable to existing targeting systems |
Short Range: Photon Processor Miniature extreme low light CMOS digital imager Performance comparable to Gen III Night Vision technology at 1/3 cost |
Utilizing Digital Technology to Enhance Performance and Lower Cost |
LIVAR® Operational Concept Detect Forward Looking Infra Red Finds Hot Objects in Dark |
Range and Illuminate Eye Safe Laser Covert |
Image 5x Increase in ID Range |
Communicate Digital Information |
LIVAR® Product Applications |
Target Tracking for Airborne Laser |
Manned / Unmanned Airborne |
Man-Portable Land / Marine |
Scout Vehicles |
LIVAR® 2200 |
CETS: Cost Effective Targeting System |
Airborne Laser Program |
Photon-Processor
Extreme Low Light Level Digital Video Imager
Photoelectrons CMOS Imager
Light
Photocathode
Video Output Photon-Processor
Low Cost Day/Night Operation Patented Technology SXGA (1024 X 1280) Resolution Camera Electronics On-chip Low Power <600 Mw @ 3 VDC |
Photon Processor Based Products Intensified Imaging Camera Product Applications |
- Head Mounted and Miniature Cameras |
- Scientific Cameras / Machine Vision |
- Security and Night Time Surveillance |
Performance Comparable to Gen III Night Vision Technology at 1/3 the Cost Digital Output vs. Green Glow |
Head-Mounted Cameras intevac 3560 Bassett Street , Santa Clara CA 95054 For Immediate Release Contact: Charley Eddy, CFO (408) 496-2259 ceddy@intevac.com |
INTEVAC ANNOUNCES CONTRACT WITH SAIC FOR DEVELOPMENT OF A PROTOTYPE INTENSIFIED CMOS CAMERA FOR ARMY HEAD MOUNTED DISPLAY APPLICATIONS Military HMD Santa Clara, California, October 29, 2002 Intevac, Inc. (NASDAQ: IVAC) today announced that it has been awarded an $860,000 contract from SAIC for Low Light Level Camera Module development of a miniature intensified CMOS camera based on Intevacs |
EBAPS technology. The program is funded by the U.S. Army and is managed Integrated into a Head-Mounted by the Night Vision and Electronic Sensors Directorate (NVESD) at Ft. Belvoir, |
Imaging System VA. Gen III Night Vision Performance Coupled with a High Resolution Miniature Display |
$200M Annual Potential Military Market Beginning 2007* * Company Estimate |
Military Intensified Imaging Product Pipe Line ABL LIVAR® $13 Million Airborne Program $42 Million Cost Effective Targeting LIVAR® $150 Million Head Mounted Cameras $1000 + Million Man Portable LIVAR® $200 Million Vehicle Mounted $20 Million LIVAR® UAV LIVAR® TBD Naval LIVAR® TBD 20032004 2005 20062007 2008 Technology Engineering & Manufacturing Production Demonstration Development PhasePhase Typical Production Run: 8-10 years $$ |
Commercialized Intensified Imaging Business Leveraging Technology Developed for Military both at Intevac and Elsewhere |
Large Scale Infrastructure Security |
Port AuthorityInfrastructure SupportWater WatchExtended Runway Ferry or Tanker WatchBorder Control LIVAR® Enables Automated Detection and Identification of Potential Threats Over Large Areas Available Q4 2003 |
Extreme Low Light Video Cameras Available Q2 2003 Addressing Shorter Range Nighttime Security/Surveillance Needs |
Total Available Market Estimated at > $700 Million |
LIVAR Competitive Comparison Long Range Identification >5Km Intensified Imaging Camera & Illuminator LIVAR Gen III InSb Camera |
Wave Length (Micron) Visible ##0.9 1.5 3 5 Eye Safety XLegal { { Stealth X Physics { { |
Large Size { { X Telescope Power Requirements { { X Refrigeration Window Penetration { { X Physics Read Alphanumerics { { X Physics Smoke Penetration { Low Thermal Contrast Scene { { / X Cost { { X |
{Acceptable Marginal X Bad |
Business Opportunity: Memory Equipment Intevac Founded Limit of Installed Base |
MDP 250 Launch MDP 250B MDP 200 +MDP 250B |
1Gb/in2 10Gb/in250Gb/in2 100Gb/in2 |
Longitudinal Media Technology AFC Perpendicular 3-7 Layers 10 Layers >12 Layers 120 MDP 250 122 Units Shipped > $200 Million |
100 12 Layer Capacity Technology |
Market Share Leader Upgrade 80 Potential |
$432M Revenue 93 -02 Revenue $Millions 60 40 |
20 |
0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 |
Memory Equipment Outlook 2002/2003 Inflection Point First Capacity Buys in 2002 Since 1998 Quotation activity up Analysts Forecasting 25% Growth Over Next 3 Years in Hard Drive Unit Shipments |
Hard Drive Shipments 350 100% 90% 300 80% 250 70% Shipped 60% 200 50% Total Units 150 Total Drives Ship ped 40% of Units (Millions) % 100 30% 20% 50 10% Consum er Drives Shipped 0 0% |
2000 2001 2002E 2003E 2004E 2005E |
Consumer Applications Fuel Growth |
Source: TrendFocus & Salomon Smith Barney |
Operating Results ($Millions) 2002 2001 |
Revenue $34 $51 Gross Profit 7 10 Gross Margin 22% 19% Operating Expense R&D 11 14 SG&A 8 7 Total 19 21 Operating Income (11) (12) Other Income/Expense 13 (1) Taxes 7 (4) Net Income $9 ($17) |
Balance Sheet ($millions) 12/31/02 12/31/01 Cash $28 $18 RM & WIP 6 18 Finished Goods 10 4 Accounts Receivable 5 8 Property, Plant and Equipment 7 9 Other 4 3 Total Assets $60 $60 |
Accounts Payable and Accruals $ 7 $ 8 Customer Advances 12 13 Convertible Notes due 2004 1 38 Convertible Notes due 2009 30 - Shareholder Equity 10 1 Liabilities and Shareholders Equity $60 $60 |
Intevac Management |
Kevin Fairbairn, CEO Former VP & GM, Applied Materials (16 years) (February 2002) 28 years in high technology Multiple successful new product developments, launches and market developments |
Verle Aebi, President, Conceptualized and productized LIVAR® and associated Photonics Technology Division technologies 26 years photonic technology including 12 years at Intevac Military Led higher performance GEN III Night Vision development |
Chris Lane, GM Former Director, New Products, Applied Materials (12 years) Intensified Imaging Division Demonstrated skills to bring new products to market |
Commercial Systems background |
Charles B. Eddy 12 years CFO, Intevac, led IPO CFO CFO at 2 start-ups |
Plant Manager and Controller at Intel |
Intensified Imaging Team Continuity from inception to productization 50% of team have 12 years Intevac experience Demonstrated success in manufacturing leading edge night vision tubes (60,000 units) |
2003 Priorities |
Additional LIVAR® Military Program Wins Military Head Mounted Display Program Win 1000 Unit/Month Pilot Production Capability for LIVAR and EBAPS Sensors Introduce Commercial Security Camera Line Introduce Commercial Long Range ID systems Establish Commercial Imaging Sales and Distribution Win Lions Share of Media Capacity and Technology Upgrades Design/Ship First Perpendicular Media System Extract Value from FPD |