▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | GreenCity | Italian Channel Awards | Italian Project Awards | ...
InnovationOpenLab

Intevac Announces Fourth Quarter and Full Year 2023 Financial Results

Intevac, Inc. (Nasdaq: IVAC), a leading supplier of thin-film processing systems, today reported financial results for the fiscal fourth quarter and year ended December 30, 2023. Q4 and Fiscal 2023 Hi...

Business Wire

SANTA CLARA, Calif.: Intevac, Inc. (Nasdaq: IVAC), a leading supplier of thin-film processing systems, today reported financial results for the fiscal fourth quarter and year ended December 30, 2023.

Q4 and Fiscal 2023 Highlights

  • Successfully completed TRIO™ development program and achieved qualification of initial TRIO system before year-end 2023.
  • Q4 sales of $12.9 million exceeded prior expectations due to the acceleration of heat-assisted magnetic recording (HAMR) technology upgrades for our hard disk drive (HDD) customers. Total revenues of $52.7 million for fiscal 2023 represented very strong growth of 47% year-over-year.
  • Achieved all-time record sales of HDD upgrades – for both the fiscal third quarter and full year 2023 – in support of the HAMR technology transition currently underway on our industry-leading 200 Lean® flagship platform.
  • Successfully re-negotiated order backlog for two capacity-adding 200 Lean systems during Q4, in favor of additional HAMR process module upgrades.
  • Ended 2023 with $72.2 million in cash, restricted cash, and investments, which was slightly below forecast due to delayed collections from our largest customer.

“We are pleased to announce a strong finish for fiscal 2023, within both of our primary served markets,” commented Nigel Hunton, president and chief executive officer. “In our HDD business, during what was one of the most challenging years in the industry’s history, we achieved exceptionally strong year-over-year revenue growth of 47% and approached nearly $53 million of sales, the vast majority of which was aimed at enabling our customers to achieve the most significant new technology transition of the industry’s last 20 years. The initial ramp underway of drives incorporating heat-assisted magnetic recording (HAMR) technology comes as a direct result of Intevac’s long history of HDD leadership and tireless efforts throughout 2023.

“Looking forward, the most important new driver of Intevac’s future revenue growth is our groundbreaking TRIO platform, and our first system achieved qualification in the fourth quarter. This is a key milestone in the growth trajectory of Intevac, as the TRIO achieved key performance metrics that will enable Intevac to address an estimated $1 billion served market.

“The achievements of 2023 place Intevac on a solid trajectory for future growth, with the strength of the balance sheet maintained,” Mr. Hunton concluded. “We have taken a key step forward in our plan to diversify and grow our product portfolio and customer base, and we look forward to achieving greater success and momentum in each of our end markets in 2024.”

 

($ Millions, except per share amounts)

Q4 2023

Q4 2022

GAAP Results

Non-GAAP Results

GAAP Results

Non-GAAP Results

Net Revenues

$

12.9

 

$

12.9

 

$

11.3

 

$

11.3

 

Operating Loss

$

(1.9

)

$

(1.9

)

$

(3.3

)

$

(3.3

)

Net Loss

$

(1.8

)

 

$

(1.9

)

 

$

(3.2

)

 

$

(3.2

)

Net Loss per Share – Basic and Diluted

$

(0.07

)

 

$

(0.07

)

 

$

(0.12

)

 

$

(0.13

)

 

 

Year Ended

Year Ended

December 30, 2023

December 31, 2022

GAAP Results

Non-GAAP Results

GAAP Results

Non-GAAP Results

Net Revenues

$

52.7

 

$

52.7

 

$

35.8

 

$

35.8

 

Operating Loss

$

(13.2

)

$

(11.3

)

$

(16.5

)

$

(13.8

)

Net Loss

$

(12.2

)

 

$

(10.9

)

 

$

(17.1

)

 

$

(14.1

)

Net Loss per Share – Basic and Diluted

$

(0.47

)

$

(0.42

)

$

(0.68

)

$

(0.56

)

Intevac’s non-GAAP adjusted results exclude the impact of the following, where applicable: (i) restructuring charges, (ii) fixed asset disposals associated with a restructuring program, (iii) discontinued operations and (iv) litigation settlements. 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.

Fourth Quarter Fiscal 2023 Summary

Revenues were $12.9 million, compared to $11.3 million in the fourth quarter of 2022, and consisted of HDD upgrades, spares and service for each period. Gross margin was 46.0%, compared to 44.3% in the fourth quarter of 2022. Operating expenses were $7.8 million, compared to $8.3 million in the fourth quarter of 2022.

The net loss for the quarter was $1.8 million, or $0.07 per diluted share, compared to a net loss of $3.2 million, or $0.12 per diluted share, in the fourth quarter of 2022. The non-GAAP net loss for the fourth quarter of 2023 was $1.9 million, or $0.07 per diluted share, compared to the non-GAAP net loss for the fourth quarter of 2022 of $3.2 million, or $0.13 per diluted share.

Order backlog was $42.4 million on December 30, 2023, compared to $46.5 million on September 30, 2023 and $121.7 million on December 31, 2022. Backlog at December 30, 2023 does not include any 200 Lean HDD systems. Backlog at September 30, 2023 included two 200 Lean HDD systems. Backlog at December 31, 2022 included eleven 200 Lean HDD systems.

The Company ended the year with $72.2 million of total cash, cash equivalents, restricted cash and investments and $114.6 million in tangible book value.

Fiscal Year 2023 Summary

Revenues were $52.7 million, compared to 2022 revenues of $35.8 million, and consisted of one 200 Lean HDD system, one refurbished 200 Lean HDD system, HDD upgrades, spares and service in 2023, compared to HDD upgrades, spares and service in 2022. Gross margin was 38.4%, compared to 42.2% in 2022, and operating expenses were $33.5 million, compared to $31.6 million in 2022. The operating loss of $13.2 million included $2.0 million of restructuring-related costs, including severance. The net loss was $12.2 million, or $0.47 per diluted share, compared to a net loss of $17.1 million, or $0.68 per diluted share, for fiscal 2022. The non-GAAP net loss was $10.9 million, or $0.42 per diluted share, compared to the non-GAAP net loss of $14.1 million, or $0.56 per diluted share, for fiscal 2022.

Use of Non-GAAP Financial Measures

Intevac’s non-GAAP results exclude the impact, where applicable, of restructuring charges, fixed asset disposals associated with a restructuring program, discontinued operations and litigation settlements. 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 1:30 p.m. PT (4:30 p.m. ET). To participate in the teleconference, please call toll-free (877) 407-0989 prior to the start time, and reference meeting number 13743810. 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/intevac020524/en or on the Company's investor relations website at https://ir.intevac.com/. For those unable to attend live, an archived webcast of the call will be available at the same link.

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® is a registered trademark of Intevac, Inc. and TRIO™ is a trademark of Intevac, Inc.

Safe Harbor Statement

This press release includes statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Intevac claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms “may,” “believes,” “projects,” “expects,” or “anticipates,” and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: the Company’s revenue growth potential and future financial performance, including preserving the strength of the balance sheet. 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 percentages and per share amounts)

   

 

Three months ended

Year ended

 

December 30,

2023

December 31,

2022

 

December 30,

2023

December 31,

2022

Net revenues

$

12,906

 

$

11,259

 

 

$

52,665

 

$

35,761

 

 

 

 

 

 

 

Gross profit

 

5,938

 

 

4,986

 

 

 

20,226

 

 

15,086

 

 

 

 

 

 

 

Gross margin

 

46.0

%

 

44.3

%

 

38.4

%

 

42.2

%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research and development

 

3,785

 

 

3,383

 

 

 

15,125

 

 

13,722

 

Selling, general and administrative

 

4,063

 

 

4,869

 

 

 

18,345

 

 

17,876

 

Total operating expenses

 

7,848

 

 

8,252

 

 

 

33,470

 

 

31,598

 

 

 

 

 

 

 

Operating loss

 

(1,910

)

 

(3,266

)

 

 

(13,244

)

 

(16,512

)

 

 

 

 

 

 

Interest income and other income (expense), net

 

534

 

 

362

 

 

 

2,456

 

 

1,085

 

Loss from continuing operations before provision for income taxes

 

(1,376

)

 

(2,904

)

 

 

(10,788

)

 

(15,427

)

Provision for income taxes

 

524

 

 

335

 

 

 

1,822

 

 

1,327

 

Net loss from continuing operations

 

(1,900

)

 

(3,239

)

 

 

(12,610

)

 

(16,754

)

Income (loss) from discontinued operations, net of tax

 

55

 

 

73

 

 

 

420

 

 

(321

)

Net loss

$

(1,845

)

$

(3,166

)

 

$

(12,190

)

$

(17,075

)

 

 

 

 

 

 

Net income (loss) per share (basic and diluted)

 

 

 

 

 

Continuing operations

$

(0.07

)

$

(0.13

)

 

$

(0.48

)

$

(0.67

)

Discontinued operations

$

0.00

 

$

0.00

 

 

$

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

A capital increase for the Italian venture builder FoolFarm

FoolFarm launches €9 million capital increase targeting IPO and unveils new investment committee.

ShopFully goes shopping in Spain (again)

ShopFully, the Italian company leader in Europe in drive-to-store solutions, acquired the Spanish Ofertia.

Sicily is more and more digitally connected

Thanks to EXA Infrastructure investments, more routes provide rapid access to mainland Italy and beyond

Italian startup Audio Innova combines AI and metaverse for art preservation

Audio Innova won the first prize in the "Creative AI" category at WAICF in Cannes

Most read

ServiceNow to Acquire Atrinet NetACE Network Technology to Accelerate…

Mobile World Congress -- ServiceNow (NYSE: NOW), the leading digital workflow company making the world work better for everyone, today announced it has…

A capital increase for the Italian venture builder FoolFarm

FoolFarm launches €9 million capital increase targeting IPO and unveils new investment committee.

OrdinalsBot Mints Full BRC-20 Token Supply in a Single Bitcoin Transaction…

OrdinalsBot, a premier technology infrastructure company which provides API solutions for Bitcoin Ordinals and BRC-20s, has minted the full supply of…

CIBC Innovation Banking Provides Growth Capital to InsightRX

CIBC Innovation Banking announced today that it has provided growth financing to InsightRX, a San Francisco-based software company leveraging quantitative…