Intevac: Fiscal 4Q21 Financial Results

(in $ million)	4Q20	4Q21	FY20	FY21
Revenue	18.2	15.9	52.1	38.5
*Growth*		-13%		*-26%*
Net income (loss)	1.1	(7.3)	1.2	(23.8)

Intevac, Inc. reported financial results for the fiscal fourth quarter and year ended January 1, 2022.

FY21 Highlights

Completion of the sale of Photonics business, which closed in late December and is valued at up to $100 million, reflecting the up-front cash payment of $70 million and future earn-out payments of up to $30 million;
Substantial balance sheet strength, with total balance of cash and investments growing to $121 million at year-end, equivalent to $4.92 per share, with total stockholders equity of $134 million, equivalent to $5.44 per share.
$10 million order booked in 4FQ21, including one 200 Lean system plus technology upgrades for a leading HDD manufacturer, contributing to a 2-year record high for total new orders of $24 million during 4FQ21, which increased backlog to $25 million at year-end; and
Completion of first Intevac Matrix evaluation program for advanced semiconductor packaging, resulting in first revenues and product qualification in this new market.

“With the sale of the Photonics business announced last month, we have completed an important milestone in our efforts to deliver increased stockholder value,” commented Nigel Hunton, president and CEO. “The board of directors has provided me with the immediate mandate to assess our revenue growth potential in each of our end markets, while streamlining the organization and positioning the Company for profitability and positive cash flow generation. We remain firmly committed to increasing stockholder value, while retaining the strength of our balance sheet and being responsible stewards of the company’s cash and investments. My initial few months will be spent meeting with every key customer, both current and prospective, while at the same time ensuring that our organization is properly aligned with the most promising prospects for growth. I am excited to drive success and realize increased value for Intevac’s customers and stockholders.“

4FQ21 Summary
Revenues were $15.9 million, compared to $18.2 million in 4FQ20 and $8.0 million in 3FQ21, and consisted of HDD upgrades, spares and service for each period.

Gross margin was 3.6%, compared to 48.3% in 4FQ20 and 41.9% in 3FQ21.

The decline compared to both periods reflected additional inventory reserves of $8.4 million.

Operating expenses were $7.3 million, compared to $8.0 million in the fourth quarter of 2020 and $7.2 million in the third quarter of 2021.

Net income for the quarter was $43.5 million, or $1.77 per diluted share, compared to net income of $1.1 million, or $0.05 per diluted share, in 4FQ20. The non-GAAP net loss for 4FQ21 was $7.3 million, or $0.29 per diluted share, compared to non-GAAP net income of $1.1 million, or $0.05 per diluted share, in 4FQ20.

F21 Summary
Revenues were $38.5 million, compared to 2020 revenues of $52.1 million, and consisted of HDD upgrades, spares and service and one Intevac Matrix system in 2021, compared to HDD upgrades, spares and service and two 200 Lean systems in 2020.

Gross margin was 18.3% compared to 43.0% in 2020, and operating expenses were $29.5 million compared to $31.3 million in 2020.

Net income was $26.6 million, or $1.09 per diluted share, compared to net income of $1.1 million, or $0.04 per diluted share, for fiscal 2020. The non-GAAP net loss was $23.8 million or $0.98 per diluted share, compared to non-GAAP net income of $1.2 million or $0.05 per diluted share for fiscal 2020.

Order backlog was $24.7 million on January 1, 2022, compared to $16.9 million on October 2, 2021 and $5.6 million on January 2, 2021. Backlog at January 1, 2022 included one 200 Lean HDD system, while the prior quarter’s and year’s backlog included solely HDD upgrades, spares and service.

The company ended the year with $121.2 million of total cash, cash equivalents, restricted cash and investments and $134.0 million in tangible book value.