Intevac: Fiscal 1Q23 Financial Results

Intevac, Inc. reported financial results for the first quarter ended April 1, 2023.

1FQ23 highlights:
• Revenue of $11.5 million was at the upper end of expectations, a 3% increase from the previous quarter and up 160% from 1FQ22;
• With gross margin of 41% and operating expenses of $9.2 million, the net loss from continuing operations was $0.16 per share, favorable to expectations; and
• Continued progress, in partnership with joint development partner, developing the TRIO platform for the coating of consumer electronics devices.

“We are pleased to deliver 1FQ23 revenues at the upper end of our expectations, which is demonstrative of our strong partnerships with our HDD customers as we continue to enable the successful migrations of their technology roadmaps,” commented Nigel Hunton, president and CEO. “We are pleased with the progress made during the quarter developing our TRIO platform, which we believe will be our major growth driver for the future. We successfully completed the first system build at Intevac headquarters, and we are now transitioning to full process integration in advance of the qualification phase with our joint development partner, which is a major provider of glass and glass ceramic materials. During the quarter, we also utilized our strong cash balance to invest in working capital in support of our customers.”

“Looking forward, our efforts are focused squarely upon two strategic objectives, which are achieving successful results of our joint development partnership for the TRIO, and continuing to provide our HDD customers with the technology and capabilities to enable their ramp of next-gen HDD media. Given the widespread weakening of consumer demand across the electronics industry, the overall business environment has become increasingly challenging, especially related to forecasted growth rates for mass-capacity drive demand,” he concluded. “We are steadfast in our focus to successfully transform Intevac into a consistently profitable company with a strong growth trajectory. We are making the investments necessary to enable this transformational growth, and we look forward to delivering on positive results and increased traction with our new TRIO partner, while continuing to leverage our 20-year history of HDD leadership to enable the next generation of media technology.”

1FQ23 summary
Revenues were $11.5 million, compared to $4.4 million in 1FQ22, and consisted of HDD upgrades, spares and service. Gross margin was 40.9%, compared to 16.3% in 1FQ22. Operating expenses were $9.2 million, compared to $8.4 million in 1FQ22. The operating loss was $4.5 million compared to $7.7 million in 1FQ22 which included $2.7 million of restructuring-related costs, including severance and loss on fixed asset disposals.

The net loss for the quarter was $3.9 million, or $0.15 per diluted share, compared to a net loss of $7.9 million, or $0.32 per diluted share, in 1FQ22. The non-GAAP net loss for 1FQ2323 was $4.2 million, or $0.16 per diluted share, compared to a non-GAAP net loss of was $5.0 million, or $0.20 per diluted share, in 1FQ22.

Order backlog was $120.7 million on April 1, 2023, compared to $121.7 million on December 31, 2022 and $87.2 million on April 2, 2022. Backlog at April 1, 2023 and December 31, 2022 included eleven 200 Lean HDD systems. Backlog at April 2, 2022 included nine 200 Lean HDD systems.

The company ended the quarter with $84.8 million of total cash, cash equivalents, restricted cash and investments and $119.8 million in tangible book value.