Click here to close now.

Welcome!

Cloud Expo Authors: Elizabeth White, Liz McMillan, Pat Romanski, Carmen Gonzalez, Lori MacVittie

News Feed Item

Intevac Announces Fourth Quarter and Full Year 2012 Financial Results

Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the fourth quarter and year ended December 31, 2012.

“2012 was a challenging year for our equipment business primarily due to the weakened macro- economic environment and the industry transition underway from PC-based storage to centralized or 'Cloud' based storage,” commented Norman Pond, chairman of the board and chief executive officer of Intevac. “In the hard drive market, we expect these factors to continue to impact demand for new capacity systems through this year. In the longer term however, media unit growth is expected to resume because the rate of data growth is expected to exceed the slowing rate of areal density improvement.

"We are pleased to report a return to growth in our Photonics business, with revenues up 10% for the year. This business has now turned the corner to operating profitability, with profits achieved in both the third and fourth quarters of 2012. Our Photonics business is well-positioned for continued growth, as we entered 2013 with a record level of backlog. Finally, we expect to see growth in our new equipment products in 2013 as we leverage the success of our first ENERGi™ tool qualification to penetrate additional customers in the solar market.”

     
($ Millions, except per share amounts) Q4 2012 FY 2012
GAAP Results   Non-GAAP Results GAAP Results   Non-GAAP Results
Net Revenues $ 17.5 $ 17.5 $ 83.4 $ 83.4
Operating Loss $ (23.9 ) $ (5.5 ) $ (42.5 ) $ (23.3 )
Net Loss $ (42.7 ) $ (3.6 ) $ (55.3 ) $ (15.9 )
Net Loss per Share $ (1.82 ) $ (0.15 ) $ (2.37 ) $ (0.68 )
 

Fourth Quarter 2012 Summary

The net loss was $42.7 million, or $1.82 per share, and included a $23.4 million valuation allowance established on certain federal deferred tax assets and $18.4 million in goodwill and intangibles impairment charges, both referenced in the company's 8-Ks filed with the SEC on December 21, 2012 and January 24, 2013. The non-GAAP net loss was $3.6 million or $0.15 per share. This compares to a net loss of $6.2 million, or $0.27 per share, on both a GAAP and non-GAAP basis for the fourth quarter of 2011.

Revenues were $17.5 million, including $9.4 million of Equipment revenues and Intevac Photonics revenues of $8.1 million. Intevac Photonics revenues included $4.9 million of research and development contracts. In the fourth quarter of 2011, revenues were $18.6 million, including $12.5 million of Equipment revenues and Intevac Photonics revenues of $6.1 million, which included $1.8 million of research and development contracts.

Equipment gross margin was 46.0% compared to 36.4% in the fourth quarter of 2011, and increased primarily due to a higher mix of upgrades. Intevac Photonics gross margin of 37.4% improved compared to 30.0% in the fourth quarter of 2011. The increase was primarily a result of higher volumes, improved yields, and lower warranty costs for our night vision products. Consolidated gross margin was 42.0%, compared to 34.3% in the fourth quarter of 2011. Research and development and selling, general and administrative expenses totaled $12.8 million, compared to $14.9 million in the fourth quarter of 2011. Total operating expenses of $31.2 million included $18.4 million in non-cash goodwill and intangibles impairment charges primarily due to the decline in our market capitalization.

Order backlog totaled $35.2 million on December 31, 2012, compared to $40.0 million on September 29, 2012 and $32.9 million on December 31, 2011. Backlog as of December 31, 2012 and September 29, 2012 did not include any 200 Lean systems or Solar systems compared to one Solar system as of December 31, 2011.

Our balance sheet remains strong, with $92.2 million of cash and investments and $136.8 million in tangible book value.

Fiscal Year 2012 Summary

The net loss was $55.3 million, or $2.37 per share, and included a $23.4 million valuation allowance established on certain federal deferred tax assets and $18.4 million in goodwill and intangibles impairment charges, both referenced in the company's 8-Ks filed with the SEC on December 21, 2012 and January 24, 2013. The non-GAAP net loss was $15.9 million or $0.68 per share, and also excluded a $3.0 million bad debt expense and a $2.2 million gain on the sale of our mainframe technology. This compares to a net loss of $22.0 million, or $0.96 per share, on both a GAAP and non-GAAP basis for fiscal 2011.

Revenues were $83.4 million, including $52.5 million of Equipment revenues and Intevac Photonics revenues of $30.9 million, compared to revenues of $83.0 million, including $54.9 million of Equipment revenues and Intevac Photonics revenues of $28.1 million, for 2011.

Equipment gross margin was 44.9%, compared to 40.7% in 2011, primarily as a result of a higher mix of upgrade revenue. Intevac Photonics gross margin of 34.2% improved compared to 28.9% in 2011, reflecting improved yields and lower warranty costs related to our night vision products. Consolidated gross margin was 40.9%, compared to 36.7% in 2011. Research and development and selling, general and administrative expenses totaled $57.5 million, compared to $61.1 million in 2011, and declined primarily due to reduced investment in new equipment products. Total operating expenses were $78.9 million, compared to $61.2 million in 2011, and increased primarily as a result of $18.4 million in non-cash goodwill and intangibles impairment charges and a $3.0 million bad debt charge.

Use of Non-GAAP Financial Measures

Intevac's non-GAAP results exclude the impact of the following, where applicable: deferred tax asset valuation allowance; certain bad debt charges; impairments of goodwill and intangible assets; and a gain or loss on sales of technology assets. 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. PST (4:30 p.m. EST). To participate in the teleconference, please call toll-free (877) 334-0811 prior to the start time. For international callers, the dial-in number is (408) 427-3734. You may also listen live via the Internet at the company's website, www.intevac.com, under the Investors link, or at www.earnings.com. For those unable to attend, these web sites will host an archive of the call. Additionally, a telephone replay of the call will be available for 48 hours beginning today at 7:30 p.m. EST. You may access the replay by calling (855) 859-2056 or, for international callers, (404) 537-3406, and providing Replay Passcode 87592554.

About Intevac

Intevac was founded in 1991 and has two businesses: Equipment and Intevac Photonics.

In our Equipment business, we are a leader in the design, development and manufacturing of high-productivity, vacuum process equipment solutions. Our systems are production-proven for high-volume manufacturing of small substrates with precise thin film properties, such as those required in the hard drive and solar cell markets we currently serve.

In the hard drive industry, our 200 Lean® systems process approximately 60% of all magnetic disk media produced worldwide. In the solar cell manufacturing industry, our LEAN SOLAR™ systems increase the conversion efficiency of silicon solar cells.

In our Photonics business, we are a leader in the development and manufacture of leading-edge, high-sensitivity imaging products and vision systems as well as materials identification instruments utilizing Raman technology. Our products primarily address the defense markets in addition to the industrial, medical and scientific industries.

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

200 Lean® is a registered trademark and ENERGi™ and LEAN SOLAR™ 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: expected demand for hard drives, the continued profitability of Photonics, and the expansion of our product portfolio for the solar cell manufacturing market. 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: oversupply in the media industry, a further slowdown in demand for hard drives and the failure to introduce new products for the solar market, 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.

     

INTEVAC, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except percentages and per share amounts)

 
  Three months ended

 

   

Year ended

December 31,
2012

 

December 31,
2011

December 31,
2012

 

December 31,
2011

Net revenues    
Equipment $ 9,358 $ 12,499 $ 52,538 $ 54,878
Intevac Photonics   8,125       6,146     30,886       28,096  
Total net revenues 17,483 18,645 83,424 82,974
 
Gross profit 7,348 6,395 34,158 30,431
Gross margin
Equipment 46.0 % 36.4 % 44.9 % 40.7 %
Intevac Photonics   37.4 %     30.0 %   34.2 %     28.9 %
Consolidated 42.0 % 34.3 % 40.9 % 36.7 %
 
Operating expenses
Research and development 6,949 8,374 31,762 34,287
Selling, general and administrative 5,870 6,506 25,700 26,844
Impairment of goodwill and intangible assets 18,419 18,419
Bad debt expense         5     3,017       41  
Total operating expenses 31,238 14,885 78,898 61,172
 
Gain on sale of mainframe technology             2,207        
Total operating loss (23,890 ) (8,490 ) (42,533 ) (30,741 )
 
Operating loss
Equipment (4,442 ) (5,899 ) (19,934 ) (20,321 )
Intevac Photonics 733 (1,117 ) (206 ) (4,141 )
Corporate1,2   (20,181 )     (1,474 )   (22,393 )     (6,279 )
Total operating loss (23,890 ) (8,490 ) (42,533 ) (30,741 )
 
Interest and other income   43       198     454       635  
Loss before income taxes (23,847 ) (8,292 ) (42,079 ) (30,106 )
Provision (benefit) for income taxes   18,811       (2,083 )   13,240       (8,131 )
Net loss $ (42,658 )   $ (6,209 ) $ (55,319 )   $ (21,975 )
 
Loss per share
Basic and Diluted $ (1.82 ) $ (0.27 ) $ (2.37 ) $ (0.96 )
 
Weighted average common shares outstanding
Basic and Diluted 23,465 23,084 23,336 22,903
 

1 The year ended December 31, 2012 includes the gain on sale of the mainframe technology of $2.2 million.

2 The three months and year ended December 31, 2012 include the goodwill and intangibles impairment charges of $18.4 million.

 
 
INTEVAC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

   

December 31,
2012

   

December 31,
2011

(Unaudited) (see Note)
ASSETS
 
Current assets
Cash, cash equivalents and short-term investments $ 64,852 $ 82,145
Accounts receivable, net 19,822 18,561
Inventories 26,193 18,070
Deferred income tax assets 2,202
Prepaid expenses and other current assets   2,120     7,114
Total current assets 112,987 128,092
 
Long-term investments 27,317 32,677
Property, plant and equipment, net 13,426 14,449
Deferred income tax assets 12,176 21,717
Goodwill 18,389
Other intangible assets, net 5,868 6,441
Other long-term assets   729     4,056
Total assets $ 172,503   $ 225,821
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities
Accounts payable $ 4,479 $ 4,857
Accrued payroll and related liabilities 4,194 4,205
Deferred income tax liabilities 1,281
Other accrued liabilities 8,489 9,887
Customer advances   2,193     5,040
Total current liabilities 20,636 23,989
 
Other long-term liabilities 9,232 9,922
Stockholders’ equity
Common stock ($0.001 par value) 23 23
Additional paid in capital 151,996 146,307
Accumulated other comprehensive income 769 414
Retained earnings (accumulated deficit)   (10,153 )   45,166
Total stockholders’ equity   142,635     191,910
Total liabilities and stockholders’ equity $ 172,503   $ 225,821
 

Note: Amounts as of December 31, 2011 are derived from the December 31, 2011 audited consolidated financial statements.

 
 

INTEVAC, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(Unaudited, in thousands, except per share amounts)

 
  Three months ended Year ended

December 31,
2012

 

December 31,
2011

   

December 31,
2012

 

December 31,
2011

Non-GAAP Loss from Operations    
Reported operating loss (GAAP basis) $ (23,890 ) $ (8,490 ) $ (42,533 ) $ (30,741 )
Impairment of goodwill and intangible assets 18,419 18,419
Write-off of promissory note receivable1 3,017
Gain on sale of mainframe technology2             (2,207 )      
Non-GAAP Operating Loss $ (5,471 )   $ (8,490 ) $ (23,304 )   $ (30,741 )
 
Non-GAAP Net Loss
Reported net loss (GAAP basis) $ (42,658 ) $ (6,209 ) $ (55,319 ) $ (21,975 )
Impairment of goodwill and intangible assets 18,419 18,419
Write-off of promissory note receivable 3,017
Gain on sale of mainframe technology (2,207 )
Valuation allowance on deferred tax assets3 23,437 23,437
Income tax effect of non-GAAP adjustments4   (2,777 )         (3,279 )      
Non-GAAP Net Loss $ (3,579 )   $ (6,209 ) $ (15,932 )   $ (21,975 )
 
Non-GAAP Loss Per Diluted Share
Reported loss per diluted share (GAAP basis) $ (1.82 ) $ (0.27 ) $ (2.37 ) $ (0.96 )
Impairment of goodwill and intangible assets 0.67 0.67
Write-off of promissory note receivable 0.08
Gain on sale of mainframe technology (0.07 )
Valuation allowance on deferred tax assets   1.00           1.00        
Non-GAAP Loss Per Diluted Share $ (0.15 )   $ (0.27 ) $ (0.68 )   $ (0.96 )
Weighted average number of diluted shares 23,465 23,084 23,336 22,903
 

1The year ended December 31, 2012 includes a write-off of a promissory note from a customer in the amount of $3.0 million due to the insolvency of the customer.

2The year ended December 31, 2012 includes the gain on sale of the mainframe technology of $2.2 million. On January 6, 2012, the Company sold certain assets including intellectual property and residual assets which comprised its semiconductor mainframe technology for proceeds of $3.0 million.

3In accordance with ASC Topic 740, Income Taxes, the Company determined based upon an evaluation of all available objectively verifiable evidence, including but not limited to the Company’s U.S. operations falling into a cumulative three year loss, that a non-cash valuation allowance should be established against its U.S. deferred tax assets which are comprised of accumulated and unused U.S. tax credits, and net operating losses and other temporary book-tax differences. The establishment of a non-cash valuation allowance on the Company’s U.S. deferred tax assets does not have any impact on its cash, nor does such an allowance preclude the Company from utilizing its tax losses, tax credits or other deferred tax assets in future periods.

4The amount represents the estimated income tax effect of the non-GAAP adjustments. The Company calculated the tax effect of non-GAAP adjustments by applying an applicable estimated jurisdictional tax rate to each specific non-GAAP item.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make sm...
Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), and search analytics (SSA). We also provide Search and Big Data consulting services and offer 24/7 production support for Solr and Elasticsearch.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Developer Advocate at SoftLayer, will break down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them t...
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...