Intevac, Inc. : Intevac Announces Fourth Quarter and Full Year 2011 Financial Results
01/31/2012| 04:10pm US/Eastern
Intevac, Inc. (Nasdaq:IVAC) today reported financial results for the
fourth quarter and year ended December 31, 2011.
"2011 was a challenging year for our equipment business, driven first by
reduced capital investments in the hard disk drive industry due to the
announced consolidations, and compounded by the effects of the
devastating flooding in Thailand," commented Kevin Fairbairn, president
and chief executive officer of Intevac. "As we look ahead to 2012, we
are projecting revenue growth in each of our businesses. We expect to
see a recovery in our hard drive equipment business in the second half
of the year as the consolidations are completed and as the industry
recovers from the effects of the flooding. Additionally, we anticipate
increasing sales of our solar manufacturing systems, and also expect a
return to growth in our Photonics business, as the impacts of the
military budget delays in 2011 are now behind us.
"During the fourth quarter, we achieved two key milestones in our
equipment diversification strategy. First, we recognized revenue on our
first LEAN SOLARTM crystalline silicon deposition
system, and second, we shipped our first LEAN SOLAR etch system to a
leading Asian solar cell manufacturer. In our Photonics business, we
have improved our gross margins by 500 basis points as compared to
fiscal year 2010, as we continue to improve our sensor yields,"
concluded Mr. Fairbairn.
Fourth Quarter 2011 Summary
The net loss was $6.2 million, or $0.27 per diluted share, compared to
net income of $1.1 million, or $0.05 per diluted share, in the fourth
quarter of 2010.
Revenues were $18.6 million, including $12.5 million of Equipment
revenues and Intevac Photonics revenues of $6.1 million. Equipment
revenues consisted of one LEAN SOLAR system, upgrades, spares and
service. Intevac Photonics revenues consisted of $1.8 million of
research and development contracts and $4.3 million of product sales or
71% of Photonics revenues. In the fourth quarter of 2010, revenues were
$36.2 million, including $26.8 million of Equipment revenues and Intevac
Photonics revenues of $9.4 million, which included $5.1 million of
Equipment gross margin was 36.4%, compared to 47.7% in the fourth
quarter of 2010, primarily as a result of decreased revenues and lower
factory utilization. Intevac Photonics gross margin of 30.0% improved
compared to 19.1% in the fourth quarter of 2010. The increase was
primarily a result of improved manufacturing and warranty costs related
to our night vision camera module for our NATO customer. Consolidated
gross margin was 34.3%, compared to 40.3% in the fourth quarter of 2010.
Operating expenses were $14.9 million, compared to $14.5 million in the
fourth quarter of 2010 and increased primarily as a result of additional
R&D investments in new equipment products.
Order backlog totaled $32.9 million on December 31, 2011, compared to
$26.2 million on October 1, 2011 and $46.7 million on December 31, 2010.
Backlog as of December 31, 2011 and of October 1, 2011 included one
Solar system and no 200 Lean systems. Backlog as of December 31, 2010
included two 200 Lean systems.
Fiscal Year 2011 Summary
The net loss was $22.0 million, or $0.96 per diluted share, compared to
net income of $28.0 million, or $1.22 per diluted share, for 2010.
Revenues were $83.0 million, including $54.9 million of Equipment
revenues and Intevac Photonics revenues of $28.1 million, compared to
revenues of $202.5 million, including $168.3 million of Equipment
revenues and Intevac Photonics revenues of $34.3 million, for 2010.
Equipment gross margin was 40.7%, compared to 47.2% in 2010, primarily
as a result of lower revenues and lower factory utilization. Intevac
Photonics gross margin of 28.9% improved compared to 23.9% in 2010,
reflecting lower manufacturing and warranty costs related to our night
vision camera module for our NATO customer. Consolidated gross margin
was 36.7%, compared to 43.3% in 2010. Operating expenses were $61.2
million, compared to $56.4 million in 2010, and increased primarily as a
result of additional R&D investments in new equipment products.
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
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 41846930.
Intevac was founded in 1991 and has two businesses: Equipment and
Equipment Business: We are a leader in the design, development and
marketing of high productivity lean manufacturing systems and have been
producing Lean Thinking platforms since 1994. We provide process
manufacturing equipment solutions to the hard disk drive industry and
high-productivity process manufacturing equipment and inspection
solutions to the solar photovoltaic industry.
Intevac Photonics: We are a leader in the development and manufacture of
leading edge, high-sensitivity imaging products and vision systems, as
well as table-top and handheld Raman instruments. Markets addressed
include military, industrial, medical and scientific.
For more information call 408-986-9888, or visit the company's website
200 Lean® is a registered trademark, andLEAN
SOLARTMis 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:
expected recovery of the hard drive and Photonics businesses, the demand
for hard drives, the timing of shipments for our new products, and the
future growth 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: adjustments to 2011 financial results in connection with
preparation of the company's 10-K, the completion of consolidation in
the hard drive industry, a slowdown in demand for hard drives,
significant changes in the hard drive industry supply chain, the failure
to deliver new products for the solar market, and maintaining photonics
gross margins, 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 regular filings
with the U.S. Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three months ended
Total net revenues
Research and development
Selling, general and administrative
Total operating expenses
Operating income (loss)
Total operating income (loss)
Interest and other income (expense)
Profit (loss) before income taxes
Provision (benefit) for income taxes
Net income (loss)
Income (loss) per share
Weighted average common shares outstanding
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
Cash, cash equivalents and short-term investments
Accounts receivable, net
Deferred income tax assets
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
Deferred income tax assets
Other intangible assets, net
Other long-term assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued payroll and related liabilities
Other accrued liabilities
Total current liabilities
Other long-term liabilities
Common stock ($0.001 par value)
Additional paid in capital
Accumulated other comprehensive income (loss)
Total stockholders' equity
Total liabilities and stockholders' equity
Note: Amounts as of December 31, 2010 are derived from the December 31,
2010 audited consolidated financial statements.
Intevac, Inc. Jeff Andreson, 408-986-9888 Chief Financial
Officer Claire McAdams, 530-265-9899 Investor Relations