Intevac, Inc. : Intevac Announces Fourth Quarter and Full Year 2011 Financial Results
01/31/2012| 04:10pm US/Eastern
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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
product sales.
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
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 41846930.
About Intevac
Intevac was founded in 1991 and has two businesses: Equipment and
Intevac Photonics.
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
at www.intevac.com.
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.
INTEVAC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three months ended
Year ended
December 31,
2011
December 31,
2010
December 31,
2011
December 31,
2010
Net revenues
Equipment
$
12,499
$
26,799
$
54,878
$
168,252
Intevac Photonics
6,146
9,360
28,096
34,274
Total net revenues
18,645
36,159
82,974
202,526
Gross profit
6,395
14,576
30,431
87,672
Gross margin
Equipment
36.4
%
47.7
%
40.7
%
47.2
%
Intevac Photonics
30.0
%
19.1
%
28.9
%
23.9
%
Consolidated
34.3
%
40.3
%
36.7
%
43.3
%
Operating expenses
Research and development
8,374
7,300
34,287
27,918
Selling, general and administrative
6,511
7,243
26,885
28,516
Total operating expenses
14,885
14,543
61,172
56,434
Operating income (loss)
Equipment
(5,899
)
2,752
(20,321
)
40,286
Intevac Photonics
(1,117
)
(1,400
)
(4,141
)
(4,901
)
Corporate
(1,474
)
(1,319
)
(6,279
)
(4,147
)
Total operating income (loss)
(8,490
)
33
(30,741
)
31,238
Interest and other income (expense)
198
394
635
773
Profit (loss) before income taxes
(8,292
)
427
(30,106
)
32,011
Provision (benefit) for income taxes
(2,083
)
(676
)
(8,131
)
3,962
Net income (loss)
$
(6,209
)
$
1,103
$
(21,975
)
$
28,049
Income (loss) per share
Basic
$
(0.27
)
$
0.05
$
(0.96
)
$
1.26
Diluted
$
(0.27
)
$
0.05
$
(0.96
)
$
1.22
Weighted average common shares outstanding
Basic
23,084
22,497
22,903
22,340
Diluted
23,084
23,116
22,903
22,977
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
December 31,
2011
December 31,
2010
(Unaudited)
(see Note)
ASSETS
Current assets
Cash, cash equivalents and short-term investments
$
82,145
$
114,514
Accounts receivable, net
18,561
25,911
Inventories
18,070
20,671
Deferred income tax assets
2,202
3,124
Prepaid expenses and other current assets
7,114
6,630
Total current assets
128,092
170,850
Long-term investments
32,677
22,866
Property, plant and equipment, net
14,449
13,918
Deferred income tax assets
21,717
14,594
Goodwill
18,389
18,389
Other intangible assets, net
6,441
6,984
Other long-term assets
4,056
4,170
Total assets
$
225,821
$
251,771
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
4,857
$
5,562
Accrued payroll and related liabilities
4,205
11,365
Other accrued liabilities
9,887
11,104
Customer advances
5,040
4,867
Total current liabilities
23,989
32,898
Other long-term liabilities
9,922
11,630
Stockholders' equity
Common stock ($0.001 par value)
23
23
Additional paid in capital
146,307
139,824
Accumulated other comprehensive income (loss)
414
255
Retained earnings
45,166
67,141
Total stockholders' equity
191,910
207,243
Total liabilities and stockholders' equity
$
225,821
$
251,771
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
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