SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 31, 2012
Date of Report (date of earliest event reported)
INTEVAC, INC.
(Exact name of Registrant as specified in its charter)
State of California | 0-26946 | 94-3125814 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(IRS Employer Identification Number) |
3560 Bassett Street
Santa Clara, CA 95054
(Address of principal executive offices)
(408) 986-9888
(Registrants telephone number, including area code)
N/A
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
On July 31, 2012, Intevac, Inc. issued a press release reporting its financial results for the three and six months ended June 30, 2012. A copy of the press release issued by the Company concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The foregoing information is intended to be furnished under Item 2.02 of Form 8-K, Results of Operations and Financial Condition. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
99.1 | Press Release. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INTEVAC, INC. | ||||||
Date: July 31, 2012 | /s/ JEFFREY ANDRESON | |||||
Jeffrey Andreson | ||||||
Executive Vice President, Finance and Administration, |
Exhibit 99.1
3560 Bassett Street, Santa Clara CA 95054 |
Jeff Andreson | Claire McAdams | |
Chief Financial Officer | Investor Relations | |
(408) 986-9888 | (530) 265-9899 |
INTEVAC ANNOUNCES SECOND QUARTER 2012 FINANCIAL RESULTS
Santa Clara, Calif.July 31, 2012Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the quarter and six months ended June 30, 2012.
We are pleased to report that we met the high end of our second quarter guidance, with better than forecasted operating results, through a combination of higher-margin upgrades and prudent management of expenses, commented Kevin Fairbairn, president and chief executive officer of Intevac. As we look to the remainder of 2012, expectations for hard drive unit growth have softened, due principally to the difficult global economic environment. While expectations for hard drive capacity additions have certainly diminished since earlier this year, the long term business opportunities for our hard drive business remain intact.
We continued to make positive progress in diversifying our equipment business into the solar cell market, as we recognized revenue on our first LEAN SOLAR NanoTextureTM system and shipped our first two ion implant systems to well-capitalized solar cell manufacturers. Our Photonics business continued to gain momentum in the first half of this year and achieved a record level of orders and backlog during the quarter.
Second Quarter 2012 Summary
The net loss for the quarter was $1.5 million, or $0.06 per share, and includes a $1.1 million unfavorable tax rate adjustment, as compared to a net loss of $2.6 million, or $0.11 per share, in the second quarter of 2011.
Revenues were $31.8 million, including $25.1 million of Equipment revenues and Intevac Photonics revenues of $6.7 million. Equipment revenues included two 200 Lean® systems and one LEAN SOLAR NanoTextureTM system. Intevac Photonics revenues consisted of $3.2 million of research and development contracts and $3.6 million of product sales. In the second quarter of 2011, revenues were $27.6 million, including $19.8 million of Equipment revenues and Intevac Photonics revenues of $7.8 million, which included $5.9 million of product sales.
Equipment gross margin improved to 47.1% compared to 38.3% in the second quarter of 2011. The increase in gross margin was primarily as a result of higher system margins and a higher mix of upgrade and spares shipments. Intevac Photonics gross margin improved to 36.3% compared to 32.7% in the second quarter of 2011. The increase was primarily a result of improving yields related to our night vision products. Consolidated gross margin was 44.8%, compared to 36.7% in the second quarter of 2011. Operating expenses were flat as compared to the second quarter of 2011, and represented a sequential decrease of 6.6% compared to first quarter 2012 operating expenses.
Order backlog totaled $43.3 million on June 30, 2012, compared to $41.3 million on March 31, 2012 and $36.9 million on July 2, 2011. Backlog as of June 30, 2012 does not include any 200 Lean systems or Solar systems, compared to two 200 Lean systems and one Solar system on March 31, 2012 and two Solar systems on July 2, 2011.
Our balance sheet remains strong, with $103.5 million of cash and investments and $165.7 million in tangible book value, equivalent to $4.45 and $7.12 per share, respectively, based upon 23.3 million shares outstanding at quarter end.
First Six Months 2012 Summary
The net loss was $4.7 million, or $0.20 per share, compared to a net loss of $9.7 million, or $0.42 per share, for the first six months of 2011.
Revenues were $49.1 million, including $35.8 million of Equipment revenues and Intevac Photonics revenues of $13.3 million, compared to revenues of $45.0 million, including $30.0 million of Equipment revenues and Intevac Photonics revenues of $15.0 million, for the first six months of 2011.
Equipment gross margin was 46.5%, compared to 40.7% in the first six months of 2011, primarily as a result of higher system margins and a higher mix of upgrades and spares. Intevac Photonics gross margin improved to 33.2% compared to 28.7% in the first six months of 2011, reflecting improved yields related to our night vision products. Consolidated gross margin was 42.9%, compared to 36.7% in the first six months of 2011. Operating expenses were $30.9 million, essentially flat as compared to the first six months of 2011.
Conference Call Information
The company will discuss its financial results and outlook in a conference call today at 1:30 p.m. PDT (4:30 p.m. EDT). 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 companys 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. EDT. You may access the replay by calling (800) 642-1687 or, for international callers, (706) 645-9291, and providing Replay Passcode 98309867.
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 recently-introduced LEAN SOLAR platform, with applications including deposition, texture etch and ion implant, increases 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 companys website at www.intevac.com.
200 Lean® is a registered trademark, and LEAN SOLARTM and LEAN SOLAR NanoTextureTM 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 technology leadership and lead-time advantages of our systems, 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 companys expectations. These risks include, but are not limited to: oversupply in the media industry, a 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 companys stock price. These risks and other factors are detailed in the companys periodic 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 | Six months ended | |||||||||||||||
June 30, 2012 |
July 2, 2011 |
June 30, 2012 |
July 2, 2011 |
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Net revenues |
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Equipment |
$ | 25,059 | $ | 19,815 | $ | 35,778 | $ | 29,995 | ||||||||
Intevac Photonics |
6,732 | 7,770 | 13,329 | 15,013 | ||||||||||||
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Total net revenues |
31,791 | 27,585 | 49,107 | 45,008 | ||||||||||||
Gross profit |
14,254 | 10,137 | 21,078 | 16,518 | ||||||||||||
Gross margin |
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Equipment |
47.1 | % | 38.3 | % | 46.5 | % | 40.7 | % | ||||||||
Intevac Photonics |
36.3 | % | 32.7 | % | 33.2 | % | 28.7 | % | ||||||||
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Consolidated |
44.8 | % | 36.7 | % | 42.9 | % | 36.7 | % | ||||||||
Operating expenses |
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Research and development |
8,263 | 8,290 | 17,476 | 17,302 | ||||||||||||
Selling, general and administrative |
6,669 | 6,508 | 13,442 | 13,394 | ||||||||||||
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Total operating expenses |
14,932 | 14,798 | 30,918 | 30,696 | ||||||||||||
Gain on sale of mainframe technology |
| | 2,207 | | ||||||||||||
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Total operating loss |
(678 | ) | (4,661 | ) | (7,633 | ) | (14,178 | ) | ||||||||
Income/(Loss) from operations |
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Equipment |
1,129 | (2,794 | ) | (5,196 | ) | (9,064 | ) | |||||||||
Intevac Photonics |
(616 | ) | (493 | ) | (1,656 | ) | (2,076 | ) | ||||||||
Corporate1 |
(1,191 | ) | (1,374 | ) | (781 | ) | (3,038 | ) | ||||||||
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Total operating loss |
(678 | ) | (4,661 | ) | (7,633 | ) | (14,178 | ) | ||||||||
Interest and other income |
48 | 169 | 420 | 298 | ||||||||||||
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Loss before income taxes |
(630 | ) | (4,492 | ) | (7,213 | ) | (13,880 | ) | ||||||||
Provision for (benefit from) income taxes |
863 | (1,873 | ) | (2,559 | ) | (4,230 | ) | |||||||||
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Net loss |
$ | (1,493 | ) | $ | (2,619 | ) | $ | (4,654 | ) | $ | (9,650 | ) | ||||
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Loss per share |
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Basic and Diluted |
$ | (0.06 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.42 | ) | ||||
Weighted average common shares outstanding |
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Basic and Diluted |
23,265 | 22,851 | 23,241 | 22,789 |
1 | Six months ended June 30, 2012 includes the gain on sale of the mainframe technology of $2.2 million. |
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
June 30, 2012 |
Dec. 31, 2011 |
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(Unaudited) | (see Note) | |||||||
ASSETS |
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Current assets |
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Cash, cash equivalents and short-term investments |
$ | 66,141 | $ | 82,145 | ||||
Accounts receivable, net |
25,945 | 18,561 | ||||||
Inventories |
19,761 | 18,070 | ||||||
Deferred income tax assets |
2,493 | 2,202 | ||||||
Prepaid expenses and other current assets |
8,418 | 7,114 | ||||||
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Total current assets |
122,758 | 128,092 | ||||||
Long-term investments |
37,323 | 32,677 | ||||||
Property, plant and equipment, net |
13,911 | 14,449 | ||||||
Deferred income tax assets |
24,176 | 21,717 | ||||||
Goodwill |
18,389 | 18,389 | ||||||
Other intangible assets, net |
6,169 | 6,441 | ||||||
Other long-term assets |
3,000 | 4,056 | ||||||
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Total assets |
$ | 225,726 | $ | 225,821 | ||||
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LIABILITIES AND STOCKHOLDERS EQUITY |
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Current liabilities |
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Accounts payable |
$ | 5,839 | $ | 4,857 | ||||
Accrued payroll and related liabilities |
4,693 | 4,205 | ||||||
Other accrued liabilities |
12,842 | 9,887 | ||||||
Customer advances |
1,900 | 5,040 | ||||||
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Total current liabilities |
25,274 | 23,989 | ||||||
Other long-term liabilities |
10,179 | 9,922 | ||||||
Stockholders equity |
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Common stock ($0.001 par value) |
23 | 23 | ||||||
Additional paid in capital |
149,187 | 146,307 | ||||||
Accumulated other comprehensive income |
551 | 414 | ||||||
Retained earnings |
40,512 | 45,166 | ||||||
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Total stockholders equity |
190,273 | 191,910 | ||||||
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Total liabilities and stockholders equity |
$ | 225,726 | $ | 225,821 | ||||
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Note: Amounts as of December 31, 2011 are derived from the December 31, 2011 audited consolidated financial statements.