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8-K - FORM 8-K - INTEVAC INC | f58098e8vk.htm |
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 FOURTH QUARTER AND FULL YEAR 2010 FINANCIAL RESULTS
Santa Clara, Calif.February 1, 2011Intevac, Inc. (Nasdaq: IVAC) today reported financial
results for the fourth quarter and year ended December 31, 2010.
Highlights include:
| Full year revenues of $202.5 million, an increase of 160% from 2009 | ||
| Eight quarters of revenue growth for Intevac Photonics | ||
| Cash and investments increased $47.5 million, to $137.4 million at year end |
We delivered strong results in 2010 that well exceeded our expectations going into the year.
Equipment revenues increased 227% from 2009, while Photonics revenues grew 29% to another record
year, commented Kevin Fairbairn, president and chief executive officer of Intevac. Strong
operational performance resulted in $1.22 in net earnings per share as well as a significant
increase in our cash and investments in 2010. Our highly flexible operational model once again
demonstrated our ability to quickly ramp production in order to meet our hard drive customers
demand in the second and third quarter of this year.
As we look into 2011 for our Equipment business, we will introduce several new products to expand
our product portfolio for the large and growing solar cell manufacturing market, while maintaining
our technology and operational leadership in the hard disk drive media processing market. In the
first quarter, we expect to ship our first Lean SolarTM crystalline silicon deposition
system, and to recognize revenue on our first ContinuumTM semiconductor mainframe
shipments. In our Photonics business, we expect to continue to ramp our product based revenue,
concluded Mr. Fairbairn.
Fourth Quarter 2010 Summary
Net income was $1.1 million, or $0.05 per diluted share, compared to net income of $2.0 million, or
$0.09 per diluted share, in the fourth quarter of 2009.
Revenues were $36.2 million, including $26.8 million of Equipment revenues and Intevac Photonics
revenues of $9.4 million. Equipment revenues consisted of four 200 Lean® systems,
upgrades, spares and service. Intevac Photonics revenues consisted of $4.2 million of research and
development contracts and $5.1 million of product sales or 54.9% of Photonics revenues. In the
fourth quarter of 2009, revenues were $34.2 million, including $26.9 million of Equipment revenues
and Intevac Photonics revenues of $7.3 million, which included $2.7 million of product sales.
Equipment gross margin was 47.7%, compared to 48.8% in the fourth quarter of 2009, primarily as a
result of a higher mix of system shipments partially offset by improved factory utilization.
Intevac Photonics gross margin of 19.1% decreased compared to 29.2% in the fourth quarter of 2009,
reflecting the higher initial production costs of our digital night-vision camera module to our
NATO customer and lower margins on technology development programs. Consolidated
gross margin was 40.3%, compared to 44.6% in the fourth quarter of 2009. Operating expenses were
$14.5 million, compared to $11.2 million in the fourth quarter of 2009.
Order backlog totaled $46.7 million on December 31, 2010, compared to $64.9 million on October 2,
2010 and $73.8 million on December 31, 2009. Backlog as of December 31, 2010 includes two 200 Lean
systems, compared to six on October 2, 2010 and ten on December 31, 2009.
Fiscal Year 2010 Summary
Net income was $28.0 million, or $1.22 per diluted share, compared to a net loss of $10.1 million,
or $0.46 per diluted share, for 2009.
Revenues were $202.5 million, including $168.3 million of Equipment revenues and Intevac Photonics
revenues of $34.3 million, compared to revenues of $78.0 million, including $51.4 million of
Equipment revenues and Intevac Photonics revenues of $26.6 million, for 2009.
Equipment gross margin improved to 47.2%, compared to 45.3% in 2009, primarily as a result of
increased revenues and improved factory utilization. Intevac Photonics gross margin of 23.9%
decreased compared to 35.6% in 2009, reflecting the higher initial production costs of our digital
night-vision camera module to our NATO customer and lower margins on technology development
programs. Consolidated gross margin improved to 43.3%, compared to 42.0% in 2009. Operating
expenses were $56.4 million, compared to $50.1 million in 2009 with the increase primarily due to
the reinstatement of our variable compensation programs.
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 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. EST. You may access the replay by calling (800) 642-1687 or, for international
callers, (706) 645-9291, and providing Replay Passcode 37358116.
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, high-productivity
process manufacturing equipment and inspection solutions to the solar photovoltaic industry and
wafer handling platforms to the semiconductor 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 companys website at www.intevac.com.
200 Lean® is a registered trademark, and ContinuumTM and LEAN SOLARTM
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: our financial
performance in 2010, our ability to maintain technical and operational leadership in the hard drive
industry, our ability to introduce new products, industry acceptance of our new products, and the
expected momentum of the Photonics business. 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: adjustments to 2010 financial
results in connection with preparation of the companys 10-K, a slowdown in demand for hard drives,
a lack of penetration of our new products and the failure to achieve historical growth rates for
the Photonics business, 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
regular filings with the U.S. Securities and Exchange Commission.
INTEVAC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three months ended | Year ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net revenues |
||||||||||||||||
Equipment |
$ | 26,799 | $ | 26,912 | $ | 168,252 | $ | 51,389 | ||||||||
Intevac Photonics |
9,360 | 7,288 | 34,274 | 26,592 | ||||||||||||
Total net revenues |
36,159 | 34,200 | 202,526 | 77,981 | ||||||||||||
Gross profit |
14,576 | 15,264 | 87,672 | 32,720 | ||||||||||||
Gross margin |
||||||||||||||||
Equipment |
47.7 | % | 48.8 | % | 47.2 | % | 45.3 | % | ||||||||
Intevac Photonics |
19.1 | % | 29.2 | % | 23.9 | % | 35.6 | % | ||||||||
Consolidated |
40.3 | % | 44.6 | % | 43.3 | % | 42.0 | % | ||||||||
Operating expenses |
||||||||||||||||
Research and development |
7,300 | 5,808 | 27,918 | 28,064 | ||||||||||||
Selling, general and administrative |
7,243 | 5,351 | 28,516 | 22,003 | ||||||||||||
Total operating expenses |
14,543 | 11,159 | 56,434 | 50,067 | ||||||||||||
Operating income (loss) |
||||||||||||||||
Equipment |
2,752 | 5,480 | 40,286 | (8,826 | ) | |||||||||||
Intevac Photonics |
(1,400 | ) | (886 | ) | (4,901 | ) | (4,133 | ) | ||||||||
Corporate |
(1,319 | ) | (489 | ) | (4,147 | ) | (4,388 | ) | ||||||||
Total operating income (loss) |
33 | 4,105 | 31,238 | (17,347 | ) | |||||||||||
Interest and other income (expense) |
394 | 475 | 773 | 1,254 | ||||||||||||
Profit (loss) before income taxes |
427 | 4,580 | 32,011 | (16,093 | ) | |||||||||||
Provision (benefit) for income taxes |
(676 | ) | 2,605 | 3,962 | (6,016 | ) | ||||||||||
Net income (loss) |
$ | 1,103 | $ | 1,975 | $ | 28,049 | $ | (10,077 | ) | |||||||
Income (loss) per share |
||||||||||||||||
Basic |
$ | 0.05 | $ | 0.09 | $ | 1.26 | $ | (0.46 | ) | |||||||
Diluted |
$ | 0.05 | $ | 0.09 | $ | 1.22 | $ | (0.46 | ) | |||||||
Weighted average common shares
outstanding |
||||||||||||||||
Basic |
22,497 | 22,073 | 22,340 | 21,975 | ||||||||||||
Diluted |
23,116 | 22,668 | 22,977 | 21,975 |
INTEVAC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | (see Note) | |||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash, cash equivalents and short-term investments |
$ | 114,514 | $ | 23,592 | ||||
Accounts receivable, net |
25,911 | 44,756 | ||||||
Inventories |
20,671 | 19,100 | ||||||
Deferred income tax assets |
3,124 | 1,515 | ||||||
Prepaid expenses and other current assets |
6,630 | 6,687 | ||||||
Total current assets |
170,850 | 95,650 | ||||||
Long-term investments |
22,866 | 66,249 | ||||||
Property, plant and equipment, net |
13,918 | 12,351 | ||||||
Deferred income tax assets |
14,594 | 16,541 | ||||||
Goodwill |
18,389 | 7,905 | ||||||
Other intangible assets, net |
6,984 | 3,537 | ||||||
Other long-term assets |
4,170 | 1,145 | ||||||
Total assets |
$ | 251,771 | $ | 203,378 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 5,562 | $ | 4,701 | ||||
Accrued payroll and related liabilities |
11,365 | 2,784 | ||||||
Other accrued liabilities |
11,104 | 11,104 | ||||||
Customer advances |
4,867 | 13,180 | ||||||
Total current liabilities |
32,898 | 31,769 | ||||||
Other long-term liabilities |
11,630 | 252 | ||||||
Stockholders equity |
||||||||
Common stock ($0.001 par value) |
23 | 22 | ||||||
Additional paid in capital |
139,824 | 134,071 | ||||||
Accumulated other comprehensive income (loss) |
255 | (1,828 | ) | |||||
Retained earnings |
67,141 | 39,092 | ||||||
Total stockholders equity |
207,243 | 171,357 | ||||||
Total liabilities and stockholders equity |
$ | 251,771 | $ | 203,378 | ||||
Note: Amounts as of December 31, 2009 are derived from the December 31, 2009 audited consolidated
financial statements.