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Intevac Announces Second Quarter 2013 Financial Results
"In a challenging business environment, we are encouraged by
several positive recent announcements for Intevac," commented
"As we announced earlier this month, Mr.
($ Millions, except per share amounts) | Q2 2013 | Q2 2012 | ||||||||||||||
GAAP Results | Non-GAAP Results | GAAP Results | Non-GAAP Results | |||||||||||||
Net Revenues | $ | 17.0 | $ | 17.0 | $ | 31.8 | $ | 31.8 | ||||||||
Operating Loss | $ | (7.0 | ) | $ | (6.8 | ) | $ | (0.7 | ) | $ | (0.7 | ) | ||||
Net Loss | $ | (6.4 | ) | $ | (6.2 | ) | $ | (1.5 | ) | $ | (1.5 | ) | ||||
Net Loss per Share | $ | (0.27 | ) | $ | (0.26 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Six Months Ended | Six Months Ended | |||||||||||||||
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GAAP Results | Non-GAAP Results | GAAP Results | Non-GAAP Results | |||||||||||||
Net Revenues | $ | 30.0 | $ | 30.0 | $ | 49.1 | $ | 49.1 | ||||||||
Operating Loss | $ | (16.0 | ) | $ | (15.1 | ) | $ | (7.6 | ) | $ | (9.8 | ) | ||||
Net Loss | $ | (14.7 | ) | $ | (13.8 | ) | $ | (4.7 | ) | $ | (6.3 | ) | ||||
Net Loss per Share | $ | (0.62 | ) | $ | (0.58 | ) | $ | (0.20 | ) | $ | (0.27 | ) | ||||
Second Quarter 2013 Summary
The net loss for the quarter was
Revenues were
Equipment gross margin was 14.8% compared to 47.1% in the second quarter of 2012 and 22.4% in the first quarter of 2013. The decrease compared to the prior quarter was primarily due to a refurbishment reserve recorded for a solar evaluation system shipped in 2012, as well as the lower margin on the first solar implant ENERGi system recognized for revenue. These factors similarly contributed to the year-on-year gross margin decline, which also reflects the lower level of revenue from systems and upgrades, and lower factory absorption. We did not recognize revenue on any 200 Lean systems in the first or second quarter of 2013 compared to two systems in the second quarter of 2012.
Operating expenses of
Order backlog totaled
The Company ended the quarter with
First Six Months 2013 Summary
The net loss was
Revenues were
Equipment gross margin was 17.6%, compared to 46.5% in the first six
months of 2012, primarily due to the lower level of revenue from systems
and upgrades, lower factory absorption, a refurbishment provision for a
solar evaluation system, and the lower system margin on the first solar
implant ENERGi system recognized for revenue. We did not
recognize revenue on any 200 Lean systems in the first half of 2013
compared to two systems in the first half of 2012.
Operating expenses were
Use of Non-GAAP Financial Measures
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.
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 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. EDT. You may access the replay by calling (855) 859-2056 or, for international callers, (404) 537-3406, and providing Replay Passcode 10644699.
About
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. Our products primarily address the defense markets.
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
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").
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share amounts) |
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Three months ended | Six months ended | |||||||||||||||
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Net revenues | ||||||||||||||||
Equipment | $ | 9,164 | $ | 25,059 | $ | 14,532 | $ | 35,778 | ||||||||
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7,819 | 6,732 | 15,433 |
|
13,329 | |||||||||||
Total net revenues | 16,983 | 31,791 | 29,965 | 49,107 | ||||||||||||
Gross profit | 3,829 | 14,254 | 7,343 | 21,078 | ||||||||||||
Gross margin | ||||||||||||||||
Equipment | 14.8 | % | 47.1 | % | 17.6 | % | 46.5 | % | ||||||||
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31.7 | % | 36.3 | % | 31.0 | % | 33.2 | % | ||||||||
Consolidated | 22.5 | % | 44.8 | % | 24.5 | % | 42.9 | % | ||||||||
Operating expenses | ||||||||||||||||
Research and development | 5,584 | 8,263 | 11,943 | 17,476 | ||||||||||||
Selling, general and administrative | 5,235 | 6,669 | 11,206 | 13,442 | ||||||||||||
Total operating expenses | 10,819 | 14,932 | 23,149 | 30,918 | ||||||||||||
Gain (loss) on divestitures |
— | — | (208 | ) | 2,207 | |||||||||||
Total operating loss | (6,990 | ) | (678 | ) | (16,014 | ) | (7,633 | ) | ||||||||
Income/(Loss) from operations | ||||||||||||||||
Equipment | (5,841 | ) | 1,129 | (13,183 | ) | (5,196 | ) | |||||||||
|
253 | (616 | ) | 62 | (1,656 | ) | ||||||||||
Corporate1,2 | (1,402 | ) | (1,191 | ) | (2,893 | ) | (781 | ) | ||||||||
Total operating loss | (6,990 | ) | (678 | ) | (16,014 | ) | (7,633 | ) | ||||||||
Interest and other income | 92 | 48 | 172 | 420 | ||||||||||||
Loss before income taxes | (6,898 | ) | (630 | ) | (15,842 | ) | (7,213 | ) | ||||||||
Provision for (benefit from) income taxes | (486 | ) | 863 | (1,166 | ) | (2,559 | ) | |||||||||
Net loss | $ | (6,412 | ) | $ | (1,493 | ) | $ | (14,676 | ) | $ | (4,654 | ) | ||||
Loss per share | ||||||||||||||||
Basic and Diluted | $ | (0.27 | ) | $ | (0.06 | ) | $ | (0.62 | ) | $ | (0.20 | ) | ||||
Weighted average common shares outstanding | ||||||||||||||||
Basic and Diluted | 23,785 | 23,265 | 23,724 | 23,241 |
1 Six months ended June 29, 2013 includes the loss on sale of
the Raman spectroscopy product line of
2 Six months ended June 30, 2012 includes the gain on sale of
the mainframe technology of
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) |
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2013 |
2012 |
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(Unaudited) | (see Note) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash, cash equivalents and short-term investments | $ | 68,594 | $ | 64,852 | ||||
Accounts receivable, net | 17,542 | 19,822 | ||||||
Inventories | 25,625 | 26,193 | ||||||
Prepaid expenses and other current assets | 1,289 | 2,120 | ||||||
Total current assets | 113,050 | 112,987 | ||||||
Long-term investments | 19,701 | 27,317 | ||||||
Property, plant and equipment, net | 12,328 | 13,426 | ||||||
Deferred income tax assets | 13,500 | 12,176 | ||||||
Intangible assets, net | 5,459 | 5,868 | ||||||
Other long-term assets | 614 | 729 | ||||||
Total assets | $ | 164,652 | $ | 172,503 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 6,491 | $ | 4,479 | ||||
Accrued payroll and related liabilities | 4,663 | 4,194 | ||||||
Deferred income tax liabilities | 1,281 | 1,281 | ||||||
Other accrued liabilities | 4,520 | 8,489 | ||||||
Customer advances | 8,317 | 2,193 | ||||||
Total current liabilities | 25,272 | 20,636 | ||||||
Other long-term liabilities | 9,328 | 9,232 | ||||||
Stockholders' equity | ||||||||
Common stock ( |
24 | 23 | ||||||
Additional paid in capital | 154,187 | 151,996 | ||||||
Accumulated other comprehensive income | 670 | 769 | ||||||
Accumulated deficit | (24,829 | ) | (10,153 | ) | ||||
Total stockholders' equity | 130,052 | 142,635 | ||||||
Total liabilities and stockholders' equity | $ | 164,652 | $ | 172,503 |
Note: Amounts as of December 31, 2012 are derived from the December 31, 2012 audited consolidated financial statements.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited, in thousands, except per share amounts) |
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Three months ended | Six months ended | |||||||||||||||
June 29,
2013 |
June 30,
2012 |
June 29,
2013 |
June 30,
2012 |
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Non-GAAP Loss from Operations | ||||||||||||||||
Reported operating loss (GAAP basis) | $ | (6,990 | ) | $ | (678 | ) | $ | (16,014 | ) | $ | (7,633 | ) | ||||
Restructuring charges1 | 240 | — | 742 | — | ||||||||||||
Loss on sale of Raman spectroscopy product line2 | — | — | 208 | — | ||||||||||||
Gain on sale of mainframe technology3 | — | — | — | (2,207 | ) | |||||||||||
Non-GAAP Operating Loss | $ | (6,750 | ) | $ | (678 | ) | $ | (15,064 | ) | $ | (9,840 | ) | ||||
Non-GAAP Net Loss | ||||||||||||||||
Reported net loss (GAAP basis) | $ | (6,412 | ) | $ | (1,493 | ) | $ | (14,676 | ) | $ | (4,654 | ) | ||||
Restructuring charges1 | 240 | — | 742 | — | ||||||||||||
Loss on sale of Raman spectroscopy product line2 | — | — | 208 | — | ||||||||||||
Gain on sale of mainframe technology3 | — | — | — | (2,207 | ) | |||||||||||
Income tax effect of non-GAAP adjustments4 | (20 | ) | — | (42 | ) | 554 | ||||||||||
Non-GAAP Net Loss | $ | (6,192 | ) | $ | (1,493 | ) | $ | (13,768 | ) | $ | (6,307 | ) | ||||
Non-GAAP Loss Per Diluted Share | ||||||||||||||||
Reported loss per diluted share (GAAP basis) | $ | (0.27 | ) | $ | (0.06 | ) | $ | (0.62 | ) | $ | (0.20 | ) | ||||
Restructuring charges1 | 0.01 | — | 0.03 | — | ||||||||||||
Loss on sale of Raman spectroscopy product line2 | — | — | 0.01 | — | ||||||||||||
Gain on sale of mainframe technology3 | — | — | — | (0.07 | ) | |||||||||||
Non-GAAP Loss Per Diluted Share | $ | (0.26 | ) | $ | (0.06 | ) | $ | (0.58 | ) | $ | (0.27 | ) | ||||
Weighted average number of diluted shares | 23,785 | 23,265 | 23,724 | 23,241 |
1 Results for the three and six months ended June 29, 2013
include severance and other employee-related costs of
2The six months ended June 29, 2013 includes the loss on sale
of the Raman spectroscopy product line of
3The six months ended June 30, 2012 includes the gain on sale
of the mainframe technology of
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.
Chief Financial
Officer
Investor Relations
Source:
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