Intevac: Fiscal 4Q23 Financial Results

(in $ million)	4Q22	4Q23	FY22	FY23
Revenue	11.3	12.9	35.8	52.7
*Growth*		14%		*47%*
Net income (loss)	(3.2)	(1.9)	(4.1)	(10.9)

Intevac, Inc. reported financial results for the fiscal fourth quarter and year ended December 30, 2023.

4FQ23 and FY23 Highlights

Successfully completed TRIO development program and achieved qualification of initial TRIO system before year-end 2023.
4FQ23 sales of $12.9 million exceeded prior expectations due to the acceleration of HAMR technology upgrades for HDD customers. Total revenues of $52.7 million for FY23 represented growth of 47% Y/Y.
Achieved all-time record sales of HDD upgrades – for both 3FQ23 and FY23 – in support of the HAMR technology transition currently underway on 200 Lean flagship platform.
Successfully re-negotiated order backlog for two capacity-adding 200 Lean systems during 4FQ23, in favor of additional HAMR process module upgrades.
Ended 2023 with $72.2 million in cash, restricted cash, and investments, which was slightly below forecast due to delayed collections from firm’s largest customer.

“We are pleased to announce a strong finish for fiscal 2023, within both of our primary served markets,” commented Nigel Hunton, president and CEO. “In our HDD business, during what was one of the most challenging years in the industry’s history, we achieved exceptionally strong Y/Y revenue growth of 47% and approached nearly $53 million of sales, the vast majority of which was aimed at enabling our customers to achieve the most significant new technology transition of the industry’s last 20 years. The initial ramp underway of drives incorporating HAMR technology comes as a direct result of Intevac’s long history of HDD leadership and tireless efforts throughout 2023.

“Looking forward, the most important new driver of Intevac’s future revenue growth is our groundbreaking TRIO platform, and our first system achieved qualification in the fourth quarter. This is a key milestone in the growth trajectory of Intevac, as the TRIO achieved key performance metrics that will enable Intevac to address an estimated $1 billion served market.

“The achievements of 2023 place Intevac on a solid trajectory for future growth, with the strength of the balance sheet maintained. We have taken a key step forward in our plan to diversify and grow our product portfolio and customer base, and we look forward to achieving greater success and momentum in each of our end markets in 2024.”

4FQ23 Summary
Revenue was $12.9 million, compared to $11.3 million in 4FQ22, and consisted of HDD upgrades, spares and service for each period. Gross margin was 46.0%, compared to 44.3% in the fourth quarter of 2022. Operating expenses were $7.8 million, compared to $8.3 million in 4FQ22.

The net loss for the quarter was $1.8 million, or $0.07 per diluted share, compared to a net loss of $3.2 million, or $0.12 per diluted share, in 4FQ22. The non-GAAP net loss for 4FQ23 was $1.9 million, or $0.07 per diluted share, compared to the non-GAAP net loss for 4FQ22 of $3.2 million, or $0.13 per diluted share.

Order backlog was $42.4 million on December 30, 2023, compared to $46.5 million on September 30, 2023 and $121.7 million on December 31, 2022. Backlog at December 30, 2023 does not include any 200 Lean HDD systems. Backlog at September 30, 2023 included 2×200 Lean HDD systems. Backlog at December 31, 2022 included 11×200 Lean HDD systems.

The company ended the year with $72.2 million of total cash, cash equivalents, restricted cash and investments and $114.6 million in tangible book value.

FY23 Summary
Revenue was $52.7 million, compared to FY22 revenues of $35.8 million, and consisted of 1×200 Lean HDD system, 1xrefurbished 200 Lean HDD system, HDD upgrades, spares and service in 2023, compared to HDD upgrades, spares and service in 2022. Gross margin was 38.4%, compared to 42.2% in FY22, and operating expenses were $33.5 million, compared to $31.6 million in 2022. The operating loss of $13.2 million included $2.0 million of restructuring-related costs, including severance. The net loss was $12.2 million, or $0.47 per diluted share, compared to a net loss of $17.1 million, or $0.68 per diluted share, for FY22. The non-GAAP net loss was $10.9 million, or $0.42 per diluted share, compared to the non-GAAP net loss of $14.1 million, or $0.56 per diluted share, for FY22.