Intevac: Fiscal 1Q24 Financial Results

(in $ million)	1Q23	1Q24	Growth
Revenue	11.5	9.6	*-17%*
Net income (loss)	(4.2)	(2.7)

Intevac, Inc. reported financial results for the first quarter ended March 30, 2024.

1FQ24 Highlights:

Continued strong demand for technology upgrades for HDD media resulted in sales of nearly $10 million and gross margin approaching 44% for the quarter.
New orders exceeded $20 million for 1FQ24, and included HDD technology upgrade bookings from multiple customers, including initial HAMR upgrade orders from a leading storage company.
Completed agreement related to payment terms with a major HDD customer.
Resolved JDA agreement in order to work directly with key OEMs and their direct suppliers, which led to the April shipment of an initial TRIO system to a display cover glass finishing facility in Asia.
Total cash, restricted cash and investments were $65 million at quarter end, and with more meaningful accounts receivable collections quarter-to-date the current balance is over $75 million.

“We are pleased to demonstrate our critical role in the HDD ecosystem with 1FQ24 revenue approaching $10 million, consisting primarily of HAMR technology upgrade sales,” commented Nigel Hunton, president and CEO. “Our HDD backlog of $53 million at quarter-end reflects continued strong bookings for upgrades in support of our customers’ strategic technology roadmaps, and supports the visibility and longevity of a multi-year HAMR investment cycle, which in 1FQ24 expanded for the 1st time to multiple HDD customers. We expect these strategic investments to boost areal density will continue to drive strength in our HDD business for several years, and with continued advancements in reducing the cost-per-bit of HDD storage we agree with industry expectations of robust demand for hard drive media.”

“With our first TRIO shipping into the field earlier this month, the level of excitement amongst Intevac employees is real,” he continued. “Since achieving qualification of the initial TRIO system just prior to year-end 2023, we have continued to navigate the complexities of the display cover glass ecosystem for consumer electronics. We successfully reached an agreement to deliver our 1st TRIO system in April, which is expected to convert to revenue upon successful end-customer qualification. We continue to believe the TRIO platform will be our major growth driver for the future, and the strong end-market customer demand and pull for the impressive capabilities and performance of our system helped drive the successful shipment of the 1st system earlier this month.”

He concluded: “We remain steadfast in our focus to successfully transform Intevac into a consistently profitable company with a strong growth trajectory, and our decision to focus on the long-term potential of each of our flagship systems during the first quarter culminated in both an immediate return to HDD upgrade deliveries and the collection of overdue receivables, as well as the shipment of our 1st TRIO. I wish to thank the incredible Intevac team of employees who are executing phenomenally and we also wish to thank our stockholders for their continued support.”

1FQ24 Summary

Revenue was $9.6 million, compared to $11.5 million in 1FQ23, and consisted of HDD upgrades, spares and service. Gross margin was 43.7%, compared to 40.9% in 1FQ23. Operating expenses were $8.7 million, compared to $9.2 million in 1FQ23. The operating loss was $4.4 million compared to $4.5 million in 1FQ23.

The net loss for 1FQ24 was $1.6 million, or $0.06 per diluted share, compared to a net loss of $3.9 million, or $0.15 per diluted share, in 1FQ23. The non-GAAP net loss for the first quarter of 2024 was $2.7 million, or $0.10 per diluted share, compared to a non-GAAP net loss of $4.2 million, or $0.16 per diluted share, in 1FQ23.

Order backlog was $53.1 million on March 30, 2024, compared to $42.4 million on December 30, 2023 and $120.7 million on April 1, 2023. Backlog at March 30, 2024 and December 30, 2023 did not include any 200 Lean HDD systems. Backlog at April 1, 2023 included 11 200 Lean HDD systems.

The company ended the quarter with $65.5 million of total cash, cash equivalents, restricted cash and investments and $114.0 million in tangible book value.