CAPITAL STRUCTURE IVAC A TRANSFORMED COMPANY WITH STRONG GROWTH AHEAD Gaining share of worldwide HDD media market with 12-year-record high orders, backlog, and visibility = A transformed company, with a strong growth story BOARD OF DIRECTORS Nigel Hunton PRESIDENT & CEO Dotty Hayes Extensive semi industry experience, founded 4 technology start ups and led 2 optical inspection companies from inception to acquisition. We wish to caution you that these are forward looking statements that are based upon our cur ...

Investor Update Q3 2022 Earnings Call November 2, 2022 INTEVAC Powering Innovation, Delivering Value :İ INTEVAC FORWARD LOOKING STATEMENTS During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to strategies, our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow, income tax expense, and capital allocation. We will discuss our business strategy, ...

Intevac, Inc. (NASDAQ:IVAC) Q3 2022 Earnings Conference Call November 2, 2022 4:30 PM ET Company Participants Claire McAdams - IR Counsel Nigel Hunton - President, CEO & Director James Moniz - EVP, Finance & Administration, CFO, Treasurer and Secretary Conference Call Participants Mark Miller - The Benchmark Company Operator Good day, and welcome to Intevac's Third Quarter 2022 Financial Results Conference Call. [Operator Instructions]. Please note that this conference call is being recorded today, November ...

Investor Update 14th Annual BWS Financial Growth and Value Summer Investor Series (Virtual) August 23, 2022 INTEVAC Powering Innovation, Delivering Value INTEVAC FORWARD LOOKING STATEMENTS During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to strategies, our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow, income tax expense, and capital a ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $9.3 million, exceeding guidance of $8 million to $8.5 million, driven by HDD upgrades, spares, and service [19] - Gross margin for Q2 was 48.2%, above the expected 45% due to a favorable mix of high-margin upgrades [19] - The net loss from continuing operations was $2.6 million, or $0.10 per share, better than the forecasted loss of $0.13 to $0.15 per share [19] - Cash and investments at the end of Q2 totaled $110.2 million, equivalent to $4.36 per share [19] Business Line Data and Key Metrics Changes - The HDD business saw strong bookings with an additional $22 million in new orders, increasing backlog to over $100 million [8] - Operating expenses were managed to under $7 million, resulting in a smaller operating loss [7] - The company expects HDD revenues to reach at least $200 million through 2025, with a forecast of $65 million to $70 million for 2023 [10][12] Market Data and Key Metrics Changes - Utilization rates in the field have decreased to about 75% to 80% from high 90s, indicating a moderation in customer demand [25] - The consumer-driven market has softened, impacting both PCs and HDD units, leading to a more even spread of media capacity expansion plans over the next three years [10] Company Strategy and Development Direction - The company is focusing on the TRIO platform to expand served markets and overall customer footprint, emphasizing cost-effective ultra-hard protected antireflective coatings [13][14] - A commitment to drive the TRIO initiative aggressively in 2022, with expectations for strategic partnerships to validate growth opportunities [16] - The company is streamlining its cost structure while investing in new management and capabilities to support the TRIO business [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term industry trends for HDD and the upcoming technology transitions, particularly with heat and energy-assisted media technologies [11][12] - The company anticipates modest growth for the HDD business in 2023, with low double-digit percentage growth expected, followed by higher revenue ramps in 2024 and 2025 [12] - Management acknowledged challenges in achieving near-term profitability while focusing on long-term growth strategies [12] Other Important Information - The company ended Q2 with a record backlog of $100.2 million, a 12-year high, and expects to maintain a strong cash position of at least $115 million by year-end 2022 [19][21] - Capital expenditures for Q2 were $270,000, with depreciation and amortization at $331,000 [20] Q&A Session Summary Question: Can you provide insights on HDD utilization rates and future upgrades? - Management noted that utilization rates have decreased to 75% to 80%, with expectations for more upgrades in 2023 as customers optimize their facilities [25][26] Question: What is the business model for the TRIO platform? - The company is exploring multiple business models for TRIO, including equipment sales, licensing, and partnerships for sustainable revenue streams [29][30] Question: What are the expectations for revenue in Q4 and 2023? - A slight decrease in upgrades is expected in Q4, with total revenues projected around $11.5 million to $12 million, and low double-digit growth anticipated for 2023 [32][33]

Intevac, Inc. (NASDAQ:IVAC) Q1 2022 Earnings Conference Call May 9, 2022 4:30 PM ET Company Participants Nigel Hunton – President & Chief Executive Officer Jim Moniz – Chief Financial Officer Claire McAdams – Investor Relations Conference Call Participants Mark Miller – Benchmark Company Peter Wright – Intro-act Operator Good day and welcome to Intevac's First-Quarter 2022 Financial Results Conference Call. A brief questionand-answer session will follow the formal presentation.[Operator Instructions] As a r ...

Financial Data and Key Metrics Changes - Q4 2021 revenues were $15.9 million, with total revenues for the year at $38.5 million, slightly above forecasts due to HDD upgrades pulled into Q4 [26] - Q4 gross margin was 4%, significantly below forecasts due to additional inventory reserves of $8.4 million; without these reserves, gross margin would have been 57% [27] - Full year gross margin was 18.3%, and excluding Q4 inventory reserves, it would have been 40% [27] - Q4 net loss from continuing operations was $7.3 million, or a loss of $0.30 per share; excluding inventory reserves and litigation settlement, net income would have been $0.07 per share [29] - GAAP net income for Q4 was $43.5 million, or $1.77 per share, due to the gain from the sale of the Photonics business [30] - Cash and investments at year-end totaled $121.1 million, approximately $4.93 per share [31] Business Line Data and Key Metrics Changes - The HDD business is expected to remain flat in 2022 compared to 2021, with a focus on streamlining operations and returning to profitability [19][45] - The company anticipates that the equipment business could reach a baseline of around $60 million annualized sales, with a potential for growth in 2023 [46][47] Market Data and Key Metrics Changes - The HDD market is projected to require capacity additions over the next three to five years, indicating long-term growth potential [68] - Initial feedback suggests that the previous forecast of $200 million over three years may extend to four years [67] Company Strategy and Development Direction - The company is focused on streamlining operations, aligning resources with revenue growth prospects, and preserving cash reserves [15][18] - A strategic review is ongoing to assess growth opportunities and right-size the business following the sale of the Photonics division [44][49] - The company aims to build a customer-centric culture and strengthen relationships with key customers to drive future growth [16][56] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for 2022, expecting flat performance compared to 2021, with a focus on operational efficiency [19][45] - The new CEO emphasized the importance of understanding customer needs and aligning the business strategy accordingly [56][68] Other Important Information - The company incurred approximately $3 million in transaction costs related to the Photonics sale, which will be reflected in the balance sheet [32] - Q1 2022 revenue guidance is projected at around $4 million, with expectations of a net loss of approximately $0.24 per share [34][36] Q&A Session Summary Question: Thoughts on normalized sales for the equipment business - Management indicated that a baseline of $60 million annualized sales is reasonable, with a focus on streamlining operations and preparing for growth in 2023 [42][46] Question: Status of strategic review post-Photonics sale - The strategic review is ongoing, with a focus on understanding the core business and identifying growth opportunities [44][49] Question: Future market broadening opportunities - Management is in the early stages of reviewing market opportunities, particularly in coatings for mobile devices, and will engage with customers to assess potential [56][58] Question: Expectations for HDD market growth - Management acknowledged that while the HDD market has long-term growth potential, the immediate outlook for 2022 is flat, with a clearer vision expected after customer discussions [67][68]

Financial Data and Key Metrics Changes - The company reported consolidated third quarter revenues of $14.8 million, exceeding guidance of $12 million to $13 million [36] - Q3 gross margin was 37%, above the guidance of 35%, due to favorable mix and higher revenue volume [37] - The net loss for Q3 was $4.2 million or $0.17 per share, better than the guidance of $0.25 per diluted share [11][37] - Cash and investments at the end of the quarter totaled $51.4 million, approximately $2.09 per share [39] Business Line Data and Key Metrics Changes - Thin-Film Equipment (TFE) revenues totaled $8 million, including upgrades, spares, and service [36] - Photonics revenue was $6.8 million, comprising $3.7 million of product revenues and $3.1 million of contract R&D revenues [36] - The backlog at the end of Q3 was $44.9 million, with TFE backlog at $16.9 million and Photonics backlog at $27.9 million [38] Market Data and Key Metrics Changes - The HDD industry demand was in line to slightly better than earlier expectations, with flat to higher nearline drive unit shipments [26] - The company expects the order cycle for HDD capacity expansion to initiate towards the end of the current quarter [27] - HDD revenues are forecasted to increase at least 40% over the next three years [28] Company Strategy and Development Direction - The company is actively engaged in a strategic process with Greenhill to improve shareholder value [16] - Intevac is focused on enhancing the night vision performance of the IVAS program, with expectations for significant revenue growth in Photonics [24][32] - The company anticipates strong growth in HDD business in 2022, driven by resumed media capacity expansion plans [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a return to revenue growth in 2022, despite challenges faced in 2021 [12] - The company highlighted ongoing challenges in the supply chain, particularly with extended lead times for components [68] - Management indicated that 2022 is expected to be a build year, with growth accelerating in subsequent years [48][55] Other Important Information - A $300,000 restructuring charge was included in Q3 numbers, which reduced expenses during a period of limited new system sales [11] - The company has maintained a strong balance sheet, achieving a net increase in total cash and investments since year-end 2020 [12] Q&A Session Summary Question: Clarification on 40% revenue growth guidance - Management confirmed that the 40% guidance applies to total sales across all business segments, not just product sales [44] Question: Linear growth expectations over the next three years - Management indicated that growth in 2022 will be slower, with the majority of growth expected after 2022, but still greater than 40% year-over-year [48][55] Question: HDD unit shipments and cycle comparisons - Management stated that they cannot provide specific unit numbers but expect the bulk of installations to occur late in 2022 or early 2023 [50] Question: Updates on IVAS program and technology upgrades - Management noted that the need for improved night vision performance aligns with Intevac's technology, positioning them favorably for future business wins [54] Question: Supply chain impacts - Management acknowledged supply chain issues, particularly with extended lead times for components and microcontrollers [68] Question: Future upgrade cycles for HDD - Management confirmed ongoing programs aimed at enhancing media density and technology roadmaps [72]

Intevac Announces Second Quarter 2021 Financial Results August 02, 2021 04:05 PM Eastern Daylight Time SANTA CLARA, Calif.--(BUSINESS WIRE)--Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the quarter and six months ended July 3, 2021. "We are pleased to report revenues above forecast for the second quarter, chiefly as a result of the acceleration of technology upgrades by our hard disk drive (HDD) customers," commented Wendell Blonigan, president and chief executive officer. "We announced ...

Financial Data and Key Metrics Changes - The company reported consolidated second quarter revenues of $13.8 million, exceeding guidance of $12.5 million to $13 million [44] - Gross margin for the quarter was 22.5%, below the guidance of 27% [45] - The net loss for the quarter was $6.1 million, or $0.25 per share, within the guidance range [46] Business Line Data and Key Metrics Changes - Thin Film Equipment (TFE) revenues totaled $5.4 million, including upgrades, spares, and service [44] - Photonics revenue was $8.4 million, comprising $5.3 million in product revenues and $3.2 million in contract research and development revenues [44] - TFE gross margin was 18.7%, lower than forecast due to lower overall volume affecting factory utilization [45] Market Data and Key Metrics Changes - The HDD market demand in Q2 outpaced expectations, with close to 4 million additional drives shipped compared to forecasts [15] - The nearline HDD market saw record unit and capacity shipments, totaling approximately 19 million units and 240 exabytes [16] - Discussions with customers to add media capacity resumed in Q2, indicating a positive outlook for HDD media business growth in 2022 and 2023 [20] Company Strategy and Development Direction - The company aims to gain initial adoption of its DiamondClad protected coating through the Vertex initiative, with expectations for tool orders in 2021 [22] - The MATRIX tool has moved into pilot manufacturing, indicating progress in expanding the Equipment business [28] - The company is focused on multiple critical military programs, including IVAS, which is expected to drive future revenue growth [42] Management's Comments on Operating Environment and Future Outlook - Management noted challenges due to semiconductor shortages and supply chain constraints impacting lead times and production levels [13] - The company expects Q3 revenues in the range of $12 million to $13 million, with gross margins around 35% [49] - Full-year guidance for TFE revenues remains at approximately $38 million, while Photonics revenues are expected at the lower end of the $30 million to $34 million range [50] Other Important Information - The company ended the quarter with $54.1 million in cash and investments, an increase of $3.8 million since year-end 2020 [13] - Backlog at quarter-end was $51.7 million, with TFE backlog at $18.9 million and Photonics backlog at $32.7 million [47] Q&A Session Summary Question: Update on Vertex revenue opportunities - Management indicated that revenue from evaluation systems could materialize depending on final testing and acceptance [54][60] Question: Clarification on operating expenses - Full-year operating expenses are expected to remain around $39 million [62] Question: Drivers for increased margins in the next quarter - Increased margins are anticipated from upgrade orders and IVAS development deliveries [67][68] Question: Update on IVAS program and market share - Initial units ordered are at least 5,000, with potential for nearly 10,000 over the next 12 months [79] Question: Competitive landscape in the deposition market - Canon remains a competitor, but the company feels well-positioned in the HDD media market [91]