Intevac(IVAC) - 2023 Q4 - Annual Report

Financial Performance - Net revenues for the year ended December 30, 2023, were $52.665 million, an increase of 47.3$35.761 million for the year ended December 31, 2022[212]. - Gross profit for the year ended December 30, 2023, was $20.226 million, representing a gross margin of 38.4$15.086 million in the previous year[212]. - Operating loss decreased to $13.244 million for the year ended December 30, 2023, compared to an operating loss of$16.512 million for the year ended December 31, 2022, reflecting improved operational efficiency[212]. - The company reported a net loss of $12.190 million for the year ended December 30, 2023, a reduction from a net loss of$17.075 million in the prior year[212]. - Net loss for the year ended December 30, 2023, was $12,190,000, compared to a net loss of$17,075,000 for the year ended December 31, 2022, representing a 28.0% improvement[222]. - Basic net loss per share for continuing operations was $(0.48) in 2023, compared to$(0.67) in 2022, indicating a reduction in losses[304]. Cash and Investments - Cash and cash equivalents decreased to $51.441 million as of December 30, 2023, down from$68.904 million as of December 31, 2022[209]. - Total cash, cash equivalents, and restricted cash at the end of the period was $52,141,000, down from$69,690,000 at the beginning of the period, indicating a decrease of 25.3%[222]. - The company had cash used in investing activities of $(28,418,000) for the year ended December 31, 2022, while it generated$18,281,000 in cash from investing activities for the year ended December 30, 2023, showing a positive turnaround[222]. - Total cash and cash equivalents as of December 30, 2023, amounted to $51,445,000, a decrease from$68,910,000 as of December 31, 2022, representing a decline of approximately 25.5%[321]. - Total short-term investments decreased to $17,460,000 as of December 30, 2023, from$25,772,000 as of December 31, 2022, reflecting a decline of about 32.4%[321]. - Total long-term investments were $2,690,000 as of December 30, 2023, down from$17,832,000 as of December 31, 2022, indicating a significant decrease of approximately 85%[321]. - The total cash, cash equivalents, and investments decreased to $71,595,000 as of December 30, 2023, from$112,514,000 as of December 31, 2022, a decline of about 36.4%[321]. Inventory and Liabilities - Inventories increased significantly to $43.795 million as of December 30, 2023, compared to$30.003 million as of December 31, 2022, indicating potential challenges in inventory management[209]. - Total current liabilities rose to $32.510 million as of December 30, 2023, compared to$25.975 million as of December 31, 2022, reflecting increased operational commitments[209]. - Inventories decreased by $13,792,000 in the year ended December 30, 2023, compared to a decrease of$24,105,000 in the previous year, indicating a reduction in inventory management challenges[222]. Research and Development - Research and development expenses for the year ended December 30, 2023, were $15.125 million, up from$13.722 million in the previous year, highlighting a focus on innovation[212]. Equity and Stock - The company’s additional paid-in capital increased to $210.320 million as of December 30, 2023, from$206.355 million as of December 31, 2022, indicating ongoing investment support[209]. - The weighted average shares outstanding increased to 26,121 thousand for the year ended December 30, 2023, compared to 25,192 thousand in the previous year, reflecting potential dilution effects[212]. - Proceeds from the issuance of common stock amounted to $1,365,000 in the year ended December 30, 2023, compared to$3,083,000 in the previous year, reflecting a decrease of 55.7%[222]. Taxation - The effective tax rate is influenced by projected earnings and geographic composition, with potential material effects on business outcomes if actual results differ from estimates[251]. - The company reported an effective tax rate of (16.9%) for fiscal 2023, compared to (8.6%) for fiscal 2022[334]. - The provision for income taxes on continuing operations for fiscal 2023 was $1,822,000, an increase from$1,327,000 in fiscal 2022, representing a rise of approximately 37.4%[334]. Legal and Compliance - The company incurred legal expenses of approximately $1.0 million related to a settlement in the Quiusky v. Intevac lawsuit, which was resolved in January 2023[369]. - The company’s management concluded that its disclosure controls and procedures were effective as of December 30, 2023[383]. - Intevac's management concluded that its internal control over financial reporting was effective as of December 30, 2023[386]. Acquisitions and Contingent Considerations - The acquisition of Hia, Inc. was completed on August 26, 2022, for a total purchase price of$763,000, including $700,000 in cash and$63,000 in transaction costs[377]. - The first milestone of the Hia acquisition was achieved, resulting in a contingent consideration payment of $250,000, which was accrued in the fourth quarter of 2022[378]. - The technology intangible assets from the Hia acquisition had a gross carrying amount of$1,132,000 as of December 30, 2023, with accumulated amortization of $178,000[382]. Cost Reduction Initiatives - The company implemented a 2023 Cost Reduction Plan, resulting in a 23$2.0 million, expected to save approximately $4.6 million annually[370]. - The 2022 Cost Reduction Plan reduced the workforce by 6$2.1 million[371].