Intevac(US:IVAC)2023-02-16 21:07Financial Performance - Net revenues for the year ended December 31, 2022, were $35.761 million, a decrease of 7.3% from $38.524 million in the previous year[227]. - Gross profit increased to $15.086 million, compared to $7.067 million in the prior year, reflecting improved cost management[227]. - Total operating expenses rose to $31.598 million, up from $29.543 million, primarily due to increased research and development costs of $13.722 million[227]. - The net loss from continuing operations was $16.754 million, compared to a loss of $23.057 million in the previous year, indicating a reduction in losses[227]. - The company reported a comprehensive loss of $17.846 million for the year, compared to a comprehensive income of $26.558 million in the previous year[230]. - Basic and diluted net loss per share for continuing operations was $(0.67), an improvement from $(0.95) in the prior year[227]. - For the year ended December 31, 2022, Intevac reported a net loss of $17,075,000 compared to a net income of $26,620,000 for the year ended January 1, 2022[236]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $68.904 million from $102.728 million, indicating a reduction in liquidity[225]. - Total cash and cash equivalents at the end of the period decreased to $69,690,000 from $103,514,000 at the beginning of the period, reflecting a net decrease of $33,824,000[236]. - Intevac's operating activities used $7,434,000 in cash for the year ended December 31, 2022, compared to $278,000 provided in the previous year[236]. - The company incurred equity-based compensation expenses of $4,890,000 in 2022, up from $4,003,000 in 2021[236]. - Intevac's cash flow from investing activities was negative at $28,418,000 in 2022, compared to a positive cash flow of $71,204,000 in 2021[236]. Assets and Liabilities - Total assets increased to $173.059 million, up from $157.769 million, showing growth in the company's financial position[225]. - The accumulated deficit grew to $53.185 million from $36.110 million, highlighting ongoing challenges in profitability[225]. - The company has deferred tax assets that may be reduced by a valuation allowance if it is more likely than not that they will not be realized[266]. - Deferred income taxes were reported at $4,356,000 as of December 31, 2022, down from $5,310,000 on January 1, 2022[373]. - The net deferred tax assets were $4,356,000 as of December 31, 2022[402]. Inventory and Revenue Recognition - The company's inventories increased significantly to $30.003 million as of December 31, 2022, from $5.791 million a year earlier, reflecting changes in demand and production[225]. - Total net revenues from discontinued operations in the Photonics segment were $27,667,000 for the year ended December 31, 2022[300]. - The gross profit from discontinued operations was $6,530,000, with total operating expenses amounting to $11,194,000, resulting in an operating loss of $321,000[303]. - As of December 31, 2022, the company had $121.7 million in remaining performance obligations, with expected revenue recognition of 38% in 2023 and 21% in 2024[327]. Strategic Changes and Business Operations - The company completed the sale of its Photonics business for $70,000,000 in cash consideration in December 2021, which has been classified as discontinued operations[245][246]. - The divestiture of the Photonics segment is considered a significant strategic shift, impacting the Company's operations and financial results, reported as discontinued operations[299]. - The company has implemented a restructuring program aimed at reducing headcount and eliminating several R&D programs to realign operational focus[244]. Taxation - The total provision for income taxes for fiscal 2022 was $1,327,000, compared to $575,000 in fiscal 2021[398]. - The effective tax rate for fiscal 2022 was (8.6%), compared to (2.6%) in fiscal 2021[398]. - The effective tax rate is influenced by projected earnings, geographic earnings composition, and tax planning strategies, with potential material effects on financial results if actual results differ from estimates[272]. Customer Concentration - Seagate Technology accounted for 80% of Intevac's consolidated net revenues in fiscal 2022, up from 60% in 2021, indicating a significant customer concentration[363].