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Intevac, Inc. (Nasdaq: IVAC) today reported financial results for the quarter and nine months ended September 29, 2012.
“As expected, our Equipment business had a challenging quarter driven principally by the difficult economic environment and moderated demand for hard drives,” commented Kevin Fairbairn, president and chief executive officer of Intevac. “In our Photonics business, we achieved a significant milestone this quarter with a record level of revenue and profitability and are well positioned for continued growth.
“Given the current situation and our belief that our Equipment business is focused on markets that we expect will drive future growth, our game plan continues to be to prudently balance our short-term spending with developing technology solutions that can drive revenue in the near-term, but more importantly enable even greater long-term opportunities. We continue to make positive progress with our new equipment products in the solar market and new enabling deposition products for our hard drive customers.”
Third Quarter 2012 Summary
The net loss was $8.0 million, or $0.34 per share, and included a $3.0 million bad debt write-off equivalent to $0.08 per share compared to a net loss of $6.1 million, or $0.27 per share, in the third quarter of 2011.
Revenues were $16.8 million, including $7.4 million of Equipment revenues and Intevac Photonics revenues of $9.4 million. Equipment revenues consisted of upgrades, spares and service. Intevac Photonics revenues included $5.2 million of research and development contracts. In the third quarter of 2011, revenues were $19.3 million, including $12.4 million of Equipment revenues and Intevac Photonics revenues of $6.9 million, which included $1.5 million of research and development contracts.
Equipment gross margin was 35.6%, compared to 44.9% in the third quarter of 2011, primarily as a result of decreased revenues and lower factory utilization. Intevac Photonics gross margin of 32.8% improved compared to 28.3% in the third quarter of 2011. The increase was primarily a result of improved yields and lower warranty related costs related to our night vision products. Consolidated gross margin was 34.1%, compared to 38.9% in the third quarter of 2011. Operating expenses were $16.7 million, compared to $15.6 million in the third quarter of 2011, and increased primarily as a result of $3.0 million bad debt charge due to the insolvency and liquidation of a customer.