Intevac, Inc. (Nasdaq: IVAC) today announced a global cost reduction plan which includes reducing its workforce by approximately 13% worldwide. The workforce reduction will be substantially completed in the fiscal first quarter ending March 30, 2013. Today’s announcement is part of the company’s strategy to reduce its total expenditures by approximately $12 to $14 million on an annual basis.
“This reduction in workforce is very difficult, but necessary to better balance the level of investment in new products with the slowdown we presently face in our equipment business,” said Norm Pond, chairman and chief executive officer of Intevac. “The implementation of this plan will significantly lower our expenditures as well as our cash burn going forward.”
The company expects to record a restructuring charge in the first quarter of approximately $500,000, primarily related to employee severance. The impact of this charge is not expected to materially change our previously provided guidance for the first quarter.
Intevac was founded in 1991 and has two businesses: Equipment and Intevac Photonics.
In our Equipment business, we are a leader in the design, development and manufacturing of high-productivity, vacuum process equipment solutions. Our systems are production-proven for high-volume manufacturing of small substrates with precise thin film properties, such as those required in the hard drive and solar cell markets we currently serve.
In the hard drive industry, our 200 Lean® systems process approximately 60% of all magnetic disk media produced worldwide. In the solar cell manufacturing industry, our LEAN SOLAR™ systems increase the conversion efficiency of silicon solar cells.
In our Photonics business, we are a leader in the development and manufacture of leading-edge, high-sensitivity imaging products and vision systems as well as materials identification instruments utilizing Raman technology. Our products primarily address the defense markets in addition to the industrial, medical and scientific industries.