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July 29, 2009
Share ThisIntevac Inc. (IVAC) reported second quarter 2009 net loss per share of $0.20 per diluted share. This was at the low end of the company’s loss per share guidance of a $0.19 to $0.26 per share, and was better than the consensus net loss per share guidance of $0.23 per diluted share.
Revenue for the quarter, totaled $12.3 million, including $6.1 million in Equipment and $6.3 million in Intevac Photonics, compared to first quarter 2009 revenue of $12.3 million, including $6.1 million of Equipment revenues and $6.2 million of Intevac Photonics revenues, and second quarter 2008 revenue of $32.1 million, including $25.7 million of Equipment revenues and $6.4 million of Intevac Photonics revenues (which included $2.4 million of product sales).
The total revenue was above the company’s guidance range of $9.0 million to $12.0 million. This also exceeded our estimate of $12.0 million in total revenue, including $6.0 million in Equipment and $6.0 million in Intevac Photonics. After several quarters of limited bookings, the company has witnessed an increase in its hard disk customers, as the existing customers are now investing in technology. This apart, Photonics gained momentum and recorded higher product sales.
Consolidated gross margins were flat at 34.6%, compared to 34.7% in first quarter 2009 and 40.9% in second quarter of 2008. Equipment gross margin was 39.2% compared to 29.9% in first quarter 2009 and 42.4% in second quarter 2008. The sequential improvement in Equipment gross margin reflected changes in product mix to higher-margin technology upgrades, while the year-over-year decrease reflected lower revenues and lower factory utilization.
Photonics gross margin was 34.1% compared to 39.4% in first quarter 2009 and 34.9% in second quarter 2008. The decrease in Photonics gross margin reflected higher manufacturing and contract research and development costs.
Operating expenses for the quarter totaled $12.8 million, a decline of 19.3% compared to $15.8 million in second quarter 2008 and a decline of 7.0% compared to $13.7 million in the first quarter 2009. Operating expenses declined compared to the first quarter of 2009 and the second quarter of 2008 as a result of cost savings from the global cost reduction plan initiated in the fourth quarter of 2008.
Net loss for the quarter was $4.5 million or $0.20 per diluted share, compared to first quarter 2009 net loss of $5.8 million or $0.26 per diluted share and second quarter of 2008 net loss of $0.93 million or $0.04 per diluted share. The second quarter 2009 net loss included $1.3 million of equity-based compensation expense, equivalent to $0.04 per diluted share.
Intevac exited the quarter with $96.1 million in cash, short-term and long-term investments versus $100.8 million in the previous quarter. The company is debt free (including long-term and the current portion of long-term debt) at the end of second quarter. The company is showing momentum in the photonics segment, taking aggressive cost reduction measures, developing new products and exploring new businesses.
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