☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Identification No.)
Title of each class | Trading Symbol(s) | Name of each exchange
| ||
Common Stock ($0.001 par value) | IVAC | The Nasdaq Stock Market LLC (Nasdaq) Global Select |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
No. | Page | |||||
PART I. FINANCIAL INFORMATION | ||||||
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Item 1. | 34 | |||||
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Item 2. | 40 | |||||
Item 3. | 40 | |||||
Item 4. | 40 | |||||
Item 5. | 40 | |||||
Item 6. | 40 | |||||
42 |
Item 1. |
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Current assets: Cash and cash equivalents Short-term investments Trade and other accounts receivable, net of allowances of $0 at both March 28, 2020 and at December 28, 2019 Inventories Prepaid expenses and other current assets Total current assets Long-term investments Restricted cash Property, plant and equipment, net Operating leaseright-of-use-assets Intangible assets, net of accumulated amortization of $8,267 at March 28, 2020 and $8,113 at December 28, 2019 Deferred income taxes and other long-term assets Total assets Current liabilities: Current operating lease liabilities Accounts payable Accrued payroll and related liabilities Other accrued liabilities Customer advances Total current liabilities Noncurrent liabilities: Noncurrent operating lease liabilities Other long-term liabilities Total noncurrent liabilities Stockholders’ equity: Common stock, $0.001 par value Additionalpaid-in capital Treasury stock, 5,087 shares at March 28, 2020 and 4,989 shares at December 28, 2019 Accumulated other comprehensive income Accumulated deficit Total stockholders’ equity Total liabilities and stockholders’ equity March 28,
2020 December 28,
2019 (Unaudited) (In thousands, except par value) ASSETS $ 21,450 $ 19,767 16,441 16,720 23,021 28,619 27,208 24,907 1,897 1,504 90,017 91,517 4,549 5,537 787 787 12,038 11,598 9,730 10,279 120 274 6,138 6,330 $ 123,379 $ 126,322 LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,614 $ 2,524 4,747 4,199 4,030 6,488 2,651 3,593 4,696 4,007 18,738 20,811 8,819 9,532 153 186 8,972 9,718 23 23 189,876 188,290 (29,551 ) (29,158 ) 331 424 (65,010 ) (63,786 ) 95,669 95,793 $ 123,379 $ 126,322 $ 27,245 $ 19,767 18,342 16,720 23,221 28,619 23,638 24,907 2,031 1,504 94,477 91,517 3,074 5,537 787 787 11,552 11,598 8,739 10,279 5,740 6,604 $ 124,369 $ 126,322 $ 2,776 $ 2,524 4,463 4,199 6,478 6,488 2,289 3,593 1,051 4,007 17,057 20,811 7,516 9,532 688 186 8,204 9,718 24 23 191,976 188,290 (29,551 ) (29,158 ) 502 424 (63,843 ) (63,786 ) 99,108 95,793 $ 124,369 $ 126,322 notes.notes to the condensed consolidated financial statements.
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Net revenues: | ||||||||
Systems and components | $ | 13,836 | $ | 21,637 | ||||
Technology development | 5,004 | 3,190 | ||||||
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| |||||
Total net revenues | 18,840 | 24,827 | ||||||
Cost of net revenues: | ||||||||
Systems and components | 7,767 | 15,100 | ||||||
Technology development | 2,917 | 2,488 | ||||||
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| |||||
Total cost of net revenues | 10,684 | 17,588 | ||||||
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| |||||
Gross profit | 8,156 | 7,239 | ||||||
Operating expenses: | ||||||||
Research and development | 3,284 | 3,986 | ||||||
Selling, general and administrative | 5,972 | 5,252 | ||||||
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| |||||
Total operating expenses | 9,256 | 9,238 | ||||||
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| |||||
Loss from operations | (1,100 | ) | (1,999 | ) | ||||
Interest income and other income (expense), net | 142 | 160 | ||||||
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Loss before provision for income taxes | (958 | ) | (1,839 | ) | ||||
Provision for income taxes | 266 | 553 | ||||||
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Net loss | $ | (1,224 | ) | $ | (2,392 | ) | ||
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Net loss per share: | ||||||||
Basic and Diluted | $ | (0.05 | ) | $ | (0.10 | ) | ||
Weighted average common shares outstanding: | ||||||||
Basic and Diluted | 23,483 | 22,855 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net revenues: | ||||||||||||||||
Systems and components | $ | 15,027 | $ | 21,090 | $ | 51,589 | $ | 59,965 | ||||||||
Technology development | 6,538 | 5,209 | 17,659 | 13,476 | ||||||||||||
Total net revenues | 21,565 | 26,299 | 69,248 | 73,441 | ||||||||||||
Cost of net revenues: | ||||||||||||||||
Systems and components | 8,389 | 14,180 | 29,969 | 39,741 | ||||||||||||
Technology development | 3,876 | 3,341 | 10,403 | 9,325 | ||||||||||||
Total cost of net revenues | 12,265 | 17,521 | 40,372 | 49,066 | ||||||||||||
Gross profit | 9,300 | 8,778 | 28,876 | 24,375 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,603 | 3,596 | 10,594 | 11,013 | ||||||||||||
Selling, general and administrative | 5,845 | 5,615 | 17,426 | 16,720 | ||||||||||||
Total operating expenses | 9,448 | 9,211 | 28,020 | 27,733 | ||||||||||||
Income (loss) from operations | (148 | ) | (433 | ) | 856 | (3,358 | ) | |||||||||
Interest income and other income (expense), net | 8 | 126 | 212 | 448 | ||||||||||||
Income (loss) before provision for income taxes | (140 | ) | (307 | ) | 1,068 | (2,910 | ) | |||||||||
Provision for income taxes | 217 | 173 | 1,125 | 1,144 | ||||||||||||
Net loss | $ | (357 | ) | $ | (480 | ) | $ | (57 | ) | $ | (4,054 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.18 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and Diluted | 23,771 | 23,130 | 23,605 | 22,992 |
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Net loss | $ | (1,224 | ) | $ | (2,392 | ) | ||
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Other comprehensive income, before tax: | ||||||||
Change in unrealized net gain (loss) onavailable-for-sale investments | 2 | 45 | ||||||
Foreign currency translation gains (losses) | (95 | ) | 61 | |||||
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| |||||
Other comprehensive income (loss), before tax | (93 | ) | 106 | |||||
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| |||||
Income tax provision related to items in other comprehensive income | — | — | ||||||
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| |||||
Other comprehensive income (loss), net of tax | (93 | ) | 106 | |||||
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| |||||
Comprehensive loss | $ | (1,317 | ) | $ | (2,286 | ) | ||
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INCOME (LOSS)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (357 | ) | $ | (480 | ) | $ | (57 | ) | $ | (4,054 | ) | ||||
Other comprehensive income (loss), before tax Change in unrealized net gain on available-for-sale | (24 | ) | 3 | 29 | 80 | |||||||||||
Foreign currency translation gains (losses) | 124 | (87 | ) | 49 | (87 | ) | ||||||||||
Other comprehensive income (loss), before tax | 100 | (84 | ) | 78 | (7 | ) | ||||||||||
Income tax (expense) benefit related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||||||||||
Other comprehensive income (loss), net of tax | 100 | (84 | ) | 78 | (7 | ) | ||||||||||
Comprehensive income (loss) | $ | (257 | ) | $ | (564 | ) | $ | 21 | $ | (4,061 | ) | |||||
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (1,224 | ) | $ | (2,392 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 858 | 1,036 | ||||||
Net amortization (accretion) of investment premiums and discounts | (19 | ) | (16 | ) | ||||
Equity-based compensation | 672 | 756 | ||||||
Straight-line rent adjustment and amortization of lease incentives | (74 | ) | (85 | ) | ||||
Deferred income taxes | 114 | 332 | ||||||
Change in the fair value of acquisition-related contingent consideration | — | 7 | ||||||
Loss on disposal of equipment | — | 45 | ||||||
Changes in operating assets and liabilities | 786 | 1,286 | ||||||
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| |||||
Total adjustments | 2,337 | 3,361 | ||||||
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|
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| |||||
Net cash provided by operating activities | 1,113 | 969 | ||||||
Investing activities | ||||||||
Purchases of investments | (4,242 | ) | (5,045 | ) | ||||
Proceeds from sales and maturities of investments | 5,530 | 8,396 | ||||||
Purchases of leasehold improvements and equipment | (1,145 | ) | (371 | ) | ||||
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|
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| |||||
Net cash provided by investing activities | 143 | 2,980 | ||||||
Financing activities | ||||||||
Proceeds from issuance of common stock | 950 | 1,021 | ||||||
Common stock repurchases | (393 | ) | — | |||||
Taxes paid related to net share settlement | (36 | ) | (28 | ) | ||||
Payment of acquisition-related contingent consideration | — | (98 | ) | |||||
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| |||||
Net cash provided by financing activities | 521 | 895 | ||||||
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| |||||
Effect of exchange rate changes on cash and cash equivalents | (94 | ) | 63 | |||||
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|
|
| |||||
Net increase in cash, cash equivalents and restricted cash in cash, cash equivalents and restricted cash | 1,683 | 4,907 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 20,554 | 19,884 | ||||||
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| |||||
Cash, cash equivalents and restricted cash at end of period | $ | 22,237 | $ | 24,791 | ||||
|
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|
|
Nine months ended | ||||||||
September 26, 2020 | September 28, 2019 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (57 | ) | $ | (4,054 | ) | ||
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 2,645 | 2,778 | ||||||
Net amortization (accretion) of investment premiums and discounts | (9 | ) | (55 | ) | ||||
Equity-based compensation | 2,186 | 2,260 | ||||||
Straight-line rent adjustment and amortization of lease incentives | (224 | ) | (238 | ) | ||||
Change in the fair value of acquisition-related contingent consideration | 0 | 7 | ||||||
Deferred income taxes | 516 | 552 | ||||||
Loss on disposal of equipment | 0 | 87 | ||||||
Changes in operating assets and liabilities | 2,714 | (2,470 | ) | |||||
Total adjustments | 7,828 | 2,921 | ||||||
Net cash and cash equivalents provided by (used in) operating activities | 7,771 | (1,133 | ) | |||||
Investing activities | ||||||||
Purchases of investments | (17,071 | ) | (18,917 | ) | ||||
Proceeds from sales and maturities of investments | 17,950 | 18,751 | ||||||
Purchases of leasehold improvements and equipment | (2,329 | ) | (3,279 | ) | ||||
Net cash and cash equivalents used in investing activities | (1,450 | ) | (3,445 | ) | ||||
Financing activities | ||||||||
Net proceeds from issuance of common stock | 1,865 | 1,770 | ||||||
Common stock repurchases | (393 | ) | (111 | ) | ||||
Taxes paid related to net share settlement | (364 | ) | (296 | ) | ||||
Payment of acquisition-related contingent consideration | 0 | (230 | ) | |||||
Net cash and cash equivalents provided by financing activities | 1,108 | 1,133 | ||||||
Effect of exchange rate changes on cash | 49 | (87 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,478 | (3,532 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 20,554 | 19,884 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 28,032 | $ | 16,352 | ||||
Non-cash investing and financing activity | ||||||||
Additions to right-of-use-assets | $ | 128 | $ | 0 | ||||
1. | Description of Business, |
Intevac’s results of operations for the three and nine months ended September 26, 2020 are not necessarily indicative of future operating results.
2. | Revenue |
TFE | Three Months Ended March 28, 2020 | Three Months Ended March 30, 2019 | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | Total | |||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 6,361 | $ | — | $ | 208 | $ | 6,569 | $ | 11,050 | $ | — | $ | 6,373 | $ | 17,423 | ||||||||||||||||
Field service | 1,393 | — | — | 1,393 | 1,522 | — | — | 1,522 | ||||||||||||||||||||||||
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| |||||||||||||||||
Total TFE net revenues | $ | 7,754 | $ | — | $ | 208 | $ | 7,962 | $ | 12,572 | $ | — | $ | 6,373 | $ | 18,945 | ||||||||||||||||
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Three Months Ended | ||||||||
Photonics | March 28, 2020 | March 30, 2019 | ||||||
(In thousands) | ||||||||
Products: | ||||||||
Military products | $ | 5,365 | $ | 1,813 | ||||
Commercial products | 79 | 318 | ||||||
Repair and other services | 430 | 561 | ||||||
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| |||||
Total Photonics product net revenues | 5,874 | 2,692 | ||||||
Technology development: | ||||||||
Firm Fixed Price (“FFP”) | 4,430 | 1,692 | ||||||
Cost Plus Fixed Fee (“CPFF”) | 574 | 1,496 | ||||||
Time and materials | — | 2 | ||||||
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| |||||
Total technology development net revenues | 5,004 | 3,190 | ||||||
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| |||||
Total Photonics net revenues | $ | 10,878 | $ | 5,882 | ||||
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|
|
TFE | Three Months Ended September 26, 2020 | Three Months Ended September 28, 2019 | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | Total | |||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 7,601 | $ | — | $ | 131 | $ | 7,732 | $ | 7,737 | $ | — | $ | 8,225 | $ | 15,962 | ||||||||||||||||
Field service | 1,635 | — | — | 1,635 | 1,109 | — | 45 | 1,154 | ||||||||||||||||||||||||
Total TFE net revenues | $ | 9,236 | $ | — | $ | 131 | $ | 9,367 | $ | 8,846 | $ | — | $ | 8,270 | $ | 17,116 | ||||||||||||||||
Nine Months Ended September 26, 2020 | Nine Months Ended September 28, 2019 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | Total | |||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 29,189 | $ | — | $ | 400 | $ | 29,589 | $ | 31,210 | $ | — | $ | 14,616 | $ | 45,826 | ||||||||||||||||
Field service | 4,334 | — | 2 | 4,336 | 3,452 | 2 | 45 | 3,499 | ||||||||||||||||||||||||
Total TFE net revenues | $ | 33,523 | $ | — | $ | 402 | $ | 33,925 | $ | 34,662 | $ | 2 | $ | 14,661 | $ | 49,325 | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
Photonics | September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | ||||||||||||
(In thousands) | ||||||||||||||||
Products: | ||||||||||||||||
Military products | $ | 4,947 | $ | 3,320 | $ | 15,758 | $ | 8,115 | ||||||||
Commercial products | 139 | 81 | 257 | 581 | ||||||||||||
Repair and other services | 574 | 573 | 1,649 | 1,944 | ||||||||||||
Total Photonics product net revenues | 5,660 | 3,974 | 17,664 | 10,640 | ||||||||||||
Technology development: | ||||||||||||||||
Firm Fixed Price (“FFP”) | 5,482 | 3,218 | 15,374 | 7,995 | ||||||||||||
Cost Plus Fixed Fee (“CPFF”) | 1,056 | 1,991 | 2,285 | 5,479 | ||||||||||||
Time and materials | — | — | — | 2 | ||||||||||||
Total technology development net revenues | 6,538 | 5,209 | 17,659 | 13,476 | ||||||||||||
Total Photonics net revenues | $ | 12,198 | $ | 9,183 | $ | 35,323 | $ | 24,116 | ||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 1,764 | $ | 12,079 | $ | 13,843 | $ | 478 | $ | 9,050 | $ | 9,528 | ||||||||||||
Asia | 7,536 | — | 7,536 | 16,638 | — | 16,638 | ||||||||||||||||||
Europe | 67 | 119 | 186 | — | 133 | 133 | ||||||||||||||||||
Total net revenues | $ | 9,367 | $ | 12,198 | $ | 21,565 | $ | 17,116 | $ | 9,183 | $ | 26,299 | ||||||||||||
Primary Geographical Markets
Three Months Ended | ||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 519 | $ | 10,856 | $ | 11,375 | $ | 161 | $ | 5,716 | $ | 5,877 | ||||||||||||
Asia | 7,443 | — | 7,443 | 18,784 | — | 18,784 | ||||||||||||||||||
Europe | — | 22 | 22 | — | 166 | 166 | ||||||||||||||||||
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Total net revenues | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 18,945 | $ | 5,882 | $ | 24,827 | ||||||||||||
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Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 2,596 | $ | 35,060 | $ | 37,656 | $ | 995 | $ | 23,578 | $ | 24,573 | ||||||||||||
Asia | 31,262 | — | 31,262 | 48,330 | — | 48,330 | ||||||||||||||||||
Europe | 67 | 263 | 330 | — | 538 | 538 | ||||||||||||||||||
Total net revenues | $ | 33,925 | $ | 35,323 | $ | 69,248 | $ | 49,325 | $ | 24,116 | $ | 73,441 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
Products transferred at a point in time | $ | 7,962 | $ | 430 | $ | 8,392 | $ | 18,945 | $ | 561 | $ | 19,506 | ||||||||||||
Products and services transferred over time | — | 10,448 | 10,448 | — | 5,321 | 5,321 | ||||||||||||||||||
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$ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 18,945 | $ | 5,882 | $ | 24,827 | |||||||||||||
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Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
Products transferred at a point in time | $ | 9,367 | $ | 574 | $ | 9,941 | $ | 17,116 | $ | 573 | $ | 17,689 | ||||||||||||
Products and services transferred over time | — | 11,624 | 11,624 | — | 8,610 | 8,610 | ||||||||||||||||||
$ | 9,367 | $ | 12,198 | $ | 21,565 | $ | 17,116 | $ | 9,183 | $ | 26,299 | |||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
Products transferred at a point in time | $ | 33,925 | $ | 1,649 | $ | 35,574 | $ | 49,325 | $ | 1,944 | $ | 51,269 | ||||||||||||
Products and services transferred over time | — | 33,674 | 33,674 | — | 22,172 | 22,172 | ||||||||||||||||||
$ | 33,925 | $ | 35,323 | $ | 69,248 | $ | 49,325 | $ | 24,116 | $ | 73,441 | |||||||||||||
March 28, 2020 | December 28, 2019 | Three Months Change | ||||||||||
(In thousands) | ||||||||||||
TFE: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | — | $ | 760 | $ | (760 | ) | |||||
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Contract liabilities: | ||||||||||||
Deferred revenue | $ | 486 | $ | 320 | $ | 166 | ||||||
Customer advances | 4,696 | 4,007 | 689 | |||||||||
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$ | 5,182 | $ | 4,327 | $ | 855 | |||||||
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Photonics: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 6,187 | $ | 3,210 | $ | 2,977 | ||||||
Retainage | 103 | 99 | 4 | |||||||||
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| |||||||
$ | 6,290 | $ | 3,309 | $ | 2,981 | |||||||
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September 26, 2020:
September 26, 2020 | December 28, 2019 | Nine Months Change | ||||||||||
(In thousands) | ||||||||||||
TFE: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 560 | $ | 760 | $ | (200 | ) | |||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 399 | $ | 320 | $ | 79 | ||||||
Customer advances | 1,051 | 4,007 | (2,956 | ) | ||||||||
$ | 1,450 | $ | 4,327 | $ | (2,877 | ) | ||||||
Photonics: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 3,238 | $ | 3,210 | $ | 28 | ||||||
Retainage | 123 | 99 | 24 | |||||||||
$ | 3,361 | $ | 3,309 | $ | 52 | |||||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 31 | $ | — | $ | 31 | ||||||
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
3. | Inventories |
March 28, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 13,502 | $ | 15,286 | ||||
Work-in-progress | 7,272 | 4,748 | ||||||
Finished goods | 6,434 | 4,873 | ||||||
|
|
|
| |||||
$ | 27,208 | $ | 24,907 | |||||
|
|
|
|
Finished goods inventory
September 26, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 11,166 | $ | 15,286 | ||||
Work-in-progress | 5,732 | 4,748 | ||||||
Finished goods | 6,740 | 4,873 | ||||||
$ | 23,638 | $ | 24,907 | |||||
4. | Equity-Based Compensation |
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands) | ||||||||
Equity-based compensation by type of award: | ||||||||
Stock options | $ | 215 | $ | 206 | ||||
RSUs | 366 | 291 | ||||||
Employee stock purchase plan | 91 | 259 | ||||||
|
|
|
| |||||
Total equity-based compensation | $ | 672 | $ | 756 | ||||
|
|
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Equity-based compensation by type of award: | ||||||||||||||||
Stock options | $ | 47 | $ | 213 | $ | 411 | $ | 610 | ||||||||
RSUs | 495 | 375 | 1,311 | 1,018 | ||||||||||||
ESPP awards | 316 | 163 | 464 | 632 | ||||||||||||
Total equity-based compensation | $ | 858 | $ | 751 | $ | 2,186 | $ | 2,260 | ||||||||
Intevac accounts for forfeitures as they occur, rather than estimating expected forfeitures. Option activity as of March 28,September 26, 2020 and changes during the threenine months ended March 28,September 26, 2020 were as follows:
Shares | Weighted-Average Exercise Price | |||||||
Options outstanding at December 28, 2019 | 2,096,610 | $ | 6.63 | |||||
Options granted | 6,000 | $ | 4.88 | |||||
Options cancelled and forfeited | (2,998 | ) | $ | 6.70 | ||||
Options exercised | (41,214 | ) | $ | 4.74 | ||||
|
| |||||||
Options outstanding at March 28, 2020 | 2,058,398 | $ | 6.66 | |||||
|
| |||||||
Options exercisable at March 28, 2020 | 1,304,343 | $ | 6.77 |
Shares | Weighted-Average Exercise Price | |||||||
Options outstanding at December 28, 2019 | 2,096,610 | $ | 6.63 | |||||
Options granted | 6,000 | $ | 4.88 | |||||
Options cancelled and forfeited | (193,461 | ) | $ | 6.68 | ||||
Options exercised | (61,722 | ) | $ | 4.77 | ||||
Options outstanding at September 26, 2020 | 1,847,427 | $ | 6.68 | |||||
Options exercisable at September 26, 2020 | 1,395,582 | $ | 6.80 |
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
Stock Options: | ||||||||
Weighted-average fair value of grants per share | $ | 1.82 | $ | 2.28 | ||||
Expected volatility | 46.06 | % | 43.40 | % | ||||
Risk-free interest rate | 0.44 | % | 2.21 | % | ||||
Expected term of options (in years) | 4.39 | 4.32 | ||||||
Dividend yield | None | None | ||||||
ESPP Purchase Rights: | ||||||||
Weighted-average fair value of grants per share | $ | 1.66 | $ | 1.89 | ||||
Expected volatility | 36.69 | % | 50.00 | % | ||||
Risk-free interest rate | 1.56 | % | 2.53 | % | ||||
Expected term of purchase rights (in years) | 0.5 | 1.0 | ||||||
Dividend yield | None | None |
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
Stock Options: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 0 | $ | 1.84 | $ | 1.82 | $ | 2.05 | ||||||||
Expected volatility | 0 | 43.87 | % | 46.04 | % | 43.22 | % | |||||||||
Risk-free interest rate | 0 | 1.57 | % | 0.44 | % | 1.86 | % | |||||||||
Expected term of options (in years) | — | 4.32 | 4.39 | 4.56 | ||||||||||||
Dividend yield | 0 | NaN | NaN | NaN | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
Stock Purchase Rights: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 2.20 | $ | 1.45 | $ | 2.20 | $ | 1.73 | ||||||||
Expected volatility | 51.72 | % | 38.27 | % | 51.49 | % | 45.81 | % | ||||||||
Risk-free interest rate | 0.12 | % | 1.85 | % | 0.14 | % | 2.28 | % | ||||||||
Expected term of purchase rights (in years) | 1.26 | 0.75 | 1.24 | 0.91 | ||||||||||||
Dividend yield | NaN | NaN | NaN | NaN |
RSUs
A summaryoutcome of market related conditions. The compensation expense is recognized over the derived service period. We granted 37,500 of such stock options to the Chief Executive Officer in the three months ended June 29, 2019. These PSOs have a derived service period of 1.1 years.
Nine Months Ended September 28, 2019 | ||||
Weighted-average fair value of grants per share | $ | 1.75 | ||
Expected volatility | 43.43 | % | ||
Risk free interest rate | 1.96 | % | ||
Expected term (in years) | 4.60 | |||
Dividend yield | NaN |
Shares | Weighted-Average Grant Date Fair Value | |||||||
Non-vested RSUs at December 28, 2019 | 553,355 | $ | 6.15 | |||||
Granted | 15,625 | $ | 5.09 | |||||
Vested | (15,611 | ) | $ | 6.33 | ||||
Cancelled and forfeited | (248 | ) | $ | 6.94 | ||||
|
| |||||||
Non-vested RSUs at March 28, 2020 | 553,121 | $ | 6.11 | |||||
|
|
Shares | Weighted-Average Grant Date Fair Value | |||||||
Non-vested RSUs at December 28, 2019 | 553,355 | $ | 6.15 | |||||
Granted | 658,090 | $ | 4.85 | |||||
Vested | (221,483 | ) | $ | 6.51 | ||||
Cancelled and forfeited | (35,815 | ) | $ | 6.05 | ||||
Non-vested RSUs at September 26, 2020 | 954,147 | $ | 5.17 | |||||
Nine Months Ended | ||||
September 26, 2020 | ||||
Weighted-average fair value of grants per share | $ | 3.16 | ||
Expected volatility | 46.7 | % | ||
Risk-free interest rate | 0.25 | % | ||
Dividend yield | NaN |
5. | Purchased Intangible Assets |
March 28, 2020 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 7,172 | $ | (7,077 | ) | $ | 95 | |||||
Photonics | 1,215 | (1,190 | ) | 25 | ||||||||
|
|
|
|
|
| |||||||
$ | 8,387 | $ | (8,267 | ) | $ | 120 | ||||||
|
|
|
|
|
|
follows.
September 26, 2020 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 7,172 | $ | (7,172 | ) | $ | 0 | |||||
Photonics | 1,215 | (1,211 | ) | 4 | ||||||||
$ | 8,387 | $ | (8,383 | ) | $ | 4 | ||||||
$11,000 and $270,000, respectively. On the condensed consolidated balance sheets, purchased intangible assets is included in deferred income taxes and other long-term assets. As of March 28,September 26, 2020, future amortization expense of $4,000 is expected to be as follows:
(In thousands) | ||||
2020 | $ | 120 | ||
|
|
6. | Acquisition-Related Contingent Consideration |
Three Months Ended | ||||
March 30, 2019 | ||||
(In thousands) | ||||
Opening balance | $ | 223 | ||
Changes in fair value | 7 | |||
Cash payments made | (98 | ) | ||
|
| |||
Closing balance | $ | 132 | ||
|
|
Nine Months Ended | ||||
September 28, 2019 | ||||
Opening balance | $ | 223 | ||
Changes in fair value | 7 | |||
Cash payments made | (230 | ) | ||
Closing balance | $ | — | ||
7. | Warranty |
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands) | ||||||||
Opening balance | $ | 1,022 | $ | 997 | ||||
Expenditures incurred under warranties | (120 | ) | (167 | ) | ||||
Accruals for product warranties issued during the reporting period | 25 | 324 | ||||||
Adjustments to previously existing warranty accruals | (202 | ) | 143 | |||||
|
|
|
| |||||
Closing balance | $ | 725 | $ | 1,297 | ||||
|
|
|
|
September 28, 2019:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Opening balance | $ | 662 | $ | 948 | $ | 1,022 | $ | 997 | ||||||||
Expenditures incurred under warranties | (89 | ) | (167 | ) | (398 | ) | (592 | ) | ||||||||
Accruals for product warranties issued during the reporting period | 39 | 427 | 198 | 829 | ||||||||||||
Adjustments to previously existing warranty accruals | (57 | ) | (72 | ) | (267 | ) | (98 | ) | ||||||||
Closing balance | $ | 555 | $ | 1,136 | $ | 555 | $ | 1,136 | ||||||||
March 28, | December 28, | |||||||
2020 | 2019 | |||||||
(In thousands) | ||||||||
Other accrued liabilities | $ | 582 | $ | 846 | ||||
Other long-term liabilities | 143 | 176 | ||||||
|
|
|
| |||||
Total warranty provision | $ | 725 | $ | 1,022 | ||||
|
|
|
|
September 26, | December 28, | |||||||
2020 | 2019 | |||||||
(In thousands) | ||||||||
Other accrued liabilities | $ | 425 | $ | 846 | ||||
Other long-term liabilities | 130 | 176 | ||||||
Total warranty provision | $ | 555 | $ | 1,022 | ||||
8. | Guarantees |
March 28,September 26, 2020, we had letters of credit and bank guarantees outstanding totaling $787,000, including the standby letter of credit outstanding under the Santa Clara, California facility lease and various other guarantees with our bank. These letters of credit and bank guarantees are collateralized by $787,000 of restricted cash.
9. | Cash, Cash Equivalents and Investments |
March 28, 2020 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 17,782 | $ | — | $ | — | $ | 17,782 | ||||||||
Money market funds | 3,168 | — | — | 3,168 | ||||||||||||
Certificates of deposit | 500 | — | — | 500 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash and cash equivalents | $ | 21,450 | $ | — | $ | — | $ | 21,450 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 3,800 | $ | 5 | $ | 9 | $ | 3,796 | ||||||||
Commercial paper | 1,894 | 1 | 1 | 1,894 | ||||||||||||
Corporate bonds and medium-term notes | 7,309 | 5 | 8 | 7,306 | ||||||||||||
U.S. treasury and agency securities | 3,433 | 12 | — | 3,445 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total short-term investments | $ | 16,436 | $ | 23 | $ | 18 | $ | 16,441 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 999 | $ | 2 | $ | 14 | $ | 987 | ||||||||
Corporate bonds and medium-term notes | 1,015 | 3 | — | 1,018 | ||||||||||||
U.S. treasury and agency securities | 2,495 | 49 | — | 2,544 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total long-term investments | $ | 4,509 | $ | 54 | $ | 14 | $ | 4,549 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash, cash equivalents, and investments | $ | 42,395 | $ | 77 | $ | 32 | $ | 42,440 | ||||||||
|
|
|
|
|
|
|
|
September 26, 2020 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 23,829 | $ | — | $ | — | $ | 23,829 | ||||||||
Money market funds | 3,416 | — | — | 3,416 | ||||||||||||
Total cash and cash equivalents | $ | 27,245 | $ | — | $ | — | $ | 27,245 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 7,450 | $ | 7 | $ | — | $ | 7,457 | ||||||||
Commercial paper | 499 | 1 | — | 500 | ||||||||||||
Corporate bonds and medium-term notes | 3,842 | 27 | — | 3,869 | ||||||||||||
U.S. treasury and agency securities | 6,481 | 35 | — | 6,516 | ||||||||||||
Total short-term investments | $ | 18,272 | $ | 70 | $ | — | $ | 18,342 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 500 | $ | — | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes | 2,572 | 2 | — | 2,574 | ||||||||||||
Total long-term investments | $ | 3,072 | $ | 2 | $ | — | $ | 3,074 | ||||||||
Total cash, cash equivalents, and investments | $ | 48,589 | $ | 72 | $ | — | $ | 48,661 | ||||||||
December 28, 2019 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 16,512 | $ | — | $ | — | $ | 16,512 | ||||||||
Money market funds | 3,255 | — | — | 3,255 | ||||||||||||
Total cash and cash equivalents | $ | 19,767 | $ | — | $ | — | $ | 19,767 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 3,000 | $ | 1 | $ | 0 | $ | 3,001 | ||||||||
Commercial paper | 1,891 | 2 | 0 | 1,893 | ||||||||||||
Corporate bonds and medium-term notes | 6,383 | 25 | 0 | 6,408 | ||||||||||||
U.S. treasury and agency securities | 5,417 | 1 | — | 5,418 | ||||||||||||
Total short-term investments | $ | 16,691 | $ | 29 | $ | 0 | $ | 16,720 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 499 | $ | 1 | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes | 2,530 | 12 | 0 | 2,542 | ||||||||||||
U.S. treasury and agency securities | 2,494 | 1 | 0 | 2,495 | ||||||||||||
Total long-term investments | $ | 5,523 | $ | 14 | $ | 0 | $ | 5,537 | ||||||||
Total cash, cash equivalents, and investments | $ | 41,981 | $ | 43 | $ | 0 | $ | 42,024 | ||||||||
December 28, 2019 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 16,512 | $ | — | $ | — | $ | 16,512 | ||||||||
Money market funds | 3,255 | — | — | 3,255 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash and cash equivalents | $ | 19,767 | $ | — | $ | — | $ | 19,767 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 3,000 | $ | 1 | $ | — | $ | 3,001 | ||||||||
Commercial paper | 1,891 | 2 | — | 1,893 | ||||||||||||
Corporate bonds and medium-term notes | 6,383 | 25 | — | 6,408 | ||||||||||||
U.S. treasury and agency securities | 5,417 | 1 | — | 5,418 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total short-term investments | $ | 16,691 | $ | 29 | $ | — | $ | 16,720 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 499 | $ | 1 | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes | 2,530 | 12 | — | 2,542 | ||||||||||||
U.S. treasury and agency securities | 2,494 | 1 | — | 2,495 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total long-term investments | $ | 5,523 | $ | 14 | $ | — | $ | 5,537 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash, cash equivalents, and investments | $ | 41,981 | $ | 43 | $ | — | $ | 42,024 | ||||||||
|
|
|
|
|
|
|
|
Amortized Cost | Fair Value | |||||||
(In thousands) | ||||||||
Due in one year or less | $ | 20,104 | $ | 20,109 | ||||
Due after one through five years | 4,509 | 4,549 | ||||||
|
|
|
| |||||
$ | 24,613 | $ | 24,658 | |||||
|
|
|
|
The following table provides the fair market value of Intevac’s investments with unrealized losses that are not deemed to be other-than temporarily impaired as of March 28, 2020.
March 28, 2020 | ||||||||||||||||
In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | |||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||
(In thousands) | ||||||||||||||||
Certificates of deposit | $ | 2,176 | $ | 23 | $ | — | $ | — | ||||||||
Commercial paper | 896 | 1 | — | — | ||||||||||||
Corporate bonds and medium-term notes | 3,915 | 8 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,987 | $ | 32 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
September 26, 2020 | ||||||||
Amortized Cost | Fair Value | |||||||
(In thousands) | ||||||||
Due in one year or less | $ | 21,688 | $ | 21,758 | ||||
Due after one through two years | 3,072 | 3,074 | ||||||
$ | 24,760 | $ | 24,832 | |||||
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
The following table represents the fair value hierarchy of Intevac’sMarch 28,September 26, 2020.
Fair Value Measurements at March 28, 2020 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(In thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Available-for-sale securities | ||||||||||||
Money market funds | $ | 3,168 | $ | 3,168 | $ | — | ||||||
U.S. treasury and agency securities | 5,989 | 5,989 | — | |||||||||
Certificates of deposit | 5,283 | — | 5,283 | |||||||||
Commercial paper | 1,894 | — | 1,894 | |||||||||
Corporate bonds and medium-term notes | 8,324 | — | 8,324 | |||||||||
|
|
|
|
|
| |||||||
Total recurring fair value measurements | $ | 24,658 | $ | 9,157 | $ | 15,501 | ||||||
|
|
|
|
|
|
Fair Value Measurements at September 26, 2020 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(In thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 3,416 | $ | 3,416 | $ | — | ||||||
U.S. treasury and agency securities | 6,516 | 6,516 | — | |||||||||
Certificates of deposit | 7,957 | — | 7,957 | |||||||||
Commercial paper | 500 | — | 500 | |||||||||
Corporate bonds and medium-term notes | 6,443 | — | 6,443 | |||||||||
Total recurring fair value measurements | $ | 24,832 | $ | 9,932 | $ | 14,900 | ||||||
10. | Derivative Instruments |
Notional Amounts | Derivative Liabilities | |||||||||||||||||||||||
Derivative Instrument | March 28, 2020 | December 28, 2019 | March 28, 2020 | December 28, 2019 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 911 | 1,035 | * | $ | — | * | $ | 4 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total Hedges | $ | 911 | 1,035 | $ | — | $ | 4 | |||||||||||||||||
|
|
|
|
|
|
|
|
Notional Amounts | Derivative Liabilities | |||||||||||||||||||||||
Derivative Instrument | September 26 2020 | December 28, 2019 | September 26, 2020 | December 28, 2019 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 871 | $ | 1,035 | (a) | $ | 5 | (a) | $ | 4 | ||||||||||||||
Total Hedges | $ | 871 | $ | 1,035 | $ | 5 | $ | 4 | ||||||||||||||||
Other accrued liabilities |
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
11. | Equity |
Balance at December 28, 2019 Common stock issued under employee plans Equity-based compensation expense Net loss Other comprehensive loss Common stock repurchases Balance at March 28, 2020 Balance at December 29, 2018 Common stock issued under employee plans Equity-based compensation expense Net loss Other comprehensive income Balance at March 30, 2019 StatementsStatement of Changes in EquityMarch 28,September 26, 2020 and March 30,September 28, 2019, are as follows (in thousands): Three Months Ended March 28, 2020 Common
Stock and
Additional
Paid-in
Capital Treasury
Stock Accumulated
Other
Comprehensive
Income Accumulated
Deficit Total
Stockholders’
Equity $ 188,313 $ (29,158 ) $ 424 $ (63,786 ) $ 95,793 914 — — — 914 672 — — — 672 — — — (1,224 ) (1,224 ) — — (93 ) — (93 ) — (393 ) — — (393 ) $ 189,899 $ (29,551 ) $ 331 $ (65,010 ) $ 95,669 Three Months Ended March 30, 2019 Common
Stock and
Additional
Paid-in
Capital Treasury
Stock Accumulated
Other
Comprehensive
Income Accumulated
Deficit Total
Stockholders’
Equity $ 183,227 $ (29,047 ) $ 378 $ (64,934 ) $ 89,624 993 — — — 993 756 — — — 756 — — — (2,392 ) (2,392 ) — — 106 — 106 $ 184,976 $ (29,047 ) $ 484 $ (67,326 ) $ 89,087
Stock and
Additional
Capital
Stock
Other
Comprehensive
Income
Deficit
Stockholders’
Equity $ 190,290 $ (29,551 ) $ 402 $ (63,486 ) $ 97,655 871 — — — 871 (19 ) — — — (19 ) 858 — — — 858 — — — (357 ) (357 ) — — 100 — 100 $ 192,000 $ (29,551 ) $ 502 $ (63,843 ) $ 99,108
Nine months ended September 26, 2020 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at December 28, 2019 | $ | 188,313 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||
Common stock issued under employee plans | 1,865 | — | — | — | 1,865 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (364 | ) | — | — | — | (364 | ) | |||||||||||||
Equity-based compensation expense | 2,186 | — | — | — | 2,186 | |||||||||||||||
Net loss | — | — | — | (57 | ) | (57 | ) | |||||||||||||
Other comprehensive income | — | — | 78 | — | 78 | |||||||||||||||
Common stock repurchases | — | (393 | ) | — | — | (393 | ) | |||||||||||||
Balance at September 26, 2020 | $ | 192,000 | $ | (29,551 | ) | $ | 502 | $ | (63,843 | ) | $ | 99,108 | ||||||||
Three months ended September 28, 2019 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at June 29, 2019 | $ | 185,489 | $ | (29,089 | ) | $ | 455 | $ | (68,508 | ) | $ | 88,347 | ||||||||
Common stock issued under employee plans | 749 | — | — | — | 749 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (28 | ) | — | — | — | (28 | ) | |||||||||||||
Equity-based compensation expense | 751 | — | — | — | 751 | |||||||||||||||
Net loss | — | — | — | (480 | ) | (480 | ) | |||||||||||||
Other comprehensive loss | — | — | (84 | ) | — | (84 | ) | |||||||||||||
Common stock repurchases | — | (69 | ) | — | — | (69 | ) | |||||||||||||
Balance at September 28, 2019 | $ | 186,961 | $ | (29,158 | ) | $ | 371 | $ | (68,988 | ) | $ | 89,186 | ||||||||
Nine months ended September 28, 2019 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at December 29, 2018 | $ | 183,227 | $ | (29,047 | ) | $ | 378 | $ | (64,934 | ) | $ | 89,624 | ||||||||
Common stock issued under employee plans | 1,770 | — | — | — | 1,770 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (296 | ) | — | — | — | (296 | ) | |||||||||||||
Equity-based compensation expense | 2,260 | — | — | — | 2,260 | |||||||||||||||
Net loss | — | — | — | (4,054 | ) | (4,054 | ) | |||||||||||||
Other comprehensive loss | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Common stock repurchases | — | (111 | ) | — | — | (111 | ) | |||||||||||||
Balance at September 28, 2019 | $ | 186,961 | $ | (29,158 | ) | $ | 371 | $ | (68,988 | ) | $ | 89,186 | ||||||||
Three Months Ended | ||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | |||||||||||||||||||||||
Foreign currency | Unrealized holding gains (losses) on available- for-sale investments | Total | Foreign currency | Unrealized holding gains (losses) on available- for-sale investments | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 381 | $ | 43 | $ | 424 | $ | 405 | $ | (27 | ) | $ | 378 | |||||||||||
Other comprehensive income (loss) before reclassification | (95 | ) | 2 | (93 | ) | 61 | 45 | 106 | ||||||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net current-period other comprehensive income (loss) | (95 | ) | 2 | (93 | ) | 61 | 45 | 106 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 286 | $ | 45 | $ | 331 | $ | 466 | $ | 18 | $ | 484 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | ||||||||||||||||||||||||
Foreign currency | Unrealized holding gains (losses) on available-for-sale investments | Total | Foreign currency | Unrealized holding gains on available-for-sale investments | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 306 | $ | 96 | $ | 402 | $ | 381 | $ | 43 | $ | 424 | ||||||||||||
Other comprehensive income (loss) before reclassification | 124 | (24 | ) | 100 | 49 | 29 | 78 | |||||||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
Net current-period other comprehensive income | 124 | (24 | ) | 100 | 49 | 29 | 78 | |||||||||||||||||
Ending balance | $ | 430 | $ | 72 | $ | 502 | $ | 430 | $ | 72 | $ | 502 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 28, 2019 | ||||||||||||||||||||||||
Foreign currency | Unrealized holding gains on available-for-sale investments | Total | Foreign currency | Unrealized holding gains (losses) on available-for-sale investments | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 405 | $ | 50 | $ | 455 | $ | 405 | $ | (27 | ) | $ | 378 | |||||||||||
Other comprehensive income (loss) before reclassification | (87 | ) | 3 | (84 | ) | (87 | ) | 80 | (7 | ) | ||||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
Net current-period other comprehensive loss | (87 | ) | 3 | (84 | ) | (87 | ) | 80 | (7 | ) | ||||||||||||||
Ending balance | $ | 318 | $ | 53 | $ | 371 | $ | 318 | $ | 53 | $ | 371 | ||||||||||||
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands, except per share amounts) | ||||||||
Shares of common stock repurchased | 98 | — | ||||||
Cost of stock repurchased | $ | 393 | $ | — | ||||
Average price paid per share share | $ | 3.97 | $ | — |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Shares of common stock repurchased | 0 | 15 | 98 | 24 | ||||||||||||
Cost of stock repurchased | $ | 0 | $ | 69 | $ | 393 | $ | 111 | ||||||||
Average price paid per share | $ | 0 | $ | 4.65 | $ | 3.97 | $ | 4.67 |
12. | Net Loss Per Share |
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands) | ||||||||
Net loss | $ | (1,224 | ) | $ | (2,392 | ) | ||
|
|
|
| |||||
Weighted-average shares – basic | 23,483 | 22,855 | ||||||
Effect of dilutive potential common shares | — | — | ||||||
|
|
|
| |||||
Weighted-average shares – diluted | 23,483 | 22,855 | ||||||
|
|
|
| |||||
Net loss per share – basic and diluted | $ | (0.05 | ) | $ | (0.10 | ) | ||
|
|
|
|
share for the three and nine months ended September 26, 2020 and September 28, 2019:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net loss | $ | (357 | ) | $ | (480 | ) | $ | (57 | ) | $ | (4,054 | ) | ||||
Weighted-average shares – basic | 23,771 | 23,130 | 23,605 | 22,992 | ||||||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | 0 | ||||||||||||
Weighted-average shares – diluted | 23,771 | 23,130 | 23,605 | 22,992 | ||||||||||||
Net loss per share – basic | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.18 | ) | ||||
Net loss per share – diluted | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.18 | ) | ||||
13. | Segment Reporting |
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands) | ||||||||
TFE | $ | 7,962 | $ | 18,945 | ||||
Photonics | 10,878 | 5,882 | ||||||
|
|
|
| |||||
Total segment net revenues | $ | 18,840 | $ | 24,827 | ||||
|
|
|
|
Operating Income (Loss)
Three Months Ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
(In thousands) | ||||||||
TFE | $ | (2,531 | ) | $ | (603 | ) | ||
Photonics | 2,912 | (640 | ) | |||||
|
|
|
| |||||
Total segment operating income (loss) | 381 | (1,243 | ) | |||||
Unallocated costs | (1,481 | ) | (756 | ) | ||||
|
|
|
| |||||
Loss from operations | (1,100 | ) | (1,999 | ) | ||||
Interest income and other income (expense), net | 142 | 160 | ||||||
|
|
|
| |||||
Loss before provision for income taxes | $ | (958 | ) | $ | (1,839 | ) | ||
|
|
|
|
INTEVAC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
TFE | $ | 9,367 | $ | 17,116 | $ | 33,925 | $ | 49,325 | ||||||||
Photonics | 12,198 | 9,183 | 35,323 | 24,116 | ||||||||||||
Total segment net revenues | $ | 21,565 | $ | 26,299 | $ | 69,248 | $ | 73,441 | ||||||||
Operating Income (Loss) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
TFE | $ | (1,661 | ) | $ | (1,542 | ) | $ | (4,366 | ) | $ | (3,434 | ) | ||||
Photonics | 3,032 | 2,268 | 9,480 | 3,114 | ||||||||||||
Total segment operating income (loss) | 1,371 | 726 | 5,114 | (320 | ) | |||||||||||
Unallocated costs | (1,519 | ) | (1,159 | ) | (4,258 | ) | (3,038 | ) | ||||||||
Income (loss) from operations | (148 | ) | (433 | ) | 856 | (3,358 | ) | |||||||||
Interest income and other income (expense), net | 8 | 126 | 212 | 448 | ||||||||||||
Income (loss) before provision for income taxes | $ | (140 | ) | $ | (307 | ) | $ | 1,068 | $ | (2,910 | ) | |||||
March 28, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
TFE | $ | 46,007 | $ | 51,153 | ||||
Photonics | 23,487 | 22,071 | ||||||
|
|
|
| |||||
Total segment assets | 69,494 | 73,244 | ||||||
|
|
|
| |||||
Cash, cash equivalents and investments | 42,440 | 42,024 | ||||||
Restricted cash | 787 | 787 | ||||||
Deferred income taxes | 6,138 | 6,252 | ||||||
Other current assets | 1,195 | 752 | ||||||
Common property, plant and equipment | 1,531 | 1,307 | ||||||
Common operating leaseright-of-use assets | 1,794 | 1,898 | ||||||
Other assets | — | 78 | ||||||
|
|
|
| |||||
Consolidated total assets | $ | 123,379 | $ | 126,322 | ||||
|
|
|
|
September 26, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
TFE | $ | 45,819 | $ | 51,153 | ||||
Photonics | 19,049 | 22,071 | ||||||
Total segment assets | 64,868 | 73,224 | ||||||
Cash, cash equivalents and investments | 48,661 | 42,024 | ||||||
Restricted cash | 787 | 787 | ||||||
Deferred income taxes | 5,736 | 6,252 | ||||||
Other current assets | 1,145 | 752 | ||||||
Common property, plant and equipment | 1,461 | 1,307 | ||||||
Common operating lease right-of-use | 1,711 | 1,898 | ||||||
Other assets | 0 | 78 | ||||||
Consolidated total assets | $ | 124,369 | $ | 126,322 | ||||
14. | Income Taxes |
15. |
Restructuring Charges |
Three and Nine Months Ended September 26, 2020 | ||||
(In thousands) | ||||
Beginning balance | $ | — | ||
Provision for restructuring reserves | 103 | |||
Cash payments made | (103 | ) | ||
Ending balance | $ | — | ||
16. | Contingencies |
|
On April 27, 2020, the Singapore government directed the Company to suspend all onsite activities at its factory in Singapore and remain closed until at least June 1, 2020. While this business disruption is expected to be temporary, the current circumstances are
dynamic and the impacts of COVID-19 on the Company’s business operations, including the duration of disruptions to the Company’s operations, cannot be reasonably estimated at this time. The closure of its factory in Singapore significantly curtails the Company’s ability to meet its production demand and shipments for its TFE HDD customers during this closure period. Although these restrictions are currently scheduled to expire on June 1, 2020, there can be no assurance they will not be extended. The Company is currently petitioning the Singapore government for an exemption from these restrictions as an essential business.
Item 2. |
|
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||
Net revenues | $ | 18,840 | $ | 24,827 | $ | (5,987 | ) | |||||
Gross profit | $ | 8,156 | $ | 7,239 | $ | 917 | ||||||
Gross margin percent | 43.3 | % | 29.2 | % | 14.1 points | |||||||
Loss from operations | $ | (1,100 | ) | $ | (1,999 | ) | $ | 899 | ||||
Net loss | $ | (1,224 | ) | $ | (2,392 | ) | $ | 1,168 | ||||
Net loss per diluted share | $ | (0.05 | ) | $ | (0.10 | ) | $ | 0.05 |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||
Net revenues | $ | 21,565 | $ | 26,299 | $ | (4,734 | ) | $ | 69,248 | $ | 73,441 | $ | (4,193 | ) | ||||||||||
Gross profit | $ | 9,300 | $ | 8,778 | $ | 522 | $ | 28,876 | $ | 24,375 | $ | 4,501 | ||||||||||||
Gross margin percent | 43.1 | % | 33.4 | % | 9.7 points | 41.7 | % | 33.2 | % | 8.5 points | ||||||||||||||
Income (loss) from operations | $ | (148 | ) | $ | (433 | ) | $ | 285 | $ | 856 | $ | (3,358 | ) | $ | 4,214 | |||||||||
Net loss | $ | (357 | ) | $ | (480 | ) | $ | 123 | $ | (57 | ) | $ | (4,054 | ) | $ | 3,997 | ||||||||
Net loss per diluted share | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.00 | $ | (0.00 | ) | $ | (0.18 | ) | $ | 0.18 |
Intevac’s trademarksremain open as both TFE and Photonics businesses are within critical infrastructure sectors that are exempt from government-mandated closures.
The purpose of the JSS is to provide wage support to employers to help them retain their local employees. Under the JSS, Intevac expects to receive approximately $554,000 in JSS grants in fiscal 2020. During the three and nine months ended September 26, 2020, the Company received $124,000 and $434,000, respectively in JSS grants. As previously mentioned, under the CARES Act we have elected to defer the payment of the employer portion of payroll taxes and will receive tax benefits from the
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 7,962 | $ | 18,945 | $ | (10,983 | ) | |||||
Photonics | ||||||||||||
Products | 5,874 | 2,692 | 3,182 | |||||||||
Contract R&D | 5,004 | 3,190 | 1,814 | |||||||||
|
|
|
|
|
| |||||||
10,878 | 5,882 | 4,996 | ||||||||||
|
|
|
|
|
| |||||||
Total net revenues | $ | 18,840 | $ | 24,827 | $ | (5,987 | ) | |||||
|
|
|
|
|
|
TFE did not recognize revenue on any systems sales in the first quarter of fiscal 2020.
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | $ | 9,367 | $ | 17,116 | $ | (7,749 | ) | $ | 33,925 | $ | 49,325 | $ | (15,400 | ) | ||||||||||
Photonics: | ||||||||||||||||||||||||
Contract R&D | 6,538 | 5,209 | 1,329 | 17,659 | 13,476 | 4,183 | ||||||||||||||||||
Products | 5,660 | 3,974 | 1,686 | 17,664 | 10,640 | 7,024 | ||||||||||||||||||
12,198 | 9,183 | 3,015 | 35,323 | 24,116 | 11,207 | |||||||||||||||||||
Total net revenues | $ | 21,565 | $ | 26,299 | $ | (4,734 | ) | $ | 69,248 | $ | 73,441 | $ | (4,193 | ) | ||||||||||
PhotonicsSeptember 26, 2020 did not include any systems. TFE revenue for the three months ended MarchSeptember 28, 2019 included five ENERG
work.
March 28, 2020 | December 28, 2019 | March 30, 2019 | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 22,386 | $ | 21,391 | $ | 59,346 | ||||||
Photonics | 64,787 | 71,015 | 43,294 | |||||||||
|
|
|
|
|
| |||||||
Total backlog | $ | 87,173 | $ | 92,406 | $ | 102,640 | ||||||
|
|
|
|
|
|
September 26, 2020 | December 28, 2019 | September 28, 2019 | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 18,092 | $ | 21,391 | $ | 39,310 | ||||||
Photonics | 45,159 | 71,015 | 76,123 | |||||||||
Total backlog | $ | 63,251 | $ | 92,406 | $ | 115,433 | ||||||
Three Months Ended | ||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 519 | $ | 10,856 | $ | 11,375 | $ | 161 | $ | 5,716 | $ | 5,877 | ||||||||||||
Asia | 7,443 | — | 7,443 | 18,784 | — | 18,784 | ||||||||||||||||||
Europe | — | 22 | 22 | — | 166 | 166 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total net revenues | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 18,945 | $ | 5,882 | $ | 24,827 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 1,764 | $ | 12,079 | $ | 13,843 | $ | 478 | $ | 9,050 | $ | 9,528 | ||||||||||||
Asia | 7,536 | — | 7,536 | 16,638 | — | 16,638 | ||||||||||||||||||
Europe | 67 | 119 | 186 | — | 133 | 133 | ||||||||||||||||||
Total net revenues | $ | 9,367 | $ | 12,198 | $ | 21,565 | $ | 17,116 | $ | 9,183 | $ | 26,299 | ||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 2,596 | $ | 35,060 | $ | 37,656 | $ | 995 | $ | 23,578 | $ | 24,573 | ||||||||||||
Asia | 31,262 | — | 31,262 | 48,330 | — | 48,330 | ||||||||||||||||||
Europe | 67 | 263 | 330 | — | 538 | 538 | ||||||||||||||||||
Total net revenues | $ | 33,925 | $ | 35,323 | $ | 69,248 | $ | 49,325 | $ | 24,116 | $ | 73,441 | ||||||||||||
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands, except percentages) | ||||||||||||
TFE gross profit | $ | 3,500 | $ | 5,977 | $ | (2,477 | ) | |||||
% of TFE net revenues | 44.0 | % | 31.5 | % | ||||||||
Photonics gross profit | $ | 4,656 | $ | 1,262 | $ | 3,394 | ||||||
% of Photonics net revenues | 42.8 | % | 21.5 | % | ||||||||
Total gross profit | $ | 8,156 | $ | 7,239 | $ | 917 | ||||||
% of net revenues | 43.3 | % | 29.2 | % |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
TFE gross profit | $ | 4,075 | $ | 4,825 | $ | (750 | ) | $ | 13,622 | $ | 15,958 | $ | (2,336 | ) | ||||||||||
% of TFE net revenues | 43.5 | % | 28.2 | % | 40.2 | % | 32.4 | % | ||||||||||||||||
Photonics gross profit | $ | 5,225 | $ | 3,953 | $ | 1,272 | $ | 15,254 | $ | 8,417 | $ | 6,837 | ||||||||||||
% of Photonics net revenues | 42.8 | % | 43.1 | % | 43.2 | % | 34.9 | % | ||||||||||||||||
Total gross profit | $ | 9,300 | $ | 8,778 | $ | 522 | $ | 28,876 | $ | 24,375 | $ | 4,501 | ||||||||||||
% of net revenues | 43.1 | % | 33.4 | % | 41.7 | % | 33.2 | % |
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Research and development expense | $ | 3,284 | $ | 3,986 | $ | (702 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Research and development expense | $ | 3,603 | $ | 3,596 | $ | 7 | $ | 10,594 | $ | 11,013 | $ | (419 | ) |
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Selling, general and administrative expense | $ | 5,972 | $ | 5,252 | $ | 720 |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Selling, general and administrative expense | $ | 5,845 | $ | 5,615 | $ | 230 | $ | 17,426 | $ | 16,720 | $ | 706 |
Selling, general and administrative expenses for the nine months ended September 26, 2020 increased compared to the same period in the prior year primarily due to higher variable compensation expenses and incremental
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Interest income and other income (expense), net | $ | 142 | $ | 160 | $ | (18 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Interest income and other income (expense), net | $ | 8 | $ | 126 | $ | (118 | ) | $ | 212 | $ | 448 | $ | (236 | ) |
Income tax provision
Three Months Ended | ||||||||||||
March 28, 2020 | March 30, 2019 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Income tax provision | $ | 266 | $ | 553 | $ | (287 | ) |
balances compared to the same period in 2019.
Three months ended | Nine months ended | |||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Change over prior period | September 26, 2020 | September 28, 2019 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Provision for income taxes | $ | 217 | $ | 173 | $ | 44 | $ | 1,125 | $ | 1,144 | $ | (19 | ) |
tax rate differs from the applicable statutory rates due primarily to establishment of a valuation allowance, the utilization of deferred and current credits and the effect of permanent differences and adjustments of prior permanent differences. Intevac’s future effective income tax rate depends on various factors, including the level of Intevac’s projected earnings, the geographic composition of worldwide earnings, tax regulations governing each region, net operating loss carry-forwards, availability of tax credits and the effectiveness of Intevac’s tax planning strategies. Management carefully monitors these factors and timely adjusts the effective income tax rate.
settlement.
March 28, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 21,450 | $ | 19,767 | ||||
Restricted cash | 787 | 787 | ||||||
Short-term investments | 16,441 | 16,720 | ||||||
Long-term investments | 4,549 | 5,537 | ||||||
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|
|
| |||||
Total cash, cash equivalents, restricted cash and investments | $ | 43,227 | $ | 42,811 | ||||
|
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|
|
September 26, 2020 | December 28, 2019 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 27,245 | $ | 19,767 | ||||
Restricted cash | 787 | 787 | ||||||
Short-term investments | 18,342 | 16,720 | ||||||
Long-term investments | 3,074 | 5,537 | ||||||
Total cash, cash equivalents, restricted cash and investments | $ | 49,448 | $ | 42,811 | ||||
fiscal 2020.
new orders.
Item 3. |
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Item 4. |
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Procedures
Attached as exhibits to this Quarterly Report on Form10-Q are certifications of the CEO and the CFO, which are required in accordance with Rule
Disclosure Controls
Controls
Financial Reporting
Item 1. |
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Item 1A. |
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year or longer, involving individuals from many different areas of Intevac and numerous product presentations and demonstrations for our prospective customers. Our sales process also commonly includes production of samples and customization of our products. We do not typically enter into long-term contracts with our customers, and until an order is actually submitted by a customer there is no binding commitment to purchase our systems. In some cases, orders are also subject to customer acceptance or other criteria even in the case of a binding agreement.
support in different locations; (8) political and economic instability; (9) cultural differences; (10) varying government incentives to promote development; (11) shipping costs and delays; (12) adverse conditions in credit markets; (13) variations in tariffs, quotas, tax codes and other market barriers; and (14) barriers to movement of cash.
Item 2. |
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Repurchases of Intevac Common Stock
The following table provides information as of March 28, 2020 with respect to the shares of Intevac did not make any common stock repurchased by Intevacrepurchases during the first quarter of fiscalthree months ended September 26, 2020.
Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Price Paid | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Dollar Value of Shares That May Yet be Purchased Under the Program | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
December 29, 2019 to January 25, 2020 | — | $ | — | $ | — | — | $ | 10,838 | ||||||||||||
January 26, 2020 to February 22, 2020 | — | $ | — | $ | — | — | $ | 10,838 | ||||||||||||
February 23, 2020 to March 28, 2020 | 98 | $ | 3.97 | $ | 393 | 98 | $ | 10,445 |
Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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Exhibit
| Description | |
31.1 | ||
31.2 | ||
32.1 | ||
The following financial statements from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2020, formatted in Inline XBRL |
Cover Page Interactive Data File (formatted as inline XBRL | ||
|
* | The certification attached as Exhibit 32.1 is deemed “furnished” and not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference. |
INTEVAC, INC. | ||||||||
Date: | By: | /s/ WENDELL | ||||||
Wendell | ||||||||
President, Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
Date: | By: | /s/ JAMES MONIZ | ||||
James Moniz | ||||||
Executive Vice President, Finance and Administration, | ||||||
Chief Financial Officer, Secretary and Treasurer | ||||||
(Principal Financial and Accounting Officer) |
34