☒ | 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 |
Delaware | 94-3125814 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
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 | ||||||
Item 1. | |||||||
3 | |||||||
4 | |||||||
5 | |||||||
6 | |||||||
7 | |||||||
Item 2. | |||||||
Item 3. | |||||||
Item 4. | |||||||
Item 1. | |||||||
Item 1A. | |||||||
Item 2. | |||||||
Item 3. | |||||||
Item 4. | |||||||
Item 5. | |||||||
Item 6. | |||||||
Item 1. | Financial Statements |
April 2, 2022 | January 1, 2022 | |||||||
(Unaudited) | ||||||||
(In thousands, except par value) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 98,034 | $ | 102,728 | ||||
Short-term investments | 8,941 | 10,221 | ||||||
Trade and other accounts receivable, net of allowances of $0 at both April 2, 2022 and January 1, 2022 | 17,054 | 14,261 | ||||||
Inventories | 8,908 | 5,791 | ||||||
Prepaid expenses and other current assets | 1,778 | 1,827 | ||||||
Total current assets | 134,715 | 134,828 | ||||||
Long-term investments | 9,407 | 7,427 | ||||||
Restricted cash | 786 | 786 | ||||||
Property, plant and equipment, net | 3,372 | 4,759 | ||||||
Operating lease right-of-use-assets | 3,966 | 4,520 | ||||||
Deferred income taxes and other long-term assets | 5,406 | 5,449 | ||||||
Total assets | $ | 157,652 | $ | 157,769 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current operating lease liabilities | $ | 3,188 | $ | 3,119 | ||||
Accounts payable | 3,915 | 5,320 | ||||||
Accrued payroll and related liabilities | 3,319 | 5,505 | ||||||
Other accrued liabilities | 2,971 | 3,665 | ||||||
Customer advances | 15,320 | 2,107 | ||||||
Total current liabilities | 28,713 | 19,716 | ||||||
Noncurrent liabilities: | ||||||||
Noncurrent operating lease liabilities | 2,854 | 3,675 | ||||||
Other long-term liabilities | 270 | 363 | ||||||
Total noncurrent liabilities | 3,124 | 4,038 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value | 25 | 25 | ||||||
Additional paid-in capital | 198,935 | 199,073 | ||||||
Treasury stock, 5,087 shares at both April 2, 2022 and at January 1, 2022 | (29,551 | ) | (29,551 | ) | ||||
Accumulated other comprehensive income | 371 | 578 | ||||||
Accumulated deficit | (43,965 | ) | (36,110 | ) | ||||
Total stockholders’ equity | 125,815 | 134,015 | ||||||
Total liabilities and stockholders’ equity | $ | 157,652 | $ | 157,769 | ||||
July 2, 2022 | January 1, 2022 | |||||||
(Unaudited) | ||||||||
(In thousands, except par value) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 53,669 | $ | 102,728 | ||||
Short-term investments | 31,168 | 10,221 | ||||||
Trade and other accounts receivable, net of allowances of $0 at both July 2, 2022 and January 1, 2022 | 30,321 | 14,261 | ||||||
Inventories | 11,771 | 5,791 | ||||||
Prepaid expenses and other current assets | 1,532 | 1,827 | ||||||
Total current assets | 128,461 | 134,828 | ||||||
Long-term investments | 24,565 | 7,427 | ||||||
Restricted cash | 786 | 786 | ||||||
Property, plant and equipment, net | 3,311 | 4,759 | ||||||
Operating lease right-of-use-assets | 3,510 | 4,520 | ||||||
Deferred income taxes and other long-term assets | 5,018 | 5,449 | ||||||
Total assets | $ | 165,651 | $ | 157,769 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current operating lease liabilities | $ | 3,199 | $ | 3,119 | ||||
Accounts payable | 3,609 | 5,320 | ||||||
Accrued payroll and related liabilities | 3,542 | 5,505 | ||||||
Other accrued liabilities | 3,042 | 3,665 | ||||||
Customer advances | 24,760 | 2,107 | ||||||
Total current liabilities | 38,152 | 19,716 | ||||||
Noncurrent liabilities: | ||||||||
Noncurrent operating lease liabilities | 2,102 | 3,675 | ||||||
Other long-term liabilities | 237 | 363 | ||||||
Total noncurrent liabilities | 2,339 | 4,038 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value | 25 | 25 | ||||||
Additional paid-in capital | 201,478 | 199,073 | ||||||
Treasury stock, 5,087 shares at both July 2, 2022 and at January 1, 2022 | (29,551 | ) | (29,551 | ) | ||||
Accumulated other comprehensive income (loss) | (9 | ) | 578 | |||||
Accumulated deficit | (46,783 | ) | (36,110 | ) | ||||
Total stockholders’ equity | 125,160 | 134,015 | ||||||
Total liabilities and stockholders’ equity | $ | 165,651 | $ | 157,769 | ||||
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2022 | April 3, 2021 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||
Net revenues | $ | 4,445 | $ | 9,238 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||
Cost of net revenues | 3,722 | 7,104 | 4,820 | 4,363 | 8,543 | 11,467 | ||||||||||||||||||
Gross profit | 723 | 2,134 | 4,487 | 1,006 | 5,209 | 3,140 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 4,160 | 3,365 | 2,868 | 3,118 | 7,028 | 6,483 | ||||||||||||||||||
Selling, general and administrative | 4,249 | 4,334 | 4,016 | 4,197 | 8,265 | 8,531 | ||||||||||||||||||
Total operating expenses | 8,409 | 7,699 | 6,884 | 7,315 | 15,293 | 15,014 | ||||||||||||||||||
Loss from operations | (7,686 | ) | (5,565 | ) | (2,397 | ) | (6,309 | ) | (10,084 | ) | (11,874 | ) | ||||||||||||
Interest income and other income (expense), net | (8 | ) | 29 | 317 | 20 | 310 | 50 | |||||||||||||||||
Loss from continuing operations before provision for income taxes | (7,694 | ) | (5,536 | ) | ||||||||||||||||||||
Provision for income taxes | 26 | 32 | ||||||||||||||||||||||
Loss from continuing operations before provision for (benefit from) income taxes | (2,080 | ) | (6,289 | ) | (9,774 | ) | (11,824 | ) | ||||||||||||||||
Provision for (benefit from) income taxes | 500 | (165 | ) | 526 | (132 | ) | ||||||||||||||||||
Net loss from continuing operations | (7,720 | ) | (5,568 | ) | ||||||||||||||||||||
Net loss from continuing operations, net of taxes | (2,580 | ) | (6,124 | ) | (10,300 | ) | (11,692 | ) | ||||||||||||||||
Net loss from discontinued operations, net of taxes | (135 | ) | (936 | ) | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||||||
Net loss | (7,855 | ) | (6,504 | ) | $ | (2,818 | ) | $ | (6,126 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||||||
Net loss per share: | ||||||||||||||||||||||||
Basic and diluted – continuing operations | $ | (0.31 | ) | $ | (0.23 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.48 | ) | ||||||
Basic and diluted – discontinued operations | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||||
Basic and diluted – net loss | $ | (0.32 | ) | $ | (0.27 | ) | $ | (0.11 | ) | $ | (0.25 | ) | $ | (0.43 | ) | $ | (0.52 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic and diluted | 24,800 | 24,033 | 25,141 | 24,241 | 24,970 | 24,137 |
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Net loss | $ | (7,855 | ) | $ | (6,504 | ) | ||
Other comprehensive loss, before tax: | ||||||||
Change in unrealized net gain (loss) on available-for-sale | (174 | ) | (20 | ) | ||||
Foreign currency translation losses | (33 | ) | (68 | ) | ||||
Other comprehensive loss, before tax | (207 | ) | (88 | ) | ||||
Income tax provision related to items in other comprehensive loss | 0— | 0— | ||||||
Other comprehensive loss, net of tax | (207 | ) | (88 | ) | ||||
Comprehensive loss | $ | (8,062 | ) | $ | (6,592 | ) | ||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (2,818 | ) | $ | (6,126 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||
Other comprehensive income (loss), before tax: | ||||||||||||||||
Change in unrealized net gain (loss) on available-for-sale | (161 | ) | (9 | ) | (335 | ) | (29 | ) | ||||||||
Foreign currency translation gains (losses) | (219 | ) | 28 | (252 | ) | (40 | ) | |||||||||
Other comprehensive income (loss), before tax | (380 | ) | 19 | (587 | ) | (69 | ) | |||||||||
Income taxes related to items in other comprehensive income (loss) | 0— | 0— | 0 — | 0 — | ||||||||||||
Other comprehensive income (loss), net of tax | (380 | ) | 19 | (587 | ) | (69 | ) | |||||||||
Comprehensive loss | $ | (3,198 | ) | $ | (6,107 | ) | $ | (11,260 | ) | $ | (12,699 | ) | ||||
Six months ended | ||||||||||||||||
Three Months Ended | July 2, 2022 | July 3, 2021 | ||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Operating activities | ||||||||||||||||
Net loss | $ | (7,855 | ) | $ | (6,504 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 445 | 791 | 776 | 1,686 | ||||||||||||
Net amortization (accretion) of investment premiums and discounts | 17 | 33 | (20 | ) | 62 | |||||||||||
Equity-based compensation | (1,036 | ) | 968 | 489 | 1,987 | |||||||||||
Straight-line rent adjustment and amortization of lease incentives | (198 | ) | (115 | ) | (483 | ) | (231 | ) | ||||||||
Loss on disposal of fixed assets | 1,453 | 0— | ||||||||||||||
Deferred income taxes | (6 | ) | (40 | ) | 345 | (202 | ) | |||||||||
Loss on disposal of equipment | 1,453 | 0— | ||||||||||||||
Changes in operating assets and liabilities | 3,130 | 7,399 | (3,322 | ) | 12,692 | |||||||||||
Total adjustments | 3,805 | 9,036 | (762 | ) | 15,994 | |||||||||||
Net cash provided by (used in) operating activities | (4,050 | ) | 2,532 | |||||||||||||
Net cash and cash equivalents provided by (used in) operating activities | (11,435 | ) | 3,364 | |||||||||||||
Investing activities | ||||||||||||||||
Purchases of investments | (6,525 | ) | (5,962 | ) | (45,663 | ) | (10,163 | ) | ||||||||
Proceeds from sales and maturities of investments | 5,634 | 6,140 | 7,263 | 9,815 | ||||||||||||
Purchases of leasehold improvements and equipment | (618 | ) | (243 | ) | (888 | ) | (365 | ) | ||||||||
Net cash used in investing activities | (1,509 | ) | (65 | ) | ||||||||||||
Net cash and cash equivalents used in investing activities | (39,288 | ) | (713 | ) | ||||||||||||
Financing activities | ||||||||||||||||
Proceeds from issuance of common stock | 1,033 | 1,096 | ||||||||||||||
Net proceeds from issuance of common stock | 2,211 | 1,436 | ||||||||||||||
Taxes paid related to net share settlement | (135 | ) | (20 | ) | (295 | ) | (532 | ) | ||||||||
Net cash provided by financing activities | 898 | 1,076 | ||||||||||||||
Net cash and cash equivalents provided by financing activities | 1,916 | 904 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (33 | ) | (68 | ) | (252 | ) | (40 | ) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,694 | ) | 3,475 | (49,059 | ) | 3,515 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 103,514 | 30,128 | 103,514 | 30,128 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 98,820 | $ | 33,603 | $ | 54,455 | $ | 33,643 | ||||||||
Non-cash investing and financing activity | ||||||||||||||||
Additions to right-of-use-assets | $ | 94 | $ | — | ||||||||||||
1. | Description of Business and Basis of Presentation |
2. | Divestiture and Discontinued Operations |
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
Net revenues: | ||||||||
Systems and components | $ | — | $ | 3,822 | ||||
Technology development | — | 3,181 | ||||||
Total net revenues | — | 7,003 | ||||||
Cost of net revenues: | ||||||||
Systems and components | — | 2,860 | ||||||
Technology development | — | 3,223 | ||||||
Total cost of net revenues | — | 6,083 | ||||||
Gross profit | — | 920 | ||||||
Operating expenses: | ||||||||
Research and development | — | 260 | ||||||
Selling, general and administrative | 135 | 1,596 | ||||||
Total operating expenses | 135 | 1,856 | ||||||
Operating loss – discontinued operations | (135 | ) | (936 | ) | ||||
Other income (expense) – discontinued operations | 0— | 0— | ||||||
Loss from discontinued operations before provision for (benefit from) income taxes | (135 | ) | (936 | ) | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||||
Net loss from discontinued operations net of taxes | $ | (135 | ) | $ | (936 | ) | ||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands) | ||||||||||||||||
Net revenues: | ||||||||||||||||
Systems and components | $ | — | $ | 5,282 | $ | — | $ | 9,103 | ||||||||
Technology development | — | 3,162 | — | 6,344 | ||||||||||||
Total net revenues | — | 8,444 | — | 15,447 | ||||||||||||
Cost of net revenues: | ||||||||||||||||
Systems and components | — | 4,261 | — | 7,121 | ||||||||||||
Technology development | — | 2,081 | — | 5,304 | ||||||||||||
Total cost of net revenues | — | 6,342 | — | 12,425 | ||||||||||||
Gross profit | — | 2,102 | — | 3,022 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | — | 776 | — | 1,036 | ||||||||||||
Selling, general and administrative | 238 | 1,328 | 373 | 2,924 | ||||||||||||
Total operating expenses | 238 | 2,104 | 373 | 3,960 | ||||||||||||
Operating loss – discontinued operations | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||
Other income (expense) – discontinued operations | 0— | 0— | 0— | 0— | ||||||||||||
Loss from discontinued operations before provision for income taxes | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss from discontinued operations, net of taxes | $ | (238 | ) | $ | (2 | ) | $ | (373 | ) | $ | (938 | ) | ||||
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, | April 3, | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
1 | 1 | |||||||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||
Depreciation and amortization | $ | — | $ | 285 | $ | — | $ | 375 | $ | — | $ | 661 | ||||||||||||
Equity-based compensation | $ | (330 | ) | $ | 272 | $ | 39 | $ | 247 | $ | (291 | ) | $ | 518 | ||||||||||
Purchase of leasehold improvements and equipment | $ | — | $ | 73 | $ | — | $ | 76 | $ | — | $ | 149 |
3. | Revenue |
Three Months Ended April 2, 2022 | Three Months Ended April 3, 2021 | Three Months Ended July 2, 2022 | Three Months Ended July 3, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | ASP | Total | HDD | DCP | PV | Total | HDD | DCP | PV | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 3,123 | $ | 0 | $ | 53 | $ | 3,176 | $ | 3,585 | $ | 0 | $ | 111 | $ | 3,850 | $ | 7,546 | $ | 7,756 | $ | 1 | $ | 82 | $ | 7,839 | $ | 3,955 | $ | 3 | $ | 47 | $ | 4,005 | ||||||||||||||||||||||||||||||||||
Field service | 1,263 | 0 | 6 | 1,269 | 1,636 | 14 | 42 | 0 | 1,692 | 1,421 | 43 | 4 | 1,468 | 1,364 | — | — | 1,364 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total TFE net revenues | $ | 4,386 | $ | 0 | $ | 59 | $ | 4,445 | $ | 5,221 | $ | 14 | $ | 153 | $ | 3,850 | $ | 9,238 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenues | $ | 9,177 | $ | 44 | $ | 86 | $ | 9,307 | $ | 5,319 | $ | 3 | $ | 47 | $ | 5,369 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended July 2, 2022 | Six Months Ended July 3, 2021 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | ASP | Total | ||||||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 10,879 | $ | 1 | $ | 135 | $ | 11,015 | $ | 7,539 | $ | 3 | $ | 158 | $ | 3,850 | $ | 11,550 | ||||||||||||||||||
Field service | 2,684 | 43 | 10 | 2,737 | 3,001 | 14 | 42 | — | 3,057 | |||||||||||||||||||||||||||
Total net revenues | $ | 13,563 | $ | 44 | $ | 145 | $ | 13,752 | $ | 10,540 | $ | 17 | $ | 200 | $ | 3,850 | $ | 14,607 | ||||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2022 | April 3, 2021 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||
United States | $ | 294 | $ | 367 | $ | 1,656 | $ | 2,121 | $ | 1,950 | $ | 2,488 | ||||||||||||
Asia | 4,151 | 5,021 | 7,651 | 3,248 | 11,802 | 8,269 | ||||||||||||||||||
Europe | 0 | 3,850 | — | — | — | 3,850 | ||||||||||||||||||
Total net revenues | $ | 4,445 | $ | 9,238 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
Products transferred at a point in time | $ | 4,445 | $ | 9,238 | ||||
Products and services transferred over time | 0 | 0 | ||||||
Total net revenues | $ | 4,445 | $ | 9,238 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands) | ||||||||||||||||
Products transferred at a point in time | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||
Products and services transferred over time | — | — | — | — | ||||||||||||
Total net revenues | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||
April 2, 2022 | January 1, 2022 | Three Months Change | July 2, 2022 | January 1, 2022 | Six Months Change | |||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||
Contract assets: | ||||||||||||||||||||||||
Accounts receivable, unbilled | $ | 0 | $ | 99 | $ | (99 | ) | $ | — | $ | 99 | $ | (99 | ) | ||||||||||
Contract liabilities: | ||||||||||||||||||||||||
Deferred revenue | $ | 55 | $ | 65 | $ | (10 | ) | $ | 129 | $ | 65 | $ | 64 | |||||||||||
Customer advances | 15,320 | 2,107 | 13,213 | 24,760 | 2,107 | 22,653 | ||||||||||||||||||
$ | 15,375 | $ | 2,172 | $ | 13,203 | $ | 24,889 | $ | 2,172 | $ | 22,717 | |||||||||||||
4. | Inventories |
April 2, | January 1, | |||||||||||||||
2022 | 2022 | July 2, 2022 | January 1, 2022 | |||||||||||||
(in thousands) | (In thousands) | |||||||||||||||
Raw materials | $ | 6,346 | $ | 5,323 | $ | 6,728 | $ | 5,323 | ||||||||
Work-in-progress | 2,562 | 468 | 5,043 | 468 | ||||||||||||
$ | 8,908 | $ | 5,791 | $ | 11,771 | $ | 5,791 | |||||||||
5. | Equity-Based Compensation |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2022 | April 3, 2021 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Equity-based compensation by type of award: | ||||||||||||||||||||||||
Stock options | $ | (171 | ) | $ | 75 | $ | 8 | $ | 57 | $ | (163 | ) | $ | 132 | ||||||||||
RSUs | (728 | ) | 543 | 1,295 | 656 | 567 | 1,200 | |||||||||||||||||
ESPP purchase rights | (137 | ) | 350 | 222 | 306 | 85 | 655 | |||||||||||||||||
Total equity-based compensation | $ | (1,036 | ) | $ | 968 | $ | 1,525 | $ | 1,019 | $ | 489 | $ | 1,987 | |||||||||||
(a) | A reversal of $1.3 million in equity-based compensation expense related to forfeitures of awards due to our reduction in workforce and a $37,000 benefit related to the modification of certain stock-based awards for the 13. Restructuring and Other Costs, Net.); and |
(b) | Equity-based compensation reported in discontinued operations of 2, 2022, respectively, and |
Shares | Weighted-Average Exercise Price | |||||||
Options outstanding at January 1, 2022 | 1,457,587 | $ | 6.55 | |||||
Options cancelled and forfeited | (550,332 | ) | $ | 7.31 | ||||
Options exercised | (313,000 | ) | $ | 4.83 | ||||
Options outstanding at July 2, 2022 | 594,255 | $ | 6.76 | |||||
Options exercisable at July 2, 2022 | 564,979 | $ | 6.82 | |||||
Shares | Weighted-Average Exercise Price | |||||||
Options outstanding at January 1, 2022 | 1,457,587 | $ | 6.55 | |||||
Options granted | 0 | $ | 0 | |||||
Options cancelled and forfeited | (102,152 | ) | $ | 5.43 | ||||
Options exercised | (65,563 | ) | $ | 5.06 | ||||
Options outstanding at April 2, 2022 | 1,289,872 | $ | 6.72 | |||||
Options exercisable at April 2, 2022 | 1,223,472 | $ | 6.79 |
Six Months Ended | ||||||||||||||||
Three Months Ended | July 2, 2022 | July 3, 2021 | ||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||
ESPP Purchase Rights: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 1.85 | $ | 2.69 | $ | 1.85 | $ | 2.69 | ||||||||
Expected volatility | 60.36 | % | 58.56 | % | 60.36 | % | 58.56 | % | ||||||||
Risk-free interest rate | 0.98 | % | 0.08 | % | 0.98 | % | 0.08 | % | ||||||||
Expected term of purchase rights (in years) | 1.2 | 1.0 | 1.2 | 1.0 | ||||||||||||
Dividend yield | NaN | NaN | NaN | NaN |
Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Non-vested RSUs at January 1, 2022 | 1,033,436 | $ | 5.59 | 1,033,436 | $ | 5.59 | ||||||||||
Granted | 300,928 | $ | 5.11 | 1,756,267 | $ | 4.36 | ||||||||||
Vested | (66,704 | ) | $ | 5.45 | (211,889 | ) | $ | 5.47 | ||||||||
Cancelled and forfeited | (533,199 | ) | $ | 5.65 | (533,199 | ) | $ | 5.65 | ||||||||
Non-vested RSUs at April 2, 2022 | 734,461 | $ | 5.37 | |||||||||||||
Non-vested RSUs at July 2, 2022 | 2,044,615 | $ | 4.53 | |||||||||||||
Three Months Ended | ||||
July 2, 2022 | ||||
Weighted-average fair value of grants per share | $ | 3.67 | ||
Expected volatility | 54.42 | % | ||
Risk-free interest rate | 2.82 | % | ||
Dividend yield | NaN |
Three Months Ended | ||||
July 3, 2021 | ||||
Weighted-average fair value of grants per share | $ | 7.65 | ||
Expected volatility | 56.26 | % | ||
Risk-free interest rate | 0.15 | % | ||
Dividend yield | NaN |
6. | Warranty |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
Three Months Ended | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||
Opening balance | $ | 346 | $ | 480 | $ | 249 | $ | 590 | $ | 346 | $ | 480 | ||||||||||||
Expenditures incurred under warranties | (171 | ) | (153 | ) | (54 | ) | (195 | ) | (225 | ) | (346 | ) | ||||||||||||
Expenditures incurred under warranties included in discontinued operations | 0 | (46 | ) | — | (22 | ) | — | (69 | ) | |||||||||||||||
Accruals for product warranties issued during the reporting period | 36 | 255 | 36 | 155 | 72 | 410 | ||||||||||||||||||
Accruals for product warranties issued during the reporting period included in discontinued operations | 0 | 20 | — | 43 | — | 63 | ||||||||||||||||||
Adjustments to previously existing warranty accruals | 38 | (10 | ) | (17 | ) | (15 | ) | 21 | (25 | ) | ||||||||||||||
Adjustments to previously existing warranty accruals included in discontinued operations | 0 | 44 | — | 16 | — | 59 | ||||||||||||||||||
Closing balance | $ | 249 | $ | 590 | $ | 214 | $ | 572 | $ | 214 | $ | 572 | ||||||||||||
July 2 2022 | January 1 2022 | |||||||||||||||
April 2 2022 | January 1 2022 | |||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||
Other accrued liabilities | $ | 219 | $ | 301 | $ | 199 | $ | 301 | ||||||||
Other long-term liabilities | 30 | 45 | 15 | 45 | ||||||||||||
Total warranty provision | $ | 249 | $ | 346 | $ | 214 | $ | 346 | ||||||||
7. | Guarantees |
8. | Cash, Cash Equivalents and Investments |
April 2, 2022 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 93,662 | $ | 0 | $ | 0 | $ | 93,662 | ||||||||
Money market funds | 3,042 | 0 | 0 | 3,042 | ||||||||||||
Certificates of deposit | 500 | 0 | 0 | 500 | ||||||||||||
Commercial paper | 300 | 0 | 0 | 300 | ||||||||||||
U.S. treasury securities | 530 | 0 | 0 | 530 | ||||||||||||
Total cash and cash equivalents | $ | 98,034 | $ | 0 | $ | 0 | $ | 98,034 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 2,750 | $ | 0 | $ | 11 | $ | 2,739 | ||||||||
Commercial paper | 898 | 0 | 0 | 898 | ||||||||||||
Corporate bonds and medium-term notes | 3,293 | 0 | 27 | 3,266 | ||||||||||||
Municipal bonds | 145 | 0 | 2 | 143 | ||||||||||||
U.S. treasury securities | 1,909 | 0 | 14 | 1,895 | ||||||||||||
Total short-term investments | $ | 8,995 | $ | 0 | $ | 54 | $ | 8,941 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 3,745 | $ | 0 | $ | 30 | $ | 3,715 | ||||||||
Corporate bonds and medium-term notes | 1,718 | 0 | 22 | 1,696 | ||||||||||||
Municipal bonds | 347 | 0 | 2 | 345 | ||||||||||||
U.S. treasury securities | 3,747 | 0 | 96 | 3,651 | ||||||||||||
Total long-term investments | $ | 9,557 | $ | 0 | $ | 150 | $ | 9,407 | ||||||||
Total cash, cash equivalents, and investments | $ | 116,586 | $ | 0 | $ | 204 | $ | 116,382 | ||||||||
January 1, 2022 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 102,494 | $ | 0 | $ | 0 | $ | 102,494 | ||||||||
Money market funds | 234 | 0 | 0 | 234 | ||||||||||||
Total cash and cash equivalents | $ | 102,728 | $ | 0 | $ | 0 | $ | 102,728 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 4,300 | $ | 0 | $ | 0 | $ | 4,300 | ||||||||
Commercial paper | 400 | 0 | 0 | 400 | ||||||||||||
Corporate bonds and medium-term notes | 2,916 | 0 | 3 | 2,913 | ||||||||||||
Municipal bonds | 700 | 0 | 0 | 700 | ||||||||||||
U.S. treasury securities | 1,910 | 0 | 2 | 1,908 | ||||||||||||
Total short-term investments | $ | 10,226 | $ | 0 | $ | 5 | $ | 10,221 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 2,040 | $ | 0 | $ | 3 | $ | 2,037 | ||||||||
Certificates of deposit | 500 | 0 | 3 | 497 | ||||||||||||
Corporate bonds and medium-term notes | 1,521 | 0 | 6 | 1,515 | ||||||||||||
Municipal bonds | 145 | 0 | 1 | 144 | ||||||||||||
U.S. treasury securities | 3,246 | 0 | 12 | 3,234 | ||||||||||||
Total long-term investments | $ | 7,452 | $ | 0 | $ | 25 | $ | 7,427 | ||||||||
Total cash, cash equivalents, and investments | $ | 120,406 | $ | 0 | $ | 30 | $ | 120,376 | ||||||||
July 2, 2022 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 46,732 | $ | — | $ | — | $ | 46,732 | ||||||||
Money market funds | 3,591 | — | — | 3,591 | ||||||||||||
Commercial paper | 3,348 | — | 2 | 3,346 | ||||||||||||
Total cash and cash equivalents | $ | 53,671 | $ | — | $ | 2 | $ | 53,669 | ||||||||
Short-term investments: | ||||||||||||||||
Asset backed securities | $ | 1,003 | $ | — | $ | 2 | $ | 1,001 | ||||||||
Certificates of deposit | 7,850 | — | 23 | 7,827 | ||||||||||||
Commercial paper | 14,586 | 2 | 37 | 14,551 | ||||||||||||
Corporate bonds and medium-term notes | 4,725 | — | 52 | 4,673 | ||||||||||||
Municipal bonds | 493 | — | 7 | 486 | ||||||||||||
U.S. treasury securities | 2,661 | — | 31 | 2,630 | ||||||||||||
Total short-term investments | $ | 31,318 | $ | 2 | $ | 152 | $ | 31,168 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 9,876 | $ | — | $ | 80 | $ | 9,796 | ||||||||
Corporate bonds and medium-term notes | 5,204 | 7 | 32 | 5,179 | ||||||||||||
Municipal bonds | 1,212 | — | 9 | 1,203 | ||||||||||||
U.S. treasury and agency securities | 8,486 | — | 99 | 8,387 | ||||||||||||
Total long-term investments | $ | 24,778 | $ | 7 | $ | 220 | $ | 24,565 | ||||||||
Total cash, cash equivalents, and investments | $ | 109,767 | $ | 9 | $ | 374 | $ | 109,402 | ||||||||
January 1, 2022 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 102,494 | $ | — | $ | — | $ | 102,494 | ||||||||
Money market funds | 234 | — | — | 234 | ||||||||||||
Total cash and cash equivalents | $ | 102,728 | $ | — | $ | — | $ | 102,728 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 4,300 | $ | — | $ | — | $ | 4,300 | ||||||||
Commercial paper | 400 | — | — | 400 | ||||||||||||
Corporate bonds and medium-term notes | 2,916 | — | 3 | 2,913 | ||||||||||||
Municipal bonds | 700 | — | — | 700 | ||||||||||||
U.S. treasury securities | 1,910 | — | 2 | 1,908 | ||||||||||||
Total short-term investments | $ | 10,226 | $ | — | $ | 5 | $ | 10,221 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 2,040 | $ | — | $ | 3 | $ | 2,037 | ||||||||
Certificates of deposit | 500 | — | 3 | 497 | ||||||||||||
Corporate bonds and medium-term notes | 1,521 | — | 6 | 1,515 | ||||||||||||
Municipal bonds | 145 | — | 1 | 144 | ||||||||||||
U.S. treasury securities | 3,246 | — | 12 | 3,234 | ||||||||||||
Total long-term investments | $ | 7,452 | $ | — | $ | 25 | $ | 7,427 | ||||||||
Total cash, cash equivalents, and investments | $ | 120,406 | $ | — | $ | 30 | $ | 120,376 | ||||||||
Amortized Cost | Fair Value | |||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||
Due in one year or less | $ | 13,367 | $ | 13,313 | $ | 38,257 | $ | 38,105 | ||||||||
Due after one through five years | 9,557 | 9,407 | 24,778 | 24,565 | ||||||||||||
$ | 22,924 | $ | 22,720 | $ | 63,035 | $ | 62,670 | |||||||||
July 2, 2022 | ||||||||||||||||||||||||||||||||
April 2, 2022 | In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Asset backed securities | $ | 3,715 | $ | 30 | $ | 0 | $ | 0 | $ | 10,180 | $ | 82 | $ | — | $ | — | ||||||||||||||||
Certificates of deposit | 2,739 | 11 | 0 | 0 | 6,827 | 23 | — | — | ||||||||||||||||||||||||
Commercial paper | 15,932 | 39 | — | — | ||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 4,460 | 44 | 502 | 5 | 8,345 | 80 | 500 | 4 | ||||||||||||||||||||||||
Municipal bonds | 488 | 4 | 0 | 0 | 1,698 | 16 | — | — | ||||||||||||||||||||||||
U.S. treasury securities | 5,546 | 110 | 0 | 0 | ||||||||||||||||||||||||||||
U.S. treasury and agency securities | 11,017 | 130 | — | — | ||||||||||||||||||||||||||||
$ | 16,948 | $ | 199 | $ | 502 | $ | 5 | $ | 53,990 | $ | 370 | $ | 500 | $ | 4 | |||||||||||||||||
Fair Value Measurements at April 2, 2022 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(in thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Investment securities | ||||||||||||
Money market funds | $ | 3,042 | $ | 3,042 | $ | 0 | ||||||
U.S. treasury securities | 6,076 | 6,076 | 0 | |||||||||
Asset backed securities | 3,715 | 0 | 3,715 | |||||||||
Certificates of deposit | 3,239 | 0 | 3,239 | |||||||||
Commercial paper | 1,198 | 0 | 1,198 | |||||||||
Corporate bonds and medium-term notes | 4,962 | 0 | 4,962 | |||||||||
Municipal bonds | 488 | 0 | 488 | |||||||||
Total recurring fair value measurements | $ | 22,720 | $ | 9,118 | $ | 13,602 | ||||||
Fair Value Measurements at July 2, 2022 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(In thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Investment securities | ||||||||||||
Money market funds | $ | 3,591 | $ | 3,591 | $ | — | ||||||
U.S. treasury and agency securities | 11,017 | 7,521 | 3,496 | |||||||||
Asset backed securities | 10,797 | — | 10,797 | |||||||||
Certificates of deposit | 7,827 | — | 7,827 | |||||||||
Commercial paper | 17,897 | — | 17,897 | |||||||||
Corporate bonds and medium-term notes | 9,852 | — | 9,852 | |||||||||
Municipal bonds | 1,689 | — | 1,689 | |||||||||
Total recurring fair value measurements | $ | 62,670 | $ | 11,112 | $ | 51,558 | ||||||
9. Derivative Instruments |
Notional Amounts | Derivative Liabilities | Derivative Assets | ||||||||||||||||||||||
Derivative Instrument | April 2, 2022 | January 1, 2022 | April 2, 2022 | January 1, 2022 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 1,179 | 815 | (b ) | $ | 0 | (a ) | $ | 1 | |||||||||||||||
Total Hedges | $ | 1,179 | 815 | $ | 0 | $ | 1 | |||||||||||||||||
Notional Amounts | Derivative Liabilities | Derivative Assets | ||||||||||||||||||||||
Derivative Instrument | July 2, 2022 | January 1, 2022 | July 2, 2022 | January 1, 2022 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 1,074 | $ | 815 | (b) | $ | 11 | (a) | $ | 14 | ||||||||||||||
Total Hedges | $ | 1,074 | $ | 815 | $ | 11 | $ | 14 | ||||||||||||||||
(a) | Other current assets |
(b) | Other accrued liabilities |
Three Months Ended April 2, 2022 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at January 1, 2022 | $ | 199,098 | $ | (29,551 | ) | $ | 578 | $ | (36,110 | ) | $ | 134,015 | ||||||||
Common stock issued under employee plans | 1,033 | — | — | — | 1,033 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (135 | ) | — | — | — | (135 | ) | |||||||||||||
Equity-based compensation expense | (1,036 | ) | — | — | — | (1,036 | ) | |||||||||||||
Net loss | — | — | — | (7,855 | ) | (7,855 | ) | |||||||||||||
Other comprehensive loss | — | — | (207 | ) | — | (207 | ) | |||||||||||||
Balance at April 2, 2022 | $ | 198,960 | $ | (29,551 | ) | $ | 371 | $ | (43,965 | ) | $ | 125,815 | ||||||||
Three Months Ended April 3, 2021 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at January 2, 2021 | $ | 193,197 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||
Common stock issued under employee plans | 1,243 | — | — | — | 1,243 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (20 | ) | — | — | — | (20 | ) | |||||||||||||
Equity-based compensation expense | 968 | — | — | — | 968 | |||||||||||||||
Net loss | — | — | — | (6,504 | ) | (6,504 | ) | |||||||||||||
Other comprehensive loss | — | — | (88 | ) | — | (88 | ) | |||||||||||||
Balance at April 3, 2021 | $ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 |
Three Months Ended | ||||||||||||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||||||||||
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 | $ | 608 | $ | (30 | ) | $ | 578 | $ | 602 | $ | 38 | $ | 640 | |||||||||||
Other comprehensive income (loss) before reclassification | (33 | ) | (174 | ) | (207 | ) | (68 | ) | (20 | ) | (88 | ) | ||||||||||||
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net current-period other comprehensive income (loss) | (33 | ) | (174 | ) | (207 | ) | (68 | ) | (20 | ) | (88 | ) | ||||||||||||
Ending balance | $ | 575 | $ | (204 | ) | $ | 371 | $ | 534 | $ | 18 | $ | 552 | |||||||||||
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
Net loss from continuing operations | $ | (7,720 | ) | $ | (5,568 | ) | ||
Net loss from discontinued operations, net of tax | (135 | ) | (936 | ) | ||||
Net loss | $ | (7,855 | ) | $ | (6,504 | ) | ||
Weighted-average shares – basic | 24,800 | 24,033 | ||||||
Effect of dilutive potential common shares | 0 | 0 | ||||||
Weighted-average shares – diluted | 24,800 | 24,033 | ||||||
Basic and diluted net loss per share: | ||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.23 | ) | ||
Discontinued operations | $ | (0.01 | ) | $ | (0.04 | ) | ||
Net loss per share | $ | (0.32 | ) | $ | (0.27 | ) | ||
Condensed Consolidated Statement of Changes in Equity The changes in stockholders’ equity by component for the three and six months ended July 2, 2022 and July 3, 2021, are as follows (in thousands):
18 INTEVAC, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (Unaudited) Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component for the three and six months ended July 2, 2022 and July 3, 2021, are as follows.
11. Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share:
19 INTEVAC, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (Unaudited) As the Company is in a net loss position, all of the Company’s equity instruments are considered antidilutive. 12. Income Taxes |
13. Restructuring and Other Costs, Net |
Employee Termination Costs | Employee Termination Costs | |||||||
(in thousands) | (In thousands) | |||||||
Balance at January 1, 2022 | $ | 0 | $ | — | ||||
Provision for restructuring charges under the 2022 Cost Reduction Plan | 1,232 | 1,232 | ||||||
Cash payments made | (757 | ) | (757 | ) | ||||
Non-cash utilization (a) | 37 | 37 | ||||||
Balance at April 2, 2022 | $ | 512 | 512 | |||||
Cash payments made | (179 | ) | ||||||
Balance at July 2, 2022 (b) | $ | 333 | ||||||
(a) | Acceleration of equity awards. |
(b) |
Employee Termination Costs | Other Exit Costs | Total | ||||||||||
(in thousands) | ||||||||||||
Balance at January 1, 2022 | $ | 358 | $ | 665 | $ | 1,023 | ||||||
Provision for restructuring charges associated with Photonics divestiture (a) | 112 | 2 | 114 | |||||||||
Cash payments made | (137 | ) | (128 | ) | (265 | ) | ||||||
Non-cash utilization (b) | (75 | ) | 0 | (75 | ) | |||||||
Balance at April 2, 2022 | $ | 258 | (c) | $ | 539 | $ | 797 | |||||
Employee Termination Costs | Other Exit Costs | Total | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1, 2022 | $ | 358 | $ | 665 | $ | 1,023 | ||||||
Provision for restructuring charges associated with Photonics divestiture (a) | 112 | 2 | 114 | |||||||||
Cash payments made | (137 | ) | (128 | ) | (265 | ) | ||||||
Non-cash utilization (b) | (75 | ) | — | (75 | ) | |||||||
Balance at April 2, 2022 | $ | 258 | $ | 539 | $ | 797 | ||||||
Provision for restructuring charges associated with Photonics divestiture (a) | — | 4 | 4 | |||||||||
Cash payments made | (90 | ) | (77 | ) | (167 | ) | ||||||
Balance at July 2, 2022 | $ | 168 | (c) | $ | 466 | $ | 634 | |||||
(a) | Included in loss from discontinued operations (See Note 2). |
(b) | Acceleration of equity awards. |
(c) | Liability for employee termination costs is included in accrued payroll and related liabilities. |
Ended July 3, 2021 | ||||
( | ||||
Beginning balance | $ | |||
Provision for restructuring reserves | 43 | |||
Cash payments made | (43 | ) | ||
Ending balance | $ | |||
14. Commitments and Contingencies |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||
Three Months Ended | July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | ||||||||||||||||||||||||||||||
April 3, 2021 | April 3, 2021 | Change over prior period | ||||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | (In thousands, except percentages and per share amounts) | |||||||||||||||||||||||||||||||||||
Net revenues | $ | 4,445 | $ | 9,238 | $ | (4,793 | ) | $ | 9,307 | $ | 5,369 | $ | 3,938 | $ | 13,752 | $ | 14,607 | $ | (855 | ) | ||||||||||||||||
Gross profit | $ | 723 | $ | 2,134 | $ | (1,411 | ) | $ | 4,487 | $ | 1,006 | $ | 3,481 | $ | 5,209 | $ | 3,140 | $ | 2,069 | |||||||||||||||||
Gross margin percent | 16.3 | % | 23.1 | % | (6.8) points | 48.2 | % | 18.7 | % | 29 points | 37.9 | % | 21.5 | % | 16 points | |||||||||||||||||||||
Loss from operations | $ | (7,686 | ) | $ | (5,565 | ) | $ | (2,121 | ) | $ | (2,397 | ) | $ | (6,309 | ) | $ | 3,912 | $ | (10,084 | ) | $ | (11,874 | ) | $ | 1,790 | |||||||||||
Net loss from continuing operations | $ | (7,720 | ) | $ | (5,568 | ) | $ | (2,152 | ) | |||||||||||||||||||||||||||
Net loss from discontinued operations, net of taxes | $ | (135 | ) | $ | (936 | ) | $ | 801 | ||||||||||||||||||||||||||||
Loss from continuing operations | $ | (2,580 | ) | $ | (6,124 | ) | $ | 3,544 | $ | (10,300 | ) | $ | (11,692 | ) | $ | 1,392 | ||||||||||||||||||||
Loss from discontinued operations | $ | (238 | ) | $ | (2 | ) | $ | (236 | ) | $ | (373 | ) | $ | (938 | ) | $ | 565 | |||||||||||||||||||
Net loss | $ | (7,855 | ) | $ | (6,504 | ) | $ | (1,351 | ) | $ | (2,818 | ) | $ | (6,126 | ) | $ | 3,308 | $ | (10,673 | ) | $ | (12,630 | ) | $ | 1,957 | |||||||||||
Net loss per diluted share | $ | (0.32 | ) | $ | (0.27 | ) | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.25 | ) | $ | 0.14 | $ | (0.43 | ) | $ | (0.52 | ) | $ | 0.09 |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Total net revenues | $ | 4,445 | $ | 9,238 | $ | (4,793 | ) | |||||
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Net revenues | $ | 9,307 | $ | 5,369 | $ | 3,938 | $ | 13,752 | $ | 14,607 | $ | (855 | ) | |||||||||||
April 2, 2022 | January 1, 2022 | April 3, 2021 | ||||||||||
(In thousands) | ||||||||||||
Total backlog | $ | 87,162 | $ | 24,725 | $ | 4,221 | ||||||
July 2, 2022 | January 1, 2022 | July 3, 2021 | ||||||||||
(In thousands) | ||||||||||||
Backlog | $ | 100,194 | $ | 24,725 | $ | 18,943 | ||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
Three Months Ended | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||||||||
United States | $ | 294 | $ | 367 | $ | 1,656 | $ | 2,121 | $ | 1,950 | $ | 2,488 | ||||||||||||
Asia | 4,151 | 5,021 | 7,651 | 3,248 | 11,802 | 8,269 | ||||||||||||||||||
Europe | — | 3,850 | — | — | — | 3,850 | ||||||||||||||||||
Total net revenues | $ | 4,445 | $ | 9,238 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands, except percentages) | ||||||||||||
TFE gross profit | $ | 723 | $ | 2,134 | $ | (1,411 | ) | |||||
% of TFE net revenues | 16.3 | % | 23.1 | % |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Gross profit | $ | 4,487 | $ | 1,006 | $ | 3,481 | $ | 5,209 | $ | 3,140 | $ | 2,069 | ||||||||||||
% of net revenues | 48.2 | % | 18.7 | % | 37.9 | % | 21.5 | % |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Research and development expense | $ | 4,160 | $ | 3,365 | $ | 795 |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
1 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Research and development expense | $ | 2,868 | $ | 3,118 | $ | (250 | ) | $ | 7,028 | $ | 6,483 | $ | 545 |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Selling, general and administrative expense | $ | 4,249 | $ | 4,334 | $ | (85 | ) |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Selling, general and administrative expense | $ | 4,016 | $ | 4,197 | $ | (181 | ) | $ | 8,265 | $ | 8,531 | $ | (266 | ) |
Three Months Ended | ||||||||||||
April 3, 2021 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Interest income and other income (expense), net | $ | (8 | ) | $ | 29 | $ | (37 | ) |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Interest income and other, income (expense), net | $ | 317 | $ | 20 | $ | 297 | $ | 310 | $ | 50 | $ | 260 |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Income tax provision | $ | 26 | $ | 32 | $ | (6 | ) |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Provision for (benefit from) income taxes | $ | 500 | $ | (165 | ) | $ | 665 | $ | 526 | $ | (132 | ) | $ | 658 |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Loss from discontinued operations, net of taxes | $ | 135 | $ | 936 | $ | (801 | ) |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loss from discontinued operations, net of taxes | $ | 238 | $ | 2 | $ | 236 | $ | 373 | $ | 938 | $ | (565 | ) |
July 2, 2022 | January 1, 2022 | |||||||||||||||
April 2, 2022 | January 2, 2021 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 98,034 | $ | 102,728 | $ | 53,669 | $ | 102,728 | ||||||||
Restricted cash | 786 | 786 | 786 | 786 | ||||||||||||
Short-term investments | 8,941 | 10,221 | 31,168 | 10,221 | ||||||||||||
Long-term investments | 9,407 | 7,427 | 24,565 | 7,427 | ||||||||||||
Total cash, cash equivalents, restricted cash and investments | $ | 117,168 | $ | 121,162 | $ | 110,188 | $ | 121,162 | ||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
* | ||
Previously filed as an exhibit to the Company’s Report on Form 8-K filed | ||
** | 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. |
Date: | ||||||||
By: | /s/ NIGEL | |||||||
Nigel | ||||||||
President and Chief Executive Officer | ||||||||
Date: | ||||||||
By: | /s/ JAMES MONIZ | |||||||
James Moniz | ||||||||
Executive Vice President, Finance and Administration, | ||||||||
Chief Financial Officer, Secretary and Treasurer | ||||||||