Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 29, 2013 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IVAC | |
Entity Registrant Name | INTEVAC INC | |
Entity Central Index Key | 1001902 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,006,002 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $16,626 | $24,261 |
Short-term investments | 48,433 | 40,591 |
Trade and other accounts receivable, net of allowances of $0 at both September 28, 2013 and at December 31, 2012 | 16,114 | 19,822 |
Inventories | 25,794 | 26,193 |
Prepaid expenses and other current assets | 1,750 | 2,120 |
Total current assets | 108,717 | 112,987 |
Property, plant and equipment, net | 13,065 | 13,426 |
Long-term investments | 20,661 | 27,317 |
Intangible assets, net of amortization of $3,205 at September 28, 2013 and $2,887 at December 31, 2012 | 5,180 | 5,868 |
Deferred income taxes and other long-term assets | 13,730 | 12,905 |
Total assets | 161,353 | 172,503 |
Current liabilities: | ||
Accounts payable | 4,719 | 4,479 |
Accrued payroll and related liabilities | 5,246 | 4,194 |
Other accrued liabilities | 6,111 | 8,489 |
Customer advances | 5,862 | 2,193 |
Deferred income taxes | 1,281 | 1,281 |
Total current liabilities | 23,219 | 20,636 |
Other long-term liabilities | 9,250 | 9,232 |
Stockholders' equity: | ||
Common stock, $0.001 par value | 24 | 23 |
Additional paid-in capital | 155,701 | 151,996 |
Accumulated other comprehensive income | 733 | 769 |
Accumulated deficit | -27,574 | -10,153 |
Total stockholders' equity | 128,884 | 142,635 |
Total liabilities and stockholders' equity | $161,353 | $172,503 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Net of allowances of trade, note and other accounts receivable | $0 | $0 |
Net of amortization of intangible assets | $3,205 | $2,887 |
Common Stock, par value | $0.00 | $0.00 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net revenues: | ||||
Systems and components | $15,991 | $11,665 | $38,111 | $55,067 |
Technology development | 3,124 | 5,169 | 10,970 | 10,874 |
Total net revenues | 19,115 | 16,834 | 49,081 | 65,941 |
Cost of net revenues: | ||||
Systems and components | 9,725 | 7,476 | 26,206 | 31,561 |
Technology development | 2,495 | 3,626 | 8,638 | 7,569 |
Total cost of net revenues | 12,220 | 11,102 | 34,844 | 39,130 |
Gross profit | 6,895 | 5,732 | 14,237 | 26,811 |
Operating expenses: | ||||
Research and development | 4,250 | 7,336 | 16,192 | 24,812 |
Selling, general and administrative | 5,627 | 6,389 | 16,834 | 19,831 |
Bad debt expense | 3,017 | 3,017 | ||
Total operating expenses | 9,877 | 16,742 | 33,026 | 47,660 |
Gain (loss) on divestitures | -208 | 2,207 | ||
Loss from operations | -2,982 | -11,010 | -18,997 | -18,642 |
Interest income and other, net | 220 | -8 | 392 | 411 |
Loss before income taxes | -2,762 | -11,018 | -18,605 | -18,231 |
Benefit from income taxes | -17 | -3,011 | -1,184 | -5,570 |
Net loss | ($2,745) | ($8,007) | ($17,421) | ($12,661) |
Net loss per share: | ||||
Basic and diluted | ($0.11) | ($0.34) | ($0.73) | ($0.54) |
Weighted average common shares outstanding: | ||||
Basic and diluted | 23,931 | 23,397 | 23,793 | 23,293 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net loss | ($2,745) | ($8,007) | ($17,421) | ($12,661) |
Other comprehensive income (loss), before tax | ||||
Change in unrealized net loss on available-for-sale investments | 60 | 73 | -29 | 305 |
Foreign currency translation gains (losses) | 3 | 19 | -7 | 5 |
Other comprehensive income (loss), before tax | 63 | 92 | -36 | 310 |
Income tax (expense) benefit related to items in other comprehensive income (loss) | -26 | -107 | ||
Other comprehensive income (loss), net of tax | 63 | 66 | -36 | 203 |
Comprehensive loss | ($2,682) | ($7,941) | ($17,457) | ($12,458) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Operating activities | ||
Net loss | ($17,421,000) | ($12,661,000) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||
Depreciation and amortization | 3,280,000 | 3,391,000 |
Net amortization of investment premiums and discounts | 655,000 | 1,076,000 |
Net loss on sale of investments | 210,000 | |
Bad debt expense | 3,017,000 | |
Equity-based compensation | 1,836,000 | 2,941,000 |
Change in the fair value of acquisition-related contingent consideration | -24,000 | 443,000 |
Deferred income taxes | -1,013,000 | -5,418,000 |
Loss (gain) on divestitures | 208,000 | -2,207,000 |
Loss (gain) on disposal of equipment | -153,000 | 168,000 |
Changes in operating assets and liabilities | 4,285,000 | -5,430,000 |
Total adjustments | 9,074,000 | -1,809,000 |
Net cash and cash equivalents used in operating activities | -8,347,000 | -14,470,000 |
Investing activities | ||
Purchases of investments | -32,606,000 | -32,987,000 |
Proceeds from sales and maturities of investments | 31,736,000 | 41,346,000 |
Proceeds from sale of equipment | 153,000 | |
Purchases of leasehold improvements and equipment | -928,000 | -2,114,000 |
Net cash and cash equivalents provided by (used in) investing activities | -1,145,000 | 9,245,000 |
Financing activities | ||
Payment of acquisition-related contingent consideration | -40,000 | -3,345,000 |
Net proceeds from issuance of common stock | 1,905,000 | 1,865,000 |
Net cash and cash equivalents provided by (used in) financing activities | 1,865,000 | -1,480,000 |
Effect of exchange rate changes on cash | -8,000 | 4,000 |
Net decrease in cash and cash equivalents | -7,635,000 | -6,701,000 |
Cash and cash equivalents at beginning of period | 24,261,000 | 23,560,000 |
Cash and cash equivalents at end of period | 16,626,000 | 16,859,000 |
Non-cash investing activity | ||
Finished goods inventory transferred to property, plant and equipment | 1,551,000 | |
DeltaNu | ||
Investing activities | ||
Proceeds from sale of assets | 500,000 | |
Mainframe Technology | ||
Investing activities | ||
Proceeds from sale of assets | $3,000,000 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2013 | |
Basis of Presentation | 1. Basis of Presentation |
In the opinion of management, the unaudited interim condensed consolidated financial statements of Intevac, Inc. and its subsidiaries (Intevac or the Company) included herein have been prepared on a basis consistent with the December 31, 2012 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Intevac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (“2012 Form 10-K”). Intevac’s results of operations for the three and nine months ended September 28, 2013 are not necessarily indicative of future operating results. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncement | 9 Months Ended |
Sep. 28, 2013 | |
Recent Accounting Pronouncement | 2. Recent Accounting Pronouncement |
Presentation of Unrecognized Tax Benefits: In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”) to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for us in our first quarter of fiscal 2014 with earlier adoption permitted. ASU 2013-11 should be applied prospectively with retroactive application permitted. We are currently evaluating the impact of our pending adoption of ASU 2013-11 on our consolidated financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Inventories | 3. Inventories | ||||||||
Inventories are stated at the lower of average cost or market and consist of the following: | |||||||||
September 28, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 15,778 | $ | 14,921 | |||||
Work-in-progress | 8,327 | 5,526 | |||||||
Finished goods | 1,689 | 5,746 | |||||||
$ | 25,794 | $ | 26,193 | ||||||
Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing and evaluation inventory. |
EquityBased_Compensation
Equity-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Equity-Based Compensation | 4. Equity-Based Compensation | ||||||||||||||||
At September 28, 2013, Intevac had equity-based awards outstanding under the 2012 Equity Incentive Plan, the 2004 Equity Incentive Plan (the “Plans”) and the 2003 Employee Stock Purchase Plan (the “ESPP”). Intevac’s stockholders approved all of these plans. The Plans permit the grant of incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs” also referred to as performance units) and performance shares. | |||||||||||||||||
The ESPP provides that eligible employees may purchase Intevac’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the beginning of the applicable offering period or at the end of each applicable purchase interval. Offering periods are generally two years in length, and consist of a series of six-month purchase intervals. Eligible employees may join the ESPP at the beginning of any six-month purchase interval. Under the terms of the ESPP, employees can choose to have up to 15% of their base earnings withheld to purchase Intevac common stock. | |||||||||||||||||
Compensation Expense | |||||||||||||||||
The effect of recording equity-based compensation for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Equity-based compensation by type of award: | |||||||||||||||||
Stock options | $ | 375 | $ | 523 | $ | 651 | $ | 1,843 | |||||||||
RSUs | 130 | 88 | 314 | 111 | |||||||||||||
Employee stock purchase plan | 249 | 332 | 871 | 987 | |||||||||||||
Total equity-based compensation | 754 | 943 | 1,836 | 2,941 | |||||||||||||
Tax effect on equity-based compensation | (8 | ) | (205 | ) | (18 | ) | (706 | ) | |||||||||
Net effect on net loss | $ | 746 | $ | 738 | $ | 1,818 | $ | 2,235 | |||||||||
Equity-based compensation expense is based on awards ultimately expected to vest and such amount has been reduced for estimated forfeitures. Forfeitures were estimated based on Intevac’s historical experience, which Intevac believes to be indicative of Intevac’s future experience. | |||||||||||||||||
Stock Options and ESPP | |||||||||||||||||
The fair value of stock options and ESPP awards is estimated at the grant date using the Black-Scholes option valuation model. The determination of fair value of stock options and ESPP awards on the date of grant using an option-pricing model is affected by Intevac’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards and actual employee stock option exercise behavior. | |||||||||||||||||
Option activity as of September 28, 2013 and changes during the nine months ended September 28, 2013 were as follows: | |||||||||||||||||
Shares | Weighted Average | ||||||||||||||||
Exercise Price | |||||||||||||||||
Options outstanding at December 31, 2012 | 3,128,408 | $ | 11.52 | ||||||||||||||
Options granted | 902,770 | $ | 5.59 | ||||||||||||||
Options cancelled and forfeited | (1,339,934 | ) | $ | 13.73 | |||||||||||||
Options exercised | (69,838 | ) | $ | 3.91 | |||||||||||||
Options outstanding at September 28, 2013 | 2,621,406 | $ | 8.55 | ||||||||||||||
Vested and expected to vest at September 28, 2013 | 2,386,932 | $ | 8.77 | ||||||||||||||
Options exercisable at September 28, 2013 | 1,412,001 | $ | 10.34 | ||||||||||||||
Intevac issued 457,000 shares under the ESPP during the nine months ended September 28, 2013. | |||||||||||||||||
Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock Options: | |||||||||||||||||
Weighed-average fair value of grants per share | $ | 2.81 | $ | 2.87 | $ | 2.48 | $ | 3.9 | |||||||||
Expected volatility | 55.06 | % | 63.19 | % | 56.4 | % | 63.8 | % | |||||||||
Risk free interest rate | 1.04 | % | 0.41 | % | 1.09 | % | 0.74 | % | |||||||||
Expected term of options (in years) | 4.02 | 3.94 | 4.22 | 4.63 | |||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock Purchase Rights: | |||||||||||||||||
Weighed-average fair value of grants per share | $ | 1.97 | $ | 2.31 | $ | 1.63 | $ | 3.01 | |||||||||
Expected volatility | 43.09 | % | 63.23 | % | 51.54 | % | 62.36 | % | |||||||||
Risk free interest rate | 0.21 | % | 0.21 | % | 0.26 | % | 0.28 | % | |||||||||
Expected term of purchase rights (in years) | 1 | 1.85 | 1.77 | 1.68 | |||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
The computation of the expected volatility assumptions used in the Black-Scholes calculations for new grants and purchase rights is based on the historical volatility of Intevac’s stock price, measured over a period equal to the expected term of the grant or purchase right. The risk-free interest rate is based on the yield available on U.S. Treasury Strips with an equivalent remaining term. The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the equity-based awards and vesting schedules. The expected term of purchase rights represents the period of time remaining in the current offering period. | |||||||||||||||||
The dividend yield assumption is based on Intevac’s history of not paying dividends and the assumption of not paying dividends in the future. | |||||||||||||||||
Stock Option Exchange Program | |||||||||||||||||
During our Annual Stockholder’s Meeting held on May 9, 2013, our stockholders approved a one-time Employee Stock Option Exchange Program (the “Exchange Program”) pursuant to which eligible employees were provided an opportunity to exchange, on a grant-by-grant basis, eligible outstanding stock options for a lesser number of new options, to be granted under our 2012 Equity Incentive Plan. Options eligible for the Exchange Program are those that were granted prior to the 12-month period preceding the start of the Exchange Program offering period, and have exercise prices per share that are greater than $8.49, 50% above our closing per share stock price measured as of July 5, 2013 which is shortly before the start of the Exchange Program. The Exchange Program offering period commenced on July 6, 2013 and closed on August 6, 2013, at which time a total of 87 eligible option holders exchanged 766,000 outstanding stock options for 336,000 stock options. | |||||||||||||||||
The Exchange Program was launched to increase the intended retention and incentive value of employee equity awards, reduce the potential dilutive effect of our equity incentive program, and reduce pressure to grant additional equity awards to employees in the short term. Participation in the Exchange Program was made available to all employees in the United States and Singapore except for the Named Executive Officers. Non-employee members of our board of directors were also not eligible to participate. The exchange of options under the Exchange Program resulted in a total incremental charge to compensation expense of $126,000. This incremental charge is being recognized over the vesting periods of the new options. These vesting periods range from one to three years beginning on the first anniversary of the grant. | |||||||||||||||||
RSUs | |||||||||||||||||
A summary of the RSU activity is as follows: | |||||||||||||||||
Shares | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested RSUs at December 31, 2012 | 100,461 | $ | 7.33 | ||||||||||||||
Granted | 169,637 | $ | 4.51 | ||||||||||||||
Vested | (21,327 | ) | $ | 7.54 | |||||||||||||
Cancelled and forfeited | (11,922 | ) | $ | 6.72 | |||||||||||||
Non-vested RSUs at September 28, 2013 | 236,849 | $ | 5.32 | ||||||||||||||
RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one basis. RSUs typically are scheduled to vest over four years. Vesting of RSUs is subject to the grantee’s continued service with Intevac. The compensation expense related to these awards is determined using the fair market value of Intevac common stock on the date of the grant, and the compensation expense is recognized over the vesting period. | |||||||||||||||||
Performance-based RSUs (“performance-based awards”) granted to certain executive officers are also subject to the achievement of specified performance goals. These performance-based awards become eligible to vest only if performance goals are achieved and then actually will vest only if the grantee remains employed by Intevac through each applicable vesting date. The fair value of these performance-based awards is estimated on the date of grant and assumes that the specified performance goals will be achieved. If the goals are achieved, these awards vest over a specified remaining service period, provided that the grantee remains employed by Intevac through each scheduled vesting date. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. For performance-based awards granted during fiscal 2013, the performance goals require the achievement of targeted revenues and adjusted annual operating profit levels measured at the end of two and three-year periods. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Allowance for Doubtful Accounts | 5. Allowance for Doubtful Accounts | ||||||||
The following table represents a reconciliation of the allowance for doubtful accounts for the three and nine months ended September 29, 2012: | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 29, 2012 | |||||||||
(In thousands) | |||||||||
Opening balance | $ | — | $ | 41 | |||||
Bad debt expense | 3,017 | 3,017 | |||||||
Write-offs | (3,017 | ) | (3,058 | ) | |||||
Closing balance | $ | — | $ | — | |||||
Intevac held a promissory note from a customer which was secured by the equipment sold to this customer in a prior year under a product and sales agreement. The note was to be repaid in monthly installment payments ending in March 2015. The revenue associated with this sale had been accounted for under the installment method of accounting whereby revenue was recognized only to the extent cash had been received. During the quarter ended September 29, 2012, the customer became delinquent in its monthly installment payments and the note was put on non-accrual status. On September 27, 2012, the customer liquidated its operating assets in an auction. The equipment which collateralized the promissory note was sold in the liquidation auction and Intevac received the proceeds. On September 28, 2012, the customer announced that it was discontinuing its operations effective October 9, 2012 and Intevac concluded that none of the carrying value of the promissory note receivable was collectible and recorded a bad debt charge. | |||||||||
Intevac evaluates the collectibility of trade accounts receivables and notes receivable on an ongoing basis and provides reserves against potential losses when appropriate. Management analyzes historical bad debts, customer concentrations, customer creditworthiness, changes in customer payment tendencies and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Customer accounts are written off against the allowance when the amount is deemed uncollectible. | |||||||||
The following table summarizes the components of the bad debt expense for the three- and nine month periods ended September 29, 2012 (in thousands): | |||||||||
Promissory note | $ | 4,085 | |||||||
Deferred profit on installment sale | (1,028 | ) | |||||||
Cash recovery from liquidation sale | (40 | ) | |||||||
Bad debt expense | $ | 3,017 | |||||||
The Company did not record any bad debt expense during the nine months ended September 28, 2013. |
Purchased_Intangible_Assets
Purchased Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Purchased Intangible Assets | 6. Purchased Intangible Assets | ||||||||||||
Intevac’s indefinite-lived intangible asset consisted of in-process research and development (“IPR&D”) in the amount of $4.0 million in the Equipment segment. During the quarter ended June 29, 2013, the related development project was completed, the product achieved commercialization and Intevac began amortizing the intangible asset over its expected useful life of 7 years. Immediately prior to commencement of amortization Intevac tested the intangible asset for impairment and determined that it was not impaired. | |||||||||||||
Details of finite-lived intangible assets by segment as of September 28, 2013, are as follows. | |||||||||||||
September 28, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
(In thousands) | |||||||||||||
Equipment | $ | 7,170 | $ | (2,551 | ) | $ | 4,619 | ||||||
Intevac Photonics | 1,215 | (654 | ) | 561 | |||||||||
$ | 8,385 | $ | (3,205 | ) | $ | 5,180 | |||||||
Total amortization expense of finite-lived intangibles for the three and nine months ended September 28, 2013 was $279,000 and $598,000. | |||||||||||||
As of September 28, 2013, future amortization expense is expected to be as follows. | |||||||||||||
(In thousands) | |||||||||||||
2013 | $ | 279 | |||||||||||
2014 | 934 | ||||||||||||
2015 | 854 | ||||||||||||
2016 | 853 | ||||||||||||
2017 | 757 | ||||||||||||
Thereafter | 1,503 | ||||||||||||
$ | 5,180 | ||||||||||||
AcquisitionRelated_Contingent_
Acquisition-Related Contingent Consideration | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Acquisition-Related Contingent Consideration | 7. Acquisition-Related Contingent Consideration | ||||||||||||||||
In connection with the acquisition of Solar Implant Technologies, Inc. (“SIT”), Intevac agreed to pay up to an aggregate of $7.0 million in cash to the selling shareholders if certain milestones were achieved over a specified period. Intevac has made payments to the selling shareholders for achievement of the first milestone in 2011 and for achievement of the second and third milestones in 2012. The fourth and final milestone was not achieved on the targeted date outlined in the acquisition agreement and will not be paid. There is no remaining contingent consideration obligation associated with the milestone payments at September 28, 2013. | |||||||||||||||||
In connection with the acquisition of SIT, Intevac also agreed to pay to the selling shareholders in cash a revenue earnout on Intevac’s net revenue from commercial sales of certain products over a specified period up to an aggregate of $9.0 million. Intevac estimated the fair value of this contingent consideration on September 28, 2013 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of September 28, 2013, payments made in connection with the revenue earnout obligation have not been significant. | |||||||||||||||||
The fair value measurement of contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Any change in fair value of the contingent consideration subsequent to the acquisition date is recognized in operating income within the statement of operations. The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and nine month periods ended September 28, 2013 and September 29, 2012. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 4,942 | $ | 6,969 | $ | 5,151 | $ | 8,715 | |||||||||
Changes in fair value | 185 | (200 | ) | (24 | ) | 443 | |||||||||||
Cash payments made | (40 | ) | (956 | ) | (40 | ) | (3,345 | ) | |||||||||
Closing balance | $ | 5,087 | $ | 5,813 | $ | 5,087 | $ | 5,813 | |||||||||
The following table displays the balance sheet classification of the contingent consideration liability account at September 28, 2013 and at December 31, 2012: | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Other accrued liabilities | $ | 42 | $ | 265 | |||||||||||||
Other long-term liabilities | 5,045 | 4,886 | |||||||||||||||
Total acquisition-related contingent consideration | $ | 5,087 | $ | 5,151 | |||||||||||||
The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of September 28, 2013. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at September 28, 2013 | |||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||
(In thousands, except for percentages) | |||||||||||||||||
Revenue Earnout | $ 5,087 | Discounted cash flow | Weighted average cost of capital | 16.00% | |||||||||||||
15.0% - 50.0% (31.7%) | |||||||||||||||||
Probability weighting of achieving revenue forecasts |
Divestitures
Divestitures | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Divestitures | 8. Divestitures | ||||
Sale of DeltaNu | |||||
On March 29, 2013, the Company sold certain assets, including existing tangible and intangible assets, which comprised its Raman spectroscopy instruments product line, also known as DeltaNu, for consideration not to exceed $1.5 million. Under the terms of the agreement, the acquirer also assumed certain liabilities related to the purchased assets. Payment terms included $500,000 which was paid on the closing date, with the remaining balance to be paid in the form of an earnout of 5% of the acquirer’s Raman spectroscopy instrument sales for 5 years following the closing date which will be due and payable on or before each anniversary of the closing date or a minimum earnout payment of $100,000 annually, whichever is higher. The maximum earnout payments during the payment period shall not exceed $1.0 million. | |||||
As the earnout is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain, Intevac did not recognize the minimum earnout payments upon closing, but instead will record income in the period when the minimum earnout payments can be reasonably estimated for that period and payment is assured. | |||||
The following table summarizes the components of the loss (in thousands): | |||||
Cash proceeds | $ | 500 | |||
Assets sold: | |||||
Accounts receivable | 147 | ||||
Inventories | 320 | ||||
Other current assets | 27 | ||||
Property, plant and equipment | 159 | ||||
Trade name | 90 | ||||
Total assets sold | 743 | ||||
Liabilities divested: | |||||
Accounts payable | 59 | ||||
Other accrued expenses | 6 | ||||
Total liabilities divested | 65 | ||||
Transaction and other costs | 30 | ||||
Loss on sale | $ | (208 | ) | ||
Sale of Mainframe Technology | |||||
On January 6, 2012, the Company sold certain assets including intellectual property and residual assets which comprised its semiconductor mainframe technology. | |||||
The following table summarizes the components of the gain (in thousands): | |||||
Cash proceeds | $ | 3,000 | |||
Assets sold: | |||||
Inventories | 589 | ||||
Property, plant and equipment | 178 | ||||
Transaction and other costs | 26 | ||||
Gain on sale | $ | 2,207 | |||
Warranty
Warranty | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Warranty | 9. Warranty | ||||||||||||||||
Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms, and for systems sold directly the warranty typically ranges between 12 and 24 months from customer acceptance. For systems sold through a distributor, Intevac offers a 3 month warranty. The remainder of any warranty period is the responsibility of the distributor. During this warranty period any defective non-consumable parts are replaced and installed at no charge to the customer. The warranty period on consumable parts is limited to their reasonable usable lives. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. Intevac generally provides a twelve month warranty on its Intevac Photonics products. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates. | |||||||||||||||||
On the condensed consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion is included in other long-term liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the condensed consolidated statements of operations. | |||||||||||||||||
The following table displays the activity in the warranty provision account for the three and nine months ended September 28, 2013 and September 29, 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 2,087 | $ | 2,858 | $ | 2,349 | $ | 2,724 | |||||||||
Expenditures incurred under warranties | (309 | ) | (197 | ) | (773 | ) | (1,388 | ) | |||||||||
Accruals for product warranties issued during the reporting period | 323 | 218 | 861 | 1,093 | |||||||||||||
Adjustments to previously existing warranty accruals | (37 | ) | (330 | ) | (373 | ) | 120 | ||||||||||
Closing balance | $ | 2,064 | $ | 2,549 | $ | 2,064 | $ | 2,549 | |||||||||
The following table displays the balance sheet classification of the warranty provision account at September 28, 2013 and at December 31, 2012: | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Other accrued liabilities | $ | 1,974 | $ | 2,259 | |||||||||||||
Other long-term liabilities | 90 | 90 | |||||||||||||||
Total warranty provision | $ | 2,064 | $ | 2,349 | |||||||||||||
Guarantees
Guarantees | 9 Months Ended |
Sep. 28, 2013 | |
Guarantees | 10. Guarantees |
Officer and Director Indemnifications | |
As permitted or required under Delaware law and to the maximum extent allowable under that law, Intevac has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was serving, at Intevac’s request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments Intevac could be required to make under these indemnification obligations is unlimited; however, Intevac has a director and officer insurance policy that mitigates Intevac’s exposure and enables Intevac to recover a portion of any future amounts paid. As a result of Intevac’s insurance policy coverage, Intevac believes the estimated fair value of these indemnification obligations is not material. | |
Other Indemnifications | |
As is customary in Intevac’s industry, many of Intevac’s contracts provide remedies to certain third parties such as defense, settlement, or payment of judgments for intellectual property claims related to the use of its products. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Cash, Cash Equivalents and Investments | 11. Cash, Cash Equivalents and Investments | ||||||||||||||||
Cash and cash equivalents, short-term investments and long-term investments consist of: | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 6,158 | $ | — | $ | — | $ | 6,158 | |||||||||
Money market funds | 10,468 | — | — | 10,468 | |||||||||||||
Total cash and cash equivalents | $ | 16,626 | $ | — | $ | — | $ | 16,626 | |||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | $ | 997 | $ | — | $ | — | $ | 997 | |||||||||
Corporate bonds and medium-term notes | 21,930 | 23 | 3 | 21,950 | |||||||||||||
Municipal bonds | 6,113 | 2 | 1 | 6,114 | |||||||||||||
U.S. treasury and agency securities | 19,199 | 13 | — | 19,212 | |||||||||||||
Variable rate demand notes (“VRDNs”) | 160 | — | — | 160 | |||||||||||||
Total short-term investments | $ | 48,399 | $ | 38 | $ | 4 | $ | 48,433 | |||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 15,576 | $ | 9 | $ | 3 | $ | 15,582 | |||||||||
Municipal bonds | 1,065 | 2 | — | 1,067 | |||||||||||||
U.S. treasury and agency securities | 4,008 | 4 | — | 4,012 | |||||||||||||
Total long-term investments | $ | 20,649 | $ | 15 | $ | 3 | $ | 20,661 | |||||||||
Total cash, cash equivalents, and investments | $ | 85,674 | $ | 53 | $ | 7 | $ | 85,720 | |||||||||
December 31. 2012 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 5,939 | $ | — | $ | — | $ | 5,939 | |||||||||
Money market funds | 18,322 | — | — | 18,322 | |||||||||||||
Total cash and cash equivalents | $ | 24,261 | $ | — | $ | — | $ | 24,261 | |||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | $ | 2,495 | $ | — | $ | — | $ | 2,495 | |||||||||
Corporate bonds and medium-term notes | 19,539 | 13 | 4 | 19,548 | |||||||||||||
Municipal bonds | 1,203 | 1 | — | 1,204 | |||||||||||||
U.S. treasury and agency securities | 16,976 | 23 | — | 16,999 | |||||||||||||
VRDNs | 345 | — | — | 345 | |||||||||||||
Total short-term investments | $ | 40,558 | $ | 37 | $ | 4 | $ | 40,591 | |||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 16,776 | $ | 33 | $ | 7 | $ | 16,802 | |||||||||
Municipal bonds | 1,000 | 2 | — | 1,002 | |||||||||||||
U.S. treasury and agency securities | 9,499 | 14 | — | 9,513 | |||||||||||||
Total long-term investments | $ | 27,275 | $ | 49 | $ | 7 | $ | 27,317 | |||||||||
Total cash, cash equivalents, and investments | $ | 92,094 | $ | 86 | $ | 11 | $ | 92,169 | |||||||||
The contractual maturities of available-for-sale securities at September 28, 2013 are presented in the following table. | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
(In thousands) | |||||||||||||||||
Due in one year or less | $ | 55,702 | $ | 55,734 | |||||||||||||
Due after one through two years | 22,654 | 22,668 | |||||||||||||||
Due after ten years | 1,160 | 1,160 | |||||||||||||||
$ | 79,516 | $ | 79,562 | ||||||||||||||
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 September 28, 2013. | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
In Loss Position for | In Loss Position for | ||||||||||||||||
Less than 12 Months | Greater than 12 Months | ||||||||||||||||
Fair Value | Gross | Fair Value | Gross | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 7,802 | $ | 6 | $ | — | $ | — | |||||||||
Municipal bonds | 3,112 | 1 | — | — | |||||||||||||
$ | 10,914 | $ | 7 | $ | — | $ | — | ||||||||||
All prices for the fixed maturity securities including U.S. Treasury and agency securities, commercial paper, corporate bonds, VRDNs and municipal bonds are received from independent pricing services utilized by Intevac’s outside investment manager. This investment manager performs a review of the pricing methodologies and inputs utilized by the independent pricing services for each asset type priced by the vendor. In addition, on at least an annual basis, the investment manager conducts due diligence visits and interviews with each pricing vendor to verify the inputs utilized for each asset class. The due diligence visits include a review of the procedures performed by each vendor to ensure that pricing evaluations are representative of the price that would be received to sell a security in an orderly transaction. Any pricing where the input is based solely on a broker price is deemed to be a Level 3 price. Intevac uses the pricing data obtained from its outside investment manager as the primary input to make its assessments and determinations as to the ultimate valuation of the above-mentioned securities and has not made, during the periods presented, any material adjustments to such inputs. | |||||||||||||||||
The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of September 28, 2013. | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | |||||||||||||||
(In thousands) | |||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Money market funds | $ | 10,468 | $ | 10,468 | $ | — | |||||||||||
U.S. treasury and agency securities | 23,224 | 8,703 | 14,521 | ||||||||||||||
Commercial paper | 997 | — | 997 | ||||||||||||||
Corporate bonds and medium-term notes | 37,532 | — | 37,532 | ||||||||||||||
Municipal bonds | 7,181 | — | 7,181 | ||||||||||||||
VRDNs | 160 | — | 160 | ||||||||||||||
Total recurring fair value measurements | $ | 79,562 | $ | 19,171 | $ | 60,391 | |||||||||||
The following table presents the changes in Level 3 instruments which consisted of Auction Rate Securities (“ARS”) which were classified as available-for-sale securities and which were measured on a recurring basis for the nine month period ended September 29, 2012. | |||||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 4,490 | |||||||||||||||
Total gains (losses) for the period | |||||||||||||||||
Included in earnings | (229 | ) | |||||||||||||||
Included in other comprehensive income | 171 | ||||||||||||||||
Proceeds from tender offers | (2,771 | ) | |||||||||||||||
Closing balance | $ | 1,661 | |||||||||||||||
The Company did not hold any ARS as of or during the nine months ended September 28, 2013. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended |
Sep. 28, 2013 | |
Derivative Instruments | 12. Derivative Instruments |
The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in interest income and other, net in the condensed consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately thirty and sixty days. The notional amount of Company’s foreign currency derivatives was $1.7 million at September 28, 2013 and $491,000 at December 31, 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Accumulated Other Comprehensive Income | 13. Accumulated Other Comprehensive Income | ||||||||||||
The changes in accumulated other comprehensive income by component for the three and nine months ended September 28, 2013, are as follows. | |||||||||||||
Foreign | Unrealized | Total | |||||||||||
currency | holding gains | ||||||||||||
on available- | |||||||||||||
for-sale | |||||||||||||
investments | |||||||||||||
(In thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 694 | $ | 75 | $ | 769 | |||||||
Other comprehensive loss before reclassification | (6 | ) | (15 | ) | (21 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (6 | ) | (15 | ) | (21 | ) | |||||||
Balance at March 30, 2013 | $ | 688 | $ | 60 | $ | 748 | |||||||
Other comprehensive loss before reclassification | (4 | ) | (74 | ) | (78 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (4 | ) | (74 | ) | (78 | ) | |||||||
Balance at June 29, 2013 | $ | 684 | $ | (14 | ) | $ | 670 | ||||||
Other comprehensive income (loss) before reclassification | 3 | 60 | 63 | ||||||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive income (loss) | 3 | 60 | 63 | ||||||||||
Balance at September 28, 2013 | $ | 687 | $ | 46 | $ | 733 | |||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Net Loss Per Share | 14. Net Loss Per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted loss per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net loss | $ | (2,745 | ) | $ | (8,007 | ) | $ | (17,421 | ) | $ | (12,661 | ) | |||||
Weighted-average shares — basic | 23,931 | 23,397 | 23,793 | 23,293 | |||||||||||||
Effect of dilutive potential common shares | — | — | — | — | |||||||||||||
Weighted-average shares — diluted | 23,931 | 23,397 | 23,793 | 23,293 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.34 | ) | $ | (0.73 | ) | $ | (0.54 | ) | |||||
Antidilutive shares based on employee awards excluded | 2,551 | 3,175 | 2,648 | 2,999 | |||||||||||||
Potentially dilutive common shares consist of shares issuable upon exercise of employee stock options and vesting of RSUs and are excluded from the calculation of diluted EPS when their effect would be anti-dilutive. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting | 15. Segment Reporting | ||||||||||||||||
Intevac’s two reportable segments are: Equipment and Intevac Photonics. Intevac’s chief operating decision-maker has been identified as the President and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Intevac’s management organization structure as of September 28, 2013 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. | |||||||||||||||||
Each reportable segment is separately managed and has separate financial results that are reviewed by Intevac’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. | |||||||||||||||||
Intevac derives the segment results from its internal management reporting system. The accounting policies Intevac uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including orders, net revenues and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. Intevac manages certain operating expenses separately at the corporate level. Intevac allocates certain of these corporate expenses to the segments in an amount equal to 3% of net revenues. Segment operating income excludes interest income/expense and other financial charges and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, gains and losses on divestitures and sales of intellectual property, and unallocated costs in measuring the performance of the reportable segments. | |||||||||||||||||
The Equipment segment designs, develops and markets vacuum process equipment solutions for high-volume manufacturing of small substrates with precise thin film properties for hard drive and solar cell manufacturers. | |||||||||||||||||
The Intevac Photonics segment develops compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images. Intevac provides sensors, cameras and systems for government applications such as night vision and long-range target identification. | |||||||||||||||||
Information for each reportable segment for the three and nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||
Net Revenues | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equipment | $ | 11,760 | $ | 7,401 | $ | 26,293 | $ | 43,179 | |||||||||
Intevac Photonics | 7,355 | 9,433 | 22,788 | 22,762 | |||||||||||||
Total segment net revenues | $ | 19,115 | $ | 16,834 | $ | 49,081 | $ | 65,941 | |||||||||
Operating Income (Loss) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equipment | $ | (1,423 | ) | $ | (10,298 | ) | $ | (14,607 | ) | $ | (15,493 | ) | |||||
Intevac Photonics | 192 | 717 | 254 | (939 | ) | ||||||||||||
Total segment operating income (loss) | (1,231 | ) | (9,581 | ) | (14,353 | ) | (16,432 | ) | |||||||||
Unallocated costs | (1,751 | ) | (1,429 | ) | (4,436 | ) | (4,417 | ) | |||||||||
Gain (loss) on divestitures | — | — | (208 | ) | 2,207 | ||||||||||||
Loss from operations | (2,982 | ) | (11,010 | ) | (18,997 | ) | (18,642 | ) | |||||||||
Interest income and other, net | 220 | (8 | ) | 392 | 411 | ||||||||||||
Loss before income taxes | $ | (2,762 | ) | $ | (11,018 | ) | $ | (18,605 | ) | $ | (18,231 | ) | |||||
Total assets for each reportable segment as of September 28, 2013 and December 31, 2012 are as follows: | |||||||||||||||||
Assets | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Equipment | $ | 39,825 | $ | 37,376 | |||||||||||||
Intevac Photonics | 19,847 | 27,052 | |||||||||||||||
Total segment assets | 59,672 | 64,428 | |||||||||||||||
Cash, cash equivalents and investments | 85,720 | 92,169 | |||||||||||||||
Deferred income taxes | 13,189 | 12,176 | |||||||||||||||
Other current assets | 1,011 | 1,870 | |||||||||||||||
Common property, plant and equipment | 1,283 | 1,211 | |||||||||||||||
Other assets | 478 | 649 | |||||||||||||||
Consolidated total assets | $ | 161,353 | $ | 172,503 | |||||||||||||
Restructuring_Charges
Restructuring Charges | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Restructuring Charges | 16. Restructuring Charges | ||||
On February 1, 2013, Intevac announced the 2013 cost reduction plan (the “Plan”) to reduce expenses including a reduction in its workforce. Implementation of the Plan was substantially completed in the first half of fiscal 2013 and the Company reduced its workforce by 18 percent. The cost of implementing the Plan was reported under cost of products sold and operating expenses in the condensed consolidated statements of operations. Substantially all cash outlays in connection with the Plan occurred in the first half of fiscal 2013. Implementation of the Plan is expected to reduce salary, wages and other employee-related expenses by approximately $5.5 million to $6.0 million on an annual basis. | |||||
The changes in restructuring reserves associated with the Plan for the nine months ended September 28, 2013, are as follows. | |||||
Severance and | |||||
other employee- | |||||
related costs | |||||
(In thousands) | |||||
Balance at December 31, 2012 | $ | — | |||
Provision for restructuring reserves | 742 | ||||
Cash payments made | (742 | ) | |||
Balance at September 28, 2013 | $ | — | |||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Taxes | 17. Income Taxes |
Intevac recorded income tax benefits of $17,000 and $1.2 million for the three and nine months ended September 28, 2013, respectively. Intevac recorded income tax benefits of $3.0 million and $5.6 million for the three and nine months ended September 29, 2012, respectively. The income tax provision for the three and nine month periods are based upon estimates of annual income (loss), annual permanent differences and statutory tax rates in the various jurisdictions in which Intevac operates, except that certain discrete items are treated separately. At the end of 2012 Intevac established a valuation allowance against the majority of the U.S. deferred tax assets. As a result, Intevac did not recognize a benefit on the U.S. net operating loss for the three and nine months ended September 28, 2013. | |
The income tax benefit for both the three and nine month periods ended September 28, 2013 includes a $213,000 tax benefit from the release of certain unrecognized tax benefit liabilities due to the lapse of statutes of limitation. The income tax benefit for the three and nine month periods ended September 28, 2013 was reduced by discrete income tax charges for accrued withholding tax in Singapore of $147,000 and $231,000, respectively. The income tax benefit for the nine months ended September 29, 2012 includes the following discrete income tax items: (i) $1.1 million tax benefit related to a bad debt write-off, (ii) $108,000 tax benefit from the release of a valuation allowance and (iii) $188,000 in tax refunds received from Singapore and California, which were offset in part by (iv) $554,000 discrete income tax charge related to the gain on the sale of the mainframe technology. | |
Intevac’s tax rate differs from the applicable statutory rates due primarily to establishment of valuation allowances, 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 accordingly. | |
Intevac has benefitted from a tax holiday in Singapore which is scheduled to expire at the end of 2015. The tax holiday provides a lower income tax rate on certain classes of income so long as certain thresholds of business investment and employment levels are met in Singapore. We are presently in discussion with the Singapore tax authority to terminate this tax holiday effective January 1, 2013 due to current conditions in the hard disk drive business, which will not allow Intevac to be able to meet the conditions required to continue benefitting from the tax holiday. We expect the Singapore tax authorities to issue the terms and conditions allowing us to terminate the tax holiday early during the fourth quarter of 2013. | |
Intevac is subject to income taxes in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, Intevac is not subject to U.S. federal, state and local, or international jurisdictions income tax examinations by tax authorities for the years before 2010. Tax years 1999 through 2010 are subject to income tax examinations by U.S. federal and California tax authorities to the extent of tax credit carry forwards remaining or utilized in an otherwise open year. Tax years 2010 through 2012 generally remain open for examinations by the tax authorities. During 2012, the Internal Revenue Service completed its review of the Company’s fiscal year 2009 tax return which arose from an income tax refund generated by a carry-back claim. Additionally, the Singapore Inland Revenue Authority is conducting an examination of the fiscal 2009 and 2010 tax returns of the Company’s wholly-owned subsidiary, Intevac Asia Pte. Ltd. Presently there are no other active income tax examinations in the jurisdictions where Intevac operates. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Contingencies | 18. Contingencies |
From time to time, Intevac may have certain contingent liabilities that arise in the ordinary course of its business activities. Intevac accounts for contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Inventories Stated at Lower of Average Cost or Market | Inventories are stated at the lower of average cost or market and consist of the following: | ||||||||
September 28, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 15,778 | $ | 14,921 | |||||
Work-in-progress | 8,327 | 5,526 | |||||||
Finished goods | 1,689 | 5,746 | |||||||
$ | 25,794 | $ | 26,193 | ||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for the three and nine months ended September 28, 2013 and September 29, 2012 was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Equity-based compensation by type of award: | |||||||||||||||||
Stock options | $ | 375 | $ | 523 | $ | 651 | $ | 1,843 | |||||||||
RSUs | 130 | 88 | 314 | 111 | |||||||||||||
Employee stock purchase plan | 249 | 332 | 871 | 987 | |||||||||||||
Total equity-based compensation | 754 | 943 | 1,836 | 2,941 | |||||||||||||
Tax effect on equity-based compensation | (8 | ) | (205 | ) | (18 | ) | (706 | ) | |||||||||
Net effect on net loss | $ | 746 | $ | 738 | $ | 1,818 | $ | 2,235 | |||||||||
Option Activity and Changes | Option activity as of September 28, 2013 and changes during the nine months ended September 28, 2013 were as follows: | ||||||||||||||||
Shares | Weighted Average | ||||||||||||||||
Exercise Price | |||||||||||||||||
Options outstanding at December 31, 2012 | 3,128,408 | $ | 11.52 | ||||||||||||||
Options granted | 902,770 | $ | 5.59 | ||||||||||||||
Options cancelled and forfeited | (1,339,934 | ) | $ | 13.73 | |||||||||||||
Options exercised | (69,838 | ) | $ | 3.91 | |||||||||||||
Options outstanding at September 28, 2013 | 2,621,406 | $ | 8.55 | ||||||||||||||
Vested and expected to vest at September 28, 2013 | 2,386,932 | $ | 8.77 | ||||||||||||||
Options exercisable at September 28, 2013 | 1,412,001 | $ | 10.34 | ||||||||||||||
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions | Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock Options: | |||||||||||||||||
Weighed-average fair value of grants per share | $ | 2.81 | $ | 2.87 | $ | 2.48 | $ | 3.9 | |||||||||
Expected volatility | 55.06 | % | 63.19 | % | 56.4 | % | 63.8 | % | |||||||||
Risk free interest rate | 1.04 | % | 0.41 | % | 1.09 | % | 0.74 | % | |||||||||
Expected term of options (in years) | 4.02 | 3.94 | 4.22 | 4.63 | |||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock Purchase Rights: | |||||||||||||||||
Weighed-average fair value of grants per share | $ | 1.97 | $ | 2.31 | $ | 1.63 | $ | 3.01 | |||||||||
Expected volatility | 43.09 | % | 63.23 | % | 51.54 | % | 62.36 | % | |||||||||
Risk free interest rate | 0.21 | % | 0.21 | % | 0.26 | % | 0.28 | % | |||||||||
Expected term of purchase rights (in years) | 1 | 1.85 | 1.77 | 1.68 | |||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
Summary of Restricted Stock Units Activity | A summary of the RSU activity is as follows: | ||||||||||||||||
Shares | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested RSUs at December 31, 2012 | 100,461 | $ | 7.33 | ||||||||||||||
Granted | 169,637 | $ | 4.51 | ||||||||||||||
Vested | (21,327 | ) | $ | 7.54 | |||||||||||||
Cancelled and forfeited | (11,922 | ) | $ | 6.72 | |||||||||||||
Non-vested RSUs at September 28, 2013 | 236,849 | $ | 5.32 |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Reconciliation of Allowance for Doubtful Accounts | The following table represents a reconciliation of the allowance for doubtful accounts for the three and nine months ended September 29, 2012: | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 29, 2012 | |||||||||
(In thousands) | |||||||||
Opening balance | $ | — | $ | 41 | |||||
Bad debt expense | 3,017 | 3,017 | |||||||
Write-offs | (3,017 | ) | (3,058 | ) | |||||
Closing balance | $ | — | $ | — | |||||
Bad Debt Expense | The following table summarizes the components of the bad debt expense for the three- and nine month periods ended September 29, 2012 (in thousands): | ||||||||
Promissory note | $ | 4,085 | |||||||
Deferred profit on installment sale | (1,028 | ) | |||||||
Cash recovery from liquidation sale | (40 | ) | |||||||
Bad debt expense | $ | 3,017 | |||||||
Purchased_Intangible_Assets_Ta
Purchased Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Details of Finite-lived Intangible Assets by Segment | Details of finite-lived intangible assets by segment as of September 28, 2013, are as follows. | ||||||||||||
September 28, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
(In thousands) | |||||||||||||
Equipment | $ | 7,170 | $ | (2,551 | ) | $ | 4,619 | ||||||
Intevac Photonics | 1,215 | (654 | ) | 561 | |||||||||
$ | 8,385 | $ | (3,205 | ) | $ | 5,180 | |||||||
Future Amortization Expense | As of September 28, 2013, future amortization expense is expected to be as follows. | ||||||||||||
(In thousands) | |||||||||||||
2013 | $ | 279 | |||||||||||
2014 | 934 | ||||||||||||
2015 | 854 | ||||||||||||
2016 | 853 | ||||||||||||
2017 | 757 | ||||||||||||
Thereafter | 1,503 | ||||||||||||
$ | 5,180 | ||||||||||||
AcquisitionRelated_Contingent_1
Acquisition-Related Contingent Consideration (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability | The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and nine month periods ended September 28, 2013 and September 29, 2012. | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 4,942 | $ | 6,969 | $ | 5,151 | $ | 8,715 | |||||||||
Changes in fair value | 185 | (200 | ) | (24 | ) | 443 | |||||||||||
Cash payments made | (40 | ) | (956 | ) | (40 | ) | (3,345 | ) | |||||||||
Closing balance | $ | 5,087 | $ | 5,813 | $ | 5,087 | $ | 5,813 | |||||||||
Balance Sheet Classification of Contingent Consideration Liability | The following table displays the balance sheet classification of the contingent consideration liability account at September 28, 2013 and at December 31, 2012: | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Other accrued liabilities | $ | 42 | $ | 265 | |||||||||||||
Other long-term liabilities | 5,045 | 4,886 | |||||||||||||||
Total acquisition-related contingent consideration | $ | 5,087 | $ | 5,151 | |||||||||||||
Quantitative Information of Significant Unobservable Inputs of Contingent Consideration Liability | The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of September 28, 2013. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at September 28, 2013 | |||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||
(In thousands, except for percentages) | |||||||||||||||||
Revenue Earnout | $ 5,087 | Discounted cash flow | Weighted average cost of capital | 16.00% | |||||||||||||
15.0% - 50.0% (31.7%) | |||||||||||||||||
Probability weighting of achieving revenue forecasts |
Divestitures_Tables
Divestitures (Tables) | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
DeltaNu | |||||
Summary of Components of Gain (Loss) | The following table summarizes the components of the loss (in thousands): | ||||
Cash proceeds | $ | 500 | |||
Assets sold: | |||||
Accounts receivable | 147 | ||||
Inventories | 320 | ||||
Other current assets | 27 | ||||
Property, plant and equipment | 159 | ||||
Trade name | 90 | ||||
Total assets sold | 743 | ||||
Liabilities divested: | |||||
Accounts payable | 59 | ||||
Other accrued expenses | 6 | ||||
Total liabilities divested | 65 | ||||
Transaction and other costs | 30 | ||||
Loss on sale | $ | (208 | ) | ||
Mainframe Technology | |||||
Summary of Components of Gain (Loss) | The following table summarizes the components of the gain (in thousands): | ||||
Cash proceeds | $ | 3,000 | |||
Assets sold: | |||||
Inventories | 589 | ||||
Property, plant and equipment | 178 | ||||
Transaction and other costs | 26 | ||||
Gain on sale | $ | 2,207 | |||
Warranty_Tables
Warranty (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for the three and nine months ended September 28, 2013 and September 29, 2012: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 2,087 | $ | 2,858 | $ | 2,349 | $ | 2,724 | |||||||||
Expenditures incurred under warranties | (309 | ) | (197 | ) | (773 | ) | (1,388 | ) | |||||||||
Accruals for product warranties issued during the reporting period | 323 | 218 | 861 | 1,093 | |||||||||||||
Adjustments to previously existing warranty accruals | (37 | ) | (330 | ) | (373 | ) | 120 | ||||||||||
Closing balance | $ | 2,064 | $ | 2,549 | $ | 2,064 | $ | 2,549 | |||||||||
The following table displays the balance sheet classification of the warranty provision account at September 28, 2013 and at December 31, 2012: | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Other accrued liabilities | $ | 1,974 | $ | 2,259 | |||||||||||||
Other long-term liabilities | 90 | 90 | |||||||||||||||
Total warranty provision | $ | 2,064 | $ | 2,349 | |||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments | Cash and cash equivalents, short-term investments and long-term investments consist of: | ||||||||||||||||
September 28, 2013 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 6,158 | $ | — | $ | — | $ | 6,158 | |||||||||
Money market funds | 10,468 | — | — | 10,468 | |||||||||||||
Total cash and cash equivalents | $ | 16,626 | $ | — | $ | — | $ | 16,626 | |||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | $ | 997 | $ | — | $ | — | $ | 997 | |||||||||
Corporate bonds and medium-term notes | 21,930 | 23 | 3 | 21,950 | |||||||||||||
Municipal bonds | 6,113 | 2 | 1 | 6,114 | |||||||||||||
U.S. treasury and agency securities | 19,199 | 13 | — | 19,212 | |||||||||||||
Variable rate demand notes (“VRDNs”) | 160 | — | — | 160 | |||||||||||||
Total short-term investments | $ | 48,399 | $ | 38 | $ | 4 | $ | 48,433 | |||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 15,576 | $ | 9 | $ | 3 | $ | 15,582 | |||||||||
Municipal bonds | 1,065 | 2 | — | 1,067 | |||||||||||||
U.S. treasury and agency securities | 4,008 | 4 | — | 4,012 | |||||||||||||
Total long-term investments | $ | 20,649 | $ | 15 | $ | 3 | $ | 20,661 | |||||||||
Total cash, cash equivalents, and investments | $ | 85,674 | $ | 53 | $ | 7 | $ | 85,720 | |||||||||
December 31. 2012 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 5,939 | $ | — | $ | — | $ | 5,939 | |||||||||
Money market funds | 18,322 | — | — | 18,322 | |||||||||||||
Total cash and cash equivalents | $ | 24,261 | $ | — | $ | — | $ | 24,261 | |||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | $ | 2,495 | $ | — | $ | — | $ | 2,495 | |||||||||
Corporate bonds and medium-term notes | 19,539 | 13 | 4 | 19,548 | |||||||||||||
Municipal bonds | 1,203 | 1 | — | 1,204 | |||||||||||||
U.S. treasury and agency securities | 16,976 | 23 | — | 16,999 | |||||||||||||
VRDNs | 345 | — | — | 345 | |||||||||||||
Total short-term investments | $ | 40,558 | $ | 37 | $ | 4 | $ | 40,591 | |||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 16,776 | $ | 33 | $ | 7 | $ | 16,802 | |||||||||
Municipal bonds | 1,000 | 2 | — | 1,002 | |||||||||||||
U.S. treasury and agency securities | 9,499 | 14 | — | 9,513 | |||||||||||||
Total long-term investments | $ | 27,275 | $ | 49 | $ | 7 | $ | 27,317 | |||||||||
Total cash, cash equivalents, and investments | $ | 92,094 | $ | 86 | $ | 11 | $ | 92,169 | |||||||||
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale securities at September 28, 2013 are presented in the following table. | ||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
(In thousands) | |||||||||||||||||
Due in one year or less | $ | 55,702 | $ | 55,734 | |||||||||||||
Due after one through two years | 22,654 | 22,668 | |||||||||||||||
Due after ten years | 1,160 | 1,160 | |||||||||||||||
$ | 79,516 | $ | 79,562 | ||||||||||||||
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired | 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 September 28, 2013. | ||||||||||||||||
September 28, 2013 | |||||||||||||||||
In Loss Position for | In Loss Position for | ||||||||||||||||
Less than 12 Months | Greater than 12 Months | ||||||||||||||||
Fair Value | Gross | Fair Value | Gross | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Corporate bonds and medium-term notes | $ | 7,802 | $ | 6 | $ | — | $ | — | |||||||||
Municipal bonds | 3,112 | 1 | — | — | |||||||||||||
$ | 10,914 | $ | 7 | $ | — | $ | — | ||||||||||
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis | The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of September 28, 2013. | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | |||||||||||||||
(In thousands) | |||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Money market funds | $ | 10,468 | $ | 10,468 | $ | — | |||||||||||
U.S. treasury and agency securities | 23,224 | 8,703 | 14,521 | ||||||||||||||
Commercial paper | 997 | — | 997 | ||||||||||||||
Corporate bonds and medium-term notes | 37,532 | — | 37,532 | ||||||||||||||
Municipal bonds | 7,181 | — | 7,181 | ||||||||||||||
VRDNs | 160 | — | 160 | ||||||||||||||
Total recurring fair value measurements | $ | 79,562 | $ | 19,171 | $ | 60,391 | |||||||||||
Changes in Level Three Instruments Consisting of Auction Rate Securities Classified As Available-for-Sale Securities and Measured on Recurring Basis | The following table presents the changes in Level 3 instruments which consisted of Auction Rate Securities (“ARS”) which were classified as available-for-sale securities and which were measured on a recurring basis for the nine month period ended September 29, 2012. | ||||||||||||||||
(In thousands) | |||||||||||||||||
Opening balance | $ | 4,490 | |||||||||||||||
Total gains (losses) for the period | |||||||||||||||||
Included in earnings | (229 | ) | |||||||||||||||
Included in other comprehensive income | 171 | ||||||||||||||||
Proceeds from tender offers | (2,771 | ) | |||||||||||||||
Closing balance | $ | 1,661 | |||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Change in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component for the three and nine months ended September 28, 2013, are as follows. | ||||||||||||
Foreign | Unrealized | Total | |||||||||||
currency | holding gains | ||||||||||||
on available- | |||||||||||||
for-sale | |||||||||||||
investments | |||||||||||||
(In thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 694 | $ | 75 | $ | 769 | |||||||
Other comprehensive loss before reclassification | (6 | ) | (15 | ) | (21 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (6 | ) | (15 | ) | (21 | ) | |||||||
Balance at March 30, 2013 | $ | 688 | $ | 60 | $ | 748 | |||||||
Other comprehensive loss before reclassification | (4 | ) | (74 | ) | (78 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (4 | ) | (74 | ) | (78 | ) | |||||||
Balance at June 29, 2013 | $ | 684 | $ | (14 | ) | $ | 670 | ||||||
Other comprehensive income (loss) before reclassification | 3 | 60 | 63 | ||||||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive income (loss) | 3 | 60 | 63 | ||||||||||
Balance at September 28, 2013 | $ | 687 | $ | 46 | $ | 733 | |||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of basic and diluted loss per share: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net loss | $ | (2,745 | ) | $ | (8,007 | ) | $ | (17,421 | ) | $ | (12,661 | ) | |||||
Weighted-average shares — basic | 23,931 | 23,397 | 23,793 | 23,293 | |||||||||||||
Effect of dilutive potential common shares | — | — | — | — | |||||||||||||
Weighted-average shares — diluted | 23,931 | 23,397 | 23,793 | 23,293 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.34 | ) | $ | (0.73 | ) | $ | (0.54 | ) | |||||
Antidilutive shares based on employee awards excluded | 2,551 | 3,175 | 2,648 | 2,999 | |||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Information for Each Reportable Segment | Information for each reportable segment for the three and nine months ended September 28, 2013 and September 29, 2012 is as follows: | ||||||||||||||||
Net Revenues | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equipment | $ | 11,760 | $ | 7,401 | $ | 26,293 | $ | 43,179 | |||||||||
Intevac Photonics | 7,355 | 9,433 | 22,788 | 22,762 | |||||||||||||
Total segment net revenues | $ | 19,115 | $ | 16,834 | $ | 49,081 | $ | 65,941 | |||||||||
Operating Income (Loss) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equipment | $ | (1,423 | ) | $ | (10,298 | ) | $ | (14,607 | ) | $ | (15,493 | ) | |||||
Intevac Photonics | 192 | 717 | 254 | (939 | ) | ||||||||||||
Total segment operating income (loss) | (1,231 | ) | (9,581 | ) | (14,353 | ) | (16,432 | ) | |||||||||
Unallocated costs | (1,751 | ) | (1,429 | ) | (4,436 | ) | (4,417 | ) | |||||||||
Gain (loss) on divestitures | — | — | (208 | ) | 2,207 | ||||||||||||
Loss from operations | (2,982 | ) | (11,010 | ) | (18,997 | ) | (18,642 | ) | |||||||||
Interest income and other, net | 220 | (8 | ) | 392 | 411 | ||||||||||||
Loss before income taxes | $ | (2,762 | ) | $ | (11,018 | ) | $ | (18,605 | ) | $ | (18,231 | ) | |||||
Assets for Each Reportable Segment | Total assets for each reportable segment as of September 28, 2013 and December 31, 2012 are as follows: | ||||||||||||||||
Assets | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Equipment | $ | 39,825 | $ | 37,376 | |||||||||||||
Intevac Photonics | 19,847 | 27,052 | |||||||||||||||
Total segment assets | 59,672 | 64,428 | |||||||||||||||
Cash, cash equivalents and investments | 85,720 | 92,169 | |||||||||||||||
Deferred income taxes | 13,189 | 12,176 | |||||||||||||||
Other current assets | 1,011 | 1,870 | |||||||||||||||
Common property, plant and equipment | 1,283 | 1,211 | |||||||||||||||
Other assets | 478 | 649 | |||||||||||||||
Consolidated total assets | $ | 161,353 | $ | 172,503 | |||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the Plan for the nine months ended September 28, 2013, are as follows. | ||||
Severance and | |||||
other employee- | |||||
related costs | |||||
(In thousands) | |||||
Balance at December 31, 2012 | $ | — | |||
Provision for restructuring reserves | 742 | ||||
Cash payments made | (742 | ) | |||
Balance at September 28, 2013 | $ | — | |||
Inventories_Stated_at_Lower_of
Inventories Stated at Lower of Average Cost or Market (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $15,778 | $14,921 |
Work-in-progress | 8,327 | 5,526 |
Finished goods | 1,689 | 5,746 |
Inventories | $25,794 | $26,193 |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 31, 2012 | |
EquityPlan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase of common stock through payroll deductions | 85.00% | ||||
Offering periods | 2 years | ||||
Purchase intervals of a series | 6 months | ||||
Maximum employee salary withholdings for purchase of common stock under the terms of the ESPP | 15.00% | ||||
Number of shares issued under employee stock purchase plan | 457,000 | ||||
Number of outstanding stock options | 2,621,406 | 2,621,406 | 3,128,408 | ||
Compensation expense | $754,000 | $943,000 | $1,836,000 | $2,941,000 | |
RSU conversion ratio | 1 | ||||
Stock Option Exchange Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of option holders exchanged options | 87 | 87 | |||
Number of stock options exchanged | 766,000 | ||||
Compensation expense | $126,000 | ||||
Stock Option Exchange Program | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercise price per share | $8.49 | ||||
Minimum percentage of closing stock price for exchange to occur | 50.00% | ||||
Award, vesting period | 1 year | ||||
Stock Option Exchange Program | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 3 years | ||||
2012 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of outstanding stock options | 336,000 | 336,000 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 4 years |
Effect_of_Recording_EquityBase
Effect of Recording Equity-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | $754,000 | $943,000 | $1,836,000 | $2,941,000 |
Tax effect on equity-based compensation | -8,000 | -205,000 | -18,000 | -706,000 |
Net effect on net loss | 746,000 | 738,000 | 1,818,000 | 2,235,000 |
Stock Options | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | 375,000 | 523,000 | 651,000 | 1,843,000 |
RSUs | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | 130,000 | 88,000 | 314,000 | 111,000 |
Employee Stock Purchase Plan | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | $249,000 | $332,000 | $871,000 | $987,000 |
Option_Activity_and_Changes_De
Option Activity and Changes (Detail) (USD $) | 9 Months Ended |
Sep. 28, 2013 | |
Shares | |
Options outstanding at December 31, 2012 | 3,128,408 |
Options granted | 902,770 |
Options cancelled and forfeited | -1,339,934 |
Options exercised | -69,838 |
Options outstanding at September 28, 2013 | 2,621,406 |
Vested and expected to vest at September 28, 2013 | 2,386,932 |
Options exercisable at September 28, 2013 | 1,412,001 |
Weighted Average Exercise Price | |
Options outstanding at December 31, 2012 | $11.52 |
Options granted | $5.59 |
Options cancelled and forfeited | $13.73 |
Options exercised | $3.91 |
Options outstanding at September 28, 2013 | $8.55 |
Vested and expected to vest at September 28, 2013 | $8.77 |
Options exercisable at September 28, 2013 | $10.34 |
WeightedAverage_Fair_Value_of_
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Stock Options | ||||
Employee stock options weighted-average assumptions | ||||
Weighed-average fair value of grants per share | $2.81 | $2.87 | $2.48 | $3.90 |
Expected volatility | 55.06% | 63.19% | 56.40% | 63.80% |
Risk free interest rate | 1.04% | 0.41% | 1.09% | 0.74% |
Expected term of options/purchase rights (in years) | 4 years 7 days | 3 years 11 months 9 days | 4 years 2 months 19 days | 4 years 7 months 17 days |
Dividend yield | ||||
Stock Purchase Rights | ||||
Employee stock options weighted-average assumptions | ||||
Weighed-average fair value of grants per share | $1.97 | $2.31 | $1.63 | $3.01 |
Expected volatility | 43.09% | 63.23% | 51.54% | 62.36% |
Risk free interest rate | 0.21% | 0.21% | 0.26% | 0.28% |
Expected term of options/purchase rights (in years) | 1 year | 1 year 10 months 6 days | 1 year 9 months 7 days | 1 year 8 months 5 days |
Dividend yield |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 9 Months Ended |
Sep. 28, 2013 | |
Restricted Stock Units (RSUs) | |
Shares | |
Non-vested RSUs at December 31, 2012 | 100,461 |
Granted | 169,637 |
Vested | -21,327 |
Cancelled and forfeited | -11,922 |
Non-vested RSUs at September 28, 2013 | 236,849 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at December 31, 2012 | $7.33 |
Granted | $4.51 |
Vested | $7.54 |
Cancelled and forfeited | $6.72 |
Non-vested RSUs at September 28, 2013 | $5.32 |
Reconciliation_of_Allowance_fo
Reconciliation of Allowance for Doubtful Accounts (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2012 | Sep. 29, 2012 |
Provisions for Doubtful Accounts [Line Items] | ||
Opening balance | $41 | |
Bad debt expense | 3,017 | 3,017 |
Write-offs | ($3,017) | ($3,058) |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts - Additional Information (Detail) (USD $) | Sep. 29, 2012 |
Allowance for Sales Return and Doubtful Accounts [Line Items] | |
Carrying value of promissory note receivable | $0 |
Bad_Debt_Expense_Detail
Bad Debt Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2012 | Sep. 29, 2012 |
Allowance for Sales Return and Doubtful Accounts [Line Items] | ||
Bad debt expense | $3,017 | $3,017 |
Promissory note | ||
Allowance for Sales Return and Doubtful Accounts [Line Items] | ||
Bad debt expense | 4,085 | |
Deferred profit on installment sale | ||
Allowance for Sales Return and Doubtful Accounts [Line Items] | ||
Bad debt expense | -1,028 | |
Cash recovery from liquidation sale | ||
Allowance for Sales Return and Doubtful Accounts [Line Items] | ||
Bad debt expense | ($40) |
Purchased_Intangible_Assets_Ad
Purchased Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |
Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Jun. 29, 2013 | |
Equipment | In Process Research And Development | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset | $4,000,000 | |||
Intangible asset , Expected useful life | 7 years | |||
Total amortization expense of finite-lived intangibles | $279,000 | $598,000 |
Details_of_Finitelived_Intangi
Details of Finite-lived Intangible Assets by Segment (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $8,385 | |
Accumulated Amortization | -3,205 | -2,887 |
Net Carrying Amount | 5,180 | |
Equipment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,170 | |
Accumulated Amortization | -2,551 | |
Net Carrying Amount | 4,619 | |
Intevac Photonics | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,215 | |
Accumulated Amortization | -654 | |
Net Carrying Amount | $561 |
Future_Amortization_Expense_De
Future Amortization Expense (Detail) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2013 | $279 |
2014 | 934 |
2015 | 854 |
2016 | 853 |
2017 | 757 |
Thereafter | 1,503 |
Net Carrying Amount | $5,180 |
AcquisitionRelated_Contingent_2
Acquisition-Related Contingent Consideration - Additional Information (Detail) (Solar Implant Technologies, USD $) | Nov. 19, 2010 |
In Millions, unless otherwise specified | |
Milestone | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $7 |
Revenue Earnout | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $9 |
Reconciliation_of_Change_in_Fa
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Opening balance | $4,942 | $6,969 | $5,151 | $8,715 |
Changes in fair value | 185 | -200 | -24 | 443 |
Cash payments made | -40 | -956 | -40 | -3,345 |
Closing balance | $5,087 | $5,813 | $5,087 | $5,813 |
Balance_Sheet_Classification_o
Balance Sheet Classification of Contingent Consideration Liability (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | $5,087 | $5,151 |
Other accrued liabilities | ||
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | 42 | 265 |
Other long-term liabilities | ||
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | $5,045 | $4,886 |
Quantitative_Range_of_Signific
Quantitative Range of Significant Unobservable Inputs Used in Calculation of Fair Value of Continent Consideration Liability (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | ||
Revenue Earnout | Revenue Earnout | Revenue Earnout | Revenue Earnout | |||
Weighted Average | Minimum | Maximum | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Weighted average cost of capital | 16.00% | |||||
Probability weighting of achieving revenue forecasts | 31.70% | 15.00% | 50.00% | |||
Discounted cash flow | Discounted cash flow | |||||
Fair Value | $5,087 | $5,151 | $5,087 |
Divestitures_Additional_Inform
Divestitures - Additional Information (Detail) (DeltaNu, USD $) | 3 Months Ended |
Mar. 30, 2013 | |
Divestitures [Line Items] | |
Proceeds from sale of assets | $500,000 |
Percentage of Earn-out receivable | 5.00% |
Earn-out period | 5 years |
Maximum earn-out payments during payment period | 1,000,000 |
Maximum | |
Divestitures [Line Items] | |
Maximum consideration receivable from assets sold | 1,500,000 |
Minimum | |
Divestitures [Line Items] | |
Annual minimum earn-out payment receivable | $100,000 |
Components_of_Gain_Loss_Detail
Components of Gain (Loss) (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 | Jan. 06, 2012 |
DeltaNu | Mainframe Technology | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | $500 | $3,000 | ||
Assets sold: | ||||
Accounts receivable | 147 | |||
Inventories | 320 | 589 | ||
Other current assets | 27 | |||
Property, plant and equipment | 159 | 178 | ||
Trade name | 90 | |||
Total assets sold | 743 | |||
Liabilities divested: | ||||
Accounts payable | 59 | |||
Other accrued expenses | 6 | |||
Total liabilities divested | 65 | |||
Transaction and other costs | 30 | 26 | ||
Gain (Loss) on sale | ($208) | $2,207 | ($208) | $2,207 |
Warranty_Additional_Informatio
Warranty - Additional Information (Detail) | 9 Months Ended |
Sep. 28, 2013 | |
Warranties [Line Items] | |
Minimum product warranty range | 12 months |
Maximum product warranty range | 24 months |
Product warranty offer on sale | 3 months |
Activity_in_Warranty_Provision
Activity in Warranty Provision Account (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Opening balance | $2,087 | $2,858 | $2,349 | $2,724 |
Expenditures incurred under warranties | -309 | -197 | -773 | -1,388 |
Accruals for product warranties issued during the reporting period | 323 | 218 | 861 | 1,093 |
Adjustments to previously existing warranty accruals | -37 | -330 | -373 | 120 |
Closing balance | $2,064 | $2,549 | $2,064 | $2,549 |
Balance_Sheet_Classification_o1
Balance Sheet Classification of Warranty Provision Account (Detail) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 31, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Jan. 06, 2012 |
In Thousands, unless otherwise specified | ||||||
Product Warranty [Line Items] | ||||||
Other accrued liabilities | $1,974 | $2,259 | ||||
Other long-term liabilities | 90 | 90 | ||||
Total warranty provision | $2,064 | $2,087 | $2,349 | $2,549 | $2,858 | $2,724 |
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $85,674 | $92,094 |
Unrealized Holdings Gains | 53 | 86 |
Unrealized Holdings Losses | 7 | 11 |
Fair Value | 85,720 | 92,169 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,158 | 5,939 |
Fair Value | 6,158 | 5,939 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,468 | 18,322 |
Fair Value | 10,468 | 18,322 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,626 | 24,261 |
Fair Value | 16,626 | 24,261 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 48,399 | 40,558 |
Unrealized Holdings Gains | 38 | 37 |
Unrealized Holdings Losses | 4 | 4 |
Fair Value | 48,433 | 40,591 |
Short-term Investments | Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 997 | 2,495 |
Fair Value | 997 | 2,495 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,930 | 19,539 |
Unrealized Holdings Gains | 23 | 13 |
Unrealized Holdings Losses | 3 | 4 |
Fair Value | 21,950 | 19,548 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,113 | 1,203 |
Unrealized Holdings Gains | 2 | 1 |
Unrealized Holdings Losses | 1 | |
Fair Value | 6,114 | 1,204 |
Short-term Investments | US Government Agencies Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,199 | 16,976 |
Unrealized Holdings Gains | 13 | 23 |
Fair Value | 19,212 | 16,999 |
Short-term Investments | Variable rate demand notes ("VRDNs") | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 160 | 345 |
Fair Value | 160 | 345 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,649 | 27,275 |
Unrealized Holdings Gains | 15 | 49 |
Unrealized Holdings Losses | 3 | 7 |
Fair Value | 20,661 | 27,317 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,576 | 16,776 |
Unrealized Holdings Gains | 9 | 33 |
Unrealized Holdings Losses | 3 | 7 |
Fair Value | 15,582 | 16,802 |
Other Long-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,065 | 1,000 |
Unrealized Holdings Gains | 2 | 2 |
Fair Value | 1,067 | 1,002 |
Other Long-term Investments | US Government Agencies Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,008 | 9,499 |
Unrealized Holdings Gains | 4 | 14 |
Fair Value | $4,012 | $9,513 |
Contractual_Maturities_of_Avai
Contractual Maturities of Available-For-Sale Securities (Detail) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Amortized Cost | |
Amortized Cost, Due in one year or less | $55,702 |
Amortized Cost, Due after one through two years | 22,654 |
Amortized Cost, Due after ten years | 1,160 |
Amortized Cost | 79,516 |
Fair Value | |
Fair Value, Due in one year or less | 55,734 |
Fair Value, Due after one through two years | 22,668 |
Fair Value, Due after ten years | 1,160 |
Fair Value | $79,562 |
Fair_Market_Value_of_Investmen
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $10,914 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 7 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | |
Corporate bonds and medium-term notes | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 7,802 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 6 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | |
Municipal bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 3,112 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses |
Fair_Value_Hierarchy_of_Availa
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $79,562 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 79,562 |
Fair Value, Measurements, Recurring | Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 10,468 |
Fair Value, Measurements, Recurring | US treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 23,224 |
Fair Value, Measurements, Recurring | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 997 |
Fair Value, Measurements, Recurring | Corporate bonds and medium-term notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 37,532 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 7,181 |
Fair Value, Measurements, Recurring | Variable rate demand notes ("VRDNs") | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 160 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 19,171 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 10,468 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | US treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 8,703 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 60,391 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | US treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 14,521 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 997 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate bonds and medium-term notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 37,532 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 7,181 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Variable rate demand notes ("VRDNs") | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $160 |
Changes_in_Level_Three_Instrum
Changes in Level Three Instruments Consisting of Auction Rate Securities Classified As Available-for-Sale Securities and Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Auction rate securities ("ARS"), Fair Value, Inputs, Level 3, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2012 |
Fair Value, Measurements, Recurring | Auction rate securities ("ARS") | Fair Value, Inputs, Level 3 | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening balance | $4,490 |
Total gains (losses) for the period Included in earnings | -229 |
Included in other comprehensive income | 171 |
Proceeds from tender offers | -2,771 |
Closing balance | $1,661 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 31, 2012 | |
Minimum | Maximum | Foreign currency forward contracts | Foreign currency forward contracts | |
Derivative [Line Items] | ||||
Maturity of foreign currency derivative | 30 days | 60 days | ||
Notional amount of foreign currency derivative | $1,700,000 | $491,000 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $670 | $748 | $769 |
Other comprehensive income (loss) before reclassification | 63 | -78 | -21 |
Amounts reclassified from other comprehensive income | |||
Net current-period other comprehensive income (loss) | 63 | -78 | -21 |
Ending Balance | 733 | 670 | 748 |
Accumulated Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 684 | 688 | 694 |
Other comprehensive income (loss) before reclassification | 3 | -4 | -6 |
Amounts reclassified from other comprehensive income | |||
Net current-period other comprehensive income (loss) | 3 | -4 | -6 |
Ending Balance | 687 | 684 | 688 |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -14 | 60 | 75 |
Other comprehensive income (loss) before reclassification | 60 | -74 | -15 |
Amounts reclassified from other comprehensive income | |||
Net current-period other comprehensive income (loss) | 60 | -74 | -15 |
Ending Balance | $46 | ($14) | $60 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net loss | ($2,745) | ($8,007) | ($17,421) | ($12,661) |
Weighted-average shares - basic | 23,931 | 23,397 | 23,793 | 23,293 |
Effect of dilutive potential common shares | ||||
Weighted-average shares - diluted | 23,931 | 23,397 | 23,793 | 23,293 |
Net loss per share - basic and diluted | ($0.11) | ($0.34) | ($0.73) | ($0.54) |
Antidilutive shares based on employee awards excluded | 2,551 | 3,175 | 2,648 | 2,999 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 28, 2013 | |
Segment | |
Segment Reporting Disclosure [Line Items] | |
Number of reportable segments | 2 |
Allocation of corporate expenses to the segments | 3.00% |
Information_for_Each_Reportabl
Information for Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $19,115 | $16,834 | $49,081 | $65,941 |
Unallocated costs | -1,751 | -1,429 | -4,436 | -4,417 |
Gain (loss) on divestitures | -208 | 2,207 | ||
Loss from operations | -2,982 | -11,010 | -18,997 | -18,642 |
Interest income and other, net | 220 | -8 | 392 | 411 |
Loss before income taxes | -2,762 | -11,018 | -18,605 | -18,231 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | -1,231 | -9,581 | -14,353 | -16,432 |
Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 11,760 | 7,401 | 26,293 | 43,179 |
Equipment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | -1,423 | -10,298 | -14,607 | -15,493 |
Intevac Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 7,355 | 9,433 | 22,788 | 22,762 |
Intevac Photonics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | $192 | $717 | $254 | ($939) |
Assets_for_Each_Reportable_Seg
Assets for Each Reportable Segment (Detail) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash, cash equivalents and investments | $85,720 | $92,169 |
Deferred income taxes | 13,189 | 12,176 |
Other current assets | 1,011 | 1,870 |
Common property, plant and equipment | 1,283 | 1,211 |
Other assets | 478 | 649 |
Consolidated total assets | 161,353 | 172,503 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 59,672 | 64,428 |
Operating Segments | Equipment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 39,825 | 37,376 |
Operating Segments | Intevac Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $19,847 | $27,052 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 01, 2013 |
Restructuring Cost and Reserve [Line Items] | |
Percentage of reduction of global workforce | 18.00% |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | 5.5 |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | 6 |
Changes_in_Restructuring_Reser
Changes in Restructuring Reserves (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | |
Provision for restructuring reserves | 742 |
Cash payments made | -742 |
Ending balance |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Income Taxes [Line Items] | ||||
Income tax benefits | ($17,000) | ($3,011,000) | ($1,184,000) | ($5,570,000) |
Tax benefit from release of certain unrecognized tax benefit liabilities due to lapse of statutes of limitation | 213,000 | 213,000 | ||
Discrete income tax charges for accrued withholding tax in Singapore | 147,000 | 231,000 | ||
Income tax benefit to bad debt write off | 1,100,000 | |||
Income tax benefit from valuation allowance | 108,000 | |||
Income tax benefit refunds received | 188,000 | |||
Discrete income tax charge related to the gain on sale of mainframe technology | $554,000 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Tax holiday ending years | 2015 |