Exhibit 99.1
Intevac Reports First-Quarter 2003 Financial Results;
NightVista Low-Light Camera Line Introduced
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 22, 2003--Intevac,
Inc. (Company) (Nasdaq: IVAC), today reported financial results for
the three-month period ended March 29, 2003.
Revenues for the three-month period ended March 29, 2003, were
$12.0 million compared to $6.7 million for the three-month period
ended March 30, 2002. The increase in revenues was attributable to the
acceptance of $7.3 million of upgrades to flat panel display
manufacturing systems that were shipped in early 2002 and which did
not contribute materially to gross profit. Net loss for the first
quarter of 2003 was ($4.0) million or ($0.33) per diluted share. The
($4.0) million loss included the effect of the establishment of a
$293,000 reserve for disposition of fixed assets that are no longer
being used and the establishment of a $293,000 cost-to-market reserve
related to a MDP-250B disk sputtering system in inventory.
Backlog totaled $12.2 million at March 29, 2003, compared to $18.2
million at December 31, 2002, and $27.3 million at March 30, 2002. The
2003 reduction was the result of the above-mentioned revenue
recognition of flat panel display manufacturing equipment upgrades.
Intevac President and Chief Executive Officer Kevin Fairbairn
commented: "We continue on track with our imaging business with a
major milestone in the first quarter being the announcement and first
shipment of our NightVista(TM) brand of low-light video cameras
utilizing our revolutionary EBAPS(TM) sensor technology. This solid
state sensor technology is targeted to replace the night-vision vacuum
tube products used today. We are excited about the significant market
opportunities for our low-light camera technology in both the military
and commercial markets.
"In our Equipment Products business we made a strategic decision
to narrow our focus to the hard disk drive industry where we believe
we have greater opportunity and presence," Fairbairn continued.
"During the quarter we made significant progress on the development of
a new system, called the 200 Lean, which is intended to address the
technology and productivity needs of the hard disk drive industry for
their next round of investments. The Lean name reflects both the small
footprint of the system and the compatibility with our customers' lean
manufacturing approaches."
Conference Call Information
The Company will discuss its financial results in a conference
call April 22, 2003, at 1:30 p.m. Pacific time. To participate in the
teleconference, please call toll-free (800) 291-8929 prior to the
start time. For international callers, the dial-in number is (706)
634-0478. Live and archived replays of the call will be available via
the Internet at the Company's website, www.Intevac.com.
Additionally, a telephone replay of the call will be available for
48 hours beginning at 4:30 p.m. PDT on April 22, 2003. You may access
the playback by calling (800) 642-1687 or, for international callers,
by calling (706) 645-9291 and providing Conference ID 9668041.
About Intevac
Intevac is developing revolutionary photonics products that
address potentially large commercial and military markets. The Company
also produces sophisticated manufacturing equipment used in the
manufacture of high technology products and is leveraging its
equipment expertise to enable cost-effective production of new
photonics products. Intevac's photonics products are high-speed
electro-optical devices that detect light with extraordinary
sensitivity. The Company's proprietary technology makes possible
products such as LIVAR(R), a long-range target identification system
and video cameras with night-vision capability. Intevac's equipment
products are designed to deposit or modify highly engineered
thin-films of material on a variety of substrates. These systems are
designed for continuous high volume manufacturing of precision
thin-film products such as magnetic media for hard drives. For more
information call 408-986-9888 or visit the Company's website at
www.intevac.com.
LIVAR(R) is a registered trademark of Intevac
Safe Harbor Statement
This press release includes statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Reform Act"). Intevac
claims the protection of the safe-harbor for forward-looking
statements contained in the Reform Act. These forward-looking
statements are often characterized by the terms "may," "believes,"
"projects," "expects," or "anticipates," and do not reflect historical
facts. Specific forward-looking statements contained in this press
release include, but are not limited to, the Company's statement that
its NightVista(TM) product line is targeted to replace night vision
tubes in military and commercial markets. The forward-looking
statements contained herein involve risks and uncertainties that could
cause actual results to differ materially from the Company's
expectations. These risks and other factors are detailed the Company's
regular filings with the Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
3 months ended
Mar. 29, Mar. 30,
2003 2002
(Unaudited) (Unaudited)
Net revenues
Equipment Products $10,417 $4,935
Commercial Imaging 1 -
Photonics Technology 1,597 1,735
Total net revenues 12,015 6,670
Gross profit (loss) 1,160 963
Gross margin
Equipment Products 8.3% 15.5%
Commercial Imaging 100.0% -
Photonics Technology 18.7% 11.3%
Consolidated 9.7% 14.4%
Operating expenses
Research and development 2,629 3,129
Selling, general and administrative 1,925 1,710
Total operating expenses 4,554 4,839
Operating income/(loss)
Equipment Products (1,220) (2,651)
Commercial Imaging (869) -
Photonics Technology (758) (698)
Corporate (547) (527)
Total operating loss (3,394) (3,876)
Other income (expense) (618) (469)
Profit/(Loss) before provision for
income taxes (4,012) (4,345)
Provision for (Benefit from) income
taxes - (2,214)
Net Income/(Loss) ($4,012) ($2,131)
Income (loss) per share
Basic ($0.33) ($0.18)
Diluted(a) ($0.33) ($0.18)
Weighted average common shares outstanding
Basic 12,164 12,041
Diluted(a) 12,164 12,041
(a) Diluted earnings per share exclude "as converted" treatment of
the Company's 6 1/2% Convertible Subordinated Notes Due 2004 and the
Company's 6 1/2% Convertible Subordinated Notes Due 2009 and the
effect of outstanding stock options when these potentially dilutive
securities are anti-dilutive to earnings per share.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS Mar. 29, Dec. 31,
2003 2002
Current assets
Cash, cash equivalents and short term
investments $23,123 $28,457
Accounts receivable, net 5,934 4,991
Income taxes recoverable 214 214
Inventories - production 5,975 5,957
Inventories - pending acceptance at customer
site 3,184 9,914
Prepaid expenses and other current assets 864 961
Total current assets 39,294 50,494
Property, plant and equipment, net 6,473 6,793
Investment in 601 California Avenue LLC 2,431 2,431
Debt issuance costs and other 555 580
Total assets $48,753 $60,298
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable $1,025 -
Accounts payable 2,174 1,739
Accrued payroll and related liabilities 1,361 1,379
Other accrued liabilities 2,914 3,723
Customer advances 5,053 12,344
Total current liabilities 12,527 19,185
Convertible notes 29,542 30,568
Shareholders' equity
Common stock 19,540 19,389
Retained earnings (deficit) (12,856) (8,844)
Total shareholders' equity 6,684 10,545
Total liabilities and shareholders' equity $48,753 $60,298
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CONTACT: Intevac, Inc., Santa Clara
Charles Eddy, 408/986-9888
or
Silverman Heller Associates
Dan Matsui/Eugene Heller, 310/208-2550
dmatsui@sha-ir.com