IVAC - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to Intevac's First Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] Please note that this conference call is being recorded today, April 29, 2019. At this time, I would like to turn the call over to Claire McAdams, Intevac's Investor Relations Counsel. ahead. go Please

Claire McAdams

good today and first Thank for XX. you of Thank discuss afternoon, Intevac's us March on to which the financial joining XXXX, you, ended everyone. results quarter for

the addition the forward. for of company's In quarter discussing recent we financial second outlook will our and results, XXXX guidance provide looking to

of to quarter, I Wendell. obligation annual with with our actual over turn quarterly the on Securities the me and the Wendell a reports with could Moniz, statements, well future the the of represent comments outlook, about call now Financial performance Chief These statements to and are as review XX-K results Intevac. to statements call Jim like differ the Form our Commission, based Q&A. risk quarter and factors contains will will relating XX that other our for a financial and filed upon risks no expectations us include as current the connection and and everyone review not which start to materially and conference during call documents adjustment of of most this before are regarding forward-looking projections over as We and in call regarding on various President report our conference results by Joining statements April undertake certain including, Blonigan, completed recently call XX-Q, result our remain update of financial today. Jim our call. these of forward-looking uncertainties future I'd company's made The then and results forward-looking to will forward-looking Form including to as Form on each comments XX-Q. subject in and discussed turning Exchange contents time-sensitive fiscal that limited remind Officer. current this projections financial preparation today's Officer; today's Chief businesses Wendell first but to, Executive our outlook of events statements discuss

Wendell Blonigan

and energy results the afternoon. came above Claire one four guidance. high million, included systems good Thanks, the we were as drove guidance reported coupled Lean Revenue and that of drive end upgrade which in our forecast in XXX above range our expenses of Today, $XX.X margin of of result share. per business. also at favorable systems loss a close upside hard net gross control with $X.XX Higher to QX

quarter revenue in established objectives each XXXX Our our first growth, the support to and call. the and of progress cash profitability the earnings our performance last that continued businesses flow on in we financial fiscal for

only moving move not the or continue be pieces negatively from to in impacted, we industry our macroeconomic number as climates, but These a current pieces forward the global quarter, manage positively As we first can of environment business. by well.

will updates how monitor we and environments to forecast our business ahead, continue Moving to unfolding our accordingly. are provide

over be to digital has and if of the booked dismounted began successful, years in two of largest is development the detailed soldiers projected impact single volume business. night our IVAS soldiers Now, Army's order significantly to and to in business the scope IVAS The camera in system, of US program development an night opportunity December last the of began revenues ICD announced we future this see providing in the in units. awareness and now to program. subsequent increased be contract next starting integrated of the update program. the match award award photonics. and the thousands to award train, on a $XX technologies on original resulting we finalized the IVAS development a of In the photonics, body they and completed night would prime for modules scope, an there the individual It's documents. of part in can visual vision head, as was control ever against and objective with vision night is the platform largest chain contract platform, situational for beyond that QX night and in necessary mobility generated and and increase photonics hundreds represents achieve vision or will this the quarters. weapon key the over revenue opportunity no associated to and for and our the revenue the call. process initial with the of or supply Digital fielded this ICD was camera all-digital vision lethality, program an is in digital use This adversaries. program ramp our the analog in and interface million camera The in on the approval soldier. first We fight, in ground the define that QX for augmentation solution phase future single current the expanded major the IVAS get incorporate initial our segments to for Army rehearse requires contract vision

low next leverage XXXX developed activities. over sensor along Our year, generation past modules of our our ISIE-XX light development with successful state level camera CMOS will of accomplishments the art the the cameras

qualification the the soldiers that lot IVAS The the over XXXX compared the and the restating qualification. is contract the of the the our in opportunity $X.X holds and development system billion comprising opportunity worth double actual night lies opportunity in to fielding development for cameras our the digital current systems of program it's for for revenue major revenue after $XX to and of our the The potential and million pipeline. dismounted of to delivery IVAS vision photonics the us of the revenue largest component think initial IVAS years I are five years five drive business level continue success past selection to revenue next the completed. processes beyond

Striker over international in and IVAS the to helmet And head doubling return program and revenue years US emerging of alongside year-over-year system, currently In weapon growth the a mounted display growth visual photonics Fighter Navy's the goggle, wireless LIVAR acuity established five the photonics particular, the in excess consist warfare digital multiple for our In Army displays. II revenue in with the for XX%. enhanced the night mounted cruiser, confidence and of all Strike drivers for family our near the of Intevac XXXX. for term, a system, award revenue Joint to supports programs, sites, addition in DELTA-I the vision including our the along programs next Apache, IVAS, classified of coalition our production supporting

year. HDD business for term first Recent the our levels. to best drive straight to outlook and rates cloud reasonably fourth Also, reported ship year growth at levels year capacity HDD we to on the five each after forecast quarter, year a XXXX. CAGR with as hard quarter, stable media business, for year delay disks to quarter. drive drives in additions as for full the the the expected, was rise for in in quarter the as were CAGR takeaway the for in that need shipped ago, by be as cloud since XXX their upgrades later equipment excess of and XX% now our hard that Lean to exabytes of that while last And on we XX% demand expected I light still expected the expect capacity energy is completed our has of came units, from the media prior forecast could utilization of revenue the media year, customer. forecasts. in signs revised will from the Depending rising film support two given indicate after to in fourth the drives. reports year, equating the in a long terabyte report Moving leaving continue quarter forecasts, the production long in XXXX. The quarter. media overall current on HDD drive is channel one improving from exiting HDD rebound XXX over equipment, terabit in million needs we our came to from five be near as ratio hard demand the large near also thin in support media This five decline demand cloud, raising a as years, in short past our year-long we XX business, drive contribute QX at at it of next five units and fourth expect we than support the to next capacity the mentioned tools revenue will of growth. and XX to had grow, record better XXX% These X% disks media. media early pleased for least to the mid-February revenue, demand in with term the companies the as just We leads the in HDD the And three a shipments hard five, of in continue the little utilization term, in close These drive information leveling capacity capacity forecast overall line in in result much upside, indicate of in of in first generation end despite down backlog. expectations depending the tie the of drive modest expectations the later publication year. bit storage business capacity in exceeding to per that came the a of In hard the that quarter earlier, backlog orders TrendFocus to discs of demand signaling About month will four

growth panels. stable the adjacent with core our capabilities, HDD we've display business, and equipment in driving underserved outlook markets for markets, emphasis been technology coating in initiatives our cover in leveraging Given the

customers system initial with tool. Our market has two systems at targeted been other vertex this the and deployed to of with one date, with capacity an four development production deposition

in years. significant field, value proposition mainstream in our in the This and business of enhance for continue opportunity facilitate driver several accelerate cover As most panel vertex operate our over growth these tools to panel to in have industry. focused next the the adoption we equipment the the to market cover efforts remains display

to carbon technology tool high new vertex characteristics, Over patterning expand developed protected optical integrated, fully the improved and film deposition stacks the durability year, diamond encompassing light and beyond optical the of last coatings, and fills. decorative versatility now with we've

approach We with also performance lower to ownership protective of our with for initiatives and [ph] light light coatings. customers, sapphire our carbon diamond to continue today cost the

panel cover been last seed demand field spur into In to few over support customers end demand leading at to driving the leading the and to quarters, we've assets market manufacturers. strategies addition, place directly vertex to

after formalized, next made in details meet today, systems highlighted expand the of driving and versatile is disclose. any panel cover film and significant signed these evaluation available currently and are announcement to manufacturer. options make technologies, system once closing and of bolster remains progress the at close deal to an the configurations Intevac’s to our deal freedom we’ll The inventory the and have vertex and a in As an with strategies, system leading some earnings contract OEM’s stages release we've can QX, quarters several that There will development the We've with time, the fully for a support timing late aggressive in are final exact will delivery. stack generation of This in fast turns regional system will early this smartphone work QX cycles. evaluation a design product for design still integrated smartphones. configuring accessibility required we and differentiated the evaluation we newest more

access vertex the the provide confident significant We encouraged will business progress continues be for remain leading are the the progress. and tool and world's manufacturers. from made hard have very a to handset excellent the date, to this we've revenue made opportunity We to seed with drive we diversified us, that year

cover display we opportunities discussed, to anticipate addition and panel matrix increasing our and energy the for HDD systems. In markets

advanced in field, the implant customers driving opportunities. to foundation competitors with in and systems follow on our business engaged solar on lead its actively possible packaging be to continue discussions We continue

served not add forecast our productivity current these platforms, continue our to While by for are our high business. in revenue market potential opportunities to growth XXXX, additional

our to business thin over in range XX% in outlook be our equipment for the XXXX. For continues total, film growth

of given So projections growth our we our for are consolidated of XXXX. forecasts XX% both least of growth in the for summary, businesses, revenue year-over-year maintaining at

be these discuss back recent profitable forecasts, outlook. We now and expect at be into year. call expected to revenues revenue turn continue Jim? to year. and forecast OpEx and over of And the positive this to details the weighted gross Jim for margin half to we the that, cash levels, to financial results the given of I'll With flow our

Jim Moniz

Thank you, Wendell.

quarter last as included up upgrades. of of gross million higher $X.X million Thin revenues. and gross our $X.X better margins to in $X.X due contributions net XX.X%, of revenues spares or higher was and equipment guidance SG&A first systems, result due quarter first increases, spending. mix revenue systems and quarter $XX XX% product above upgrades, energy XXX the $X.X revenue to but development the better film and and our consolidated year, $X.X Photonics to million forecast from above positive contract margin last Thin the a higher were QX revenue film QX This four first of XX.X%, higher million lower QX resulted of share, first $XX R&D of research to due to was of from Turning down our with and but of per million. one million This revenue upside was to due of on quarter seasonal Lean with to product the last guidance consolidated HDD million guidance XX%, higher and contract below totaled higher carry but than up upgrades. energy R&D. margin from gross loss service. development XX.X%, revenue to from along of than quarter which the upgrades, included down the margin tools. of margin from relative expenses Photonics control year tight margins, results, totaled million $XX.X to $XX.X normal in energy $X.XX was HDD from revenues, than equipment lower from still last given primarily quarter guidance. due a million

Solar backlog million. million We cash and restricted end. investments, $XXX.X backlog. systems five The Thin HDD at HDD our non-systems was film business quarter ion $XX.X Lean $XX.X backlog photonics systems, included Our and Energy the XXX equipment million cash, was of with ended five at share at of including quarter backlog growth during amortization per year $XXX,XXX and Cash to expenditures approximately $X of and depreciation $X.XX $XX.X $X.X based from equivalent by the quarter. were shares was XX end. $XXX,XXX QX. end, a flow and million was million, quarter on capital operations million generated million QX for implant

Now, full outlook year to the XXXX. turning for

back between this has $XX outlook Our XX% million not is of year. full profitability grow which XX% expenses range the the total with level of product for and in revenues At we to gross XX% for $XX in least changed, year and for at XXXX, to revenue margins year. mix, expected while the operating to returning expect million

which and of $XXX,XXX We for expense be expect income will interest income half million tax about of non-cash. year, about the of GAAP $X than more

projecting QX million. $XX be are million we to specifically, QX For consolidated and between $XX revenues

between between the first million increase margin to We $X operating QX be quarter, expect XX% $X.X expected from expenses and XX%. million. are quarter to gross and second and to be

expect and expense in of We $XXX,XXX about GAAP income the $XXX,XXX of quarter. about income tax interest

lower. cash As be will I mentioned our previously, taxes much

For range Skyler, QX, are for $X.XX questions. net $X.XX the the in presentation. we completes cents outstanding. our of share, of a This shares based we're formal loss on projecting part XX per ready million to

Operator

with Chokshi Group. Maxim comes Nehal [Operator Our first question Instructions] from

Nehal Chokshi

Alright.

X.X So million in X Photonics product quarter, million in revenue quarter. was the down December from March and the

down you again cover review was you far Q-over-Q? think why as did your that I but script, probably in as can that just

Jim Moniz

product XXXX. happen we didn't because QX more a in Q-over-Q, it was QX in revenue down had of lot that

photonics that in as forecast, to prepared in we said XX% about his continuing expect we're XXXX. will grow the script, over do XXXX as Although revenue and Wendell

be quarter. The the first quarter should lowest

Nehal Chokshi

that Okay. what's non the And there? reason for linearity

Jim Moniz

in half Some XXXX. around a Wendell of $XX XXXX if you was that the and was we ramp start in and up, about contribution $XX.X that said, contract million we'll And to next as is half the IVAS was that three a slower bit that the larger of now a in just said would combination other to see and quarters. so starting in contract and of, make little revenue, remember, be million, under anticipated

Nehal Chokshi

that not to product, just clear, be for contracts, for and is R&D, Okay, the correct? IVAS

Jim Moniz

it's that's of Initially, will portion for be Yes. good And There's product, a be that development. that going to though. development. for

Wendell Blonigan

Yes.

it's the is, end answer it's both, camera the is the So the then work. development from the And the deliverable development of contract XXXX modules.

Nehal Chokshi

you. Got

above it what million, quarter at least XX my XX nicely systems And All Okay. of into your And can goes the right, guidance think about estimate. of photonics that product that's I for estimate then in versus guidance? then and contract the to probably you on but talk for consensus above now. terms million

Jim Moniz

Yeah. system. the systems, for Those ship in second And year. Lean There half happen revenue equipment will will there's be business, the one energy the on for four in five backlog. XXX we the of

QX the do be to be we business to should contributing that'll around million. of So above hit expect as photonics biggest it is million, the factor that on side X But the it. somewhere equipment down why X.X probably

Operator

Our Instructions] Ellis with Craig comes FBR. question Riley next B. [Operator from

Unidentified Analyst

Hi, this any On is are picking [indiscernible]. XQ in actually guidance? systems you your Lean XQ, your

Wendell Blonigan

the one just we I system XXX as Yeah, Lean and guidance. have told,

Unidentified Analyst

Okay, more get to seems just upgrades midpoint, it and flattish? math your softwares looks so in I Is the if do right? of like the that like to kind equipment

Wendell Blonigan

That is correct.

QX we repeat If which business, look XX.X QX. X.X and million included you that systems, of energy equipment million won't in about did at the the in

in in million see should QX saw couple photonics a more in So we than QX. we

Unidentified Analyst

about talking services be a more is that because kind trying that in just I'm kind then half your it in reconcile second going upgrade business. the backlog, seems surge the there's – upgrades, growth the your some like of imply of to math, to you're Okay, but does

Wendell Blonigan

first look half, the of of be But quarter. you sure the our that second that and a similar, which it in half. about and will the revenue than up quarter be would of some not XX%, at be revenue, linearity half be about growth fourth expect surge. the third product larger said moving we I second in And should lines both XX% I the in will will be XXXX, there be of will although call predict the the will would parts, if we XX% I'm

Unidentified Analyst

the you guide, the was in? is was last vertex quarter, about potentially more Okay. or are for, waiting the two systems that talking And there talked one something one you -- that about XXXX this you're or in evaluation coming

Wendell Blonigan

critical Our strategy to component lot us a in at for practice of there's little that different strictly a and tools our evaluation coatings. was is the in evaluation at carbon, do things lot because forecasting are vertexes plan. a revenue put system is I think for like one that due a we this thing certainly got diamond again, and configuration, that when moving that's tools configured important XXXX, pieces are there, that still that looked decorative pattern actually getting of moving opening, But is one the of us to bit and we've out a new -- kind a the the tool it really configured new in out our in for whereas

a sign need it'll off go to So through cycle.

out. revenue vertex year. as to that the there, needed one at as the we well And and through we as opportunity of either move that we've those one then got that tools are prove in can the original we through that out already out vertexes then works that shipment, paces just configuration get tool to configurations its once So have

eval of forecast, was components it. question, So, one answer the part to your in long overall the that of but

Unidentified Analyst

Okay.

of or than some bigger If this what could size whether you be color, provide qualitative versus could truly this customer quantitative potentially ordered. truly maybe the

Wendell Blonigan

say, to strategy consider be very that manufacturers – they’re about the but a is what we basically that's say large put – what assets putting to in on. strict we To get our is I to [indiscernible] eval seed this glass can been we've what very, player. can covered needs focused an major and with

Operator

And follow have a from Instructions] question Nehal. [Operator we up

Nehal Chokshi

orders huge about order my news more in is talk timing the let's perspective, on. over indeed quarter that you're scenario the what us this signed, is have provided things little bit working and terms that before a happened a of so That's Alright, materialize. best to follow-on from remind need a case that

Wendell Blonigan

and and the Yeah, timing so remarks, they in location everything prepared that the as install late want early really, is, discussions we're that's to the the I wise, said delivery having finalizing tool. QX, exact QX

hammered we're as got, going another out So there point, be one the our meetings we that believe tonight this on, are time. will have we at

can it there. want so, accept soon as facility to it it is And that ready they as soon it, They we as it. as get can we get want and

one. system and in as quickly the tool opportunity across tool lots that of that's off to we start And continue. do based here region whole being the And been demo we the when that's hand in ocean opportunities cycles. Santa activity, continue timing for our we it very and that to and hand technology can into Clara handset do of these the do glass evaluation to the and as premise that get first with expect on the are evaluation cover the far activity that materialize. is have aggressive that doing it’s So what hands development eval, I intention work once demo to going would the to the follow-on to on said, That think, the we’ve that coatings on makers some follow-on supporting really turns our degree in got turnaround times eval we to production, with

to, selling them to a into closer for to much way get the as quickly be possible. us our for get covered quicker, production as customer able to we will end go manufacturer it's and glass who to So, be

Nehal Chokshi

is customers. end also to Truly So samples providing evaluation

has region there here region this that that systems tool a will in is So where I Truly placing they be this and is one vertex that correct? a for that's materially presume than different

Wendell Blonigan

tool configuration decorative specifically for is that capacities, diamond little version our light patterning a carbon. just coatings, and and going more this color for one is Truly out Yeah,

applications. of larger kind customers crossover So different cover of but the Truly of Truly that have does. a panel some have makers service, of glassmakers superset and customers then, the display than And also rest the basically they

not working be designs. effort conflicting and is company So, other decorative company we added to one the on that's going a think working protected is that on as coatings,

Nehal Chokshi

it to the upgrade Is to X.X possible one version of systems Truly ODLC? for

Wendell Blonigan

X.X, We're on they layer some doing of as as they evaluation But can corporate suite have coatings. things upgrade as the decorative like for they also the seeing have as for platform technologies structure with them we Absolutely. the – internal all it. table of can as certainly been That's see far part well work upgraded that. their and upgrades vertex the well hardware to be the as

Nehal Chokshi

And probably discuss you on have that them? so utilization have you but systems within for tracked can -- your visibility visibility, then, they four how a currently, has Q-over-Q limited this, Okay. basis on

Wendell Blonigan

a of work point Chinese to activity scanner, we for they they're And continue volumes where on glass, sales, doing they manufacturers the the the were don't front we rates, quite where also, also somewhat aware were space. utilization of weren't work of the are some huge. handset that Yeah, of but we going know cover doing and bit wearable we aware have in

real but pull not they another So and pull to they're anticipate least out still getting I'm XX. capacity point at at busy in I this any that are of working, don't looking

there. capacity some have still they think I

Nehal Chokshi

that by media end And get that, at my year. the hard that XX% you utilization approaching last the full the this of as for expect described end is giving question us utilization XXXX. to the could you of And you X% then drive CAGR

systems backlog You do in Lean currently. have XXX XXX

in prospects upgrades new these for also correct? term technology is R&D upgrades, are near for R&D or XXX that be all orders presumably, technology So would for and Lean or the

Wendell Blonigan

quarter, No, we we've now, this our to that capacity our factoring in adding capacity, we tools utilization, coming capacity shipped the tools the are the or -- out do at capacity. in going to when of calculations least

XXX up better that that of or to XX% rates So we're rate. with in factoring just estimate all quarter for utilization

Operator

Our next question comes [indiscernible]. from

Unidentified Analyst

about you with off start But maybe anything easy quarter? mention Did I'll an Jim, the it. buyback? did I anything buy the one. you share in missed

Jim Moniz

back anything, We Greg the we not XX anything have just under quarter. mention buy available. did not in and We million did still no,

Unidentified Analyst

tools me many be on guide for remind Okay. And again, in vertex revenue? were that the XXXX, how will that

Wendell Blonigan

get got very When the eval is had tools for built from last But unit the had vertex we're in forecast, the initial the two in of happy were moving forecast the to of in place we've which And, that pieces, kind that lots we but out got vertexes we deal really at Yeah. us. that. been seed again, revenue. we two a year the

Unidentified Analyst

Sapphire. And on kind there? the of that what's the on the protective coating side mentioned goal Is the roadblock here? your of of about sense performance you something the new vertex, mean, I post

Wendell Blonigan

at Well, close as as possible. certainly for one driving to of been our existing customers, that's humanly we’ve the goalpost get that

we with coating in pushback see cost right X.X with protective particular layers, on this the – X.X that different that certainly applications environment have and under the the think we now. I in

for initiatives want number that performance on that to So, I we coatings, market driving of heavily every all big are that's doing protective sports demos phones. protected much, then we're angle with we're doing cell on working how that of heavily to are have there, internal think in demos But, lower don't the driving. we're engaged on we tracker cover applications. we're But a have, saying coating have work film. have glass front the cost. we too do today that initiatives fitness we And that And, things to again, lose and we premier working we for any it's, without

Unidentified Analyst

then, DLC? X.X Sapphire would your call Light we Okay, so this

Wendell Blonigan

it named yet, maybe it's haven't but We Light. Sapphire

Unidentified Analyst

CMOS the on that ear was my there. cameras mentioned just And caught thing one IVAS, you about

there potentially So two if per then vision I would be soldier. understand that night right, cameras

Wendell Blonigan

is cameras. night Our two has that understanding each right now system vision

Unidentified Analyst

how darkness different versus of terms they’re some total much degrees So, want you different to spend. moonlight are or – in

Wendell Blonigan

it's fidelity drives the of having the that No, imaging requirements. stereo the two

Unidentified Analyst

Maybe ISIE-XX right? CMOS right? so the different from That's the lost, totally I'm sensor, camera,

Wendell Blonigan

the of a our camera. vision one CMOS, sensors entire in of imager night every has The part That's CMOS ISIE it.

or catheter. So CMOS it when photo supplied with the gain can with we talk cameras, the that be the about without

Unidentified Analyst

I see.

of performance if photo you had cathode? So different levels the

Wendell Blonigan

not and have amplification starlight night You’re going to sensors. family unless to the not get you're overcast you that vision, going of the have see, on images our ISIE we

Unidentified Analyst

application photo includes the the And IVAS cathode? for

Wendell Blonigan

number of There's requirements. different a

The get be to or than have that don't doubt, than using sensor without may capable soldiers able they’re believe anything first we but also objective analog. less the requirement now, going either with to which we that what our field are tube they is amplified a photo

Unidentified Analyst

I see.

who I CMOS, guys a lower straight CMOS. see that straight have addressed compete this a far just just with who couple you could cost solution, are so that out doing your with the using there So tender,

Wendell Blonigan

Exactly.

Unidentified Analyst

that's see, I okay, helpful.

Operator

comes next question Management. from Our Westcap with Dan Weston

Dan Weston

is Hi, for expanded Yeah. afternoon, previously, think, I follow prepared you have the been to about on up you and opportunity that hundreds to exactly I from I relating say the of questions. last the beginning in talking answered now. thought commentary, Greg's somewhat in you once But it's call, taking you're be questions Did something? could deployment mentioned alluded did Most guys. you IVAS, have can good heard to, hear today. in miss there. Wendell, quantify program about or the I on of that right units, remember which the what what I you thousands of the talked by might Thanks your you what anticipated phase,

Wendell Blonigan

I there. a clarify that's me let meant great but question. And No, what

what turns the do And is what do, out, going going really of getting the interface to and that make prime basically it, the of amount to which developing together do to the to it. was suppliers formalize this it our additional part of defining was specify happen, how you communicate ICD, was what has and it the program how the this this sensor document, does work how sensor that it in it's it, the to So, everybody initial is proposals that process and scope how to asked. and to and and original

to the what we specifications it far So, night is look the do. phase, once assemblies. got the changed to of through needs as as a And bid camera way and for grew at we vision ICD those specifications it set certain

it development to contract it as behind So, actually grows well. develop

development ended So increase on where in that sense? I work that talked proposals the That development ICD is the sensor for on we’ve scope about. put based program the of And the in the up. in makes document additional

Dan Weston

close two kind And loop that year Yeah, initial development intimate that XX-ish two million does. over no, of period? would that, the dollars over the the the to expand could somewhat so it that work on for just years

Wendell Blonigan

Correct.

Dan Weston

you. Got

expect Okay, that part the segment discussions, deployed, camera source be sole that for then further expect the dual to you're program Or getting a would do module more? be fine. specific And contract? will source as you of you once

Wendell Blonigan

is suppliers have to we're just For manufacturing volume single we Joint will say forward they'll believe pure proprietary assuming go and even case as need don't that go, because well. a goes another of components. night with there the they'll military technology the Fighter. we looking technology, want where of than units camera, our the vision Strike couple ICE forecasting it, think Apache our to the to of supplier. our at that or would expect be in the that don't of one of would supplier I in And comparison They'll version more sourced any the the

Dan Weston

your overall industry. your revenue decreased this fourth backlog it in bit I actually sounds on increased like the Leans quarter for maybe And your shipment business, does year? the that for all has XXX shipped tone right, a then year? versus from as And this vis-à-vis unit overall optimism portend all HDD getting that at or are improved Am that little of tone the potentially pessimism reading

Wendell Blonigan

I have bit come overall, we right mind as range far ago, we cloud QX out higher. kind liked as half, to certainly a and today, now the my think, coming had as from months in stake big when But it's these service in forecasts little in three seen of the about call would I neutral of that's positive. some the back up the longer in providers, discussions and think

quarter. and of We bit of that a did a have the our in wait think I we tools still amount same see. still So last it's forecast

the So go But wouldn't going think to I guys tomorrow and and are changed what and as that say this nothing's from see I it's afternoon far really the there. how have saying hard as and drive about we're same. to

Dan Weston

Fair.

-- somebody asked remains if who to Okay. one second My relation unnamed. have the customer it forgive in still is, last your vertex me on already, the

visibility the they those that of with in mode, can You kind loosened anything as to and guys? you Are changed where of mentioned of there? be Has they get kind potential is up in stealth that continue of quarter. stealth a fourth still operating has more there anything

Wendell Blonigan

operation. them. the meet in change with of No real We do mode

ago. as of we're not think at other needed So we’re coatings light we're we the of additional some maintenance order certainly part them kind tools, some of the discussions, in long and transparency avenues some just do I really of this iteration have our I the They don't know we decorative them well as carbon. work work some too but from have next the so, having did discussing any to time. on diamond We with doing

Operator

I'm to further time, the closing for call Mr. no remarks. showing back this over to Blonigan At like questions. turn I'd

Wendell Blonigan

thank Okay. Great, you.

business like So support all July. today sign of to I before our in employees all partnerships. And Until our for their our call continued for during Intevac thank I so thank and environment. very effort thank QX finally, then, their stockholders I'd forward again Intevac. joining in continued thank look the updating appreciating you for of I'd to and the for tremendous we their world of you to like also around customers to dynamic long. this dedicated outcomes want us I off, and

Operator

today's concludes teleconference. This

disconnect. You may now

Intevac (IVAC) 29 Apr 192019 Q1 Earnings call transcript