IVAC - Earnings call 1 2023

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Operator

Good day, and welcome to Intevac's First Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, May 3, 2023. At this time, I would like to turn the call over to Claire Mcadams, Investor Relations for Intevac. Please go ahead.

Claire McAdams

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

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

will Officer; will our on me Jim start financial and outlook, review each of Executive with and results are Moniz, our Chief then President and Nigel the a first Joining Jim Hunton, Financial businesses discuss current before call outlook Q&A. Chief call today's quarter and review Officer. Nigel of to over our turning

forward-looking represent call. the quarterly that update as projections our materially our undertake and The include of contents risk and completed XX-K current obligation the discussed Form as projections Intevac. with events remind today. uncertainties documents forward-looking risks based to future as of various the to in quarter, to with subject in performance to, time-sensitive like forward-looking reports XX-Q regarding could of during by which and statements, of financial connection annual conference XX-Q. our but Form adjustment including and on other everyone preparation I'd recently comments call report filed forward-looking statements us on are made Exchange These contains well regarding the as factors certain these to Commission, differ this a May fiscal Securities statements that result our today's for financial expectations, about remains this no limited statements not actual call results relating We statements of X comments and including, future most results company's the and upon Form conference

turn the call I will over Nigel. to now

Nigel Hunton

this Claire, primary environment the good pleased discuss activities, our on everyone. markets. platform year-to-date and have TRIO served today business in progress to our on afternoon, update opportunity to and you I'm Thanks, the

to in results. QX the quarter, resulting of expenses resultant first demand margin forecast business, drive run at during also and though, with end operating going achieved gross expectations. through the revenues upper First In share and increased objectives, the the consistent our aggressively upgrades technology we due the drive end customer our will advancement was I the expectations $X.XX urgency hard their our towards upper our to net an acceleration quarter. into at per of deployed With of loss of the

starting today perspective affecting the my business on markets, electronics hard all share I'll market. Now with environment the drive

the late reprioritization period drive As in around additions expectations of around mid- Since technology a our a growth of also which of we've capacity XXXX. delayed we upgrades. demand, that customer discussed plans demand the significantly all for hard effectively we industry aware, of rapid moderated entered for very time, softening deployment to are favor XXXX. that And time,

guidance Our $XX at half consistent been for and has half. around first HDD between split million, second XXXX the revenues in roughly

capacity business forecast of of further out. drive increasingly recent weakening of announcements risk market has related to mass growth rates challenging, are a at the across putting customer the of XXXX electronics forecasted especially the demand. environment overall indicating widespread the industry, Given portion pushing HDD become now weakening for the demand These industry

HAMR our testament continued forecast and X as migration provider technology role conditions XXXX been revenue we've last able customers, The spite the and is the by driven primarily fact in over market maintain for drives. enable to our quarters deterioration that to hard critical technology in for our is HDD XXXX the upgrades largely forecast to drive our enabler of that a

emerge the capacity customers out excited about industry have and the as currently timing Even workloads than and the relevance regarding have data-centric they installed growth capacity. capacity capacity that cloud. is of There secular utilizing is our applications been outlook media doubt less to presented additions pushed significantly though the storage more the remain of new that altered their no by mass data long-term the and opportunities of migrate investments, the

timing are and on the however, order drought any shipments, rate is center we the dynamics will data to the each some system weather that response inventory expenses and of for the we feedback, will growth magnitude the view we customers industry changes the Our on in closely ensure determine industry are our leading In each time. earnings latest outlook costs with latest in as current through watching to meet call. investments to and data quarter prudently slowdown forecast. I this to and continue conditions, sharing managing continue are we of in our longer-term to

platform, electronics potential Finally, consumer late is as that to and we runway of to growth applications, products product to in meaningful now a by provide what far by years game-changing achieved development revenue partnership Intevac, company the XXXX, for highly our supports XXX a new regarded and since the It a the new TRIO on relating away delivered develop Intevac of opportunities future. sustainable in category. important the development product Intevac's has the XX far other commitment a long-term the development of launch into is ago. a and Lean for compelling and the most

we the been milestone The and in of development market X productive as key an our strategy, months These busy increase addressable first and have our a total has it growth recently broaden to potential can line reach. XXXX. was extremely the agreement announced product

quarters. bed qualification production technology take from On the test a then would couple that the I last highlighted into transferring of call, a tool and of process to the a

build and am of confirmed system and end our QX, is samples successfully tool. very testing the pleased multiple currently at a configurations optimize have completed of the chemistries the we TRIO is which to key I TRIO system, The first that, therefore milestone. and to running significant

end and and complete tool our development continue milestones of these to next with progress Our prioritizing partner and of resources the towards move market program, the excitement quarter continues will ahead XXXX. Because in qualification about to technology the this opportunities. at TRIO, qualification this demand we new express returning their are of TRIO to

during decision potential TRIO Japan, tool retain of feedback in during coating ensure quarter. the for positive quarter, investments development to was South our sheet, able and TRIO result, given underscore meetings and in capitalize held are in platform's in-house program, A future to strong was the and further make we driver these the all the we Singapore which a One the investment confidence the for capability key balance wider customers. USA, activities this a we made our Vietnam from also As key Korea, success. development for our

lines we lasting weakness electronics Many signaled expected. being However, that ecosystem, forecasts just be longer and levels industry's in beginning reduced, the seen the that significantly sharpest development have decade have in than time of understood are slowdown is more a OEMs elongating. consumer than to

evolving with are qualification around As in the market and to revenues first TRIO XXXX. lines forecasting such, will conditions still be time year-end responding and placed are we initial now XXXX, customer orders that

and deliver As sit forefront that markets have the team partners. we products operating and we are great today, we of an and world-class with pursuing in strong can the to incredibly execute

recognize our and this financial come. objective all the strong to XX over is investors, strategy our and customers for growth to last the our commitment confidence in on deliver to important suppliers, that Our performance stakeholders months analysts, ensure achievements call years and today and employees,

we And XXX of confidence platform are more delivering about faster attributes before throughput. and features and flexible and over in any TRIO. Underscoring Jim able I it our are unique than partner. key enables enable the a compact design TRIO the was flexible this also have of leverages Leans for unique some TRIO's our concept XD operating XD modular glass to And and form coat the other to and disks. technology to processes, that factors, other than manufacturing with strategic manufacturing coating resulting commitment does strong TRIO highlight today, turning capability technology TRIO including footprint. the call performance will was all higher glass designs, shapes. developing

and that to for believe to make continue our time, be developed plans. contribution significant growth will a platform We TRIO multiple the applications over

markets, Despite This our our significant execute us deep a foundation operating environment, expanding strong to fundamentals served the provide strategy. on and our partners and expertise, our a leaders, more to and leaner team technology customer continuing of uncertain business expanding includes solutions diverse solid manufacturing base, customer relationships for and operational establishing to our and customers. market research, deliver diversifying differentiated technology

into with In have continued summary, XXXX for Intevac. progress XXXX we transformative launched the following

agreement are new and for the future and We partnership development TRIO platform. about excited very the our

future, years. and sheet. cash take in revenue back make we this to increasing stockholder moment investments are the how to absolutely multiple and I will to of strength decision to to cash just We will in the utilize committed as strategic investments made our a deployments balance we strong value tool company protecting a balance convert our these coming emphasize the as

business into profitable market grow emerge our company the with conditions As a company a and is Intevac cash-generating these its growing and technology our to with challenging leading as more to in key of leveraging in position we markets, each leadership. a stronger, profitable agile return a growth transform goal consistently and

the And remarks. with now will I my completes call to That Jim. turn that, prepared over

James Moniz

Thank you, Nigel.

the $XX.X in and of of Revenues First service. range pull-in million the quarter. to of of in HDD our technology at end consisted revenues million the guidance upgrades, first acceleration totaled to and high million quarter $XX.X upgrades were spares $XX.X due

impact gross R&D and was per million, net operations SG&A continuing QX at which net our $X.XX to share, $X.XX midpoint million of to margin non-GAAP of Photonics diluted or $X.X and midpoint share. million, the $X.X QX to the operations was million expenses net $X.X QX of XX.X%, division. the or the our XX% discontinued from guidance equal excludes our loss was below per $X roughly $X.X loss diluted from million. The is of loss were XX%. of The just guidance

with orders Our use quarter We million $X.XX $XX share net backlog the booked quarter. million cash of was cash, This in of equivalent in of $XXX.X million, to ended end, a on restricted XX.X million the $XX.X quarter cash the quarter. per first of investments, new based shares equated to $XX million the including quarter-end. reflecting and at at

change increase of significant roughly composition our $XX in the quarter during in was inventory. most million capital The working the the

These in earnings the on inventory last next TRIO been the of majority systems we ahead. we investments, increase TRIO-related drove support of call, in over in which which inventory in investments support of QX, the growth QX began targeted during our build earnest quarters. the the have and strategic As multiple discussed in making several

constrained. To the our and customers our when was had were extent, hard highly reflects number a drive in ordered schedule, delivery that a of year an components increase on long inventory business ago supply a in we lead-time and portion a lesser of chain over the was aggressive

to funded this already important deposits received year. late that it's inventory note advanced However, last was customer by

than challenging business hard environment million QX, the more and directly our have largely our to requirements. last to with that the cash we we said, support you terms shared when increase will that, through This in the be and place to the year-to-date. That in is continue largest inventory go attributable normally in we inventory customer in increase our in the there customer. is industry expected decline go increase On up very and related see a call, that cash, a to we drive outlook receivables our we extended $X payment currently being in declined corresponding current expect to year as

adjusting being and by compensation million, $XX acknowledge We and operations after The primarily cash $X was of million was remaining stock about of quarter, capitalized. depreciation of into use million of cash the and capital of cash from appreciate our in tool $X million flow the Total P&L from TRIO expectations cash driven that going the use during quarter. the the portion absolutely was expenditures used $X.X of QX the exceeded and amortization. loss $XXX,XXX about

will. We receivables a increase cash but will within XXXX, will inventory it convert increase in expect bit the and take absolutely in longer the the convert, to

noncancelable a on schedules to HDD advanced And continue customer inventory systems is orders supply as we these aggressive environment. Further, will more with certain by When were HDD funded placed, orders we the were critical very throughout XXXX. deposits. constrained delivery and were purchase components, these shipment made highly a than such, of additional commitments

me the XXXX Now guidance. let QX current move to quarter,

higher half the to is $X million to than to revenue bring in $X XX% $XX projecting of of are first million. $XX million, first range half would We million XXXX. This revenues to which the about be

second quarter higher-margin favorable gross increased to We the under-absorption be margin mid-XX% to expect a and somewhat the in mix upgrades. due of less

around be $X.X are to QX million. expected operating expenses

expense tax the of We the income $XXX,XXX, and expense expect will GAAP noncash. Most about of be also of quarter. about interest $XXX,XXX in tax

based outstanding. of a XX $X.XX We in loss shares per share range the million on to $X.XX are net projecting

For will we our this mentioned, quarters, forecast to much $XX this forecast Nigel as But hard with of the revenue to system that is full last be of as out been few full for next XX% expectation continues at time, TRIO. at today, pushing revenue million from our around visibility similar with X consistent our include Lean year, level and as And year have not the XXXX. year. we drive revenues a that to year. risk of This XXX forecast include does upgrades believe

XX% year margins profile range. anticipate revenue now expected this XX% Given to be for the gross and the mix, we will in

a to full as will operating ongoing expected the below be expenses million. is And expect approximately $X.X We forecasted QX. OpEx year now million $XX be result, for

income of in XXXX. $X interest to taxes expect range the million be million We both in to and $X

Finally, will the remainder our million $XX of of use our $X in the material receipts which growth. future of of in of million, to largely for support be comprised planned that expectation cash is current range XXXX is

presentation. are for we ready This Operator, formal of part completes the our questions.

Operator

Hendi [Operator Gabelli is Susanto Fund. question first Instructions] The from of

Hendi Susanto

hear disk in more get in to what push-out, visibility you other is out upgrade? can about And how is, to may drive I'm hard sales place secondly [ you that terms into push-out the out whether that? of or interested and Or not with whether of ] wondering I'm probably learning in then $X color regard primarily million to more Nigel, XXXX. market much will to the to pushed the related take know words, may push when magnitude?

Nigel Hunton

have balance look we of with require and and every with all they in And for what a meet and the look then said demand we quarter I close customers As very the the we our relationship in year. HDD them the of of remarks, sort I prepared each at sector. at quarter, through

very a what have of sharing we of well. we're visibility So good and good and thinking, as data relationship

sort of which, that, part of all data. and the heard pretty data of of and As push-outs that of slowdown some and that underutilization some again, public you've seen centers is and both

work plan are working rest with we've them through back quarter, for the clear to through we the On revenues. the we'll that, into of them then confirm this the year. announcement of for there put a the which And

those demand prudent this quarter, out from demand that the ] year. towards go to will So upgrades more sort every we'll time we meet systems plans. sensible to of demand [ sort some them And this the planned, And some out each it's of the being I be of going a through moment, think think each of year. detailed the take of percentage scheduled I of of of

Does those and that help question? that but have one stay As in some I customers. be you out this we will will think the our year, phasing of this know, within year, system that of really from upgrades rest the and moving answer

Hendi Susanto

for that think second And then is I is question Jim. helpful. Yes,

of that you cash for to $XX million the of use is remainder XXXX mentioned Jim, $X million. So

inventories You grow indicated will higher. that

expect in we So how insight remainder some the is the much there increase throughout into year? inventory more of should

James Moniz

Yes.

to as the I rest think Nigel year. other chain million be And in have bringing from cash the be to alluded in. remarks, to really customer $XX increase manufacturability multiple be the that be in of the to, inventory the we're continuing we I additional that able use drive of will hard Most that growth, conditioned invest the the inventory, my of some the some the TRIO of are our wants in potential backlog still this in of upon prepared in we largest said as field will will so of shipments inventory portion to in tools $X XXXX. million some growth supply in constraints, support And that inventory. in

Hendi Susanto

may adoption get you is of And Nigel, by track? HAMR everything do on customers on timing the whether update HAMR have any delayed, still or and

Nigel Hunton

you been of are The have been drives disk if some that it's for some of in to and announced the HAMR manufactured drive ramp earnings listen think the of starting market is the in key industries, evaluation. the XXXX. I hard calls

for in customer schedule then evaluations our of our tell I year, can message HAMR, think. And I from start this on the feedback, So some I XXXX, track is that's from the as with and as into getting absolutely far volumes customers. mean, I'm

And quarters technology. So you've fact, I last capability the think X them. around us and part build over in support enabling HAMR's everything their and been played good, we've a critical seen in that

coming So through. we're that's pretty confident

Hendi Susanto

in milestone would at able Nigel, running revenue to technical then, your system do sample of first that us to what again field the need you currently you kind customer? order be recognize is And remind production

Nigel Hunton

we having running through last So we've first through through the said system done. which achieved modules We the builds and running month, build completing all then goes together. the as in go the process the quarter, actually from that

So tool website we into stages tool. the of that the that presentation schematic sort of a of of the on shows chambers added the that's the various processing

revenues that'll and we're us, qualifications move that which So we're We next tool, now through running further quarter-plus. sort on take a say, running, of tool do around that this adoptive qualified critical to hand looking and process XXXX. that internal up qualification milestone, will we getting and then go that that And in we'll we're qualification through customer another fully through once that's said we then at the tool, and over in an quarter. which going and

exceptional product call, we me, going said still we into the last this believe in the will to market. an couple a So We of quarters. take I mean, for are deliver as

about excited technology. partner Our is the

updated that. executing And each on working we'll further We are call. keep everyone on on

of into revenues each of as pass to achievement that where we line sort explaining key we move XXXX. qualification. is keep we'll are time So And the step the on

Hendi Susanto

will And capital, to in next the for your next then, What I'm assume Jim, be the preparing increase systems. I TRIO the majority will be the working it for production? for systems, that is, wondering

James Moniz

to salable inventory sale, to our inventory that majority TRIO yes, The into purchase the that, of available of we're be be TRIO for will will here through those the the a place will inventory, putting customer agreement. JDA we But qualified, potentially Yes. end be for year. The sell for inventory initially the growth absolutely. from will that once is inventory to

Operator

next of The Mark question Miller from Benchmark The Company. is

Mark Miller

an wondering, hard for at the what customers? is just do have capacity you was estimate utilization I your drive

Nigel Hunton

we market the think utilization XX%, I of XX% that in believe level. sort is now the in

Mark Miller

You supply doing component in some mentioned or there you're items. long improvements chain recently? been pricing lead Has you've noticed the in any

Nigel Hunton

interesting always chain. There's the challenges in supply

overall, think see last in be my would items mean, of had issues I are ability companies quarters, some the level couple to specific impacted I there supply. of I to improve, improvements. some observation. think, overall, to starting is some we're But the starting supply certain specific which their

Mark Miller

starting And about stabilize? to what pricing? Is pricing

Nigel Hunton

I looking last remember I'd is pricing stable. think prices is mean, higher. I at stayed relatively we're think, overall, long-term we you'll pricing, around things agreements. some I always have year, one mean, pricing is those the say overall, some But spikes, and the stable. around I of of saw

Mark Miller

per for in when situation, you're tax you Does Your $XXX,XXX tools? that revenuing of getting about these XXXX change some start hit quarter.

James Moniz

really Asia. through the tax which from now income we The see the business, of is drive majority hard runs that the

business. net of we'll could shelter So that much fairly on we for income in depending That so it's with in U.S., But that on large to hard change able profit mind, tax operating a the the of XXXX. keep really how TRIO losses the revenue drive couple years. be the have take we make in we

Operator

Peter The next Securities. PartnerCap of is from question Wright

Peter Anthony Wright

I for hard think just a X XXX kind of got a your really $XX questions annual first my TRIO. ballistic of $X the anything we what and service disk around look of questions drive for CE with kind actually are around of understand units, market you X TAM market compares? at of billion you capacity install Nigel, understand opportunity. When I've you. at If about perspective coating potential a And the to marketplace. there today, the that of market, base how think roughly one try specific Is of million for is can the kind do Nigel, each it's to trying from this to you kind is? of kind look at sizing

an question to piece margins the bigger a has significant second is margins to on they're think equation. process maybe going equation big the Where XX%. The technology much gross to to disk do gross end, at how to and margin is a you your equipment market ramps? is drive the market, spectrum the gross this you tools Hard kind diagnostic as opposed technology. lower how technology vendor do design think, the Process existing higher a of you servicing as part is at have this because affect product because brought of that's

time the markets. then timing from And do any electronic can third on or, you non-consumer throw it out one, around going going happen? a if that's the is when you, discussions Is think to at yet perspective, I there

Nigel Hunton

Okay. in order technology. is to incredible I it The I up a of these answer might of other bit. just this amount interest there timing in mean, spice markets, reverse

current creating the your partners, this sector, about the question the and trends, one quarter and got you've other using take been having they're and section, potentials. scratches with are AR. the moving, it's screens in the not And and coated. had be of to and on initial [ ] look passengers of the market how coated as curves, a a spectrum you've So other having world if touches and different which going for in market obviously glass make and car all are have auto partner hyper-screens moving touchscreen. moment, are the those all and size what's you car, marks, have you the people about thin particular, and glass, you dashboards, user-friendly we've into section driver the at just them into all opportunity, again, with about at the got you but moving And in thinking think with now meetings smudges last the of that And width to if glass, and all

So discussions absolutely business where future. discussion, the area so and years. for market into and some the often many a car our a far clearly worked take multiple can some requirements I've worked we've an had potential that and with concept the sector, in and in the auto take that's technology fits office good opportunities design sector to new years,

huge into we're opportunity I there's but the initial say that So discussions think a opportunity great sector. thoughts It may initial me initial take a and there. to opportunities, there's time, having

sitting not to stuff we partner that's we're So know all help us that And got market got consumer that's opportunity. therefore, why a and strong just we've the where back exclusivity It's huge a develop going. about we've and devices market. because

next sort which we're to of looking new that of talking glass well, exciting other XX-year in come other and to horizon. sciences, suppliers areas technologies equipment coating other suppliers, Beyond and to optical life might the as small X- at both some through

certainly, So we're but we X with my it's I and there on team got to It's Mark are but timing probably out there the the that's and Popovich meetings opportunities had consumer not devices. beyond way And continue board. Eva team, strengthened showing and and out, years put Valencia it's over one we've will come opportunities, quarter into saying sitting to we're opportunity. the have last have to with going why all the back

a broader pretty excited covered got play. And for technology I sort So of for think much in the we've right that that me, my sector. I I'm

that got mean We've moving a got technology? think technology competitive is into the enhances unique we're technology. technology does What Yes, that very around we've throughput. I environment.

char-char we've footprint, actually X it's taken out that market. the is where ] enables key technology probably be of unique a which enables, to a have but through chamber, and one very [ We the of smallest the competitive in parts mechanism, processing it

even about value. XXX business clearly it's So as different I similar do that there's coating maximize of a the for last in X think how for keep potentially But I a as the opportunity X, look us, Lean. also, should look model. in we we And to we an call, to out at gross moment said on modeling, years, around the margin sort

So And that for a this me, to to gives for therefore, value technology the we changing be the position company. is immense. for us Intevac game opportunities maximize

than of is larger market, the Size it HDD business. the much, much

quantify better about trying are better if smartphone and and around into think and numbers that. scope the sector, you We whether in still give tablets of in about and some I it's the process you life and to consumer But look sort significantly this of of sort just on. you larger you HDD. the and automotive look and the broader devices, AR than reality, for opportunities, opportunity augmented is sciences then at at then so think I think the

of questions, help bit questions. those does maybe order, So in hopefully those answer that reverse but on each gives you a of X answer an

Peter Anthony Wright

not They're unfortunately over. I all a Jim, for consistent. X you bit have as too, And

and PP&E, was So us Can share little with with of the in kind question back number. my you drive, disk to build XXXX? The how on XX there return really second invested how TRIO in is is Can that date, legacy to a in share expect the question in has investment build well. you as the of think we many business what first you you been years there TRIOs your TRIO if pickup us hard could capital ago? think versus

follow-up a to the next tools be is of was production question year. were the third my earlier tools asking one then if He And going to questions.

be going are tools to the for be them, to but guys, they Or next going revenue I you client? to R&D actually understand are they going For production-worthy you're year?

James Moniz

did All order that it. right. I'll try to them in you the answer

don't think than, the majority tomorrow we that one point of in of file going I in TRIO $X we that and number for you at of potential a to are reality. could tool absolute capitalizing. we who some capability ]. the [ and to over quantity multiple saw, build, multiple you'll to we multiple we automotive, this a number it capital, have tool added could when control value the be sheet going the release, earnings And the it be things balance the the could to to in be press the capabilities. to do So we Q, QX, areas coatings you can It coatings we're as customers own build. And will our to release JDA to own balance of see Nigel We see coating the and it's with. that improvements the time be some that that capital we a is of or have in agreement think prepared able and TRIO you talk using tools where virtual just where They and be a on do so the consistent, our tremendous PP&E, be to there's give that other and about from customer have said, million was the the sheet who beyond in

X that a can talked builds to for million, And year. multiple. this but TRIO. it's going you see, going about we're the it's of X. but X, be that's $XX going be number, was to Certainly, specific inventory when majority of those number the then give be a more to So not portion Could we inventories TRIO you than up building. I'm to That's the going that

capital. And spent last last you R&D I the I that this to of R&D R&D can spend of number look you invested was you launch the we'll be investments will capability. that Lean. can of that's and TRIO on the have year in a on good for the year. year A -- tools, XXX of and also improve we that technology kind TRIO, tell the in that spent our the majority number don't majority

you repeat that? question, third wrote I again, thought it down. your then can I And

Nigel Hunton

tools me want The or question take about really making You go was those third? to whether valuation third products whatever. real the or to into

fully One qualification getting of the one process push reasons through have evaluation, going sure fully and make actually market we our qualification of expect down -- the we time here tool taking opportunity of by the that we've sort about talked clearly, -- with customer is and that actually decline. bit And some to slowing really reasons this a markets of to and the make qualified is partner. put we our sure market actually a use of that

field, of the into the it's that installation go for can tool And faster. from field. the of doing revenue get customer One that then is and the you benefits once key in you delivery, into

we're tool deployed and particular in this and joint extensive opportunity testing going field. with longer that partner is venture that make we'll to evaluation in -- before here the doing is -- the slightly and So the probably sign-off use to

a wants No in field not making revenue have to for that's customers. actually one capital

will the think produce parts start as be, can. possibly I to they hit once So field, as it the will fast tools once

Peter Anthony Wright

has in is follow-up. me sorry, on Very TRIO? much Jim. that One invested have number question I'm capital. how of about think kind been invested to help last a Is there you the

James Moniz

as capability keep to I on capitalize of millions and mind, hundreds combination been of benefit the tools of of have business. that a in R&D. tens would we've you the in TRIO. R&D was all the able say as And prior to now hard invested the well TRIO some We've and the drive

because I we've going continue end the and investment and that $XX R&D don't know to Nigel. automotive, $XX invested one. there take invest applications on of year. And that invested to last million there if this investment that, are the could may years, of used the I of that be to platforms date to current different And sizes between in are to going think inventory won't be be the of additional to TRIO to is for the which going as add to want stop R&D. XXXX be be we'll at than you somewhere other the going well as then, the million couple is rest in part

Nigel Hunton

good a point. That's

and think we here deliver of sort success as will at actually look iterations [ I then all broader applications, there ]. think, I be at

So profitable investing we long-term be will will to continue growth, for growth. but we invest for

James Moniz

that's be the And investments majority future. the our of R&D that TRIO, Correct. us, growth really platform that in Nigel said, will in because gives the the as

Peter Anthony Wright

a better of acquiring capital than much clearly use It's something. It's exciting.

So that's tremendous.

So thank you that. sharing for

Operator

back are closing Please for the ahead, There Hunton at over questions turn to this Nigel his further will time. no call now remarks. sir. I go

Nigel Hunton

you. Thank

TRIO Firstly, as and with sort dedication progress as hard with platform, of their transition HAMR. industry well I industry our their well all partners to to the employees of want as new our the work the we HDD's as for for with partnerships as our counterparts thank partnerships

been near-term to while it's an think their need everyone. I these markets. our demand from incredible this ongoing performance also for we thank wish affecting adversely are investors I Clearly, our support. macroeconomic each challenges in of

I'd with reach you. on the follow to if to you August. early Thank call call. that, to with like say in want directly, conclude support Claire and for And forward updating today's like to QX their will you if And us, up would I look that I out want you to we So in our thank investors also, that, to remit.

Operator

you conclude conference. Thank joining does for This us. today's

disconnect your You may lines. now

Intevac (IVAC) 3 May 232023 Q1 Earnings call transcript