Intevac Inc Reports Second Quarter 2024 Financial Results

authorIntellectia.AI2024-08-08
11
IVAC.O
Illustration by Intellectia.AI

Intevac, Inc. Reports Second Quarter 2024 Financial Results

Intevac, Inc. (NASDAQ: IVAC) today announced its financial results for the quarter and six months ended June 29, 2024. The company experienced robust demand for hard disk drive (HDD) media technology upgrades, significantly surpassing revenue expectations.

Key Financial Metrics:

Financial Metric Q2 2024 Q2 2023 YoY Change Consensus Estimates (Q2 2024) Q1 2024 QoQ Change
Revenue $14.5 million $10.3 million +41.0% $8.3 million $9.7 million +49.5%
Gross Margin 38.2% 24.9% +13.3 pp N/A 42.3% -4.1 pp
Operating Expenses $8.8 million $8.0 million +10.0% N/A $8.7 million +1.1%
Operating Loss $3.3 million $5.5 million -40.0% N/A $3.6 million -8.3%
Net Loss $3.3 million $4.9 million -32.7% N/A $1.6 million +106.3%
Earnings Per Share (EPS) -$0.12 -$0.19 N/A -$0.20 -$0.06 N/A

Intevac's revenue for the second quarter of 2024 significantly outperformed estimates, driven by strong demand in HDD media technology upgrades. Despite a decrease in gross margin from the previous quarter, year-over-year gross margin improvement indicates better operational efficiency.

Segment Revenue Performance:

Segment Q2 2024 Revenue Previous Guidance Variance
HDD Upgrades, Spares, and Service $14.5 million Not provided N/A

Intevac's revenue from HDD upgrades, spares, and services was robust, reflecting strong market demand. The company did not provide previous guidance for direct comparison.

Operational Data:

Operational Metric Q2 2024 Q2 2023 Change
Order Backlog $42.5 million $58.2 million -26.9%
Total Cash and Equivalents $70.4 million N/A N/A
Tangible Book Value $111.7 million N/A N/A

The company maintained solid cash reserves and a strong balance sheet despite a decline in order backlog, suggesting solid operational control amid fluctuating demand.

CEO Commentary:

Nigel Hunton, President and CEO of Intevac, commented, "We witnessed strengthening demand for HDD media technology upgrades during the second quarter, and our team in Singapore provided solid execution, which led to revenues well ahead of expectations...an excellent quarter for Intevac across all fronts."

Dividends & Share Repurchase Program:

The earnings release did not mention any dividends or share repurchase programs.

Forward Guidance:

No forward guidance was provided in the earnings release.

Stock Price Movement:

Following the earnings release, Intevac’s stock price experienced a minor decline of 0.25%.

In conclusion, Intevac's second quarter of 2024 showed promising revenue growth amid market challenges, reinforcing the company's leading position in HDD media technology.

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