Intevac, Inc. Reports Third Quarter 2024 Financial Results
Intevac, Inc. (NASDAQ: IVAC) has announced its financial results for the third quarter ended September 28, 2024, surpassing initial expectations with solid performances in key business areas.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Commentary |
|---|---|---|---|---|
| Total Revenue | $28.5M | - | - | Exceeded expectations; includes $13M from HDD upgrades and $15M from inventory transfer. |
| Gross Margin | 24.8% | 39.1% | -14.3 pts | Margin decrease due to inventory-related revenue. |
| Operating Loss | $1.8M | $1.4M | -$0.4M | Loss increased but was within a manageable range. |
| Net Loss | $2.2M | $1.6M | -$0.6M | EPS decreased to $0.08 from $0.06. |
| Cash and Investments | $72.1M | - | - | Strong cash position supporting future growth. |
Intevac's financial performance in the third quarter marked an improvement over expectations, albeit with a slight increase in net loss compared to the previous year. The company's strategic focus on technology upgrades in the HDD sector continues to drive revenue.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Commentary |
|---|---|---|
| HDD Upgrades, Spares, and Service | >$13M | Solid contribution to total revenues, exceeding expectations. |
| Inventory Transfer | ~$15M | Largely pass-through revenue impacting gross margin but boosting total revenue figures. |
The HDD segment remains robust, contributing significantly to Intevac's total revenues and demonstrating effective execution against company forecasts.
Key Developments and Operational Highlights
- Technology upgrades in support of next-generation HAMR media are a major business driver.
- Completion of significant inventory transfer to a customer.
- Positive free cash flow performance.
Management Commentary
Nigel Hunton, President and CEO, highlighted that the results were favorable to expectations, with technology upgrades continuing to be a central focus. The strategic investments and solid cash flow position Intevac well for future growth.
Dividends or Share Repurchase Program
No announcements regarding dividends or share repurchase programs were made in this earnings release.
Forward Guidance
Intevac did not provide specific forward guidance; however, they emphasized maintaining a robust balance sheet to enable strategic investments.
Stock Price Movement
Post earnings release, Intevac's stock experienced a price movement of a 3.20% increase, reflecting investor optimism about the company's recent performance and outlook.
Overall, Intevac, Inc.'s third-quarter results demonstrate resilience and favorable execution of strategic initiatives, positioning the company well in the HDD market amid ongoing challenges in the tech industry.
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