On August 5, 2024, Intevac Inc (IVAC, Financial) released its 8-K filing reporting financial results for the second quarter and six months ended June 29, 2024. Intevac Inc designs and develops high-productivity, thin-film processing systems, primarily for the hard disk drive (HDD) and display cover panel markets. The company generates the majority of its revenue from Asia.
Quarterly Performance Overview
Intevac Inc (IVAC, Financial) reported net revenues of $14.5 million for Q2 2024, a significant increase from $10.3 million in the same quarter of 2023. This performance exceeded analyst estimates of $8.30 million in revenue. The company attributed this growth to strengthening demand for HDD media technology upgrades and solid execution by its team in Singapore.
Despite the revenue growth, Intevac Inc (IVAC, Financial) reported a net loss of $3.3 million, or $0.12 per diluted share, compared to a net loss of $4.9 million, or $0.19 per diluted share, in Q2 2023. This result was better than the analyst estimate of a $0.20 loss per share.
Financial Achievements and Challenges
Intevac Inc (IVAC, Financial) achieved a gross margin of 38.2% in Q2 2024, up from 24.9% in the same period last year. Operating expenses increased to $8.8 million from $8.0 million in Q2 2023. The operating loss narrowed to $3.3 million from $5.5 million in the previous year.
“We witnessed strengthening demand for hard disk drive (HDD) media technology upgrades during the second quarter, and our team in Singapore provided solid execution, which led to revenues well ahead of expectations,” commented Nigel Hunton, president and chief executive officer.
However, the company faces challenges, including a decrease in order backlog to $42.5 million as of June 29, 2024, from $53.1 million on March 30, 2024, and $58.2 million on July 1, 2023. This decline could impact future revenue streams.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Revenues | $14.5 million | $10.3 million |
| Gross Margin | 38.2% | 24.9% |
| Operating Loss | $(3.3) million | $(5.5) million |
| Net Loss | $(3.3) million | $(4.9) million |
| Net Loss per Share | $(0.12) | $(0.19) |
Six-Month Performance
For the first six months of 2024, Intevac Inc (IVAC, Financial) reported revenues of $24.2 million, up from $21.8 million in the first half of 2023. The gross margin improved to 40.4% from 33.4% in the same period last year. The net loss for the first half of 2024 was $4.9 million, or $0.18 per diluted share, compared to a net loss of $8.8 million, or $0.34 per diluted share, in the first half of 2023.
Balance Sheet and Cash Flow
As of June 29, 2024, Intevac Inc (IVAC, Financial) had $70.4 million in total cash, cash equivalents, restricted cash, and investments. The company’s tangible book value stood at $111.7 million. This strong cash position provides a solid foundation for pursuing growth opportunities.
Conclusion
Intevac Inc (IVAC, Financial) demonstrated strong revenue growth and improved margins in Q2 2024, driven by demand for HDD media technology upgrades. However, the decline in order backlog and ongoing net losses highlight challenges that the company must address. Investors will be keen to see how Intevac Inc (IVAC) leverages its strong cash position to drive future growth and improve profitability.
Explore the complete 8-K earnings release (here) from Intevac Inc for further details.
