Intevac Inc. Reports Financial Results for Third-Quarter 2006.Revenue and Net Income Significantly Exceed Expectations SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif. -- Intevac, Inc. (Nasdaq:IVAC IVAC Islington Voluntary Action Council (England, UK) IVAC Insert Valid Access Card (satellite TV hacking) IVAC International Video & Audio Convention IVAC Idle Air Control Valve ) reported financial results for the third quarter and nine months ended September 30, 2006. Net income for the quarter was $9.0 million, or $0.41 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on 21.9 million weighted-average shares outstanding, which included $878,000 of non-cash stock-based compensation expense. For third-quarter 2005, net income was $6.2 million, or $0.29 per share on 21.4 million weighted-average shares outstanding, which did not include non-cash stock-based compensation expense. Revenues for the quarter were $54.8 million, including $51.6 million of Equipment revenues and $3.2 million of Imaging revenues. Equipment revenues consisted of nine magnetic media manufacturing systems, disk lubrication lubrication, introduction of a substance between the contact surfaces of moving parts to reduce friction and to dissipate heat. A lubricant may be oil, grease, graphite, or any substance—gas, liquid, semisolid, or solid—that permits free action of systems, equipment upgrades, spares, consumables, and service. Imaging revenues consisted of $2.7 million of research and development contracts and $465,000 of product sales. In third-quarter 2005, net revenues were $43.5 million, including $41.5 million of Equipment revenues and $2.0 million of Imaging revenues, which included $343,000 of product sales. Equipment gross margins for the quarter rose to 42.5% from 32.0% in third-quarter 2005, and Imaging gross margins increased to 41.1% from 13.8% in third-quarter 2005. Equipment margins improved primarily from lower manufacturing costs, higher average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. for 200 Lean([R]) systems, and higher sales of spares and upgrades. Imaging margins improved primarily as the result of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustments related to closing our prior year government rate audits and a higher percentage of revenue being derived from fully funded development contracts. Consolidated gross margins improved to 42.5% from 31.2% in third-quarter 2005. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter totaled $14.1 million, or 26% of revenues, versus $7.6 million, or 18% of revenues, in third-quarter 2005. Operating expenses increased as the result of higher spending in Equipment related to research and development and business development, provisions for employee profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of and bonus plans, and the inclusion of stock-based compensation expense in third-quarter 2006 results. Net income for the first nine months of 2006 was $25.4 million, or $1.16 per diluted share on 21.9 million weighted-average shares outstanding, which included $2.0 million of non-cash stock-based compensation expense. For the first nine-months of 2005, net income was $6.2 million, or $0.29 per diluted share on 21.1 million weighted-average shares outstanding, which did not include non-cash stock-based compensation expense. Revenues for the first nine months of 2006 were $164.0 million, including $155.7 million of Equipment revenues and $8.3 million of Imaging revenues. Equipment revenues consisted of 29 magnetic media manufacturing systems, disk lubrication systems, equipment upgrades, spares, consumables, and service. Imaging revenues consisted of $7.0 million of research and development contracts and $1.3 million of product sales. In the first nine months of 2005, net revenues were $84.5 million, including $78.4 million of Equipment revenues and $6.1 million of Imaging revenues. Equipment and Imaging gross margins for the first nine-months of 2006 increased to 38.0% and 31.6%, respectively, from 31.2% and 12.7%, respectively, in the first nine months of 2005. Equipment margins for the quarter improved primarily from lower manufacturing costs, higher average selling prices for 200 Lean([R]) systems, and increased sales of spares and upgrades. Imaging margins improved primarily as the result of favorable adjustments related to closing our prior year government rate audits and a higher percentage of revenue being derived from fully funded development contracts. Consolidated gross margins improved to 37.7% from 29.8% in the first nine months of 2005. Order backlog totaled $129.7 million on September 30, 2006, compared to $96.2 million on July 1, 2006, and $65.4 million on October 1, 2005. Backlog as of September 30, 2006, included twenty-four 200 Lean systems Lean manufacturing systems are aimed towards attaining the shortest cycle time by eliminating waste. Instead of allotting resources that would be required for future production, lean manufacturing systems focus on decreasing system response time so that the production system is able to and excludes orders for two 200 Lean systems subsequently received. Intevac Chief Executive Kevin Fairbairn commented: "This was a tremendous quarter for Intevac. We delivered significantly more revenue and net income than we expected at the beginning of the quarter. Our Imaging business significantly improved its financial performance and received its first volume production order for LIVAR LIVAR Laser Illuminated Viewing and Ranging ([R]) cameras. Good progress was made in both Equipment and Imaging in new product development activities that will drive the future growth of the company." Conference Call Information The Company will discuss its financial results in a conference call today at 1:30 p.m. PST PST Paroxysmal supraventricular tachycardia, see there (4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. ). To participate in the teleconference, please call toll-free (800) 291-8929 prior to the start time. For international callers, the dial-in number is (706) 634-0478. You may also listen live via the Internet at the Company's website, www.Intevac.com, under the Investors link, or at www.earnings.com. For those unable to attend, these web sites will host an archive of the call. Additionally, a telephone replay of the call will be available for 48 hours beginning today at 3:30 p.m. PST. You may access the playback Playback could mean:
About Intevac Intevac is the world's leading supplier of disk sputtering A popular method for adhering thin films onto a substrate. Sputtering is done by bombarding a target material with a charged gas (typically argon) which releases atoms in the target that coats the nearby substrate. It all takes place inside a magnetron vacuum chamber under low pressure. equipment to manufacturers of magnetic media used in hard disk drives and a developer and provider of leading edge extreme low light imaging sensors
200 Lean ( [R] ) and LIVAR ( [R] ) are registered trademarks of Intevac, Inc. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion