Intevac (IVAC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $14.5M, up $4.2M year-over-year, driven by strong HDD upgrade demand and execution in Singapore, with gross margin improving to 38.2% from 24.9% year-over-year.

• Net loss narrowed to $3.3M ($0.12/share) from $4.9M ($0.19/share) in Q2 2023, aided by higher revenues, improved gross profit, and ERC benefits.

• Cash and investments at quarter end were $70.4M, up nearly $5M from Q1, supporting a strong balance sheet and ongoing R&D and market expansion.

• The company is in the early stages of a multi-year HDD upgrade cycle, with 2024 HDD revenue outlook raised to $45M and continued focus on the TRIO platform for advanced coatings.

• Initial TRIO system shipped and installed at a top-tier cover glass finisher in Asia, with ongoing qualification and customer sampling.

Financial highlights

• Q2 2024 revenue: $14.5M; gross margin: 38.2%; operating expenses: $8.8M; net loss: $3.3M ($0.12/share); cash and investments: $70.4M.

• Six-month 2024 revenues were $24.2M, up from $21.8M in 2023; six-month gross margin rose to 40.4% from 33.4%.

• Market capitalization: $100M; share price: $3.61 as of August 2, 2024; no outstanding debt.

• Backlog at end of June was $42.5M, with 48.4% expected to be recognized in 2024.

• Interest and other income for Q2 2024: $0.8M, up from $0.7M year-over-year.

Outlook and guidance

• Q3 2024 revenue projected at $10.5M–$12M, with gross margin expected between 37%–39% and operating expenses at $8.6M–$8.8M.

• Net loss for Q3 projected at $0.14–$0.18 per share.

• Full-year HDD revenue outlook increased to $45M, with expectations for multiple TRIO orders in 2024.

• Revenue from the TRIO platform is expected to begin as product qualifications complete in 2024.

• Cash balance expected to remain around $70M exiting 2024.