Intevac Inc. has a market cap of $326.7 million; its shares were traded at around $14.7 with and P/S ratio of 4.2. IVAC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Intevac Photonics revenue for the three months ended April 3, 2010 consisted of $4.2 million of research and development contract revenue and $3.4 million of product sales. Intevac Photonics revenue for the three months ended March 28, 2009 consisted of $3.6 million of research and development contract revenue and $2.6 million of product sales. The increase in product revenue resulted from higher sales of digital night vision camera modules and commercial products. The increase in contract research and development revenue was the result of a higher volume of contracts. Intevac expects that in 2010, Intevac Photonics revenues will grow driven by government spending as well as growth in commercial products. Substantial growth in future Intevac Photonics revenues is dependent on proliferation of Intevacs technology into major military programs, continued defense spending, the ability to obtain export licenses
Intevacs backlog of orders at April 3, 2010 was $152.3 million, as compared to $73.8 million at December 31, 2009 and $17.0 million at March 28, 2009. The $152.3 million of backlog at April 3, 2010 consisted of $130.1 million of Equipment backlog and $22.1 million of Intevac Photonics backlog. The $73.8 million of backlog at December 31, 2009 consisted of $57.5 million of Equipment backlog and $16.3 million of Intevac Photonics backlog. Backlog at April 3, 2010 included twenty-six 200 Lean systems compared to ten at December 31, 2009 and one at March 28, 2009.
Research and development spending decreased in both Equipment and Intevac Photonics during the three months ended April 3, 2010 as compared to the three months ended March 28, 2009. The decrease in Equipment spending was due primarily to a reduction in spending on the Lean Etch product line and lower equity-based compensation expense offset in part by increased PV development, and bonus and profit sharing accruals. The decrease in Intevac Photonics research and development reflected a higher volume of billable contract research and development efforts, offset in part by bonus and profit sharing accruals. Research and development expenses do not include costs of $2.8 million and $2.0 million for the three-month periods ended April 3, 2010 and March 28, 2009, respectively, which are related to Intevac Photonics contract research and development and included in cost of net revenues.
At April 3, 2010, Intevac had $112.7 million in cash, cash equivalents, and investments compared to $89.8 million at December 31, 2009. During the first three months of 2010, cash and cash equivalents and investments increased by $22.8 million due primarily to cash generated by operating activities and cash received from the sale of Intevac common stock to Intevacs employees through Intevacs employee benefit plans, partially offset by purchases of fixed assets.
Accounts receivable totaled $32.8 million at April 3, 2010, compared to $44.8 million at December 31, 2009. The decrease of $12.0 million in the receivable balance was due to collection of customer deposit invoices. Total net inventories increased to $30.2 million at April 3, 2010, compared to $19.1 million at December 31, 2009 primarily as a result of increased business levels. Accounts payable increased to $15.5 million at April 3, 2010 compared to $4.7 million at December 31, 2009 in line with increased manufacturing activities. Accrued payroll and related liabilities increased by $2.6 million during the three months ended April 3, 2010 primarily related to bonus and profit sharing accruals. Customer advances increased by $12.5 million during the first three months of 2010, as new advances received from Intevacs customers were higher than liquidations related to revenue recognition.
Investing activities in the first three months of 2010 generated cash of $2.5 million. Proceeds from maturities of investments, net of purchases of investments totaled $3.3 million. Capital expenditures for the three months ended April 3, 2010 were $791,000.
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