Intevac, Inc. (NASDAQ:IVAC) Reports 4Q Revenue below Consensus and 1Q11 Guidance below Expectation

Intevac, Inc. (NASDAQ:IVAC) declined 9% to $12.64 after reporting fourth fiscal quarter revenue at $36.2 million below consensus of $37 million with EPS upside versus Street consensus of $0.02 from a R&D tax credit benefit. Shares of the company opened at $12.26 and traded in the range of $12.10-$13.03 with volume of 934,257 shares. Currently, the market capital of the stock stands at $283.63 million with P/E of 9.99. The stock has 52 week trading range of $8.97-$16.29. The Company reported fourth fiscal quarter revenue rose of $36.2 million, an increase of 5.8% year over year from $34.20 million, but below consensus of $37 million. Equipment revenue in the quarter was $26.8 million, with Photonics $9.4 million. Net profit of $1.1 million or 5 cents a share has been posted during the quarter, down 43.88% from $1.96 million or 9 cents a share last year. Analysts had expected profit of 2 cents a share on revenue of $37 million. Earnings per share is slightly higher than consensus due to a lower than expected tax rate (R&D tax credits). Order backlog exiting in the fourth quarter declined from $64.9 million (6 tools) to $46.7 million (4 tools). Backlog as of December 31, 2010 includes two 200 Lean systems, compared to six on October 2, 2010 and ten on December 31, 2009. Gross margin of 40.3% has been recorded during the quarter from 44.6% in the same quarter last year due to both lower Equipment gross margin, and lower Photonics gross margin. Equipment gross margin of 47.7% has been recorded in the quarter from 48.8% a year earlier due to higher mix of system shipments partially offset by improved factory utilization. Photonics gross margin decreased to 19.1% in the quarter from 29.2% last year due to lower margins on tech development programs and higher initial production costs of digital night-vision camera modules The Company also announced that for first quarter of 2011, it expects revenue to be in the range of $13.5 million to $16.5 million with net loss in the range of $0.32 to $0.36 per share, which includes an estimated $900,000 of pre-tax, stock based compensation expense, equivalent to $0.03 per share. Analysts were expecting the Company to report revenue of $28.27 million and loss of $0.08 for first quarter of 2011. Intevac, Inc. (Intevac) provides manufacturing equipment and solutions to the hard disk drive industry and offers solutions to the photovoltaic (PV) and semiconductor industries. The Company operates in two segments: Equipment and Intevac Photonics.
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