Intevac reports sale of two tools for thin-film PV in quarterly results

Californian deposition equipment supplier Intevac has revealed in its second quarter (Q2) and first half (H1) 2016 financials that it has received two orders for the delivery of its thin-film implant tools, building out the firm’s thin-film equipment pipeline to $50 million – its highest since 2010.

Across each of Intevac’s business segments, however (the company also supplies hard drives and display covers), Q2 brought a net loss of $3.5 million following a period of slight profit for Q2 2015.

Revenues across the board for Q2 stood at $14.9 million, down from $20.5 million a year prior, caused by slight contraction in thin-film equipment sales, which fell to $6.1 million in the period between April 1 and June 30. This represented a narrowing of gross margin for the sector to 36.2% compared to 41% in Q2 2015.

More positively, Intevac’s order backlog grew to $75.3 million overall during Q2, with two orders for the company’s ENERGI solar ion implant systems placed as of July 2, the company confirmed, pushing the thin-film pipeline to that $50 million figure.

"In the solar industry, the two implant tools booked reflect an incremental market opportunity for our suite of technology solutions," said Intevac CEO and president Wendell Blonigan. "The second quarter of 2016 marked an inflection point in the execution of our strategic growth initiatives for our thin-film equipment business."

Blonigan added that revenue growth forecast for 2016 stems largely from the thin-film tool segment, but added that this revenue requires customer sign-off before it can be officially recognized. “Timing of customer sign-off can be difficult to predict but, with most of the systems scheduled to ship before year end, a majority of the current thin-film equipment backlog will be received in cash before year end.”

Intevac ended Q2 with $42.2 million on total cash, restricted cash and investments, and $66.1 million in tangible book value. Its shares stood at $0.17 per share, which, adjusted for non-recurring games came to losses of $0.18 per share, beating Wall Street expectations of a loss of $0.27 per share.

For H1, Intevac’s revenues were $28.6 million, of which $11.7 million was derived from thin-film equipment revenues. First half revenues for 2015 were higher, at $40.3 million in total an d $22.1 million for thin-film, the company said.