ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | ☒ | ||||
Non-accelerated filer |
☐ |
Smaller reporting company | ||||
Emerging growth company |
Item 1. |
Business |
TFE Products |
Applications and Features | |
HDD Equipment Market | ||
200 Lean ® Disk Sputtering System |
• Uses PVD and chemical vapor deposition (“CVD”) technologies. • Deposits magnetic films, non-magnetic films and protective carbon-based overcoats.• Provides high-throughput for small-substrate processing. • Over 164 units installed. | |
Upgrades, spares, consumables and services (non-systems business) |
• Upgrades to the installed base to support the continued growth in areal density or reduce the manufacturing cost per disk. | |
DCP Market | ||
INTEVAC VERTEX ® System |
• Utilizes vertical sputtering for multiple film types. • Provides high-throughput for small-substrate processing. • Uses patented carbon deposition source. • Modular design enables expandability. • Enables low-temperature processing. | |
INTEVAC VERTEX ® Spectra System |
• Extension of the VERTEX system. • Incorporates multiple source technologies in a single system. • Uses proprietary ion beam processing for deposition and etching. • Enables unique patterned NCVM and hard AR coatings. | |
INTEVAC VERTEX ® Marathon System |
• Versatile platform for high volume manufacturing of multi-step, multi-layer optical coatings. • Enables diverse coatings - DiamondClad, patterned NCVM and AR films. | |
Solar PV Market | ||
INTEVAC MATRIX PVD System |
• Deposits electrical contacts and conductor layers, reflective layers, and transparent conductive oxide layers, all of which are critical to the efficiency of solar cells. • Includes patented Linear Scanning Magnetic Array (“LSMA”) magnetron source, with industry-leading target utilization rate of over 65 percent. • Provides high-throughput for small-substrate processing. | |
INTEVAC MATRIX Implant System |
• Utilizes the chambers and transport mechanism of the MATRIX platform while using the implant sources from the ENERG i | |
ENERG i ® Implant System |
• Supports both phosphorus and boron dopant technologies. • Extendable to new advanced solar cell structures. |
TFE Products |
Applications and Features | |
ASP Market | ||
INTEVAC MATRIX PVD System |
• Deposits barrier/seed layers for fan-out RDL.• Includes LSMA magnetron source, with industry-leading target utilization rate of over 65 percent. • Provides high-throughput and low cost of ownership for small-substrate or large panel processing. • Provides flexibility for handling round, square, or rectangular substrates for fan-out packaging. | |
Adjacent Markets | ||
INTEVAC MATRIX System |
• Incorporates multiple thin-film deposition techniques such as PVD, CVD, Etch, Implant, heating and cooling. • Consists of high-speed linear transport. • Flexible design enables handling of various different small substrate sizes and shapes. • Performs double-sided coating within vacuum. |
2021 |
2020 |
|||||||
Seagate Technology |
60 | % | 79 | % | ||||
Western Digital Corporation |
25 | % | 18 | % | ||||
Amkor Technology, Inc. |
10 | % | * |
Name |
Age |
Position | ||||
Executive Officers: |
||||||
Nigel D. Hunton |
61 | President and Chief Executive Officer | ||||
James Moniz |
64 | Executive Vice President, Finance and Administration, Chief Financial Officer, Secretary and Treasurer | ||||
Jay Cho |
57 | Executive Vice President and General Manager, TFE | ||||
Other Key Officers: |
||||||
Terry Bluck |
62 | Chief Technology Officer, TFE | ||||
Kimberly Burk |
56 | Senior Vice President, Global Human Resources |
Item 1A. |
Risk Factors |
Item 1B. |
Unresolved Staff Comments |
Item 2. |
Properties |
Location |
Square Footage |
Principal Use | ||||
Santa Clara, California |
169,583 | * | Corporate Headquarters; Marketing, Manufacturing, Engineering and Customer Support | |||
Singapore |
31,947 | Manufacturing and Customer Support | ||||
Malaysia |
1,291 | Customer Support | ||||
Shenzhen, China |
2,568 | Customer Support |
* | In connection with the disposition of our Photonics business, we entered into a lease assignment agreement with EOTECH that assigns the lease obligation for two buildings in our California campus consisting of 94,890 square feet of rentable space to EOTECH. As part of the assignment, we agreed to subsidize a portion of EOTECH’s lease payments through the remainder of the lease term which expires in March 2024. |
Item 3. |
Legal Proceedings |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Item 6. |
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview: |
• | Results of Operations: |
• | Liquidity and Capital Resources: |
• | Critical Accounting Policies and Estimates: |
Fiscal Year |
2021 |
2020 |
Change 2021 vs. 2020 |
|||||||||
(in thousands, except percentages and per share amounts) |
||||||||||||
Net revenues |
$ | 38,524 | $ | 52,128 | $ | (13,604 | ) | |||||
Gross profit |
$ | 7,067 | $ | 22,417 | $ | (15,350 | ) | |||||
Gross margin percent |
18.3 | % | 43.0 | % | (24.7) points | |||||||
Operating loss |
$ | (22,476 | ) | $ | (8,880 | ) | $ | (13,596 | ) | |||
Net loss from continuing operations |
$ | (23,057 | ) | $ | (10,435 | ) | $ | (12,622 | ) | |||
Net income from discontinued operations, net of tax |
$ | 49,677 | $ | 11,491 | $ | 38,186 | ||||||
Net income |
$ | 26,620 | $ | 1,056 | $ | 25,564 | ||||||
Net income per basic and diluted share |
$ | 1.09 | $ | 0.04 | $ | 1.05 |
2021 |
2020 |
Change 2021 vs. 2020 |
||||||||||
(in thousands) |
||||||||||||
Total net revenues |
$ | 38,524 | $ | 52,128 | $ | (13,604 | ) | |||||
|
|
|
|
|
|
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Total backlog |
$ | 24,725 | $ | 5,623 | ||||
|
|
|
|
2021 |
2020 |
|||||||
Seagate Technology |
60 | % | 79 | % | ||||
Western Digital Corporation |
25 | % | 18 | % | ||||
Amkor Technology, Inc. |
10 | % | * |
2021 |
2020 |
|||||||
(in thousands) |
||||||||
United States |
$ | 3,670 | $ | 6,450 | ||||
Asia |
31,004 | 45,611 | ||||||
Europe |
3,850 | 67 | ||||||
|
|
|
|
|||||
Total net revenues |
$ | 38,524 | $ | 52,128 | ||||
|
|
|
|
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands, except percentages) |
||||||||||||
Total gross profit |
$ | 7,067 | $ | 22,417 | $ | (15,350 | ) | |||||
% of net revenues |
18.3 | % | 43.0 | % |
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands) |
||||||||||||
Research and development expense |
$ | 12,176 | $ | 13,205 | $ | (1,029 | ) |
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands) |
||||||||||||
Selling, general and administrative expense |
$ | 17,367 | $ | 18,092 | $ | (725 | ) |
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands) |
||||||||||||
Interest income and other income (expense), net |
$ | (6 | ) | $ | 156 | $ | (162 | ) |
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands) |
||||||||||||
Provision for income taxes |
$ | 575 | $ | 1,711 | $ | (1,136 | ) |
Fiscal Year |
Change 2021 vs. 2020 |
|||||||||||
2021 |
2020 |
|||||||||||
(in thousands) |
||||||||||||
Income from discontinued operations, net of tax |
$ | 49,677 | $ | 11,491 | $ | 38,186 |
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Cash and cash equivalents |
$ | 102,728 | $ | 29,341 | ||||
Restricted cash |
786 | 787 | ||||||
Short-term investments |
10,221 | 14,839 | ||||||
Long-term investments |
7,427 | 5,388 | ||||||
|
|
|
|
|||||
Total cash, cash-equivalents, restricted cash and investments |
$ | 121,162 | $ | 50,355 | ||||
|
|
|
|
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk |
Item 8. |
Financial Statements and Supplementary Data |
Page |
||||
30 | ||||
32 | ||||
33 | ||||
34 | ||||
35 | ||||
36 | ||||
37 |
/s/ BPM LLP |
We have served as the Company’s auditor since 2015. |
|
February 17, 2022 |
January 1, 2022 |
January 2, 2021 |
|||||||
(In thousands, except par value) |
||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
||||||||
Trade and other accounts receivable, net of allowances of $ |
||||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Property, plant and equipment, net |
||||||||
Operating lease right-of-use |
||||||||
Long-term investments |
||||||||
Restricted cash |
||||||||
Deferred income taxes and other long-term assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Current operating lease liabilities |
$ | $ | ||||||
Accounts payable |
||||||||
Accrued payroll and related liabilities |
||||||||
Other accrued liabilities |
||||||||
Customer advances |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Noncurrent liabilities: |
||||||||
Noncurrent operating lease liabilities |
||||||||
Other long-term liabilities |
||||||||
|
|
|
|
|||||
Total noncurrent liabilities |
||||||||
Commitments and contingencies |
||||||||
Stockholders’ equity: |
||||||||
Undesignated preferred stock, $ |
||||||||
Common stock, $ |
||||||||
Authorized shares — |
||||||||
Additional paid-in capital |
||||||||
Treasury stock, |
( |
) | ( |
) | ||||
Accumulated other comprehensive income |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Year Ended, |
||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(In thousands, except per share amounts) |
||||||||
Net revenues |
$ | $ | ||||||
Cost of net revenues |
||||||||
|
|
|
|
|||||
Gross profit |
||||||||
Operating expenses: |
||||||||
Research and development |
||||||||
Selling, general and administrative |
||||||||
|
|
|
|
|||||
Total operating expenses |
||||||||
|
|
|
|
|||||
Operating loss |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Interest income |
||||||||
Other income (expense), net |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loss from continuing operations before provision for income taxes |
( |
) | ( |
) | ||||
Provision for income taxes |
||||||||
|
|
|
|
|||||
Net loss from continuing operations |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Income from discontinued operations: |
||||||||
Income (loss) from Photonics division, net of tax |
( |
) | ||||||
Gain on sale of Photonics division, net of tax |
||||||||
|
|
|
|
|||||
Total income from discontinued operations, net of tax |
||||||||
|
|
|
|
|||||
Net income |
$ | $ | ||||||
|
|
|
|
|||||
Net income (loss) per share: |
||||||||
Basic and diluted—continuing operations |
$ | ( |
) | $ | ( |
) | ||
Basic and diluted—discontinued operations |
$ | $ | ||||||
Basic and diluted—net income |
$ | $ | ||||||
Weighted average shares outstanding: |
||||||||
Basic and diluted |
Year Ended, |
||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(In thousands) |
||||||||
Net income |
$ | $ | ||||||
Other comprehensive income (loss), before tax |
||||||||
Change in unrealized net gain on available-for-sale |
( |
) | ( |
) | ||||
Foreign currency translation gains |
||||||||
|
|
|
|
|||||
Other comprehensive income (loss), before tax |
( |
) | ||||||
Income tax expense related to items in other comprehensive income (loss) |
||||||||
|
|
|
|
|||||
Other comprehensive income (loss), net of tax |
( |
) | ||||||
|
|
|
|
|||||
Comprehensive income |
$ | $ | ||||||
|
|
|
|
Common Stock |
Additional Paid-In Capital |
Treasury Stock |
Accumulated Other Comprehensive Income |
Accumulated Deficit |
Total Stockholders’ Equity |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance at December 28, 2019 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||||
Shares issued in connection with: |
||||||||||||||||||||||||||||||||
Exercise of stock options |
— | — | — | — | — | |||||||||||||||||||||||||||
Settlement of RSUs |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Employee stock purchase plan |
— | — | — | — | ||||||||||||||||||||||||||||
Shares withheld in connection with net share settlement of RSUs |
( |
) | — | ( |
) | — | — | — | — | ( |
) | |||||||||||||||||||||
Equity-based compensation expense |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Common stock repurchases |
( |
) | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at January 2, 2021 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||||
Shares issued in connection with: |
||||||||||||||||||||||||||||||||
Exercise of stock options |
— | — | — | — | — | |||||||||||||||||||||||||||
Settlement of RSUs |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Employee stock purchase plan |
— | — | — | — | ||||||||||||||||||||||||||||
Shares withheld in connection with net share settlement of RSUs |
( |
) | — | ( |
) | — | — | — | — | ( |
) | |||||||||||||||||||||
Equity-based compensation expense |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at January 1 2022 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||||||||
January 1 2022 |
January 2, 2021 |
|||||||
(In thousands) |
||||||||
Operating activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Net amortization (accretion) of investment premiums and discounts |
||||||||
Amortization of intangible assets |
||||||||
Gain on sale of Photonics division |
( |
) | ||||||
Asset impairment charges |
||||||||
Equity-based compensation |
||||||||
Straight-line rent adjustment and amortization of lease incentives |
( |
) | ( |
) | ||||
Deferred income taxes |
||||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
||||||||
Prepaid expenses and other assets |
( |
) | ||||||
Accounts payable |
( |
) | ||||||
Accrued payroll and other accrued liabilities |
( |
) | ||||||
Customer advances |
( |
) | ||||||
|
|
|
|
|||||
Total adjustments |
( |
) | ||||||
|
|
|
|
|||||
Net cash and cash equivalents provided by operating activities |
||||||||
Investing activities |
||||||||
Purchase of investments |
( |
) | ( |
) | ||||
Proceeds from sales and maturities of investments |
||||||||
Proceeds from sale of Photonics division |
— | |||||||
Purchase of leasehold improvements and equipment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash and cash equivalents provided by (used in) investing activities |
( |
) | ||||||
Financing activities |
||||||||
Proceeds from issuance of common stock |
||||||||
Common stock repurchases |
( |
) | ||||||
Taxes paid related to net share settlement |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash and cash equivalents provided by financing activities |
||||||||
Effect of exchange rate changes on cash |
||||||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
||||||||
Cash, cash equivalents and restricted cash at beginning of period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
$ | $ | ||||||
|
|
|
|
|||||
Cash paid (received) for: |
||||||||
Income taxes |
$ | $ | ||||||
Income tax refund |
$ | ( |
) | $ | ( |
) |
Foreign currency |
Unrealized holding gains (losses) on available-for-sale investments |
Total |
||||||||||
(in thousands) |
||||||||||||
Balance at December 28, 2019 |
$ | |
$ | |
$ | |
||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) before reclassification |
( |
) | ||||||||||
Amounts reclassified from other comprehensive income (loss) |
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net current-period other comprehensive income (loss) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Balance at January 2, 2021 |
||||||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) before reclassification |
( |
) | ( |
) | ||||||||
Amounts reclassified from other comprehensive income (loss) |
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net current-period other comprehensive income (loss) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Balance at January 1, 2022 |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
Cash proceeds |
$ | |||
Working capital adjustment |
( |
) | ||
|
|
|||
Assets sold: |
||||
Accounts receivable |
||||
Inventories |
||||
Other current assets |
||||
Property, plant and equipment |
||||
|
|
|||
Total assets sold |
||||
Liabilities divested: |
||||
Accounts payable |
||||
Other accrued expenses |
||||
|
|
|||
Total liabilities divested |
||||
Transaction and other costs |
( |
) | ||
|
|
|||
Gain on sale |
$ | |||
|
|
Year Ended, |
||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(In thousands, except per share amounts) |
||||||||
Net revenues: |
||||||||
Systems and components |
$ | $ | ||||||
Technology development |
||||||||
|
|
|
|
|||||
Total net revenues |
||||||||
Cost of net revenues: |
||||||||
Systems and components |
||||||||
Technology development |
||||||||
|
|
|
|
|||||
Total cost of net revenues |
||||||||
Gross profit |
Year Ended, |
||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(In thousands, except per share amounts) |
||||||||
Operating expenses: |
||||||||
Research and development |
||||||||
Selling, general and administrative |
||||||||
Asset impairment and restructuring charges |
||||||||
|
|
|
|
|||||
Total operating expenses |
||||||||
|
|
|
|
|||||
Operating income (loss)—discontinued operations |
( |
) | ||||||
Other income (expense)—discontinued operations |
||||||||
|
|
|
|
|||||
Income (loss) discontinued operations before provision for (benefit from) income taxes |
( |
) | ||||||
Gain on disposal of discontinued operations before income taxes |
||||||||
|
|
|
|
|||||
Total income from discontinued operations, before tax |
||||||||
Provision for (benefit from) income taxes |
||||||||
|
|
|
|
|||||
Net income from discontinued operations net of tax |
$ | $ | ||||||
|
|
|
|
2021 |
2020 |
|||||||
(in thousands) |
||||||||
Depreciation and amortization |
$ | $ | ||||||
Amortization of intangible assets |
$ | $ | ||||||
Asset impairment charges |
$ | $ | ||||||
Equity-based compensation |
$ | $ | ||||||
Purchase of leasehold improvements and equipment |
$ | $ |
2021 |
2020 |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||
HDD |
DCP |
PV |
ASP |
Total |
HDD |
PV |
Total |
|||||||||||||||||||||||||
Systems, upgrades and spare parts | $ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Field service | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total TFE net revenues |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
2020 |
|||||||
(in thousands) |
||||||||
United States |
$ | $ | ||||||
Asia |
||||||||
Europe |
||||||||
|
|
|
|
|||||
Total net revenues |
$ | $ | ||||||
|
|
|
|
2021 |
2020 |
|||||||
(in thousands) |
||||||||
Products transferred at a point in time | $ |
$ |
||||||
Products and services transferred over time | ||||||||
Total net revenues |
$ | $ | ||||||
January 1, 2022 |
January 2, 2021 |
Change |
||||||||||
(In thousands) |
||||||||||||
TFE: |
||||||||||||
Contract assets: |
||||||||||||
Accounts receivable, unbilled |
$ | $ | $ | ( |
) | |||||||
Contract liabilities: |
||||||||||||
Deferred revenue |
$ | $ | $ | ( |
) | |||||||
Customer advances |
||||||||||||
$ | $ | $ | ||||||||||
Photonics (included in discontinued operations): |
||||||||||||
Contract assets: |
||||||||||||
Accounts receivable, unbilled |
$ | $ | $ | ( |
) | |||||||
Retainage |
( |
) | ||||||||||
$ | $ | $ | ( |
) | ||||||||
Contract liabilities: |
||||||||||||
Deferred revenue |
$ | $ | $ | ( |
) | |||||||
2021 |
2020 |
|||||||
Equity-based compensation by type of award: |
||||||||
Stock options | $ |
$ |
||||||
RSUs |
||||||||
Employee stock purchase plan |
||||||||
|
|
|
|
|||||
Total equity-based compensation * |
$ | $ | ||||||
|
|
|
|
2021 |
2020 |
|||||||
Stock Options: |
||||||||
Weighted-average fair value of grants per share |
$ | |||||||
Expected volatility |
% | |||||||
Risk free interest rate | ||||||||
Expected term of options (in years) |
— | |||||||
Dividend yield |
None |
Shares |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value |
|||||||||||||
Options outstanding at January 2, 2021 |
$ | $ | ||||||||||||||
Options cancelled and forfeited |
( |
) | $ | |||||||||||||
Options exercised |
( |
) | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Options outstanding at January 1, 2022 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Options exercisable at January 1, 2022 |
$ | $ |
Shares |
Weighted Average Grant Date Fair Value |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value |
|||||||||||||
Non-vested RSUs at January 2, 2021 |
$ | $ | ||||||||||||||
Granted |
$ | |||||||||||||||
Vested |
( |
) | $ | |||||||||||||
Cancelled |
( |
) | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-vested RSUs at January 1, 2022 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
2021 |
||||
Weighted-average fair value of grants per share |
$ | |||
Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Dividend yield |
2020 |
||||
Weighted-average fair value of grants per share |
$ | |||
Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Dividend yield |
2021 |
2020 |
|||||||
Stock Purchase Rights: |
||||||||
Weighted-average fair value of grants per share |
$ | $ | ||||||
Expected volatility |
% | % | ||||||
Risk free interest rate |
% | % | ||||||
Expected term of purchase rights (in years) |
||||||||
Dividend yield |
2021 |
2020 |
|||||||
(in thousands, except per share amounts) |
||||||||
Shares purchased |
||||||||
Weighted-average purchase price per share |
$ | $ | ||||||
Aggregate intrinsic value of purchase rights exercised |
$ | $ |
2021 |
2020 |
|||||||
(in thousands, except per share amounts) |
||||||||
Net loss from continuing operations |
$ | ( |
) | $ | ( |
) | ||
Net income from discontinued operations, net of tax |
||||||||
|
|
|
|
|||||
Net income |
$ | $ | ||||||
|
|
|
|
|||||
Weighted-average shares – basic |
||||||||
Effect of dilutive potential common shares |
||||||||
|
|
|
|
|||||
Weighted-average shares – diluted |
||||||||
|
|
|
|
|||||
Basic and diluted net income (loss) per share: |
||||||||
Continuing operations |
$ | ( |
) | $ | ( |
) | ||
Discontinued operations |
$ | $ | ||||||
Net income per share |
$ | $ |
2021 |
2020 |
|||||||
Seagate Technology |
% | % | ||||||
Western Digital Corporation |
% | % | ||||||
Amkor Technology, Inc. |
% | * | ||||||
U.S. Government (included in discontinued operations). |
— | % |
* | Less than 10% |
2021 |
2020 |
|||||||
Seagate Technology |
% | % | ||||||
Western Digital Corporation |
% | % | ||||||
Amkor Technology, Inc. |
% | * |
* | Less than 10% |
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Trade receivables and other |
$ | $ | ||||||
Unbilled costs and accrued profits |
||||||||
Less: allowance for doubtful accounts |
||||||||
$ | $ | |||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Raw materials |
$ | $ | ||||||
Work-in-progress |
||||||||
Finished goods |
— | |||||||
$ | $ | |||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Leasehold improvements |
$ | $ | ||||||
Machinery and equipment |
||||||||
Less accumulated depreciation and amortization |
||||||||
Total property, plant and equipment, net |
$ | $ | ||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
United States |
$ | $ | ||||||
Asia |
||||||||
Net property, plant & equipment |
$ | $ | ||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Deferred income taxes |
$ | $ | ||||||
Prepaid expenses |
||||||||
$ | $ | |||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Other taxes payable |
$ | $ | ||||||
Litigation settlement |
— | |||||||
Income taxes payable |
||||||||
Restructuring |
— | |||||||
Accrued product warranties |
||||||||
Other |
||||||||
Deferred revenue |
||||||||
Total other accrued liabilities |
$ | $ | ||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Restructuring |
$ | $ | — | |||||
Accrued product warranties |
||||||||
Employer payroll taxes |
— | |||||||
Total other long-term liabilities |
$ | $ | ||||||
January 1, 2022 |
||||||||||||||||
Amortized Cost |
Unrealized Holding Gains |
Unrealized Holding Losses |
Fair Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||
Cash |
$ | $ | — | $ | — | $ | ||||||||||
Money market funds |
— | — | ||||||||||||||
Total cash and cash equivalents |
$ | $ | — | $ | — | $ | ||||||||||
Short-term investments: |
||||||||||||||||
Certificates of deposit |
$ | $ | — | $ | — | $ | ||||||||||
Commercial paper |
— | — | ||||||||||||||
Corporate bonds and medium-term notes |
— | |||||||||||||||
Municipal bonds |
— | — | ||||||||||||||
U.S. treasury securities |
— | |||||||||||||||
Total short-term investments |
$ | $ | — | $ | $ | |||||||||||
Long-term investments: |
||||||||||||||||
Asset backed securities |
$ | $ | — | $ | $ | |||||||||||
Certificates of deposit |
— | |||||||||||||||
Corporate bonds and medium-term notes |
— | |||||||||||||||
Municipal bonds |
— | |||||||||||||||
U.S. treasury securities |
— | |||||||||||||||
Total long-term investments |
$ | $ | — | $ | $ | |||||||||||
Total cash, cash equivalents, and investments |
$ | $ | — | $ | $ | |||||||||||
January 2, 2021 |
||||||||||||||||
Amortized Cost |
Unrealized Holding Gains |
Unrealized Holding Losses |
Fair Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||
Cash |
$ | $ | — | $ | — | $ | ||||||||||
Money market funds |
— | — | ||||||||||||||
Certificates of deposit |
— | — | ||||||||||||||
Total cash and cash equivalents |
$ | $ | — | $ | — | $ | ||||||||||
Short-term investments: |
||||||||||||||||
Certificates of deposit |
$ | $ | $ | — | $ | |||||||||||
Commercial paper |
— | — | ||||||||||||||
Corporate bonds and medium-term notes |
— | |||||||||||||||
Municipal bonds |
— | — | ||||||||||||||
U.S. treasury securities |
— | |||||||||||||||
Total short-term investments |
$ | $ | $ | — | $ | |||||||||||
Long-term investments: |
||||||||||||||||
Certificates of deposit |
$ | $ | — | $ | — | $ | ||||||||||
Corporate bonds and medium-term notes |
— | |||||||||||||||
U.S. treasury securities |
— | |||||||||||||||
Total long-term investments |
$ | $ | $ | — | $ | |||||||||||
Total cash, cash equivalents, and investments |
$ | $ | $ | — | $ | |||||||||||
Amortized Cost |
Fair Value |
|||||||
(in thousands) |
||||||||
Due in one year or less |
$ | $ | ||||||
Due after one through five years |
||||||||
$ | $ | |||||||
January 1, 2022 |
||||||||||||||||
In Loss Position for Less than 12 Months |
In Loss Position for Greater than 12 Months |
|||||||||||||||
Fair Value |
Gross Unrealized Losses |
Fair Value |
Gross Unrealized Losses |
|||||||||||||
(In thousands) |
||||||||||||||||
Asset backed securities |
$ | $ | $ | — | $ | — | ||||||||||
Certificates of deposit |
— | — | ||||||||||||||
Corporate bonds and medium-term notes |
— | — | ||||||||||||||
Municipal bond |
— | — | ||||||||||||||
U.S. treasury securities |
— | — | ||||||||||||||
$ | $ | $ | — | $ | — | |||||||||||
Fair Value Measurements at January 1, 2022 |
||||||||||||
Total |
Level 1 |
Level 2 |
||||||||||
(in thousands) |
||||||||||||
Recurring fair value measurements: |
||||||||||||
Money market funds |
$ | $ | $ | — | ||||||||
U.S. treasury securities |
— | |||||||||||
Asset backed securities |
— | |||||||||||
Certificates of deposit |
— | |||||||||||
Commercial paper |
— | |||||||||||
Corporate bonds and medium-term notes |
— | |||||||||||
Municipal bonds |
— | |||||||||||
Total recurring fair value measurements |
$ | $ | $ | |||||||||
Notional Amounts |
Derivative Assets |
Derivative Liabilities |
||||||||||||||||||||||
Derivative Instrument |
January 1, 2022 |
January 2, 2021 |
January 1, 2022 |
January 2, 2021 |
||||||||||||||||||||
Balance Sheet Line |
Fair Value |
Balance Sheet Line |
Fair Value |
|||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Undesignated Hedges: |
||||||||||||||||||||||||
Forward Foreign Currency Contracts |
$ | a |
$ | b |
$ | |||||||||||||||||||
Total Hedges |
$ | $ | $ | |||||||||||||||||||||
a | Other current assets |
b | Other accrued liabilities |
2021 |
2020 |
|||||||
(in thousands, except per share amounts) |
||||||||
Shares of common stock repurchased |
||||||||
Cost of stock repurchased |
$ | $ | ||||||
Average price paid per share |
$ | $ |
2021 |
2020 |
|||||||
Federal: |
||||||||
Current |
$ | $ | ( |
) | ||||
Deferred |
||||||||
( |
) | |||||||
State: |
||||||||
Current |
||||||||
Deferred |
||||||||
Foreign: |
||||||||
Current |
||||||||
Deferred |
||||||||
Total |
$ | $ | ||||||
Income taxes on discontinued operations |
$ | $ | ||||||
Income taxes on continuing operations |
$ | $ |
2021 |
2020 |
|||||||
U.S |
$ | ( |
) | $ | ( |
) | ||
Foreign |
||||||||
$ | ( |
) | $ | ( |
) | |||
Effective tax rate |
( |
%) | ( |
%) | ||||
January 1, 2022 |
January 2, 2021 |
|||||||
Deferred tax assets: |
||||||||
Vacation, warranty and other accruals |
$ | $ | ||||||
Intangible amortization |
||||||||
Purchased technology |
||||||||
Inventory valuation |
||||||||
Equity-based compensation |
||||||||
Lease liability |
||||||||
Net operating loss, research and other tax credit carryforwards |
||||||||
Other |
||||||||
Valuation allowance for deferred tax assets |
( |
) | ( |
) | ||||
Total deferred tax assets |
||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
Deferred tax liabilities: |
||||||||
Depreciation and amortization |
( |
) | ( |
) | ||||
ROU asset |
( |
) | ||||||
Unbilled revenue |
( |
) | ||||||
Total deferred tax liabilities |
( |
) | ( |
) | ||||
Net deferred tax assets |
$ | $ | ||||||
As reported on the consolidated balance sheets: |
||||||||
Non-current deferred tax assets |
$ | $ | ||||||
2021 |
2020 |
|||||||
Income tax at the federal statutory rate |
$ | ( |
) | $ | ( |
) | ||
State income taxes, net of federal benefit |
||||||||
Change in valuation allowance: |
||||||||
U.S |
||||||||
Foreign |
— | |||||||
Effect of foreign operations taxed at various rates |
( |
) | ||||||
Research tax credits |
( |
) | ( |
) | ||||
Effect of tax rate changes, permanent differences and adjustments of prior deferrals |
||||||||
Unrecognized tax benefits |
||||||||
Total income tax expense on continuing operations |
$ | $ | ||||||
2021 |
2020 |
|||||||
Beginning balance |
$ | $ | ||||||
Additions based on tax positions related to the current year |
||||||||
Decreases for tax positions of prior years |
( |
) | ||||||
Lapse of statute of limitations |
( |
) | ( |
) | ||||
Ending balance |
$ | $ | ||||||
January 1, 2022 |
January 2, 2021 |
|||||||
(in thousands) |
||||||||
Assets: |
||||||||
Operating lease ROU assets |
$ | $ | ||||||
Liabilities: |
||||||||
Current operating lease liabilities |
$ | $ | ||||||
Noncurrent operating lease liabilities |
||||||||
$ | $ | |||||||
2021 |
2020 |
|||||||
(in thousands) |
||||||||
Operating lease cost |
$ | $ | ||||||
Short-term lease cost |
||||||||
Total lease cost |
$ | $ | ||||||
Continuing Operations |
Discontinued Operations |
Total |
||||||||||
(in thousands) |
||||||||||||
2022 |
$ | $ | $ | |||||||||
2023 |
||||||||||||
2024 |
||||||||||||
Total lease payments |
$ | $ | ||||||||||
Less: Interest |
( |
) | ( |
) | ( |
) | ||||||
Present value of lease liabilities |
$ | $ | ||||||||||
January 1, 2022 |
January 2, 2021 |
|||||||
Weighted-average remaining lease term (in years) |
||||||||
Weighted-average discount rate |
% | % |
2021 |
2020 |
|||||||
(in thousands) |
||||||||
Operating cash outflows from operating leases |
$ | $ | ||||||
|
|
|
|
|||||
ROU asset impairment expense (reported in discontinued operations) |
$ | $ | — | |||||
|
|
|
|
|||||
ROU assets obtained in exchange for new operating lease liabilities |
$ | — | $ | |||||
|
|
|
|
2021 |
2020 |
|||||||
(in thousands) |
||||||||
Beginning balance |
$ | $ | ||||||
Expenditures incurred under warranties |
( |
) | ( |
) | ||||
Expenditures incurred under warranties included in discontinued operations |
( |
) | ( |
) | ||||
Accruals for product warranties |
||||||||
Accruals for product warranties included in discontinued operations |
||||||||
Adjustments to previously existing warranty accruals |
( |
) | ||||||
Adjustments to previously existing warranty accruals included in discontinued operations |
( |
) | ( |
) | ||||
Sale of Photonics division |
( |
) | — | |||||
|
|
|
|
|||||
Ending balance |
$ | $ | ||||||
|
|
|
|
Employee Termination Costs |
Other Exit Costs |
Total |
||||||||||
(in thousands) |
||||||||||||
Balance at December 28, 2019 |
$ | $ | $ | |||||||||
Provision for restructuring charges under the 2020 Cost Reduction Plan |
||||||||||||
Cash payments made |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Balance at January 2, 2021 |
$ | $ | $ | |||||||||
Provision for restructuring charges under the 2021 Cost Reduction Plan |
— | |||||||||||
Cash payments made |
( |
) | ( |
) | ||||||||
Provision for restructuring charges associated with Photonics sale (a) |
||||||||||||
Cash payments made |
( |
) | — | ( |
) | |||||||
Non-cash utilization |
( |
)(b) | ( |
)(c) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at January 1, 2022 |
$ | (d) | $ | $ | ||||||||
|
|
|
|
|
|
Item 9. |
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A. |
Controls and Procedures |
Item 9B. |
Other Information |
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Item 11. |
Executive Compensation |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
Item 14. |
Principal Accountant Fees and Services |
Item 15. |
Exhibits and Financial Statement Schedules |
(1) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed July 23, 2007 |
(2) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed March 15, 2012 |
(3) | Previously filed as an exhibit to the Registration Statement on Form S-1 (No. 33-97806) |
(4) | Previously filed as an exhibit to the Company’s Form 10-K filed February 12, 2020 |
(5) | Previously filed as an exhibit to the Company’s Form 10-Q filed May 3, 2011 |
(6) | Previously filed as an exhibit to the Company’s Definitive Proxy Statement filed April 7, 2020. |
(7) | Previously filed as an exhibit to the Company’s Definitive Proxy Statement filed April 11, 2018 |
(8) | Previously filed as an exhibit to the Company’s Form 10-Q filed May 1, 2012 |
(9) | Previously filed as an exhibit to the Company’s Form 10-Q filed July 30, 2019 |
(10) | Previously filed as an exhibit to the Company’s Form 10-Q filed April 29, 2014 |
(11) | Previously filed as an exhibit to the Registration Statement on Form S-8 filed May 14, 2020 (No. 33-238262) |
(12) | Previously filed as an exhibit to the Company’s Form 10-Q filed August 3, 2021 |
(13) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed January 20, 2022 |
(14) | Previously filed as an exhibit to the Company’s Form 10-K filed March 14, 2008 |
(15) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed February 1, 2022 |
(16) | Previously filed as an exhibit to the Company’s Form 10-Q filed October 28, 2014 |
(17) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed October 31, 2014 |
(18) | Previously filed as an exhibit to the Company’s Form 10-Q filed May 1, 2018 |
(19) | Previously filed as an exhibit to the Company’s Report on Form 8-K filed January 3, 2022 |
(20) | Previously filed as an exhibit to the Company’s Definitive Proxy Statement filed April 14, 2021 |
(P) | Paper exhibit. |
+ | Management compensatory plan or arrangement |
INTEVAC, INC. |
/s/ JAMES MONIZ |
James Moniz |
Executive Vice President, Finance and Administration |
Chief Financial Officer, Secretary and Treasurer |
Signature |
Title |
Date | ||
/s/ NIGEL D. HUNTON |
President, |
February 17, 2022 | ||
(Nigel D. Hunton) |
Chief Executive Officer and Director (Principal Executive Officer) |
|||
/s/ JAMES MONIZ |
Executive Vice President, Finance and |
February 17, 2022 | ||
(James Moniz) |
Administration, Chief Financial Officer, Secretary and Treasurer (Principal Financial and Accounting Officer) |
|||
/s/ DAVID S. DURY |
Chairman of Board |
February 17, 2022 | ||
(David S. Dury) |
||||
/s/ KEVIN D. BARBER |
Director |
February 17, 2022 | ||
(Kevin D. Barber) |
||||
/s/ DOROTHY D. HAYES |
Director |
February 17, 2022 | ||
(Dorothy D. Hayes) |
||||
/s/ STEPHEN A. JAMISON |
Director |
February 17, 2022 | ||
(Stephen A. Jamison) |
||||
/s/ MICHELE F. KLEIN |
Director |
February 17, 2022 | ||
(Michele F. Klein) |
||||
/s/ MARK P. POPOVICH |
Director |
February 17, 2022 | ||
(Mark P. Popovich) |
||||
/s/ THOMAS M. ROHRS |
Director |
February 17, 2022 | ||
(Thomas M. Rohrs) |