Intevac, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 28, 2024. The company achieved net revenues of $28.5 million for the three months ended September 28, 2024, a substantial increase from $17.9 million in the same period of the previous year. For the nine months ended September 28, 2024, net revenues reached $52.7 million, compared to $39.8 million for the corresponding period in 2023. This revenue growth was primarily driven by $15.4 million in cancellation fees related to a previously canceled order, alongside increased sales in technology upgrades, spare parts, and field services.

Despite the revenue increase, Intevac reported a net loss of $2.2 million for the third quarter of 2024, compared to a loss of $1.6 million in the same quarter of 2023. For the nine-month period, the net loss was $7.0 million, an improvement from a loss of $10.3 million in the prior year. The company’s gross profit for the third quarter was $7.1 million, slightly up from $7.0 million in the previous year, while gross margins decreased to 24.8% from 39.1% due to excess and obsolete inventory charges totaling $1.8 million.

Intevac's total assets decreased to $137.0 million as of September 28, 2024, down from $156.5 million at the end of 2023. Cash and cash equivalents also fell to $36.1 million from $51.4 million during the same period. The company’s accumulated deficit worsened to $(72.4 million) from $(65.4 million) at the end of 2023.

Strategically, Intevac has undergone operational realignment, including the elimination of several R&D programs and a focus on its Thin Film Equipment (TFE) segment. The company has also initiated a cost reduction plan, approved on November 7, 2024, aimed at reducing its workforce by approximately 19%. This plan is expected to incur restructuring costs of around $900,000 and yield annual savings of about $5.1 million.

Intevac's backlog as of September 28, 2024, was $44.4 million, a decrease from $46.5 million a year earlier, reflecting the impact of customer cancellations. The company continues to face challenges in the HDD market, with expectations for lower sales in 2024 compared to 2023. Additionally, Intevac has applied for a refund of $2.4 million in Employee Retention Credit benefits, which positively impacted its net income for the nine-month period.