Intevac names Kevin Barber as new board chairman

SANTA CLARA, Calif. - Intevac , Inc. (NASDAQ:IVAC), a prominent supplier of thin-film processing systems, has appointed Kevin Barber as the new Chairman of its Board of Directors, effective today. Barber takes over from David S. Dury, who has held the position since 2017 and will continue to serve on the Board until the annual meeting of stockholders in 2025.

Nigel Hunton, President and CEO of Intevac, expressed gratitude towards Dury for his significant contributions as Board Chairman, highlighting his role in the company's key achievements. Hunton also commended Barber's expertise and familiarity with the company, anticipating his continued positive influence on Intevac's growth and shareholder value.

During his tenure, Dury oversaw critical milestones, including strategic appointments to the Board, the hiring of CEO Nigel Hunton in early 2022, and the sale of Photonics in 2021, which streamlined the company's focus. Barber, who has been on Intevac's Board since 2018, brings substantial experience from his time at Synaptics (NASDAQ:SYNA), where he contributed to the growth of the touch and display business to over $1 billion in annual revenue, among other achievements.

Dury expressed his honor in working with Intevac's board and management, and welcomed Barber to his new role. Intevac, established in 1991, has been a key player in the hard disk drive industry and continues to expand its technology for additional markets with its TRIO™ platform.

This leadership transition is part of Intevac's planned succession strategy, and the information is based on a press release statement.

In other recent news, Intevac has exceeded Q2 expectations with strong revenue, reporting nearly $15 million in revenue, a gross margin of over 38%, and a net loss per share at $0.12. The company also increased its HDD revenue forecast for the full year to $45 million, citing rising demand for technology upgrades. Notably, Intevac delivered its first HAMR upgrade to a major data storage company and is making progress on its TRIO platform, expecting 2 to 3 initial orders in the second half of 2024.

In terms of financial health, the company ended Q2 with $70.4 million in cash and investments. However, Q3 projections indicate a revenue between $10.5 million and $12 million, with a gross margin of 37% to 39%, and an anticipated net loss per share of $0.14 to $0.18.

These recent developments also highlight an order backlog of over $42 million at the end of June. While Intevac reported a negative cash flow of $1 million for Q2, the company remains optimistic about its HDD technology and TRIO platform, indicating a positive outlook for the remainder of the year.

InvestingPro Insights

As Intevac (NASDAQ:IVAC) undergoes this significant leadership transition, it's crucial to examine the company's financial health and market position. According to InvestingPro data, Intevac's market capitalization stands at $90.23 million, reflecting its position as a small-cap company in the thin-film processing systems industry.

Despite the challenges faced by the company, there are some positive indicators. An InvestingPro Tip highlights that Intevac holds more cash than debt on its balance sheet, which could provide financial flexibility as the new chairman, Kevin Barber, takes the helm. This strong cash position aligns with another InvestingPro Tip noting that the company's liquid assets exceed its short-term obligations, potentially offering a buffer during this transition period.

However, investors should be aware that Intevac is currently not profitable over the last twelve months, with a negative P/E ratio of -10.77. This financial performance context is important as the new leadership aims to drive growth and shareholder value, as mentioned by CEO Nigel Hunton.

On a more positive note, Intevac has shown significant revenue growth, with a 41.02% increase in quarterly revenue as of Q2 2024. This growth trajectory could be a key focus for the new chairman as he builds upon the company's existing technological strengths in the hard disk drive industry and its expansion into new markets with the TRIO™ platform.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 6 more InvestingPro Tips available for Intevac, which could provide valuable context for understanding the company's future prospects under its new leadership.

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