Intevac Inc. (NASDAQ:IVAC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 27, 2020 • 04:30 pm ET

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Intevac Inc. (NASDAQ:IVAC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to Intevac's Second Quarter 2020 Financial Results Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, that this conference call is being recorded today, July 27, 2020.

And at this time, I would like to turn the call over to Claire McAdams, Investor Relations for Intevac. Please go ahead.

Executive
Claire McAdams

Thank you, and good afternoon, everyone. Thank you for joining us today to discuss Intevac's financial results for the second quarter of 2020, which ended on June 27. In addition to discussing the company's recent results, we will discuss our outlook looking forward.

Joining me on today's call are Wendell Blonigan, President and Chief Executive Officer; and Jim Moniz, Chief Financial Officer. Wendell will start with a review of our business and our current outlook, then Jim will review second quarter results and provide guidance for the third quarter before turning the call over to Q&A.

I'd like to remind everyone that today's conference call contains certain forward-looking statements, including, but not limited to, statements regarding financial results for the company's most recently completed fiscal quarter, which remains subject to adjustment in connection with the preparation of our Form 10-Q as well as comments regarding future events and projections about the future financial performance of Intevac.

These forward-looking statements are based upon our current expectations, and actual results could differ materially as a result of various risks and uncertainties relating these comments and other risk factors discussed in the documents filed by us with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The contents of this July 27 call include time-sensitive forward-looking statements that represent our projections as of today. We undertake no obligation to update the forward-looking statements made during this conference call.

I will now turn the call over to Wendell.

Executive
Wendell T. Blonigan

Thanks, Claire, and good afternoon. Thank you for joining our Q2 2020 earnings call. I trust and hope all of you and your loved ones are staying healthy and safe. Today, we reported a quarter of strong execution in both our Thin-film Equipment, or TFE, and Photonics operations. Despite the manufacturing limitations and supply chain disruptions faced during the quarter, we delivered a record $12.2 million in Photonics revenue and shipped the two 200 Lean systems in backlog on time, growing our Thin-film Equipment revenue to $16.6 million.

With a blended 40% gross margin and prudent control of operating expenses, we delivered a profitable and positive free cash flow quarter, all while growing our cash balance to $45 million. We were very pleased to report these strong results in light of the stress placed on our operations by the ongoing COVID-19 pandemic.

Our results for the second quarter and continued progress in each of our businesses provides us increasing overall confidence for improved profitability and cash flow this year compared to our outlook on our April earnings call. The number one priority at Intevac has been and continues