Intevac chairman says outlook for HDD business in 2024-26 ‘changed materially’

Chairman David Dury said, “There is no question that our outlook for the HDD business over the 2024 to 2026 time period has changed materially year-to-date, especially as a result of the recent order cancellations. As we entered 2023, we had a strong outlook for growth, and a return to profitability and positive free cash flow generation expected in our 2024 forecast, which was supported by over $120 million in HDD backlog as well as a minimum revenue requirement for our joint development partner to maintain exclusivity for the TRIO(TM) in the consumer electronics market. With the continued softening of HDD demand and the unprecedented cancellation of a meaningful portion of our order backlog, the board of directors has made the decision to evaluate strategic options for the Company, which includes appointing investment banking firm Houlihan Lokey and a strategic committee within our board to evaluate strategic options to maximize stockholder value. In our view, the Intevac enterprise has significant unrealized value embedded across the range of our products, technology, and customer relationships that we’ve developed over the years, and we believe our current market capitalization does not fully reflect the growth potential of the Company once we get beyond this challenging period.”