24/7 Market News Snapshot 12 December, 2024 – Intevac Inc (NASDAQ:IVAC)

December 12, 2024

DENVER, Colo., 12 December, 2024 (247marketnews.com) – (NASDAQ:IVAC) are discussed in this article.
Intevac Inc. is making notable strides in the financial arena, showcasing impressive stock performance and significant strategic developments. The company opened trading today at $3.18, experiencing a remarkable surge to $3.54, signifying a gain of over 25% in just one session following a previous close of $2.83. This notable rise has been accompanied by a trading volume of 599.60K, indicating strong investor enthusiasm and positive market momentum for IVAC.

In line with its robust financial trajectory, Intevac revealed that it expects to maintain a solid cash position between $70 and $72 million by year-end. The company has also set an optimistic revenue forecast for 2025, projecting figures between $52 and $55 million. To further enhance shareholder value, Intevac’s Board of Directors has approved the introduction of quarterly dividends of $0.05 per share, starting in the first quarter of 2025. Chairman Kevin Barber stated, “The strength of Intevac allows us to commence a capital distribution to our shareholders,” underscoring the company’s confidence in its growth prospects.

Amid these positive developments, Intevac is also implementing a strategic restructuring aimed at refocusing its resources on the Hard Disk Drive (HDD) sector. This shift follows a period of underperformance in the TRIO technology segment, which has led to a one-time charge associated with its closure. However, this change is projected to yield annualized savings that will positively impact profitability.

CEO Nigel Hunton articulated an enhanced outlook for the HDD business, forecasting approximately $200 million in revenues over the next three years, driven by advancements in heat-assisted magnetic recording (HAMR) technology. Intevac has enlisted investment banking firm Houlihan Lokey to evaluate strategic alternatives that could maximize shareholder value, reflecting the company’s commitment to long-term growth and success in an evolving market landscape.

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