Intevac, Inc. (Nasdaq: IVAC), a leading supplier of thin-film processing systems, signed a joint development agreement with a major provider of glass and glass-ceramic materials.
“For decades, Intevac has provided the materials science expertise and high-productivity manufacturing platforms that have deposited ultra-durable and highly-precise coatings onto several billion glass substrates in the hard drive industry. Our expertise in producing rugged and highly-precise coatings in high-volume manufacturing environments is well-suited to enable mass production of thin film technologies for the consumer device market,” said Nigel Hunton, president and chief executive office of Intevac. “We offer the engineering know-how, manufacturing capacity, and financial footing to deploy our TRIO platform on a global scale in support of this new partnership. Today marks a key turning point in the future growth trajectory of Intevac, and we are pleased to announce the completion of the definitive agreement, as promised before year-end 2022.”
While specific details of the terms of the partnership will remain confidential, the definitive agreement signed last week includes a five-year period of exclusivity for this key customer, who will deploy the TRIO for consumer electronics applications. In order to maintain exclusivity of the TRIO platform for this market, there is a minimum revenue requirement of approximately $100 million in system sales to Intevac over the five-year period. The selling price and gross margin profile of the TRIO is similar to that of its flagship 200 Lean system. Intevac will continue to develop additional customer relationships for the TRIO for other glass coating applications, such as in the automotive and point-of-sale display markets.
