Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Industrials

Monday, June 30, 2008

Intevac Receives Order for one 200 Lean(R) Gen II

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Comtex

SANTA CLARA, Calif., Jun 30, 2008 (BUSINESS WIRE) ----Intevac, Inc. (Nasdaq:IVAC) announced today it has received an order for one 200 Lean(R) Gen II magnetic disk sputtering system. This system was shipped in the first quarter of 2008 for evaluation and will be recognized as revenue in the second quarter of 2008. While this system was included in the company's financial guidance for the full year 2008, it was not included in the company's financial guidance for the second quarter.

The 200 Lean Gen II is Intevac's next-generation disk sputtering system, offering improved performance and reliability as well as 25% higher throughput compared to the original 200 Lean. The Gen II enables more magnetic disks to be manufactured per square foot of factory floor space, thereby reducing the overall cost per disk.

"We are pleased to receive sign off on our first 200 Lean Gen II system," commented Kevin Fairbairn, president and chief executive officer of Intevac. "The tool shipped in late March, achieved excellent results, and qualified rapidly."

About Intevac

Intevac was founded in 1991 and has two businesses: Equipment and Imaging Instrumentation.

Equipment Business: Intevac is a leader in the design, manufacture and marketing of high-productivity "lean" manufacturing systems and has been producing "Lean Thinking" platforms since 1994. We are the leading supplier of magnetic media sputtering equipment to the hard disk drive industry and offer advanced etch technology systems to the semiconductor industry.

Imaging Instrumentation Business: Intevac is a leader in the development of leading edge, high-sensitivity imaging products, vision systems and miniature Raman instruments. Markets addressed include military, industrial, physical science and life science.

For more information call 408-986-9888, or visit the company's website at www.intevac.com.

SOURCE: Intevac, Inc.

Intevac, Inc. Jeff Andreson, 408-986-9888 Chief Financial Officer or Claire McAdams, 530-274-0551 Investor Relations

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