INTEVAC, INC.

Climate Impact & Sustainability Data (2010)

Decreased orders for 200 Lean disk sputtering systems.
Industry consolidation in hard disk drive, semiconductor, and solar cell manufacturing industries.
Global economic conditions and technological advances in fabrication processes.
Customer concentration.
Long sales cycles for equipment and photonics products.
Intense competition with companies having greater resources.
Dependence on U.S. government contracts.
Risks associated with hazardous materials and environmental regulations.
Potential declines in the fair value of assets.
Liquidity issues with auction rate securities.
Difficulty in recruiting and retaining a highly talented workforce.
Dependence on certain suppliers for parts.
Risks associated with intellectual property rights.
Potential for litigation.
Difficulties in integrating past or future acquisitions.
Business interruptions.
Political instability.
Compliance with Sarbanes-Oxley Act.

Global cost reduction plan implemented in Q4 2008.
Focus on lowering costs, improving efficiencies, and bringing new products to market.
Careful management of working capital.
Diversification strategy into new markets (PV solar cell and semiconductor equipment manufacturing).
Monitoring efforts by the financial markets to find alternative means for restoring the liquidity of ARS investments.
Implementation of network security measures.