IVAC » Topics » Inventories

These excerpts taken from the IVAC 10-K filed Mar 4, 2009.
Inventories
 
Inventories are priced using average actual costs and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand. Intevac evaluates the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments for excess or obsolete inventory might be required, which could have a material adverse effect on Intevac’s business, financial condition and results of operations.
 
Inventories
 
Inventories are priced using average actual costs and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand. Intevac evaluates the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments for excess or obsolete inventory might be required, which could have a material adverse effect on Intevac’s business, financial condition and results of operations.
 
Inventories
 
Inventories are priced using average actual costs and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand. Intevac evaluates the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments for excess or obsolete inventory might be required, which could have a material adverse effect on Intevac’s business, financial condition and results of operations.
 
Inventories


 



Inventories are priced using average actual costs and are stated
at the lower of cost or market. The carrying value of inventory
is reduced for estimated obsolescence by the difference between
its cost and the estimated market value based upon assumptions
about future demand. Intevac evaluates the inventory carrying
value for potential excess and obsolete inventory exposures by
analyzing historical and anticipated demand. In addition,
inventories are evaluated for potential obsolescence due to the
effect of known and anticipated engineering change orders and
new products. If actual demand were to be substantially lower
than estimated, additional inventory adjustments for excess or
obsolete inventory might be required, which could have a
material adverse effect on Intevac’s business, financial
condition and results of operations.


 




Inventories


 



Inventories are priced using average actual costs and are stated
at the lower of cost or market. The carrying value of inventory
is reduced for estimated obsolescence by the difference between
its cost and the estimated market value based upon assumptions
about future demand. Intevac evaluates the inventory carrying
value for potential excess and obsolete inventory exposures by
analyzing historical and anticipated demand. In addition,
inventories are evaluated for potential obsolescence due to the
effect of known and anticipated engineering change orders and
new products. If actual demand were to be substantially lower
than estimated, additional inventory adjustments for excess or
obsolete inventory might be required, which could have a
material adverse effect on Intevac’s business, financial
condition and results of operations.


 




Inventories


 



Inventories are priced using average actual costs and are stated
at the lower of cost or market. The carrying value of inventory
is reduced for estimated obsolescence by the difference between
its cost and the estimated market value based upon assumptions
about future demand. Intevac evaluates the inventory carrying
value for potential excess and obsolete inventory exposures by
analyzing historical and anticipated demand. In addition,
inventories are evaluated for potential obsolescence due to the
effect of known and anticipated engineering change orders and
new products. If actual demand were to be substantially lower
than estimated, additional inventory adjustments for excess or
obsolete inventory might be required, which could have a
material adverse effect on Intevac’s business, financial
condition and results of operations.


 




Inventories
 
Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis.
 
Inventories
 
Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis.
 
Inventories
 
Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis.
 
Inventories


 



Inventories are generally stated at the lower of cost or market,
with cost determined on an average cost basis.


 




Inventories


 



Inventories are generally stated at the lower of cost or market,
with cost determined on an average cost basis.


 




Inventories


 



Inventories are generally stated at the lower of cost or market,
with cost determined on an average cost basis.


 




This excerpt taken from the IVAC 10-Q filed May 8, 2008.
Inventories
 
Inventories are priced using average actual costs and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering changes and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost-to-market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
These excerpts taken from the IVAC 10-K filed Mar 17, 2008.
Inventories
 
In fiscal 2007, we changed our accounting method for valuing inventory from a standard cost system, which approximated first-in, first-out, to the average actual cost method. The new method of accounting for inventory is deemed preferable as we moved from a system which approximated a GAAP valuation method to a GAAP valuation method. The change in inventory accounting method did not have a material impact on any of the periods presented herein.


46


Table of Contents

 
INTEVAC, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
Inventories are stated at the lower of average cost or market and consist of the following:
 
                 
    December 31,  
    2007     2006  
    (In thousands)  
 
Raw materials
  $ 13,666     $ 19,906  
Work-in-progress
    6,191       12,271  
Finished goods
    2,276       5,765  
                 
    $ 22,133     $ 37,942  
                 
 
Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing.
 
Inventory reserves included in the above numbers were $7.8 million and $9.1 million at December 31, 2007 and 2006, respectively. Each quarter, we analyze our inventory (raw materials, work-in-progress and finished goods) against the forecast demand for the next 12 months. Raw materials with no forecast requirements in that period are considered excess and inventory provisions are established to write those items down to zero net book value. Work-in-progress and finished goods inventories with no forecast requirements in that period are typically written down to the lower of cost or market. During this process, some inventory is identified as having no future use or value to us and is disposed of against the reserves.
 
The following table displays the activity in the inventory provision account for 2007 and 2006:
 
                 
    2007     2006  
    (In thousands)  
 
Beginning balance
  $ 9,128     $ 10,988  
New provisions in cost of sales
    862       1,527  
New provisions for refurbishment of consigned products
    139       10  
Disposals of inventory
    (2,395 )     (3,355 )
Miscellaneous adjustments
    16       (42 )
                 
Ending balance
  $ 7,750     $ 9,128  
                 
 
Inventories


 



In fiscal 2007, we changed our accounting method for valuing
inventory from a standard cost system, which approximated
first-in,
first-out, to the average actual cost method. The new method of
accounting for inventory is deemed preferable as we moved from a
system which approximated a GAAP valuation method to a GAAP
valuation method. The change in inventory accounting method did
not have a material impact on any of the periods presented
herein.





46





Table of Contents





 




INTEVAC,
INC.



 



NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



Inventories are stated at the lower of average cost or market
and consist of the following:


 










































































































                 

 

 

December 31,

 

 

 

2007

 

 

2006

 

 

 

(In thousands)

 
 


Raw materials


 

$

13,666

 

 

$

19,906

 


Work-in-progress


 

 

6,191

 

 

 

12,271

 


Finished goods


 

 

2,276

 

 

 

5,765

 

 

 

 

 

 

 

 

 

 

 

 

$

22,133

 

 

$

37,942

 

 

 

 

 

 

 

 

 

 






 



Finished goods inventory consists primarily of completed systems
at customer sites that are undergoing installation and
acceptance testing.


 



Inventory reserves included in the above numbers were
$7.8 million and $9.1 million at December 31,
2007 and 2006, respectively. Each quarter, we analyze our
inventory (raw materials,
work-in-progress
and finished goods) against the forecast demand for the next
12 months. Raw materials with no forecast requirements in
that period are considered excess and inventory provisions are
established to write those items down to zero net book value.
Work-in-progress
and finished goods inventories with no forecast requirements in
that period are typically written down to the lower of cost or
market. During this process, some inventory is identified as
having no future use or value to us and is disposed of against
the reserves.


 



The following table displays the activity in the inventory
provision account for 2007 and 2006:


 


























































































































                 

 

 

2007

 

 

2006

 

 

 

(In thousands)

 
 


Beginning balance


 

$

9,128

 

 

$

10,988

 


New provisions in cost of sales


 

 

862

 

 

 

1,527

 


New provisions for refurbishment of consigned products


 

 

139

 

 

 

10

 


Disposals of inventory


 

 

(2,395

)

 

 

(3,355

)


Miscellaneous adjustments


 

 

16

 

 

 

(42

)

 

 

 

 

 

 

 

 

 


Ending balance


 

$

7,750

 

 

$

9,128

 

 

 

 

 

 

 

 

 

 






 




This excerpt taken from the IVAC 10-Q filed Nov 8, 2007.
Inventories
 
Inventories are priced using average actual costs, which approximate first-in, first-out, and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by the difference between its cost and the estimated market value based on assumptions about future demand. We evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost-to-market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
This excerpt taken from the IVAC 10-Q filed Aug 9, 2007.
Inventories
 
Inventories are priced using average actual costs, which approximate first-in, first-out, and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by the difference between its cost and the estimated market value based on assumptions about future demand. We evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost-to-market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
This excerpt taken from the IVAC 10-Q filed May 10, 2007.
Inventories
 
Inventories are priced using average actual costs, which approximate first-in, first-out, and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by the difference between its cost and the estimated market value based on assumptions about future demand. We evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost-to-market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
This excerpt taken from the IVAC 10-K filed Mar 16, 2007.
Inventories
 
Inventories are priced using average actual costs, which approximates cost under the first-in, first-out method, and are stated at the lower of cost or market. Inventories consist of the following:
 
                 
    December 31,  
    2006     2005  
    (In thousands)  
 
Raw materials
  $ 19,906     $ 15,070  
Work-in-progress
    12,271       6,303  
Finished goods
    5,765       3,464  
                 
    $ 37,942     $ 24,837  
                 
 
Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing.
 
Inventory reserves included in the above numbers were $9.1 million and $11.0 million at December 31, 2006 and 2005, respectively. Each quarter, we analyze our inventory (raw materials, work-in-progress and finished goods) against the forecast demand for the next 12 months. Raw materials with no forecast requirements in that period are considered excess and inventory provisions are established to write those items down to zero net book value. Work-in-progress and finished goods inventories with no forecast requirements in that period are typically written down to the lower of cost or market. During this process, some inventory is identified as having no future use or value to us and is disposed of against the reserves.
 
During the year ended December 31, 2006, $1.5 million was added to inventory reserves based on the quarterly analyses and $3.4 million was disposed of and charged to the reserve. We also added $10,000 to inventory reserves to provide for the loss or refurbishment of Imaging products consigned to our customers for demonstrations.


48


Table of Contents

 
INTEVAC, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 
During the year ended December 31, 2005, $873,000 was added to inventory reserves based on the quarterly analyses and $124,000 was disposed of and charged to the reserve. We also added $184,000 to inventory reserves to provide for the loss or refurbishment of Imaging products consigned to our customers for demonstrations.
 
This excerpt taken from the IVAC 10-Q filed Nov 9, 2006.
Inventories
 
Inventories are priced using standard costs, which approximate cost under the first-in, first-out method, and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by the difference between its cost and the estimated market value based on assumptions about future demand. We evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost-to-market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
This excerpt taken from the IVAC 10-Q filed May 11, 2006.
Inventories
 
Inventories are priced using standard costs, which approximate first-in, first-out, and are stated at the lower of cost or market. The carrying value of inventory is reduced for estimated excess and obsolescence by the difference between its cost and the estimated market value based on assumptions about future demand. We evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering change orders and new products. If actual demand were to be substantially lower than estimated, additional inventory adjustments would be required, which could have a material adverse effect on our business, financial condition and results of operation. A cost to market reserve is established for work-in-progress and finished goods inventories when the value of the inventory plus the estimated cost to complete exceeds the net realizable value of the inventory.
 
This excerpt taken from the IVAC 10-K filed Mar 15, 2006.
Inventories
 
Inventories are priced using standard costs, which approximates cost under the first-in, first-out method, and are stated at the lower of cost or market. Inventories consist of the following:
 
                 
    December 31,  
    2005     2004  
    (In thousands)  
 
Raw materials
  $ 15,070     $ 5,624  
Work-in-progress
    6,303       3,496  
Finished goods
    3,464       6,255  
                 
    $ 24,837     $ 15,375  
                 


46


Table of Contents

 
INTEVAC, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 
Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing.
 
Inventory reserves included in the above numbers were $11.0 and $9.9 million at December 31, 2005 and 2004, respectively. Each quarter, we analyze our inventory (raw materials, work-in-progress and finished goods) against the forecast demand for the next 12 months. Raw materials with no forecast requirements in that period are considered excess and inventory provisions are established to write those items down to zero net book value. Work-in-progress and finished goods inventories with no forecast requirements in that period are typically written down to the lower of cost or market. During this process, some inventory is identified as having no future use or value to us and is disposed of against the reserves.
 
During the year ended December 31, 2005, $873,000 was added to inventory reserves based on the quarterly analyses and $124,000 was disposed of and charged to the reserve. We also added $184,000 to inventory reserves to provide for the loss or refurbishment of Imaging products consigned to our customers for demonstrations.
 
During the year ended December 31, 2004, $1.4 million was added to inventory reserves based on the quarterly analyses and $1.6 million of inventory was disposed of and charged to the reserve. A system in inventory with a value of $706,000, net of a $250,000 reserve, was transferred to fixed assets and capitalized.
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki