Intevac Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2013. Net income for the quarter was $1.7 million, or $0.07 per diluted share, and includes a $3.7 million credit for the change in fair value of certain contingent consideration obligations related to an acquisition in a prior year. This compares to a net loss of $42.7 million, or $1.82 per share, in the fourth quarter of 2012. Revenues were $20.6 million against $17.5 million a year ago. Total operating income was $1,175,000 and income before income taxes was $1,187,000 against total operating loss of $23,890,000 and loss before income taxes of $23,847,000 a year ago. Non-GAAP operating loss was $2,528,000 against $6,133,000 a year ago. The non-GAAP net loss was $2.0 million, or $0.08 per share, compared to a non-GAAP net loss $4.2 million or $0.18 per share, for the fourth quarter of 2012. Capital expenditures were $844,000.

For the full year, the net loss was $15.7 million, or $0.66 per share, compared to a net loss of $55.3 million, or $2.37 per share, for fiscal 2012. The non-GAAP net loss was $18.5 million or $0.78 per share. This compares to the 2012 non-GAAP net loss of $16.2 million, or $0.69 per share. Revenues were $69.6 million compared to revenues of $83.4 million a year ago. Total operating loss was $17,823,000 and loss before income taxes was $17,418,000 against total operating loss of $42,533,000 and loss before income taxes of $42,079,000 a year ago. Non-GAAP operating loss was $20,600,000 against $23,523,000 a year ago.

The company projects consolidated first quarter revenues of $16 million to $16.5 million including one 200 Lean manufacturing system. The company expects first quarter gross margin to be 26.5% to 28%, which is lower than the fourth quarter due to a lower level of factory absorption in Equipment business. The company projects a net loss in the range of $0.23 to $0.25 per share.

For the year, The company expects revenues to improve over 2013, albeit modestly. Given these ranges of revenue, the company expects gross margin in the range of 34% to 35%.