##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
 Form 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31,
    2010oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number 0-26946
 INTEVAC, INC.
 (Exact name of registrant as
    specified in its charter)
  Delaware

94-3125814(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer Identification
    No.)   3560 Bassett Street
 Santa Clara, California 95054
 (Address of principal executive
    office, including Zip Code)
  Registrants telephone number, including area code:
    (408) 986-9888
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredCommon Stock ($0.001 par value)

The Nasdaq Stock Market LLC (NASDAQ Global Select)   Securities registered pursuant to Section 12(g) of the
    Act:
 None.
    o þ
  o þ
  þ o
  Regulation S-T o o
  Regulation S-K Form 10-K Form 10-K.
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o

Smaller reporting
    company o(Do not check if a smaller reporting
    company)   Rule 12b-2 o þ
      DOCUMENTS INCORPORATED BY REFERENCE.
  Form 10-K.




---





TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. (Removed and Reserved)PART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes In and Disagreements With Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMItem 9B. Other InformationPART IIIItem 10. Directors, Executive Officers and Corporate GovernanceItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related Transactions, and Director IndependenceItem 14. Principal Accountant Fees and ServicesPART IVItem 15. Exhibits and Financial Statement SchedulesSIGNATURESSCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS INTEVAC, INC.EX-10.4EX-21.1EX-23.1EX-23.2EX-31.1EX-31.2EX-32.1    Table of Contents   CAUTIONARY
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
  Form 10-K Form 10-K)
   
  PART I
 
  Item 1.
    Business  Overview
    Equipment:
  Intevac Photonics:
    Equipment
    Segment
  Hard
    Disk Drive Equipment Market
   2




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®
    Hard
    Disk Drive Equipment Products
  Disk
    Sputtering Systems
            Disk
    Lubrication Systems
     3




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tm
  Deposition
    System
  tm
  Non-Systems
    Business
    Semiconductor
    Equipment Market
      Wafer
    Handling System
  tm
  Solar
    Market
     4




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Solar
    Manufacturing Products
  Solar
    Cell Processing System
  tm
    Inspection
    System
  tm ®
   5




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##### Table of Contents



Intevac
    Photonics Segment
  Intevac
    Photonics Market
  ®
  Military
    Products
  Digital
    Enhanced Night Vision Goggle
    Night
    Port
  tm
  LIVAR
  ®
  Intensified
    Photodiodes
    Near-Eye
    Display Systems
  field-of-view tm
 6




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Commercial
    Products
  ®
  Handheld
    Raman Materials Identification Instruments
  tm tm tm tm
  Laboratory
    Instruments
  tm
  Low-Light
    Cameras
  ®
  Backlog
    Customer
    Concentration
   7




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Competition
      Marketing
    and Sales
     8




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and/or and/or
    start-up
      state-of-the-art.
      Research
    and Development and Intellectual Property
     9




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and/or
  Manufacturing
      Employees
    Compliance
    with Environmental Regulations
   10




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Executive
    Officers of the Registrant
    Name

Age

PositionExecutive Officers:Norman H. Pond


72


Chairman of the BoardKevin Fairbairn


57


President and Chief Executive OfficerJeffrey Andreson


49


Executive Vice President, Finance and Administration, Chief
    Financial Officer, Treasurer and SecretaryMichael Russak


64


Executive Vice President and General Manager, Hard Disk
    Equipment ProductsLuke Marusiak


48


Executive Vice President, Chief Operating OfficerChristopher Smith


51


Executive Vice President, Emerging MarketsKimberly Burk


45


Vice President, Human ResourcesJoseph Pietras


56


Executive Vice President and General Manager, Intevac PhotonicsOther Key Officers:Babak Adibi


56


Vice President and General Manager, Solar ImplantVerle Aebi


56


Chief Technology Officer, Intevac PhotonicsJames Birt


46


Vice President, Manufacturing and Customer Support, Equipment
    ProductsTerry Bluck


51


Vice President, Technology, Equipment ProductsJerry Carollo


57


Vice President, Strategic Business Development, Intevac PhotonicsTimothy Justyn


48


Vice President of Manufacturing, Intevac PhotonicsDave Kelly


48


Vice President, Engineering, Intevac Vision SystemsEdward Murrer


61


Vice President, Business Development, Solar Implant   Mr. Pond
  Mr. Fairbairn
  Mr. Andreson
  Dr. Russak
 11




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Mr. Marusiak
  Mr. Smith
  Ms. Burk
  Dr. Pietras
  Dr. Adibi
  Mr. Aebi
  Mr. Birt
 12




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Mr. Bluck
  Mr. Carollo
  Mr. Justyn
  Mr. Kelly
  Mr. Murrer
  Available
    Information
  http://www.intevac.com.
  Trade
    Marks
  ® tm tm ® ® tm tm tm tm ® ® tm ® tm tm tm
 
  Item 1A.
    Risk
    Factors   13




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The
    industries we serve are cyclical, volatile and
    unpredictable.
        Sales
    of our equipment are primarily dependent on our customers
    upgrade and capacity expansion plans and whether our customers
    select our equipment.
    state-of-the-art
   14




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We
    operate in an intensely competitive marketplace, and our
    competitors have greater resources than we do.
    We are
    exposed to risks associated with a highly concentrated customer
    base and industry consolidation.
      Our
    growth depends on development of technically advanced new
    products and processes.
   15




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start-ups
    Our
    operating results fluctuate significantly from quarter to
    quarter, which can lead to volatility in the price of our common
    stock.
    and/or
  Adverse
    economic conditions and volatility and disruption of the capital
    and credit markets may negatively impact our revenues and our
    ability to access financing.
      We may
    not be able to obtain export licenses from the U.S. government
    permitting delivery of our products to international
    customers.
   16




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The
    Intevac Photonics business is dependent on U.S. government
    contracts, which are subject to fixed pricing, immediate
    termination and a number of procurement rules and
    regulations.
          Changes
    to our effective tax rate affect our results of
    operations.
     17




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Our
    success depends on international sales and the management of
    global operations.
    and/or
    We may
    be subject to additional impairment charges due to potential
    declines in the fair value of our assets.
    The
    liquidity of our auction rate securities is impaired, which
    could impact our ability to meet cash requirements and require
    additional financing.
   18




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and/or other-than-temporary
  Our
    success is dependent on recruiting and retaining a highly
    talented work force.
      We are
    dependent on certain suppliers for parts used in our
    products.
    Our
    business depends on the integrity of our intellectual property
    rights.
     19




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We
    could be involved in litigation.
    Difficulties
    in integrating past or future acquisitions could adversely
    affect our business.
    We use
    hazardous materials and are subject to risks of non-compliance
    with environmental and safety regulations.
    Business
    interruptions could adversely affect our
    operations.
    We are
    required to evaluate our internal control over financial
    reporting under Section 404 of the Sarbanes-Oxley Act of
    2002, and any adverse results from such evaluation could result
    in a loss of investor confidence in our financial reports and
    have an adverse effect on our stock price.
  Form 10-K
 20




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Item 1B.
    Unresolved
    Staff Comments   
  Item 2.
    Properties    Location

Square Footage


Principal UseSanta Clara, CA


169,583


Corporate Headquarters; Equipment and Intevac Photonics
    Marketing, Manufacturing, Engineering and Customer SupportFremont, CA


9,505


Intevac Photonics Sensor FabricationLaramie, WY


12,000


Intevac Photonics Raman Spectrometer ManufacturingCarlsbad, CA


10,360


Intevac Photonics Micro Display Product ManufacturingSingapore


31,947


Equipment Manufacturing and Customer SupportMalaysia


1,291


Equipment Customer SupportShenzhen, China


2,568


Equipment Customer Support    
  Item 3.
    Legal
    Proceedings   
  Item 4.
    (Removed
    and Reserved) 21




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PART II
 
  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities  Price
    Range of Common Stock
      High

LowFiscal 2010:First Quarter

$
16.82


$
13.63Second Quarter


15.48



10.48Third Quarter


11.57



9.04Fourth Quarter


15.25



9.73Fiscal 2009:First Quarter

$
5.73


$
3.43Second Quarter


8.65



5.02Third Quarter


13.14



7.45Fourth Quarter


13.45



10.00   Recent
    Sales of Unregistered Securities
    Purchases
    of Equity Securities by the Issuer and Affiliated
    Purchasers
    Performance
    Graph
   22




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COMPARISON
    OF CUMULATIVE TOTAL RETURN SINCE DECEMBER 31, 2005
    AMONG INTEVAC, NASDAQ STOCK MARKET TOTAL RETURN INDEX AND
    NASDAQ COMPUTER MANUFACTURERS TOTAL RETURN INDEX
  
  12/31/05


12/30/06


12/29/07


12/31/08


12/31/09


12/31/10Intevac, Inc.


$
100



$
197



$
110



$
38



$
87



$
106Nasdaq Stock Market Total Return Index



100




110




119




57




83




98Nasdaq Computer Manufacturers Total Return Index



100




102




149




63




138




197  
  Item 6.
    Selected
    Financial Data    Year Ended December 31,2010

2009

2008

2007

2006(In thousands, except per share data)Net revenues

$
202,526


$
77,981


$
110,307


$
215,834


$
259,875Gross profit

$
87,672


$
32,720


$
43,339


$
96,043


$
100,959Operating income (loss)

$
31,238


$
(17,347
)

$
(30,471
)

$
27,436


$
47,999Net income (loss)

$
28,049


$
(10,077
)

$
(15,345
)

$
27,345


$
46,698Earnings (loss) per share:Basic

$
1.26


$
(0.46
)

$
(0.71
)

$
1.28


$
2.22Diluted

$
1.22


$
(0.46
)

$
(0.71
)

$
1.23


$
2.13At year end:Total assets

$
251,771


$
203,378


$
189,169


$
215,413


$
206,003Long-term debt

$



$



$



$
1,898


$
  23




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Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Form 10-K. Form 10-K.
  
    Overview: a summary of Intevacs business,
    measurements and opportunities.
    Results of Operations: a discussion of operating results.
    Liquidity and Capital Resources: an analysis of cash
    flows, sources and uses of cash, contractual obligations and
    financial position.
    Critical Accounting Policies: a discussion of critical
    accounting policies that require the exercise of judgments and
    estimates.  Overview
  tm tm
     24




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% Change

% ChangeFiscal Year

2010

2009

2008

2010 vs. 2009

2009 vs. 2008(In thousands, except percentages and per share amounts)Net revenues

$
202,526


$
77,981


$
110,307



159.7
%


(29.3
) %Gross profit


87,672



32,720



43,339



167.9
%


(24.5
) %Gross margin percent


43.3
%


42.0
%


39.3
%


1.3 points



2.7 pointsNet income (loss)


28,049



(10,077
)


(15,345
)


378.3
%


34.3
%Earnings (loss) per diluted share

$
1.22


$
(0.46
)

$
(0.71
)


365.2
%


35.2
%            25




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Results
    of Operations
  Net
    revenues
  Years Ended December 31,


% Change


% Change2010


2009


2008


2010 vs. 2009


2009 vs. 2008(In thousands, except percentages)Equipment

$
168,252


$
51,389


$
87,469



227.4
%


(41.2
)
%Intevac Photonics


34,274



26,592



22,838



28.9
%


16.4

%Total net revenues

$
202,526


$
77,981


$
110,307



159.7
%


(29.3
)
%          26




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Gross
    margin
  Years Ended December 31,

% Change

% Change2010

2009

2008

2010 vs. 2009

2009 vs. 2008(In thousands, except percentages)Equipment gross profit

$
79,472


$
23,266


$
35,797



241.6

%


(35.0
)
%% of Equipment net revenues


47.2
%


45.3
%


40.9
%Intevac Photonics gross profit

$
8,200


$
9,454


$
7,542



(13.3
)
%


25.4

%% of Intevac Photonics net revenues


23.9
%


35.6
%


33.0
%Total gross profit

$
87,672


$
32,720


$
43,339



167.9

%


(24.5
)
%% of net revenues


43.3
%


42.0
%


39.3
%        27




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Research
    and development
  Years Ended December 31,

% Change

% Change2010

2009

2008

2010 vs. 2009

2009 vs. 2008(In thousands, except percentages)Research and development expense

$
27,918


$
28,064


$
35,083



(0.5
) %


(20.0
) %% of net revenues


13.8
%


36.0
%


31.8
%         Selling,
    general and administrative
  Years Ended December 31,

% Change

% Change2010

2009

2008

2010 vs. 2009

2009 vs. 2008(In thousands, except percentages)Selling, general and administrative expense

$
28,516


$
22,003


$
28,229



29.6
%


(22.1
) %% of net revenues


14.1
%


28.2
%


25.6
%       Global
    cost reduction plan
   28




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Impairment
    of goodwill and intangibles
             29




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Interest
    income and other, net
  Years Ended December 31,


% Change


% Change2010


2009


2008


2010 vs. 2009


2009 vs. 2008(In thousands, except percentages)Interest income and other, net

$
773


$
1,254


$
3,932



(38.4
) %


(68.1
) %     Provision
    for (benefit from) income taxes
  Years Ended December 31,


% Change


% Change2010


2009


2008


2010 vs. 2009


2009 vs. 2008(In thousands, except percentages)Provision for (benefit from) income taxes

$
3,962


$
(6,016
)

$
(11,194
)


165.9
%


46.3
%         Business
    Combinations
   30




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Recent
    Accounting Pronouncements
  No. 33-9002, Form 10-Q.
  2010-29, ASU 2010-29
  Liquidity
    and Capital Resources
      December 31,


December 31,2010


2009(In thousands)Cash and cash equivalents

$
109,520


$
17,592Short-term investments


4,994



6,000Long-term investments


22,866



66,249Total cash, cash-equivalents and investments

$
137,380


$
89,841    31




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available-for-sale
     32




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Contractual
    Obligations
    Payments Due by PeriodTotal


< 1 Year


1-3 Years


3-5 Years


> 5 Years(In thousands)Operating lease obligations

$
11,699


$
2,596


$
4,017


$
3,094


$
1,992Purchase obligations and commitments(1)


9,664



9,664











Other long-term liabilities(2, 4)


1,909



1,909











Total(3, 4)

$
23,272


$
14,169


$
4,017


$
3,094


$
1,992    (1)
    
    Purchase obligations include agreements to purchase goods or
    services that are enforceable and legally binding on Intevac and
    that specify all significant terms, including fixed or minimum
    quantities to be purchased; fixed, minimum or variable price
    provisions; and the approximate timing of the transaction.
    Purchase obligations exclude agreements that are cancelable
    without penalty. These purchase obligations are related
    principally to inventory and other items.(2)
    
    Intevac is unable to reliably estimate the timing of future
    payments related to uncertain tax positions; therefore,
    $4.5 million of unrecognized tax benefits has been excluded
    from the table above.(3)
    
    Total excludes contractual obligations already recorded on the
    consolidated balance sheet as current liabilities (except other
    long-term liabilities) and certain purchase obligations.(4)
    
    Total excludes contingent consideration that may be paid
    pursuant to asset purchases or business combinations.  Off-Balance
    Sheet Arrangements
  Regulation S-K).
  Critical
    Accounting Policies
     33




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Revenue
    Recognition
    percentage-of-completion
 34




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Inventories
    Warranty
    Income
    Taxes
        Valuation
    of IPR&D, Contingent Consideration, Goodwill and Other
    Intangible Assets
   35




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Equity-Based
    Compensation
   36




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Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk  Interest rate risk.
    Fair2011

2012

2013

Beyond

Total

Value(In thousands, except percentages)Cash equivalentsFixed rate amounts

$
4,258














$
4,258


$
4,257Weighted-average rate


1.81
%










Variable rate amounts

$
82,376














$
82,376


$
82,376Weighted-average rate


0.12
%










Short-term investmentsFixed rate amounts

$
4,994














$
4,994


$
4,994Weighted-average rate


0.33
%










Long-term investmentsFixed rate amounts





$
12,593






$
10,900


$
23,493


$
22,866Weighted-average rate






3.31
%






1.64
%Total investment portfolio

$
91,628


$
12,593






$
10,900


$
115,121


$
114,493     other-than-temporary
    Foreign exchange risk.
 37




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##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data  INTEVAC,
    INC.
  CONSOLIDATED
    FINANCIAL STATEMENTS
  Contents
  PageReport of Independent Registered Public
    Accounting Firm


39Consolidated Balance Sheets


40Consolidated Statements of Operations


41Consolidated Statement of Stockholders
    Equity and Comprehensive Income (Loss)


42Consolidated Statements of Cash Flows


43Notes to Consolidated Financial Statements


44  38




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REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           Internal Control  Integrated Framework
      39




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##### Table of Contents



INTEVAC,
    INC.
  CONSOLIDATED
    BALANCE SHEETS
 December 31,2010


2009(In thousands, except par value)ASSETSCurrent assets:Cash and cash equivalents

$
109,520


$
17,592Short-term investments


4,994



6,000Trade, notes and other accounts receivable, net of allowances of
    $55 and $133 at December 31, 2010 and 2009, respectively


25,911



44,756Inventories


20,671



19,100Prepaid expenses and other current assets


6,630



6,687Deferred income tax assets


3,124



1,515Total current assets


170,850



95,650Property, plant and equipment, net


13,918



12,351Long-term investments


22,866



66,249Goodwill


18,389



7,905Other intangible assets, net of amortization of $1,801 and
    $1,248 at December 31, 2010 and 2009, respectively


6,984



3,537Deferred income taxes and other long-term assets


18,764



17,686Total assets

$
251,771


$
203,378LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable

$
5,562


$
4,701Accrued payroll and related liabilities


11,365



2,784Other accrued liabilities


11,104



11,104Customer advances


4,867



13,180Total current liabilities


32,898



31,769Other long-term liabilities


11,630



252Commitments and contingenciesStockholders equity:Undesignated preferred stock, $0.001 par value,
    10,000 shares authorized, no shares issued and outstanding






Common stock, $0.001 par value :Authorized shares  50,000 issued and outstanding
    shares  22,558 and 22,079 at December 31, 2010
    and 2009, respectively


23



22Additional
    paid-in-capital


139,824



134,071Accumulated other comprehensive income (loss)


255



(1,828
)Retained earnings


67,141



39,092Total stockholders equity


207,243



171,357Total liabilities and stockholders equity

$
251,771


$
203,378    40




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##### Table of Contents



INTEVAC,
    INC.CONSOLIDATED STATEMENTS OF OPERATIONS
  Years Ended December 31,2010


2009


2008(In thousands, except per share amounts)Net revenues:Systems and components

$
184,217


$
61,893


$
95,962Technology development


18,309



16,088



14,345Total net revenues


202,526



77,981



110,307Cost of net revenues:Systems and components


101,975



36,172



58,503Technology development


12,879



9,089



8,465Total cost of net revenues


114,854



45,261



66,968Gross profit


87,672



32,720



43,339Operating expenses:Research and development


27,918



28,064



35,083Selling, general and administrative


28,516



22,003



28,229Impairment of goodwill and intangible assets










10,498Total operating expenses


56,434



50,067



73,810Operating income (loss)


31,238



(17,347
)


(30,471
)Interest income


899



1,362



3,968Other income (expense), net


(126
)


(108
)


(36
)Income (loss) before income taxes


32,011



(16,093
)


(26,539
)Provision (benefit) for income taxes


3,962



(6,016
)


(11,194
)Net income (loss)

$
28,049


$
(10,077
)

$
(15,345
)Net income (loss) per share:Basic

$
1.26


$
(0.46
)

$
(0.71
)Diluted

$
1.22


$
(0.46
)

$
(0.71
)Weighted average shares outstanding:Basic


22,340



21,975



21,724Diluted


22,977



21,975



21,724    41




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##### Table of Contents



INTEVAC,
    INC.CONSOLIDATED STATEMENT OF STOCKHOLDERS
    EQUITY AND COMPREHENSIVE INCOME (LOSS)
  AccumulatedAdditional


Other





TotalCommon Stock


Paid-In


Comprehensive


Retained


StockholdersShares


Amount


Capital


Income (Loss)


Earnings


Equity(In thousands)Balance at December 31, 2007


21,591


$
22


$
120,022


$
605


$
64,514


$
185,163Shares issued in connection with:Exercise of stock options


48







322











322Employee stock purchase plan


166







1,516











1,516Income tax benefits realized from activity in employee stock
    plans










327











327Equity-based compensation expense










6,499











6,499Net loss


















(15,345
)


(15,345
)Unrealized loss on securities held as
    available-for-sale














(8,072
)






(8,072
)Deferred taxes on unrealized loss on
    available-for-sale
    securities














2,825







2,825Foreign currency translation adjustment














(166
)






(166
)Comprehensive loss






















(20,758
)Balance at December 31, 2008


21,805


$
22


$
128,686


$
(4,808
)

$
49,169


$
173,069Shares issued in connection with:Exercise of stock options


34







223











223Employee stock purchase plan


240







899











899Income tax benefits realized from activity in employee stock
    plans










69











69Equity-based compensation expense










4,194











4,194Net loss


















(10,077
)


(10,077
)Unrealized gain on securities held as
    available-for-sale














4,371







4,371Deferred taxes on unrealized gain on
    available-for-sale
    securities














(1,529
)






(1,529
)Foreign currency translation adjustment














138







138Comprehensive loss






















(7,097
)Balance at December 31, 2009


22,079


$
22


$
134,071


$
(1,828
)

$
39,092


$
171,357Shares issued in connection with:Exercise of stock options


224



1



1,740











1,741Employee stock purchase plan


255







1,027











1,027Income tax benefits realized from activity in employee stock
    plans










(279
)










(279
)Equity-based compensation expense










3,265











3,265Net income


















28,049



28,049Unrealized gain on securities held as
    available-for-sale














3,072







3,072Deferred taxes on unrealized gain on
    available-for-sale
    securities














(1,075
)






(1,075
)Foreign currency translation adjustment














86







86Comprehensive income






















30,132Balance at December 31, 2010


22,558


$
23


$
139,824


$
255


$
67,141


$
207,243    42




---



##### Table of Contents



INTEVAC,
    INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
  Years Ended December 31,2010


2009


2008(In thousands)Operating activitiesNet income (loss)

$
28,049


$
(10,077
)

$
(15,345
)Adjustments to reconcile net income (loss) to net cash and cash
    equivalents provided by (used in) operating activities:Depreciation & amortization


5,307



5,031



4,709Net accretion of investment premiums and discounts






(20
)


(256
)Gain on acquisition


(481
)






Impairment of goodwill and intangible assets










10,498Amortization of intangible assets


554



554



700Equity-based compensation


3,316



4,255



6,577Deferred income taxes


(2,142
)


(87
)


(8,002
)Excess tax benefits from equity-based compensation


(299
)


(69
)


(327
)Loss on disposal of equipment


153



57



7Changes in assets and liabilities:Accounts receivable


18,845



(28,935
)


765Inventories


(1,555
)


(1,411
)


4,434Prepaid expenses and other assets


(2,665
)


(3,177
)


(100
)Accounts payable


450



441



(3,468
)Accrued payroll and other accrued liabilities


10,095



6,902



(5,475
)Customer advances


(8,313
)


9,967



(2,911
)Total adjustments


23,265



(6,492
)


7,151Net cash and cash equivalents provided by (used in) operating
    activities


51,314



(16,569
)


(8,194
)Investing activitiesPurchase of investments


(20,683
)


(26,979
)


(7,000
)Proceeds from sales and maturities of investments


68,050



25,450



45,850Acquisition of SIT, net of cash acquired


(2,638
)






Acquisition of Oerlikon assets, net of cash acquired










(15,093
)Purchase of equipment


(7,055
)


(2,615
)


(4,185
)Net cash and cash equivalents provided by (used in) investing
    activities


37,674



(4,144
)


19,572Financing activitiesProceeds from issuance of common stock


2,768



1,122



1,838Payment of notes payable assumed upon SIT acquisition


(177
)






Repayment of note payable






(2,000
)


(2,000
)Excess tax benefits from equity-based compensation


299



69



327Net cash and cash equivalents provided by (used in) financing
    activities


2,890



(809
)


165Effect of exchange rate changes on cash


50



(87
)


(15
)Net increase (decrease) in cash and cash equivalents


91,928



(21,609
)


11,528Cash and cash equivalents at beginning of period


17,592



39,201



27,673Cash and cash equivalents at end of period

$
109,520


$
17,592


$
39,201Cash paid (received) for:Income taxes

$
1,829


$
713


$
410Income tax refund

$
(481
)

$
(2,821
)

$
(3,717
)    43




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  1.
    Summary
    of Significant Accounting Policies  Principles
    of Consolidation and Basis of Presentation
      Cash,
    Cash Equivalents and Investments
  Available-for-sale available-for-sale
  Fair
    Value Measurement  Definition and
    Hierarchy
  820-10,
    Level 1
  Level 2
  Level 3
  Business
    Combinations
   44




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Trade
    Accounts and Notes Receivables and Doubtful
    Accounts
        Inventories
    Property,
    Plant and Equipment
    Goodwill
    and Purchased Intangible Assets
       45




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Impairment
    of Long-Lived Assets
    Income
    Taxes
     46




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Sales
    and Value Added Taxes
    Revenue
    Recognition
       47




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    percentage-of-completion
  Advertising
    Costs
    Foreign
    Currency Translation
    Comprehensive
    Income
    48




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  December 31,2010


2009(In thousands)Accumulated net unrealized holding loss on
    available-for-sale
    investments, net
    of tax

$
(408
)

$
(2,405
)Foreign currency translation gains and losses


663



577Total accumulated other comprehensive income (loss)

$
255


$
(1,828
)   Employee
    Stock Plans
    Recent
    Accounting Pronouncements
  No. 33-9002, Form 10-Q.
  2010-29, 2010-29
  2.
    Equity-Based
    Compensation   49




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Descriptions
    of Plans
  2004
    Equity Incentive Plan
        2003
    Employee Stock Purchase Plan
   50




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2010


2009


2008Equity-based compensation by type of award:Stock options

$
2,965


$
3,468


$
5,315Employee stock purchase plan


351



787



1,262Total equity-based compensation


3,316



4,255



6,577Tax effect on equity-based compensation


(1,068
)


(1,224
)


(1,785
)Net effect on net income

$
2,248


$
3,031


$
4,792   Stock
    Options
    2010


2009


2008Stock Options:Expected volatility


67.75
%


67.17
%


65.60
%Risk free interest rate


1.69
%


2.01
%


2.87
%Expected term of options (in years)


4.52



4.47



4.47Dividend yield


None



None



None       ESPP
    2010


2009


2008Stock Purchase Rights:Expected volatility


55.20
%


82.56
%


62.65
%Risk free interest rate


0.41
%


0.85
%


1.68
%Expected term of purchase rights (in years)


0.73



1.85



1.87Dividend yield


None



None



None  51




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Stock
    Plan Activity
  2004
    Equity Incentive Plan
    WeightedAverage RemainingWeighted Average

Contractual Term

Aggregate IntrinsicShares

Exercise Price

(years)

ValueOptions outstanding at December 31, 2009


3,111,214


$
11.50



6.43


$
7,744,629Options granted


762,525


$
12.22Options forfeited


(264,837
)

$
15.40Options exercised


(223,657
)

$
7.79Options outstanding at December 31, 2010


3,385,245


$
11.61



5.93


$
12,104,861Vested and expected to vest at December 31, 2010


3,179,759


$
11.66



5.86


$
11,405,013Options exercisable at December 31, 2010


2,007,901


$
12.19



5.09


$
7,119,365       Options Outstanding


Options ExercisableWeighted AverageRemaining





NumberNumber of Shares


Contractual Term


Weighted Average


Vested and


Weighted AverageRange of Exercise Prices

Outstanding


(In Years)


Exercise Price


Exercisable


Exercise Price$2.63 - $4.06


610,506



5.07


$
3.44



346,868


$
3.08$4.07 - $7.72


285,650



4.78


$
7.08



275,713


$
7.13$7.73 - $10.69


276,640



5.40


$
9.30



147,015


$
9.20$10.70 - $15.40


1,291,174



6.62


$
12.32



463,550


$
12.75$15.41 - $15.81


13,875



4.93


$
15.74



13,875


$
15.74$15.82 - $16.13


501,150



6.15


$
16.13



435,880


$
16.13$16.14 - $22.01


282,250



6.17


$
19.07



208,625


$
19.75$22.12 - $29.45


124,000



5.59


$
24.25



116,375


$
24.04$2.63 - $29.45


3,385,245



5.93


$
11.61



2,007,901


$
12.19   2003
    Employee Stock Purchase Plan
   52




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    3.
    Earnings
    Per Share      2010


2009


2008(In thousands, except per share amounts)Net income (loss)

$
28,049


$
(10,077
)

$
(15,345
)Weighted-average shares  basic


22,340



21,975



21,724Effect of dilutive potential common shares


637







Weighted-average shares  diluted


22,977



21,975



21,724Net income (loss) per share  basic

$
1.26


$
(0.46
)

$
(0.71
)Net income (loss) per share  diluted

$
1.22


$
(0.46
)

$
(0.71
)Antidilutive shares based on employee awards excluded


1,896



3,150



2,761     4.
    Concentrations  Credit
    Risk and Significant Customers
       53




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Products
    5.
    Balance
    Sheet Details    Inventories
    December 31,2010


2009(In thousands)Raw materials

$
13,370


$
10,147Work-in-progress


5,295



4,421Finished goods


2,006



4,532$
20,671


$
19,100     Property,
    Plant and Equipment
  December 31,2010


2009(In thousands)Leasehold improvements

$
14,043


$
13,964Machinery and equipment


36,936



30,57750,979



44,541Less accumulated depreciation and amortization


37,061



32,190Total property, plant and equipment, net

$
13,918


$
12,351   Customer
    Advances
   54




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Other
    Accrued Liabilities
  December 31,2010


2009(In thousands)Contingent consideration

$
4,234


$
Accrued product warranties


2,612



1,550Deferred revenue


1,714



7,283Other taxes payable


991



1,776Accrued income taxes


360



53Other


1,193



442Total other accrued liabilities

$
11,104


$
11,104   Other
    Long-Term Liabilities
  December 31,2010


2009(In thousands)Contingent consideration

$
5,623


$
Accrued income taxes


4,098



Deferred profit


1,106



Accrued product warranties


803



52Accrued compensation






200Total other long-term liabilities

$
11,630


$
252   6.
    Goodwill
    and Purchased Intangible Assets, Net    IntevacEquipment


Photonics


Total(In thousands)Balance as of December 31, 2007

$



$
7,905


$
7,905Goodwill acquired during the period


9,768







9,768Impairment charges


(9,689
)






(9,689
)Foreign exchange


(79
)






(79
)Balance as of December 31, 2008

$



$
7,905


$
7,905Goodwill acquired during the period










Impairment charges










Balance as of December 31, 2009

$



$
7,905


$
7,905Goodwill acquired during the period


10,484







10,484Impairment charges










Balance as of December 31, 2010

$
10,484


$
7,905


$
18,389    55




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        December 31, 2010


December 31, 2009Gross





Net


Gross





NetCarrying


Accumulated


Carrying


Carrying


Accumulated


CarryingAmount


Amortization


Amount


Amount


Amortization


Amount(In thousands)Customer relationships

$
3,181


$
1,074


$
2,107


$
3,181


$
677


$
2,504Purchased technology


1,145



388



757



1,145



243



902Covenants not to compete


140



140







140



129



11Backlog


199



199







199



199



Total amortizable intangible assets


4,665



1,801



2,864



4,665



1,248



3,417IPR&D


4,000







4,000











Tradename


120







120



120







120Total intangible assets

$
8,785


$
1,801


$
6,984


$
4,785


$
1,248


$
3,537       7.
    Business
    Combinations   56




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
              (In thousands)Current assets (including cash of $38)

$
40Property, plant, and equipment


3IPR&D


4,000Goodwill


10,484Long-term deferred tax assets


697Total assets acquired


15,224Notes payable to sellers


177Current liabilities


526Long-term deferred tax liabilities


1,524Total liabilities assumed


2,227Net assets acquired

$
12,997    57




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        8.
    Financial
    Instruments    December 31, 2010Unrealized


UnrealizedAmortized


Holding


Holding


FairCost


Gains


Losses


Value(In thousands)Cash and cash equivalents:Cash

$
22,887


$



$



$
22,887Commercial paper


2,999







1



2,998Corporate bonds


1,259











1,259Money market funds


82,376











82,376Total cash and cash equivalents

$
109,521


$



$
1


$
109,520Short-term investments:Commercial paper

$
2,995


$



$



$
2,995U.S. treasury and agency securities


1,999











1,999Total short-term investments

$
4,994


$



$



$
4,994Long-term investments:U.S. treasury and agency securities

$
6,978


$
5


$



$
6,983Corporate bonds and medium-term notes


5,615







5



5,610ARS


10,900







627



10,273Total long-term investments

$
23,493


$
5


$
632


$
22,866Total cash, cash equivalents, and investments

$
138,008


$
5


$
633


$
137,380   58




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  December 31, 2009Unrealized


UnrealizedAmortized


Holding


Holding


FairCost


Gains


Losses


Value(In thousands)Cash and cash equivalents:Cash

$
8,337


$



$



$
8,337Money market funds


9,255











9,255Total cash and cash equivalents

$
17,592


$



$



$
17,592Short-term investments:U.S. treasury and agency securities

$
6,000


$



$



$
6,000Total short-term investments

$
6,000


$



$



$
6,000Long-term investmentsARS

$
69,950


$



$
3,701


$
66,249Total long-term investments

$
69,950


$



$
3,701


$
66,249Total cash, cash equivalents, and investments

$
93,542


$



$
3,701


$
89,841   available-for-sale
  Amortized


FairCost


Value(In thousands)Due in one year or less

$
91,628


$
91,627Due between one and two years


12,593



12,593Greater than two years (ARS, ranging from 20 years to
    35 years)


10,900



10,273$
115,121


$
114,493   97-98%
   59




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    other-than-temporary. other-than-temporary
      Fair Value Measurements at December 31, 2010Total


Level 1


Level 2


Level 3(In thousands)Assets:Money market funds

$
82,376


$
82,376


$



$
U.S. treasury and agency securities


8,982



3,995



4,987



Commercial paper


5,994







5,994



Corporate bonds and medium-term notes


6,868







6,868



ARS


10,273











10,273Total assets

$
114,493


$
86,371


$
17,849


$
10,273Liabilities:Contingent consideration

$
9,857


$



$



$
9,857  60




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  available-for-sale
    Investment securities at December 31, 2008

$
66,328Net unrealized gains and losses included in earnings


Net unrealized gains and losses included in other comprehensive
    income


4,371Redemptions at par


(4,450
)Investment securities at December 31, 2009


66,249Net unrealized gains and losses included in earnings


Net unrealized gains and losses included in other comprehensive
    income


3,074Redemptions at par


(59,050
)Investment securities at December 31, 2010

$
10,273     9.
    Income
    Taxes    Years Ended December 31,2010


2009


2008Federal:Current

$
5,241


$
(3,927
)

$
(3,498
)Deferred


(1,706
)


(3,860
)


(7,442
)3,535



(7,787
)


(10,940
)State:Current


8



3



3Deferred






1,567



(560
)8



1,570



(557
)Foreign:Current


419



201



303Total

$
3,962


$
(6,016
)

$
(11,194
)     Years Ended December 31,2010


2009


2008U.S.

$
384


$
(22,513
)

$
(28,886
)Foreign


31,627



6,420



2,347$
32,011


$
(16,093
)

$
(26,539
)Effective tax rate


12.4
%


37.4
%


42.2
%  61




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      December 31,2010


2009Deferred tax assets:Vacation, rent, warranty and other accruals

$
1,073


$
932Depreciation and amortization


3,416



3,280Inventory valuation


2,029



2,044Deferred income


308



(713
)Equity-based compensation


6,156



6,221Research and other tax credit carryforwards


16,949



15,866Impairment losses on
    available-for-sale
    securities


221



1,295Other


(211
)


(293
)29,941



28,632Valuation allowance for deferred tax assets


(10,699
)


(10,576
)Total deferred tax assets


19,242



18,056Deferred tax liabilities:Purchased technology


(1,524
)


Net deferred tax assets

$
17,718


$
18,056As reported on the balance sheet:Current assetsDeferred tax assets

$
3,400


$
2,465Valuation allowance for deferred tax assets


(276
)


(950
)Net current deferred tax assets


3,124



1,515Other long-term assetsDeferred tax assets


25,017



26,167Valuation allowance for deferred tax assets


(10,423
)


(9,626
)Net non-current deferred tax assets


14,594



16,541Net deferred tax assets

$
17,718


$
18,056    62




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Years Ended December 31,2010


2009


2008Income tax (benefit) at the federal statutory rate

$
11,204


$
(5,632
)

$
(9,289
)State income taxes, net of federal benefit


5



1,020



(312
)Effect of foreign operations taxes at various rates


(10,650
)


(2,046
)


(518
)Research tax credits


(500
)


(565
)


(1,100
)Effect of tax rate changes, permanent differences and
    adjustments of prior deferrals


187



965



(36
)Unrecognized tax benefits


3,716



242



140Other










(79
)Total

$
3,962


$
(6,016
)

$
(11,194
)     non-U.S. operations non-U.S. subsidiaries
     63




---



##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    (In thousands):Beginning balance as of December 31, 2008

$
540Increases in balances related to tax positions taken during
    current period


242Balance as of December 31, 2009


782Increases in balances related to tax positions taken during
    current period


3,716Balance as of at December 31, 2010

$
4,498       10.
    Employee
    Benefit Plans  Employee
    Savings and Retirement Plan
    Employee
    Bonus Plans
    11.
    Commitments
    and Contingencies  Leases
   64




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##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Guarantees
  Officer
    and Director Indemnifications
    Other
    Indemnifications
    Warranty
     65




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##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2010


2009(In thousands)Beginning balance

$
1,602


$
1,695Expenditures incurred under warranties


(2,938
)


(1,645
)Accruals for product warranties


4,292



1,740Adjustments to previously existing warranty accruals


459



(188
)Ending balance

$
3,415


$
1,602     December 31,2010


2009(In thousands)Other accrued liabilities

$
2,612


$
1,550Other long-term liabilities


803



52Total warranty provision

$
3,415


$
1,602   Legal
    Matters
    12.
    Segment
    and Geographic Information       66




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##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          Net
    Revenues
  2010


2009


2008(In thousands)Equipment

$
168,252


$
51,389


$
87,469Intevac Photonics


34,274



26,592



22,838Total segment net revenues

$
202,526


$
77,981


$
110,307   Operating
    Profit (Loss)
  2010


2009


2008(In thousands)Equipment

$
40,286


$
(8,826
)

$
(9,924
)Intevac Photonics


(4,901
)


(4,133
)


(6,674
)Total segment operating profit (loss)


35,385



(12,959
)


(16,598
)Unallocated costs


(4,147
)


(4,388
)


(3,375
)Impairment of goodwill and intangible assets










(10,498
)Operating income (loss)


31,238



(17,347
)


(30,471
)Interest income


899



1,362



3,968Other income and expense, net


(126
)


(108
)


(36
)Income (loss) before income taxes

$
32,011


$
(16,093
)

$
(26,539
)  67




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##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Depreciation
    and amortization
  2010


2009


2008(In thousands)Equipment

$
3,129


$
2,916


$
2,851Intevac Photonics


1,354



1,326



1,384Total segment depreciation and amortization


4,483



4,242



4,235Unallocated costs


1,378



1,343



1,174Total consolidated depreciation and amortization

$
5,861


$
5,585


$
5,409   Capital
    Additions
  2010

2009

2008(In thousands)Equipment

$
1,540


$
1,176


$
1,588Intevac Photonics


5,167



938



1,743Total segment capital additions


6,707



2,114



3,331Unallocated


348



501



854Total consolidated capital additions

$
7,055


$
2,615


$
4,185   Segment
    Assets
  2010

2009(In thousands)Equipment

$
57,130


$
61,136Intevac Photonics


31,275



25,529Total segment assets


88,405



86,665Cash and investments


137,380



89,841Deferred income taxes


17,718



18,056Other current assets


5,889



5,171Common property, plant and equipment


1,803



2,802Other assets


576



843Consolidated total assets

$
251,771


$
203,378     2010


2009


2008(In thousands)United States

$
47,554


$
38,768


$
33,806Asia(*)


149,456



38,144



75,102Europe


5,000



1,069



1,321Rest of world


516







78Total net revenues

$
202,526


$
77,981


$
110,307     (*)
    
    Revenues are attributable to the geographic area in which
    Intevacs customers are located. Net trade revenues in Asia
    include shipments to Singapore, China, Japan and Malaysia. 68




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##### Table of Contents



INTEVAC,
    INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     2010


2009(In thousands)United States

$
13,268


$
11,431Asia


650



920Net property, plant & equipment

$
13,918


$
12,351   13.
    Selected
    Quarterly Consolidated Financial Data (Unaudited)  Three Months EndedApril 3,


July 3,


Oct. 2,


Dec. 31,2010


2010


2010


2010(In thousands, except per share data)Net sales

$
33,142


$
68,598


$
64,627


$
36,159Gross profit


14,478



29,034



29,584



14,576Net income


1,430



12,337



13,179



1,103Basic income per share

$
0.06


$
0.55


$
0.59


$
0.05Diluted income per share

$
0.06


$
0.54


$
0.58


$
0.05   Three Months EndedMarch 28,


June 27,


Sept. 26,


Dec. 31,2009


2009


2009


2009(In thousands, except per share data)Net sales

$
12,308


$
12,318


$
19,155


$
34,200Gross profit


4,265



4,513



8,678



15,264Net income (loss)


(5,773
)


(4,487
)


(1,792
)


1,975Basic income (loss) per share

$
(0.26
)

$
(0.20
)

$
(0.08
)

$
0.09Diluted income (loss) per share

$
(0.26
)

$
(0.20
)

$
(0.08
)

$
0.09  69




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##### Table of Contents



Item 9.
    Changes
    In and Disagreements With Accountants on Accounting and
    Financial Disclosure   
  Item 9A.
    Controls
    and Procedures  Managements
    Report on Assessment of Internal Controls Over Financial
    Reporting
  Evaluation
    of Disclosure Controls and Procedures
  Rules 13a-15(e) 15d-15(e)
  Managements
    Report on Internal Control over Financial
    Reporting
      Internal
    Control  Integrated Framework
  Changes
    in Internal Control over Financial Reporting
   70




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##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control  Integrated Fram
        Internal Control  Integrated
    Framework
        71




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##### Table of Contents



Item 9B.
    Other
    Information   
  PART III
 
  Item 10.
    Directors,
    Executive Officers and Corporate Governance  Form 10-K.
 
  Item 11.
    Executive
    Compensation   
  Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters  Securities authorized for issuance under equity compensation
    plans.
  (a)





(c)Number of Securities


(b)


Number of Securitiesto be Issued upon


Weighted-Average


Remaining AvailableExercise of


Exercise Price of


for Future IssuanceOutstanding Options,


Outstanding Options,


under EquityPlan Category

Warrants and Rights


Warrants and Rights


Compensation Plans(1)Equity compensation plans approved by security holders(2)


3,385,245


$
11.61



772,814Equity compensation plans not approved by security holders










Total


3,385,245


$
11.61



772,814     (1)
    
    Excludes securities reflected in column (a).(2)
    
    Included in the column (c) amount are 235,571 shares
    available for future issuance under Intevacs 2003 Employee
    Stock Purchase Plan.   
  Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence   72




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##### Table of Contents



Item 14.
    Principal
    Accountant Fees and Services   
  PART IV
 
  Item 15.
    Exhibits
    and Financial Statement Schedules  Form 10-K:
    Form 10-K.
          ExhibitNumber

Description3
.1(1)

Certificate of Incorporation of the Registrant3
.2(2)

Bylaws of the Registrant, as amended10
.1+(3)

The Registrants 1995 Stock Option/Stock Issuance Plan, as
    amended10
.2+(4)

The Registrants 2003 Employee Stock Purchase Plan, as
    amended10
.3+(4)

The Registrants 2004 Equity Incentive Plan, as amended10
.4

Lease, dated February 5, 2001 regarding the space located
    at 3510, 3544, 3560, 3570 and 3580 Bassett Street,
    Santa Clara, California, including the First through
    Seventh Amendments10
.6+(3)

The Registrants 401(k) Profit Sharing Plan10
.9(5)

Director and Officer Indemnification Agreement10
.11+(6)

The Registrants Executive Incentive Plan10
.12+(6)

Employment Agreement of Kevin Fairbairn dated January 24,
    2002, as amended21
.1

Subsidiaries of the Registrant23
.1

Consent of Independent Registered Public Accounting Firm23
.2

Consent of Independent Valuation Firm24
.1

Power of Attorney (see page 75)31
.1

Certification of President and Chief Executive Officer Pursuant
    to Section 302 of the Sarbanes-Oxley Act of 200231
.2

Certification of Vice-President, Finance and Administration,
    Chief Financial Officer, Treasurer and Secretary Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 200232
.1

Certifications Pursuant to U.S.C. 1350, adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002     (1)
    
    Previously filed as an exhibit to the Companys Report on
    Form 8-K
    filed July 23, 2007(2)
    
    Previously filed as an exhibit to the Companys Report on
    Form 8-K
    filed November 19, 2008(3)
    
    Previously filed as an exhibit to the Registration Statement on
    Form S-1
    (No.
    33-97806) 73




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##### Table of Contents



(4)
    
    Previously filed as an exhibit to the Companys
    Form 10-Q
    filed May 4, 2010(5)
    
    Previously filed as an exhibit to the Companys
    Form 10-K
    filed March 14, 2008(6)
    
    Previously filed as an exhibit to the Companys
    Form 10-K
    filed March 4, 2009+
    
    Management compensatory plan or arrangement required to be filed
    as an exhibit pursuant to Item 15(c) of
    Form 10-K 74




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##### Table of Contents



SIGNATURES
    INTEVAC, INC.
  JEFFREY
    ANDRESON
      POWER OF
    ATTORNEY
  Form 10-K,
    Signature

Title

Date/s/  KEVIN
    FAIRBAIRN(Kevin
    Fairbairn)

President, Chief Executive Officer and Director (Principal
    Executive Officer)

February 25, 2011/s/  NORMAN
    H. POND(Norman
    H. Pond)

Chairman of the Board

February 25, 2011/s/  JEFFREY
    ANDRESON(Jeffrey
    Andreson)

Executive Vice President, Finance and Administration, Chief
    Financial Officer Treasurer and Secretary (Principal Financial
    and Accounting Officer)

February 25, 2011/s/  DAVID
    S. DURY(David
    S. Dury)

Director

February 25, 2011/s/  STANLEY
    J. HILL(Stanley
    J. Hill)

Director

February 25, 2011/s/  THOMAS
    M. ROHRS(Thomas
    M. Rohrs)

Director

February 25, 2011/s/  JOHN
    F. SCHAEFER(John
    F. Schaefer)

Director

February 25, 2011/s/  PING
    YANG(Ping
    Yang)

Director

February 25, 2011  75




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##### Table of Contents



SCHEDULE II 
    VALUATION AND QUALIFYING ACCOUNTS
  INTEVAC,
    INC.
  Additions (Reductions)Charged

ChargedBalance at

(Credited)

(Credited)



Balance atBeginning

to Costs and

to Other



EndDescription

of Period

Expenses

Accounts

Deductions - Describe

of Period(In thousands)Year ended December 31, 2008:Deducted from asset accounts:Allowance for doubtful accounts

$
57


$
93


$



$
5
(1)

$
145Year ended December 31, 2009:Deducted from asset accounts:Allowance for doubtful accounts

$
145


$
133


$



$
145
(1)

$
133Year ended December 31, 2010:Deducted from asset accounts:Allowance for doubtful accounts

$
133


$



$



$
78
(1)

$
55     (1)
    
    Write-offs of amounts deemed uncollectible. 76