Becker Drapkin Reports 5% Stake in Intevac, Inc. (IVAC)

In a new filing with the Securities and Exchange Commission, Matthew Drapkin and Steven Becker‘s fund Becker Drapkin Management reported raising its exposure to the small cap company Intevac, Inc. (NASDAQ:IVAC). The fund reported ownership of over 1.20 million shares of the company, versus around 1.08 million held earlier. Following the increase, Becker Drapkin’s activist stake amasses 5.0% of the company’s outstanding common stock.
In addition, the filing revealed that Becker Drapkin acquired shares of Intevac, Inc. (NASDAQ:IVAC) because they consider the stock is undervalued. Moreover, in December, the fund and the company entered into a Standstill agreement, under the terms of which, Mr. Drapkin was appointed to Intevac’s board of directors.
The stock of the $180 million market cap Intevac surged by more than 60% over the past year. The company is engaged in production of equipment solutions to the hard disk drive industry and also produces equipment to the photovoltaic industry. The company has issued an open letter to the shareholders. According to the letter, Mr. Drapkin was appointed to the Nominating and Governance Committe and will be engaged in the process of appointing two experts in defense and data storage to serve on Intevac, Inc. (NASDAQ:IVAC)’s board.
For the first quarter of the year, Intevac, Inc. (NASDAQ:IVAC) posted a net loss of $4.5 million and earnings per share of $0.19, which is much lower from $8.3 million, or $0.35 per share a year earlier. The revenue of the company also advanced to $17.0 million, from $13 million in the same period of last year.
First Eagle Investment Management, led by Jean-Marie Eveillard, is also a significant shareholder of Intevac, owning around 3.51 million shares, worth $34.05 million, as of the end of March. Chuck Royce’s Royce & Associates raised its exposure to Intevac, Inc. (NASDAQ:IVAC) by 17% during the first three months of the year, reporting ownership of more than 1.55 million shares, valued at $15.08 million.
Becker Drapkin’s equity portfolio consists primarily of Services and Technology stocks. The larges holding is represented by Comverse Inc (NASDAQ:CNSI), of which the fund owns 1.35 million shares, valued at $46.67 million.

Disclosure: none