By Katherine Hamilton

Shares of Intevac climbed after the company said it has renewed actively pursuing strategic alternatives now that it has completed a restructuring that resulted in a better profit outlook.

The stock rose 24%, to $3.51, in midday Thursday trading, recovering its losses from November after it posted third-quarter earnings and said it would shut down a poorly performing part of its business.

The manufacturer began working with an investment bank in June 2023 to consider strategic alternatives, but had to put that pursuit on hold to manage financial troubles and unfavorable market conditions.

Intevac has since restructured to focus on its hard-disk-drive sector and close down its automated coating system TRIO, which wasn't meeting performance expectations. On Thursday, the company said its bankers are now actively working on finding alternative strategies again, including discussions with interested parties.

The Santa Clara, Calif., company said it would also initiate a dividend of 5 cents a share, which would be paid out starting in the first quarter of 2025. The new payout represents an annual yield of about 7%, based on the Wednesday closing price of $2.83.

Intevac also said it expects to earn between $52 million and $55 million in revenue in 2025. It is now guiding for a cash position of $70 million to $72 million at the end of 2024.

The company said its recent restructuring would likely strengthen its profitability in 2025. The company expects its hard-disk-drive sector to produce about $200 million in revenue over the next three years.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 12, 2024 15:09 ET (20:09 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.