• Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023

    Source: Nasdaq GlobeNewswire / 22 Feb 2024 16:05:00   America/New_York

    ANDOVER, Mass., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2023. These results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

    Revenues for the fourth quarter ended December 31, 2023 totaled $92.7 million, a 12.2% decrease from $105.5 million for the corresponding period a year ago, and a 14.1% sequential decrease from $107.8 million in the third quarter of 2023.

    Gross margin decreased to $47.3 million for the fourth quarter of 2023, compared to $49.1 million for the corresponding period a year ago, and decreased sequentially from $55.9 million for the third quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.1% for the fourth quarter of 2023, compared to 46.6% for the corresponding period a year ago, but decreased from 51.8% for the third quarter of 2023.

    Net income for the fourth quarter was $8.7 million, or $0.19 per diluted share, compared to net income of $8.1 million or $0.18 per diluted share, for the corresponding period a year ago and net income of $16.6 million, or $0.37 per diluted share, for the third quarter of 2023.

    Cash flow from operations totaled $22.1 million for the fourth quarter, compared to cash flow from operations of $0.9 million for the corresponding period a year ago, and cash flow from operations of $23.8 million in the third quarter of 2023. Capital expenditures for the fourth quarter totaled $7.7 million, compared to $12.7 million for the corresponding period a year ago and $7.7 million for the third quarter of 2023. Cash and cash equivalents as of December 31, 2023 increased 6.3% sequentially to approximately $242.2 million compared to approximately $227.8 million as of September 30, 2023.

    Backlog for the fourth quarter ended December 31, 2023 totaled $160.8 million, a 47.2% decrease from $304.4 million for the corresponding period a year ago, and 8.0% sequential decrease from $174.7 million at the end of the third quarter of 2023.

    Revenues for the year ended December 31, 2023 increased 1.5% to $405.1 million, from $399.1 million for the prior year. Gross margin, as a percentage of revenue, increased to 50.6% for the year ended December 31, 2023, compared to 45.2% for the prior year. Net income for 2023 was $53.6 million, or $1.19 per diluted share and 13.2% of revenues, compared to $25.4 million, or $0.57 per diluted share and 6.4% of revenue in the prior year. Cash flows from operations totaled $75.1 million for the year ended December 31, 2023, a 227.3% increase from cash flows from operations of $22.9 million for the prior year.

    Commenting on fourth quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “As our products and applications pipeline create demand to fill our vertically integrated foundry, we have turned down deals that would have been inconsistent with our long term strategy.”

    “Competitive AI platforms require higher current density and Vertical Power Delivery (“VPD”). PoL systems with a large multiplicity of phases have inadequate current density. Our 5G product line and ChiP foundry put us well ahead of AI power system requirements, providing superior performance and scalable capacity to expand the market opportunity.”

    “We are also making progress protecting our IP from NBM copycat makers and users. Our initial action seeks to exclude importation of unlicensed servers and AI processors using infringing NBMs. Our OEM license provides access to NBMs and VPD from otherwise infringing sources, de-risking reliance on an ecosystem of copycat suppliers lacking the requisite power system IP. ”

    For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

    Earnings Conference Call

    Vicor will be holding its investor conference call today, Thursday, February 22, 2024 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with BT Conferencing, the service provider hosting the conference call. Those registering on BT Conferencing’s website will receive a webinar link and dial-in numbers. Registration may be completed at any time prior to 5:00 p.m. on February 22, 2024. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26312760358 and passcode 39424573, before 5:00 p.m. (Eastern) on February 22, 2024. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2022, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

    Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.

    For further information contact:

    James F. Schmidt, Chief Financial Officer
    Office: (978) 470-2900
    Email: invrel@vicorpower.com

            
    VICOR CORPORATION
            
    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
    (Thousands except for per share amounts)
            
     QUARTER ENDED YEAR ENDED
     (Unaudited) (Unaudited)
            
     DEC 31, DEC 31, DEC 31, DEC 31,
     2023 2022 2023 2022
            
            
    Net revenues$92,652  $105,493  $405,059 $399,079 
    Cost of revenues 45,308   56,354   200,130  218,520 
    Gross margin 47,344   49,139   204,929  180,559 
            
    Operating expenses:       
    Selling, general and administrative 22,694   24,942   85,714  86,264 
    Research and development 17,301   16,078   67,857  60,594 
    Litigation-contingency expense -   -   -  6,500 
    Total operating expenses 39,995   41,020   153,571  153,358 
            
    Income from operations 7,349   8,119   51,358  27,201 
            
    Other income (expense), net 3,243   1,808   8,886  1,486 
            
    Income before income taxes 10,592   9,927   60,244  28,687 
            
    Less: Provision for income taxes 1,928   1,866   6,644  3,261 
            
    Consolidated net income 8,664   8,061   53,600  25,426 
            
    Less: Net (loss) income attributable to noncontrolling interest (4)  (1)  5  (20)
            
    Net income attributable to Vicor Corporation$8,668  $8,062  $53,595 $25,446 
            
            
    Net income per share attributable to Vicor Corporation:       
    Basic$0.19  $0.18  $1.21 $0.58 
    Diluted$0.19  $0.18  $1.19 $0.57 
            
    Shares outstanding:       
    Basic 44,455   44,062   44,320  44,005 
    Diluted 45,017   44,859   45,004  44,894 
            



        
    VICOR CORPORATION   
        
    CONDENSED CONSOLIDATED BALANCE SHEET   
    (Thousands)   
        
     DEC 31, DEC 31,
     2023 2022
     (Unaudited) (Unaudited)
    Assets   
        
    Current assets:   
    Cash and cash equivalents$242,219  $190,611 
    Accounts receivable, net 52,631   65,429 
    Inventories 106,579   101,410 
    Other current assets 18,937   5,154 
    Total current assets 420,366   362,604 
        
    Long-term deferred tax assets 296   280 
    Long-term investment, net 2,530   2,622 
    Property, plant and equipment, net 157,689   166,009 
    Other assets 14,006   5,386 
        
    Total assets$594,887  $536,901 
        
    Liabilities and Equity   
        
    Current liabilities:   
    Accounts payable$12,100  $22,207 
    Accrued compensation and benefits 11,227   10,849 
    Accrued expenses 5,093   8,613 
    Accrued litigation 6,500   6,500 
    Sales allowances 3,482   1,661 
    Short-term lease liabilities 1,864   1,450 
    Income taxes payable 746   72 
    Short-term deferred revenue and customer prepayments 3,157   13,197 
        
    Total current liabilities 44,169   64,549 
        
    Long-term deferred revenue 1,020   145 
    Long-term income taxes payable 2,228   862 
    Long-term lease liabilities 6,364   7,009 
    Total liabilities 53,781   72,565 
        
    Equity:   
    Vicor Corporation stockholders' equity:   
    Capital stock 384,395   360,924 
    Retained earnings 296,674   243,079 
    Accumulated other comprehensive loss (1,273)  (988)
    Treasury stock (138,927)  (138,927)
    Total Vicor Corporation stockholders' equity 540,869   464,088 
    Noncontrolling interest 237   248 
    Total equity 541,106   464,336 
        
    Total liabilities and equity$594,887  $536,901 



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