• Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2023

    Source: Nasdaq GlobeNewswire / 25 Jul 2023 15:05:01   America/Chicago

    ANDOVER, Mass., July 25, 2023 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 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 second quarter ended June 30, 2023 totaled $106.7 million, a 4.5% increase from $102.2 million for the corresponding period a year ago, and a 9.1% sequential increase from $97.8 million in the first quarter of 2023.

    Gross margin increased to $55.2 million for the second quarter of 2023, compared to $46.8 million for the corresponding period a year ago, and increased sequentially from $46.5 million for the first quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.7% for the second quarter of 2023, compared to 45.8% for the corresponding period a year ago, and from 47.6% for the first quarter of 2023.

    Net income for the second quarter was $17.1 million, or $0.38 per diluted share, compared to net income of $10.6 million or $0.24 per diluted share, for the corresponding period a year ago and net income of $11.2 million, or $0.25 per diluted share, for the first quarter of 2023.

    Cash flow from operations totaled $19.0 million for the second quarter, compared to cash flow from operations of $10.8 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the first quarter of 2023. Capital expenditures for the second quarter totaled $8.5 million, compared to $14.2 million for the corresponding period a year ago and $10.1 million for the first quarter of 2023. Cash and cash equivalents as of June 30, 2023 increased 5.7% sequentially to approximately $203.8 million compared to approximately $192.9 million as of March 31, 2023.

    Backlog for the second quarter ended June 30, 2023 totaled $217.3 million, a 47.0% decrease from $410.0 million for the corresponding period a year ago, and 19.9% sequential decrease from $271.3 million at the end of the first quarter of 2023.

    Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Q2 bookings remained weak, ahead of production release of an AI platform with a Lateral Power Distribution Network (“PDN”) using a 4G ChiP-set, now expected to ramp in Q4. The same 4G ChiP-set will support a more adept Lateral-Vertical PDN, enabling a reduction of nearly 100W in total power consumption at heavy workloads and superior processor performance.”

    “Further performance improvements will be enabled by 5G MCMs, raising current density by nearly 3X. High current density is necessary for 2nd Gen VPD to circumvent the stacking complexity and cost of 1st Gen VPD modules.”

    “With the imminent completion of our first foundry, with 5G FPA enabling scalable, high efficiency Vertical Power Delivery (“VPD”), and with automotive electrification driving broad acceptance of ChiPs, I am confident about Vicor’s future growth and profitability.”

    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, Tuesday, July 25, 2023 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 July 25, 2023. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26305285638 and passcode 95763875, before 5:00 p.m. (Eastern) on July 25, 2023. 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 SIX MONTHS ENDED
     (Unaudited) (Unaudited)
            
     JUNE 30, JUNE 30, JUNE 30, JUNE 30,
      2023   2022   2023   2022 
            
            
    Net revenues$ 106,747  $ 102,186  $ 204,563  $ 190,468 
    Cost of revenues 51,574   55,337   102,856   106,018 
    Gross margin 55,173   46,849   101,707   84,450 
            
    Operating expenses:       
    Selling, general and administrative 20,375   20,035   40,598   38,603 
    Research and development 16,935   15,516   32,804   29,769 
    Total operating expenses 37,310   35,551   73,402   68,372 
            
    Income from operations 17,863   11,298   28,305   16,078 
            
    Other income (expense), net 1,776   84   3,726   246 
            
    Income before income taxes 19,639   11,382   32,031   16,324 
            
    Less: Provision for income taxes 2,537   802   3,678   754 
            
    Consolidated net income 17,102   10,580   28,353   15,570 
            
    Less: Net income (loss) attributable to noncontrolling interest 1   (13)  8   (22)
            
    Net income attributable to Vicor Corporation$17,101  $10,593  $28,345  $15,592 
            
            
    Net income per share attributable to Vicor Corporation:       
    Basic$0.39  $0.24  $0.64  $0.35 
    Diluted$0.38  $0.24  $0.63  $0.35 
            
    Shares outstanding:       
    Basic 44,230   43,973   44,196   43,963 
    Diluted 44,906   44,866   44,907   44,910 
            


    VICOR CORPORATION   
        
    CONDENSED CONSOLIDATED BALANCE SHEET  
    (Thousands)   
        
     JUNE 30, DEC 31,
      2023   2022 
     (Unaudited) (Unaudited)
    Assets   
        
    Current assets:   
    Cash and cash equivalents$203,829  $190,611 
    Accounts receivable, net 63,818   65,429 
    Inventories 106,606   101,410 
    Other current assets 4,533   5,154 
    Total current assets 378,786   362,604 
        
    Long-term deferred tax assets 343   280 
    Long-term investment, net 2,591   2,622 
    Property, plant and equipment, net 169,401   166,009 
    Other assets 9,540   5,386 
        
    Total assets$560,661  $536,901 
        
    Liabilities and Equity   
        
    Current liabilities:   
    Accounts payable$15,325  $22,207 
    Accrued compensation and benefits 12,103   10,849 
    Accrued expenses 4,284   8,613 
    Accrued litigation 6,500   6,500 
    Sales allowances 2,571   1,661 
    Short-term lease liabilities 1,749   1,450 
    Income taxes payable 824   72 
    Short-term deferred revenue and customer prepayments 6,620   13,197 
        
    Total current liabilities 49,976   64,549 
        
    Long-term deferred revenue 1,761   145 
    Long-term income taxes payable 875   862 
    Long-term lease liabilities 7,030   7,009 
    Total liabilities 59,642   72,565 
        
    Equity:   
    Vicor Corporation stockholders' equity:   
    Capital stock 369,475   360,924 
    Retained earnings 271,424   243,079 
    Accumulated other comprehensive loss (1,195)  (988)
    Treasury stock (138,927)  (138,927)
    Total Vicor Corporation stockholders' equity 500,777   464,088 
    Noncontrolling interest 242   248 
    Total equity 501,019   464,336 
        
    Total liabilities and equity$560,661  $536,901 
        

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