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Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2024

ANDOVER, Mass., July 23, 2024 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2024. 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, 2024 totaled $85.9 million, a 19.6% decrease from $106.7 million for the corresponding period a year ago, and a 2.4% sequential increase from $83.9 million in the first quarter of 2024.

Gross margin decreased to $42.8 million for the second quarter of 2024, compared to $55.2 million for the corresponding period a year ago and $45.1 million for the first quarter of 2024. Gross margin, as a percentage of revenue, decreased to 49.8% for the second quarter of 2024, compared to 51.7% for the corresponding period a year ago and 53.8% for the first quarter of 2024. Operating expenses increased to $42.6 million for the second quarter of 2024, compared to $37.3 million for the corresponding period a year ago, and decreased sequentially from $61.2 million for the first quarter of 2024.

Net loss for the second quarter was $(1.2) million, or $(0.03) per diluted share, compared to net income of $17.1 million or $0.38 per diluted share, for the corresponding period a year ago and net loss of $(14.5) million, or $(0.33) per diluted share, for the first quarter of 2024.

Cash flow from operations totaled $15.6 million for the second quarter, compared to cash flow from operations of $19.0 million for the corresponding period a year ago, and cash flow from operations of $2.6 million in the first quarter of 2024. Capital expenditures for the second quarter totaled $6.1 million, compared to $8.5 million for the corresponding period a year ago and $7.3 million for the first quarter of 2024. Cash and cash equivalents as of June 30, 2024 increased 5.3% sequentially to approximately $251.9 million compared to approximately $239.2 million as of March 31, 2024.

Backlog for the second quarter ended June 30, 2024 totaled $153.8 million, a 29.2% decrease from $217.3 million for the corresponding period a year ago, and 2.3% sequential increase from $150.3 million at the end of the first quarter of 2024.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Backlog, revenues and cash flow improved in Q2 while gross margins and profitability were impacted by changes in product mix and taxes.”

“Our technology, products and fabrication methodology are focused on satisfying emerging requirements for high current and power density. We are pleased with our competitive position and market opportunity.”

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 23, 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 Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on July 23, 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, 2023, 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)
               
  JUN 30,   JUN 30,   JUN 30,   JUN 30,
    2024       2023       2024       2023  
               
               
Net revenues $ 85,854     $ 106,747     $ 169,726     $ 204,563  
Cost of revenues   43,083       51,574       81,832       102,856  
Gross margin   42,771       55,173       87,894       101,707  
               
Operating expenses:              
Selling, general and administrative   23,318       20,375       49,317       40,598  
Research and development   16,939       16,935       34,978       32,804  
Litigation-contingency expense   2,300                           –       19,500        
Total operating expenses   42,557       37,310       103,795       73,402  
               
Income (loss) from operations   214       17,863       (15,901 )     28,305  
               
Other income (expense), net   2,807       1,776       5,531       3,726  
               
Income (loss) before income taxes   3,021       19,639       (10,370 )     32,031  
               
Less: Provision for income taxes   4,216       2,537       5,287       3,678  
               
Consolidated net (loss) income   (1,195 )     17,102       (15,657 )     28,353  
               
Less: Net income attributable to noncontrolling interest   1       1       12       8  
               
Net (loss) income attributable to Vicor Corporation $ (1,196 )   $ 17,101     $ (15,669 )   $ 28,345  
               
               
Net (loss) income per share attributable to Vicor Corporation:              
Basic $ (0.03 )   $ 0.39     $ (0.35 )   $ 0.64  
Diluted $ (0.03 )   $ 0.38     $ (0.35 )   $ 0.63  
               
Shares outstanding:              
Basic   44,855       44,230       44,686       44,196  
Diluted   44,855       44,906       44,686       44,907  
               
VICOR CORPORATION      
       
CONDENSED CONSOLIDATED BALANCE SHEET    
(Thousands)      
       
       
  JUN 30,   DEC 31,
    2024       2023  
  (Unaudited)   (Unaudited)
Assets      
       
Current assets:      
Cash and cash equivalents $ 251,884     $ 242,219  
Accounts receivable, net   54,857       52,631  
Inventories   109,084       106,579  
Other current assets   19,510       18,937  
Total current assets   435,335       420,366  
       
Long-term deferred tax assets   258       296  
Long-term investment, net   2,600       2,530  
Property, plant and equipment, net   156,689       157,689  
Other assets   18,352       14,006  
       
Total assets $ 613,234     $ 594,887  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $ 12,269     $ 12,100  
Accrued compensation and benefits   12,109       11,227  
Accrued expenses   6,170       5,093  
Accrued litigation   26,212       6,500  
Sales allowances   2,989       3,482  
Short-term lease liabilities   1,757       1,864  
Income taxes payable   3,674       746  
Short-term deferred revenue and customer prepayments   2,656       3,157  
       
Total current liabilities   67,836       44,169  
       
Long-term deferred revenue   300       1,020  
Long-term income taxes payable   1,917       2,228  
Long-term lease liabilities   5,724       6,364  
Total liabilities   75,777       53,781  
       
Equity:      
Vicor Corporation stockholders’ equity:      
Capital stock   396,744       384,395  
Retained earnings   281,005       296,674  
Accumulated other comprehensive loss   (1,583 )     (1,273 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders’ equity   537,239       540,869  
Noncontrolling interest   218       237  
Total equity   537,457       541,106  
       
Total liabilities and equity $ 613,234     $ 594,887  
       


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