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Vicor Corporation Reports Results for the First Quarter Ended March 31, 2024

Apr 23, 2024 at 4:05 PM EDT

ANDOVER, Mass., April 23, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 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 first quarter ended March 31, 2024 totaled $83.9 million, a 14.3% decrease from $97.8 million for the corresponding period a year ago, and a 9.5% sequential decrease from $92.7 million in the fourth quarter of 2023.

Gross margin decreased to $45.1 million for the first quarter of 2024, compared to $46.5 million for the corresponding period a year ago, and decreased sequentially from $47.3 million for the fourth quarter of 2023. Gross margin, as a percentage of revenue, increased to 53.8% for the first quarter of 2024, compared to 47.6% for the corresponding period a year ago, and increased from 51.1% for the fourth quarter of 2023. Operating expenses increased to $44.0 million for the first quarter of 2024, compared to $36.1 million for the corresponding period a year ago, and increased sequentially from $40.0 million for the fourth quarter of 2023, primarily due to an increase in legal expenses.

Net income for the first quarter was $2.6 million, or $0.06 per diluted share, compared to net income of $11.2 million or $0.25 per diluted share, for the corresponding period a year ago and net income of $8.7 million, or $0.19 per diluted share, for the fourth quarter of 2023.

Cash flow from operations totaled $2.7 million for the first quarter, compared to cash flow from operations of $10.1 million for the corresponding period a year ago, and cash flow from operations of $22.1 million in the fourth quarter of 2023. Capital expenditures for the first quarter totaled $7.4 million, compared to $10.1 million for the corresponding period a year ago and $7.7 million for the fourth quarter of 2023. Cash and cash equivalents as of March 31, 2024 decreased 1.3% sequentially to approximately $239.2 million compared to approximately $242.2 million as of December 31, 2023.

Backlog for the first quarter ended March 31, 2024 totaled $150.3 million, a 44.6% decrease from $271.3 million for the corresponding period a year ago, and 6.5% sequential decrease from $160.8 million at the end of the fourth quarter of 2023.

Commenting on first quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Q1 gross margins and operating expenses reflect a step up in royalty income and legal expenses relating to our campaign to assert Vicor Intellectual Property. Licenses to OEMs, giving access to patented power system technology from otherwise infringing suppliers, will complement future revenues from our 5G product line and ChiP foundry. These capabilities position Vicor ahead of demands for escalating current and power density, with superior performance and foundry capacity that anticipate market requirements.”

“As we confront challenges and pursue opportunities, 2024 will be seen as the year in which our product strategy, selective licensing of Intellectual Property and clarity of purpose secured Vicor’s future growth and profitability. We are pleased with our execution of this comprehensive vision.”

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, April 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 April 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
  (Unaudited)
       
  MAR 31,   MAR 31,
    2024       2023  
       
       
Net revenues $ 83,872     $ 97,816  
Cost of revenues   38,749       51,282  
Gross margin   45,123       46,534  
       
Operating expenses:      
Selling, general and administrative   25,999       20,223  
Research and development   18,039       15,869  
Total operating expenses   44,038       36,092  
       
Income from operations   1,085       10,442  
       
Other income (expense), net   2,724       1,950  
       
Income before income taxes   3,809       12,392  
       
Less: Provision for income taxes   1,194       1,141  
       
Consolidated net income   2,615       11,251  
       
Less: Net income attributable to noncontrolling interest   11       7  
       
Net income attributable to Vicor Corporation $ 2,604     $ 11,244  
       
       
Net income per share attributable to Vicor Corporation:      
Basic $ 0.06     $ 0.25  
Diluted $ 0.06     $ 0.25  
       
Shares outstanding:      
Basic   44,516       44,162  
Diluted   45,031       44,907  


VICOR CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
       
  MAR 31,   DEC 31,
    2024       2023  
  (Unaudited)   (Unaudited)
Assets      
       
Current assets:      
Cash and cash equivalents $ 239,172     $ 242,219  
Accounts receivable, net   57,604       52,631  
Inventories   112,316       106,579  
Other current assets   19,173       18,937  
Total current assets   428,265       420,366  
       
Long-term deferred tax assets   277       296  
Long-term investment, net   2,622       2,530  
Property, plant and equipment, net   157,677       157,689  
Other assets   16,276       14,006  
       
Total assets $ 605,117     $ 594,887  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $ 12,438     $ 12,100  
Accrued compensation and benefits   11,636       11,227  
Accrued expenses   7,078       5,093  
Accrued litigation   6,500       6,500  
Sales allowances   3,130       3,482  
Short-term lease liabilities   1,812       1,864  
Income taxes payable   1,726       746  
Short-term deferred revenue and customer prepayments   2,684       3,157  
       
Total current liabilities   47,004       44,169  
       
Long-term deferred revenue   660       1,020  
Long-term income taxes payable   2,236       2,228  
Long-term lease liabilities   6,094       6,364  
Total liabilities   55,994       53,781  
       
Equity:      
Vicor Corporation stockholders' equity:      
Capital stock   389,931       384,395  
Retained earnings   299,278       296,674  
Accumulated other comprehensive loss   (1,390 )     (1,273 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders' equity   548,892       540,869  
Noncontrolling interest   231       237  
Total equity   549,123       541,106  
       
Total liabilities and equity $ 605,117     $ 594,887  


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Source: Vicor Corporation