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Vicor Corporation Reports Results for the First Quarter Ended March 31, 2020

Apr 23, 2020 at 4:05 PM EDT

ANDOVER, Mass., April 23, 2020 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2020.  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 presented below. 

Revenues for the first quarter ended March 31, 2020 totaled $63.4 million, a 3.5% decrease from $65.7 million for the corresponding period a year ago, and a 0.4% sequential increase from $63.1 million the fourth quarter of 2019. 

Gross margin decreased to $27.3 million for the first quarter of 2020, compared to $31.1 million for the corresponding period a year ago, and decreased sequentially from $29.8 million for the fourth quarter of 2019.  Gross margin, as a percentage of revenue, decreased to 43.1% for the first quarter of 2020, compared to 47.3% for the corresponding period a year ago, and decreased from 47.1% for the fourth quarter of 2019. 

Net loss for the first quarter was ($1.7) million, or ($0.04) per share, compared to net income of $4.3 million or $0.10 per diluted share, for the corresponding period a year ago and net income of $1.3 million, or $0.03 per diluted share, for the fourth quarter of 2019.      

Cash and cash equivalents sequentially decreased by $1.9 million to approximately $82.8 million at the end of the first quarter of 2020, from $84.7 million at the end of the fourth quarter of 2019.  Incremental capital expenditures for the first quarter of 2020 totaled $3.0 million as compared with $3.3 million for the corresponding period a year ago and $3.4 million for the fourth quarter of 2019.

First quarter bookings increased 5.2% to $70.1 million, from $66.6 million for the corresponding period a year ago, but decreased sequentially 8.8% from $76.8 million for the fourth quarter of 2019.  Total backlog at the end of the first quarter of 2020 was $110.8 million, up 6.4 % from $104.2 million at the end of 2019.

Commenting on first quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Q1 revenues fell short of forecast as supply chain delays caused production inefficiencies.  Sequentially lower gross margins reflected these circumstances and higher new product development expenses contributed to a net loss for the period.”

“Our outlook for Q2 is for a sequential increase in revenue and a return to net profitability.  While protecting the health of employees and confronting the challenges of the COVID-19 pandemic, we continue to operate our manufacturing facilities as an essential business supplying customers that depend on us.”

Dr. Vinciarelli concluded, “Orders booked in Q1 and the pace of activity in early Q2 reflect strengthening demand for Advanced Products.  Despite near-term uncertainties due to the pandemic, 48V adoption in AI, data center servers and vehicle electrification, is a precursor to accelerating demand. We are, therefore, adding a new wing to our Andover manufacturing facility.  Ready for occupancy in Q1 2021, the new wing will enable us to essentially double capacity for Advanced Products and vertically integrate all of the process steps necessary to manufacture ChiPs (“Converters Housed in Package”) utilizing 3D power packaging technology pioneered by Vicor. Our comprehensive IP portfolio includes Vertical Power Delivery, a power system architecture necessary to supply the escalating current requirements of AI processors.” 

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

Earnings Conference Call

Vicor will be holding its investor conference call today, Thursday, April 23, 2020 at 5:00 p.m. Eastern Time.  Shareholders interested in participating in the call should call 888-339-2688 at approximately 4:50 p.m. and use the Passcode 96644533.  Internet users may listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor’s website at  Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software.  For those who cannot participate in the conference call, a replay will be available, shortly after the conclusion of the call, through May 8, 2020.  The replay dial-in number is 888-286-8010 and the Passcode is 82686567.  In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor’s website at beginning shortly after the conclusion of the call.

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, 2019, 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 primarily to customers in the higher-performance, higher-power segments of the power systems market, including aerospace and defense electronics, enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, and vehicles and transportation markets.

For further information contact:
James A. Simms, Chief Financial Officer
Voice: 978-470-2900
Facsimile: 978-749-3439                

(Thousands except for per share amounts)      
  MAR 31,   MAR 31,
  2020   2019
Net revenues   $63,401       $65,725  
Cost of revenues   36,070       34,639  
Gross margin   27,331       31,086  
Operating expenses:      
Selling, general and administrative   16,369       15,373  
Research and development   13,335       11,220  
Total operating expenses   29,704       26,593  
Income (loss) from operations   (2,373 )     4,493  
Other income (expense), net   148       239  
Income (loss) before income taxes   (2,225 )     4,732  
Less:( Benefit) provision for income taxes   (494 )     426  
Consolidated net income (loss)   (1,731 )     4,306  
Less: Net income attributable to      
noncontrolling interest   4       20  
Net income (loss) attributable to      
Vicor Corporation   ($1,735 )     $4,286  
Net income (loss) per share attributable      
to Vicor Corporation:      
Basic   ($0.04 )     $0.11  
Diluted   ($0.04 )     $0.10  
Shares outstanding:      
Basic   40,635       40,229  
Diluted   40,635       41,029  

  MAR 31,   DEC 31,
  2020   2019
  (Unaudited)   (Unaudited)
Current assets:      
Cash and cash equivalents $ 82,751     $ 84,668  
Accounts receivable, net   41,279       38,115  
Inventories, net   53,352       49,187  
Other current assets   7,808       7,096  
Total current assets   185,190       179,066  
Long-term deferred tax assets   206       205  
Long-term investment, net   2,557       2,510  
Property, plant and equipment, net   56,879       56,952  
Other assets   1,893       1,994  
Total assets $ 246,725     $ 240,727  
Liabilities and Equity      
Current liabilities:      
Accounts payable $ 13,440     $ 9,005  
Accrued compensation and benefits   10,081       10,410  
Accrued expenses   2,761       2,690  
Sales allowances   781       741  
Short-term lease liabilities   1,370       1,520  
Income taxes payable   34       57  
Short-term deferred revenue and customer prepayments   6,753       5,507  
Total current liabilities   35,220       29,930  
Long-term deferred revenue   974       1,054  
Contingent consideration obligations   362       451  
Long-term income taxes payable   571       567  
Long-term lease liabilities   2,601       2,855  
Total liabilities   39,728       34,857  
Vicor Corporation stockholders' equity:      
Capital stock   204,545       201,774  
Retained earnings   141,363       143,098  
Accumulated other comprehensive loss   (300 )     (383 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders' equity   206,681       205,562  
Noncontrolling interest   316       308  
Total equity   206,997       205,870  
Total liabilities and equity $ 246,725     $ 240,727  

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Source: Vicor Corporation