Financial Press Release

<< Back

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2018

ANDOVER, Mass., Oct. 16, 2018 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter and nine months ended September 30, 2018.  These results will be discussed on October 18, 2018 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 third quarter ended September 30, 2018 increased 37.2% to $78,035,000, from $56,888,000 for the corresponding period a year ago, and increased 5.2% sequentially from $74,196,000 for the second quarter of 2018. Third quarter bookings increased 41.6% to $91,051,000, from $64,280,000 for the corresponding period a year ago, and increased 4.1% sequentially from $87,448,000 for the second quarter of 2018.

Gross margin increased to $39,004,000 for the third quarter of 2018, compared to $25,143,000 for the corresponding period a year ago, and increased from $35,883,000 for the second quarter of 2018.  Gross margin, as a percentage of revenue, increased to 50.0% for the third quarter of 2018, compared to 44.2% for the corresponding period a year ago, and increased from 48.4% for the second quarter of 2018. 

Net income for the third quarter was $13,012,000, or $0.32 per diluted share, compared to a net loss of $(11,000), or $(0.00) per share, for the corresponding period a year ago, and net income of $7,860,000, or $0.19 per diluted share, for the second quarter of 2018.

Revenues for the nine months ended September 30, 2018, increased 28.7% to $217,500,000 from $169,059,000 for the corresponding period a year ago.  Net income for the nine month period was $24,815,000, or $0.61 per diluted share, compared to a net loss of $(1,444,000), or $(0.04) per share, for the corresponding period a year ago.          

Cash provided by operating activities totaled $14,314,000 for the third quarter of 2018, compared to cash provided by operating activities of $1,341,000 for the corresponding period a year ago and cash provided by operating activities of $9,340,000 for the preceding second quarter of 2018. Cash and cash equivalents sequentially increased by $14,286,000 to approximately $68,206,000 at the end of the third quarter of 2018, from $53,920,000 at the end of the second quarter of 2018.

Total backlog at the end of the third quarter of 2018 was $116,123,000, compared to $103,100,000 at the end of the second quarter of 2018 and $73,054,000 at the end of 2017.

Commenting on third quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated: “With increased production rates and improved productivity, Q3 gross margins reached 50% and, with reduced operating expenses, led to appreciably higher profitability. Increasing profit margins reflect the leverage of our business model, while the broadening adoption of our highly differentiated solutions is beginning to reflect the substantial investments we have made in advanced technologies over the last fifteen years. We believe that our Intellectual Property will drive substantial long term returns as Vicor continues to expand its leadership in high performance power systems.”

Dr. Vinciarelli went on to state, “Confronted with customer adoption of 48V power systems, competitors with past accomplishments at 12V have recently made claims of better performance and cost at 48V predicated on the “intermediate bus” power distribution architecture (i.e., two-step conversion) getting a new lease on life using new components, such as GaN FETs.  These initiatives cannot circumvent the multiplicity of fundamental obstacles to delivering hundreds of amperes at less than 1V. Advanced power conversion topologies, power distribution architectures and Power-on-Package technology are the necessary keys to high performance AI applications powered “directly” from 48V. With increasing peak current requirements, global competitors driving to win the AI race are adopting Vicor Power-on-Package solutions.”

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 as scheduled, on Thursday, October 18, 2018 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 90653087.  Internet users may listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor’s website at www.vicorpower.com.  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 November 2, 2018.  The replay dial-in number is 888-286-8010 and the Passcode is 77605130.  In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor’s website at www.vicorpower.com 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, 2017, 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, aerospace and defense.

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

               
VICOR CORPORATION              
               
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS                  
(Thousands except for per share amounts)              
               
  QUARTER ENDED
    NINE MONTHS ENDED
  (Unaudited)
    (Unaudited)
               
  SEPT 30,   SEPT 30,   SEPT 30,   SEPT 30,
  2018    2017    2018   2017 
               
               
Net revenues $78,035     $56,888     $217,500   $169,059  
Cost of revenues 39,031     31,745     112,402   94,334  
Gross margin 39,004     25,143     105,098   74,725  
               
Operating expenses:              
Selling, general and administrative 15,280     14,500     46,493   43,059  
Research and development 10,691     10,543     33,220   33,482  
Severance and other charges (10 )     -     340     -  
Total operating expenses 25,961     25,043     80,053   76,541  
               
Income (loss) from operations 13,043     100     25,045   (1,816 )
               
Other income (expense), net 232     309     618   994  
               
Income (loss) before income taxes 13,275     409     25,663   (822 )
               
Less:  Provision for income taxes 227     371     724   539  
               
Consolidated net income (loss) 13,048     38     24,939   (1,361 )
               
Less:  Net income attributable to              
noncontrolling interest 36     49     124   83  
               
Net income (loss) attributable to              
Vicor Corporation $13,012     ($11 )   $24,815   ($1,444 )
               
               
Net income (loss) per share attributable              
to Vicor Corporation:              
Basic $0.32     ($0.00 )   $0.62   ($0.04 )
Diluted $0.32     ($0.00 )   $0.61   ($0.04 )
               
Shares outstanding:              
Basic 40,120     39,288     39,769   39,177  
Diluted 41,124     39,288     40,645   39,177  
               


VICOR CORPORATION      
       
CONDENSED CONSOLIDATED BALANCE SHEET    
(Thousands)      
       
       
  SEPT 30,     DEC 31,  
  2018     2017  
  (Unaudited)     (Unaudited)  
Assets      
       
Current  assets:      
Cash and cash equivalents $68,206     $44,230  
Accounts receivable, net 45,052     34,487  
Inventories, net 43,444     36,499  
Other current assets 3,900     3,616  
Total current assets 160,602     118,832  
       
Long-term deferred tax assets 184     210  
Long-term investments, net 2,613     2,525  
Property, plant and equipment, net 41,465     41,356  
Other assets 2,801     2,801  
       
Total assets $207,665     $165,724  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $13,106     $9,065  
Accrued compensation and benefits 9,159     9,891  
Accrued expenses 2,384     2,989  
Sales allowances 567       -  
Accrued severance and other charges 325       -  
Income taxes payable   708       300  
Deferred revenue 4,442     5,791  
       
Total current liabilities 30,691     28,036  
       
Long-term deferred revenue 249     303  
Contingent consideration obligations 470     678  
Long-term income taxes payable 195     195  
Other long-term liabilities 100     93  
Total liabilities 31,705     29,305  
       
Equity:      
Vicor Corporation stockholders' equity:      
Capital stock 192,893     181,914  
Retained earnings 122,090     93,605  
Accumulated other comprehensive loss (516 )   (478 )
Treasury stock (138,927 )   (138,927 )
Total Vicor Corporation stockholders' equity 175,540     136,114  
Noncontrolling interest 420     305  
Total equity 175,960     136,419  
       
Total liabilities and equity $207,665     $165,724  
       

Vicor Logo.jpg

Source: Vicor Corporation