UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: February 23, 2017
(Date of earliest event reported)
Vicor Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
0-18277
(Commission File Number)
04-2742817
(IRS Employer
Identification Number)
25 Frontage Road, Andover, Massachusetts
(Address of principal executive offices)
01810
(Zip Code)
(978) 470-2900
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition On February 23, 2017, Vicor Corporation issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2016. The full text of that press release is attached as Exhibit 99.1 hereto and incorporated by reference herein. The information furnished under this Item 2.02, including the Exhibit attached hereto, shall not be deemed "filed" for any purpose, including for purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: February 23, 2017 |
VICOR CORPORATION
By: /s/ James A. Simms |
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| Exhibit No. | Description |
| 99.1 | Press Release of Vicor Corporation dated February 23, 2017 |
Exhibit 99.1
Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2016ANDOVER, MA -- (Marketwired - February 23, 2017) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2016. 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 fourth quarter ended December 31, 2016, decreased to $48,085,000, compared to $51,394,000 for the corresponding period a year ago, and decreased from $53,227,000 for the third quarter of 2016. Fourth quarter bookings increased to $55,082,000 from $46,636,000 for the corresponding period a year ago, and increased from $53,846,000 for the third quarter of 2016.
Gross margin decreased to $21,499,000 for the fourth quarter of 2016, compared to $22,831,000 for the corresponding period a year ago, and decreased from $25,923,000 for the third quarter of 2016. Gross margin, as a percentage of revenue, increased to 44.7% for the fourth quarter of 2016, compared to 44.4% for the fourth quarter of 2015, but decreased from 48.7% for the third quarter of 2016.
Net loss for the fourth quarter was ($2,688,000), or ($0.07) per share, compared to a net loss of ($1,752,000), or ($0.05) per share, for the corresponding period a year ago and net income of $2,336,000, or $0.06 per diluted share, for the third quarter of 2016.
Revenues for the year ended December 31, 2016, decreased 9.0% to $200,280,000 from $220,194,000 for the corresponding period a year ago. Net loss for the current year was ($6,247,000), or ($0.16) per share, compared to net income of $4,927,000, or $0.13 per diluted share, for the corresponding period a year ago. Included in net income for the third quarter of 2015 was a gain from equity method investment of $5,000,000, representing cash consideration received for the Company's investment in Great Wall Semiconductor Corporation ("GWS"), following the acquisition of GWS by Intersil Corporation in September 2015.
Cash provided by operating activities totaled $2,128,000 for the fourth quarter of 2016, compared to cash used for operating activities of $164,000 for the corresponding period a year ago. Cash and cash equivalents increased sequentially by $1,104,000 to approximately $56,170,000 at the end of the fourth quarter of 2016 from $55,066,000 at the end of the third quarter of 2016.
Total backlog at the end of 2016 was $48,371,000, compared to $42,124,000 at the end of the third quarter, and $39,073,000 at the end of 2015.
Dr. Patrizio Vinciarelli, Chief Executive Officer, commented on fourth quarter performance and the outlook for 2017, stating, "A nearly 10% sequential decline in quarterly consolidated revenue caused reduced manufacturing efficiencies, reduced product margins, and a quarterly loss. However, a sequential increase in consolidated bookings and a strengthening book-to-bill ratio bode well for sequential increases in quarterly revenues and profitability in 2017. Shipments of 48V to point-of-load solutions for datacenters rose 13% sequentially, with customers also placing orders for deliveries in Q1 and beyond. Design-in activity of advanced products in datacenter, supercomputing, autonomous driving, and aerospace applications accelerated, with first design wins for powering GPUs and for powering CPUs within the CPU package. This high level of activity and an improvement in bookings are indicative of increasing market traction enabled by our innovative and highly differentiated modular power components."
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, Thursday, February 23, 2017 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 888-419-5570 at approximately 4:50 p.m. and use the Passcode 60276372. 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 March 10, 2017. The replay dial-in number is 888-286-8010 and the Passcode is 40981832. 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," "intend," "estimate," "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, 2015, 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.
VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED YEAR ENDED
(Unaudited) (Unaudited)
---------- ---------- ---------- ----------
DEC 31, DEC 31, DEC 31, DEC 31,
2016 2015 2016 2015
---------- ---------- ---------- ----------
Net revenues $ 48,085 $ 51,394 $ 200,280 $ 220,194
Cost of revenues 26,586 28,563 109,071 120,676
---------- ---------- ---------- ----------
Gross margin 21,499 22,831 91,209 99,518
Operating expenses:
Selling, general and
administrative 14,032 14,982 55,675 58,313
Research and development 10,024 10,301 41,848 41,472
---------- ---------- ---------- ----------
Total operating expenses 24,056 25,283 97,523 99,785
---------- ---------- ---------- ----------
Loss from operations (2,557) (2,452) (6,314) (267)
Other income (expense), net (66) 14 284 25
---------- ---------- ---------- ----------
Loss before income taxes (2,623) (2,438) (6,030) (242)
Less: Provision (benefit)
for income taxes 63 (775) 231 (401)
Gain from equity method
investment, net of tax - - - 5,000
---------- ---------- ---------- ----------
Consolidated net income
(loss) (2,686) (1,663) (6,261) 5,159
Less: Net income (loss)
attributable to
noncontrolling interest 2 89 (14) 232
---------- ---------- ---------- ----------
Net income (loss)
attributable to Vicor
Corporation $ (2,688) $ (1,752) $ (6,247) $ 4,927
========== ========== ========== ==========
Net income (loss) per share
attributable to Vicor
Corporation:
Basic $ (0.07) $ (0.05) $ (0.16) $ 0.13
Diluted $ (0.07) $ (0.05) $ (0.16) $ 0.13
Shares outstanding:
Basic 38,936 38,792 38,842 38,754
Diluted 38,936 38,792 38,842 39,146
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
DEC 31, DEC 31,
2016 2015
(Unaudited) (Unaudited)
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 56,170 $ 62,980
Accounts receivable, net 25,216 25,982
Inventories, net 27,136 23,442
Other current assets 3,250 3,102
------------ ------------
Total current assets 111,772 115,506
Deferred tax assets 38 15
Long-term investments 2,508 2,866
Property, plant and equipment, net 37,574 37,450
Other assets 2,175 1,708
------------ ------------
$ 154,067 $ 157,545
============ ============
Liabilities and Equity
Current liabilities:
Accounts payable $ 7,588 $ 7,470
Accrued compensation and benefits 8,965 8,349
Accrued expenses 2,179 2,568
Accrued severance charges - 195
Income taxes payable 92 31
Deferred revenue 3,403 1,988
------------ ------------
Total current liabilities 22,227 20,601
Long-term deferred revenue 374 468
Contingent consideration obligations 253 144
Long-term income taxes payable 196 192
Deferred income taxes - 55
------------ ------------
Total liabilities 23,050 21,460
Equity:
Vicor Corporation stockholders' equity:
Capital stock 176,859 174,850
Retained earnings 93,438 99,685
Accumulated other comprehensive loss (561) (577)
Treasury stock (138,927) (138,927)
------------ ------------
Total Vicor Corporation stockholders'
equity 130,809 135,031
Noncontrolling interest 208 1,054
------------ ------------
Total equity 131,017 136,085
------------ ------------
$ 154,067 $ 157,545
============ ============
For further information contact: James A. Simms Chief Financial Officer Voice: 978-470-2900 Facsimile: 978-749-3439 invrel@vicorpower.com