8-K
VICOR CORP false 0000751978 0000751978 2019-10-17 2019-10-17

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 17, 2019

 

VICOR CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

0-18277

 

04-2742817

(State or Other Jurisdiction
of Incorporation)

 

(Commission

File Number)

 

(IRS Employer
Identification No.)

25 Frontage Road, Andover, Massachusetts 01810

(Address of Principal Executive Offices) (Zip Code)

(978) 470-2900

(Registrant’s telephone number, including area code)

 

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:

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value 

$0.01 per share

 

VICR

 

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


Item 2.02. Results of Operations and Financial Condition

On October 17, 2019, Vicor Corporation issued a press release announcing its financial results for the three and nine months ended September 30, 2019. 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:

None

(b) Pro forma financial information:

None

(c) Shell company transactions:

None

(d) Exhibits

         
 

99.1

   

Press Release of Vicor Corporation dated October 17, 2019

         
 

104

   

Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

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.

 

 

VICOR CORPORATION

             

Date: October 17, 2019

 

 

By:

 

/s/ James A. Simms

 

 

 

James A. Simms

 

 

 

Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE    

FINANCIAL NEWS BRIEF    

October 17, 2019

For Immediate Release

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2019

Andover, MA, October 17, 2019 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter and nine months ended September 30, 2019. 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 third quarter ended September 30, 2019 totaled $70.8 million, a 9.3% decrease from $78.0 million for the corresponding period a year ago, and an 11.7% sequential increase from $63.4 million in the second quarter of 2019.

Gross margin decreased to $33.0 million for the third quarter of 2019, compared to $39.0 million for the corresponding period a year ago, but increased sequentially from $29.1 million for the second quarter of 2019. Gross margin, as a percentage of revenue, decreased to 46.6% for the third quarter of 2019, compared to 50.0% for the corresponding period a year ago, but increased from 46.0% for the second quarter of 2019.

Net income for the third quarter was $5.9 million, or $0.14 per diluted share, compared to net income of $13.0 million or $0.32 per diluted share, for the corresponding period a year ago and net income of $2.6 million, or $0.06 per diluted share, for the second quarter of 2019.

Revenues for the nine months ended September 30, 2019, decreased 8.1% to $199.9 million from $217.5 million for the corresponding period a year ago. Net income for the nine month period was $12.8 million, or $0.31 per diluted share, compared to net income of $24.8 million, or $0.61 per diluted share, for the corresponding period a year ago.                

Cash and cash equivalents sequentially increased by $9.7 million to approximately $81.2 million at the end of the third quarter of 2019, from $71.5 million at the end of the second quarter of 2019. Capital expenditures for the third quarter of 2019 totaled $3.3 million, up from $2.5 million for the second quarter of 2019.

Third quarter bookings of $60.5 million compare with $91.1 million for the corresponding period a year ago and $60.2 million for the second quarter of 2019. Total backlog at the end of the third quarter of 2019 was $90.1 million, down 10.5 % from $100.7 million at the end of the second quarter of 2019, and down 12.5% from $103.0 million at the end of 2018.

Dr. Patrizio Vinciarelli, Chairman and Chief Executive Officer, commented on third quarter performance: “For the third quarter, consolidated revenue grew sequentially, largely reflecting the resumption of Advanced Products shipments for an existing hyperscaler application. In contrast, Brick Products revenue was unchanged sequentially, as domestic growth was offset by tariff-related declines in China and economic weakness in Europe.”

Dr. Vinciarelli continued, “I am pleased with the pace of design wins and breadth of customer engagements. Our Advanced Products have positioned Vicor to lead the transition to 48V in high growth segments of the datacenter and automotive markets. Bookings leading to volume production of solutions for AI acceleration, hyperscale computing, and supercomputing are expected to step up from recent levels, beginning in the fourth quarter. Longer term design wins in automotive systems and AI for Autonomous vehicles are queuing up, with initial projects scheduled for 2022 production for the 2023 model year.”

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, October 17, 2019 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 51404993. 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 1, 2019. The replay dial-in number is 888-286-8010 and the Passcode is 70495083. 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, 2018, 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

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,  
     2019     2018     2019      2018  

Net revenues

   $ 70,772     $ 78,035     $ 199,852      $ 217,500  

Cost of revenues

     37,770       39,031       106,647        112,402  
  

 

 

   

 

 

   

 

 

    

 

 

 

Gross margin

     33,002       39,004       93,205        105,098  

Operating expenses:

         

Selling, general and administrative

     15,443       15,280       45,846        46,493  

Research and development

     11,507       10,691       34,433        33,220  

Severance and other charges

     —         (10     —          340  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     26,950       25,961       80,279        80,053  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income from operations

     6,052       13,043       12,926        25,045  

Other income (expense), net

     146       232       673        618  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income before income taxes

     6,198       13,275       13,599        25,663  

Less: Provision for income taxes

     266       227       805        724  
  

 

 

   

 

 

   

 

 

    

 

 

 

Consolidated net income

     5,932       13,048       12,794        24,939  

Less: Net income (loss) attributable to noncontrolling interest

     (5     36       8        124  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income attributable to Vicor Corporation

   $ 5,937     $ 13,012     $ 12,786      $ 24,815  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income per share attributable to Vicor Corporation:

         

Basic

   $ 0.15     $ 0.32     $ 0.32      $ 0.62  

Diluted

   $ 0.14     $ 0.32     $ 0.31      $ 0.61  

Shares outstanding:

         

Basic

     40,332       40,120       40,279        39,769  

Diluted

     42,194       41,124       41,435        40,645  


VICOR CORPORATION    

CONDENSED CONSOLIDATED BALANCE SHEET     

(Thousands)    

 

     SEPT 30,     DEC 31,  
     2019     2018  
     (Unaudited)     (Unaudited)  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 81,229     $ 70,557  

Accounts receivable, net

     39,987       43,673  

Inventories, net

     49,688       47,370  

Other current assets

     5,114       3,460  
  

 

 

   

 

 

 

Total current assets

     176,018       165,060  

Long-term deferred tax assets

     241       265  

Long-term investment, net

     2,576       2,526  

Property, plant and equipment, net

     56,336       50,432  

Other assets

     2,739       2,785  
  

 

 

   

 

 

 

Total assets

   $ 237,910     $ 221,068  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 10,329     $ 16,149  

Accrued compensation and benefits

     9,548       10,657  

Accrued expenses

     2,335       2,631  

Short term lease liabilities

     1,580       —    

Sales allowances

     1,076       548  

Accrued severance and other charges

     —         234  

Income taxes payable

     57       710  

Deferred revenue

     5,843       5,069  
  

 

 

   

 

 

 

Total current liabilities

     30,768       35,998  

Long-term deferred revenue

     1,134       232  

Contingent consideration obligations

     210       408  

Long-term income taxes payable

     237       238  

Long-term lease payable

     2,845       102  
  

 

 

   

 

 

 

Total liabilities

     35,194       36,978  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     199,688       193,977  

Retained earnings

     141,786       129,000  

Accumulated other comprehensive loss

     (278     (394

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     202,269       183,656  

Noncontrolling interest

     447       434  
  

 

 

   

 

 

 

Total equity

     202,716       184,090  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 237,910     $ 221,068