8-K
VICOR CORP false 0000751978 0000751978 2020-02-25 2020-02-25

 

 

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): February 25, 2020

 

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 February 25, 2020, Vicor Corporation issued a press release announcing its financial results for the fourth quarter and year ended December 31, 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 February 25, 2020

Exhibit Index

Exhibit
No.

   

Description

         
 

99.1

   

Press Release of Vicor Corporation dated February 25, 2020

         
 

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: February 25, 2020

 

 

By:

 

/s/ James A. Simms

 

 

 

James A. Simms

 

 

 

Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

February 25, 2020

For Immediate Release

Vicor Corporation Reports Results for the Fourth Quarter Ended December 31, 2019

Andover, MA, February 25, 2020 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 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 fourth quarter ended December 31, 2019 totaled $63.1 million, a 14.4% decrease from $73.7 million for the corresponding period a year ago, and a 10.8% sequential decrease from $70.8 million in the third quarter of 2019.

Gross margin dollars decreased to $29.8 million for the fourth quarter of 2019, compared to $33.9 million for the corresponding period a year ago, and decreased sequentially from $33.0 million for the third quarter of 2019. Gross margin, as a percentage of revenue, increased to 47.1% for the fourth quarter of 2019, compared to 45.9% for the corresponding period a year ago, and increased from 46.6% for the third quarter of 2019.

Net income for the fourth quarter was $1.3 million, or $0.03 per diluted share, compared to net income of $6.9 million or $0.17 per diluted share, for the corresponding period a year ago and net income of $5.9 million, or $0.14 per diluted share, for the third quarter of 2019.

Revenues for the year ended December 31, 2019, decreased 9.7% to $263.0 million from $291.2 million for the corresponding period a year ago. Net income for 2019 was $14.1 million, or $0.34 per diluted share, compared to net income of $31.7 million, or $0.78 per diluted share, for the corresponding period a year ago.

Cash and cash equivalents sequentially increased by $3.5 million to approximately $84.7 million at the end of the fourth quarter of 2019, from $81.2 million at the end of the third quarter of 2019. Capital expenditures for the fourth quarter of 2019 totaled $3.4 million, compared to $3.3 million for the third quarter of 2019.

Fourth quarter bookings of $76.8 million compare with $60.5 million for the third quarter of 2019 and the corresponding period a year ago. Total backlog at the end of the fourth quarter of 2019 was $104.2 million, up 15.6 % from $90.1 million at the end of the third quarter of 2019, and up 1.2% from $103.0 million at the end of 2018.

Commenting on fourth quarter performance and the company’s outlook, Dr. Patrizio Vinciarelli, Chairman and Chief Executive Officer, stated, “Vicor’s Q4 revenues were influenced by continuing headwinds related to tariffs and trade restrictions and rescheduling of programs now due to ramp starting in Q2. Bookings came in as expected but near-term visibility is clouded by the potential impact of the coronavirus on China and the global economy.”

Dr. Vinciarelli continued, “Q4 highlights included an all-encompassing list of customers seeking power system solutions to high current ASICs and AI accelerators for hyper-scale computing and automotive OEMs seeking power system solutions for autonomous driving and electric vehicles. The pace of design wins and breadth of customer engagements in high growth markets like AI and automotive reflects adoption of 48V Factorized Power and traction for our modular power system methodology, uniquely capable to efficiently address requirements from Mega-Watt power sources to Kilo-Amp loads.”

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, February 25, 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 42061502. 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 11, 2020. The replay dial-in number is 888-286-8010 and the Passcode is 90154129. 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
(Unaudited)
    YEAR ENDED
(Unaudited)
 
     DEC 31,     DEC 31,     DEC 31,      DEC 31,  
     2019     2018     2019      2018  

Net revenues

   $ 63,125     $ 73,720     $ 262,977      $ 291,220  

Cost of revenues

     33,364       39,847       140,011        152,249  
  

 

 

   

 

 

   

 

 

    

 

 

 

Gross margin

     29,761       33,873       122,966        138,971  

Operating expenses:

         

Selling, general and administrative

     16,711       15,731       62,557        62,224  

Research and development

     12,155       11,066       46,588        44,286  

Severance and other charges

     —         62       —          402  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     28,866       26,859       109,145        106,912  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income from operations

     895       7,014       13,821        32,059  

Other income (expense), net

     393       256       1,066        874  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income before income taxes

     1,288       7,270       14,887        32,933  

Less: (Benefit) provision for income taxes

     (27 )      363       778        1,087  
  

 

 

   

 

 

   

 

 

    

 

 

 

Consolidated net income

     1,315       6,907       14,109        31,846  

Less: Net income (loss) attributable to noncontrolling interest

     3       (3 )      11        121  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income attributable to Vicor Corporation

   $ 1,312     $ 6,910     $ 14,098      $ 31,725  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income per share attributable to Vicor Corporation:

         

Basic

   $ 0.03     $ 0.17     $ 0.35      $ 0.80  

Diluted

   $ 0.03     $ 0.17     $ 0.34      $ 0.78  

Shares outstanding:

         

Basic

     40,482       40,182       40,330        39,872  

Diluted

     42,404       40,981       41,677        40,729  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

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

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 84,668     $ 70,557  

Accounts receivable, net

     38,115       43,673  

Inventories, net

     49,187       47,370  

Other current assets

     7,096       3,460  
  

 

 

   

 

 

 

Total current assets

     179,066       165,060  

Long-term deferred tax assets

     205       265  

Long-term investment, net

     2,510       2,526  

Property, plant and equipment, net

     56,952       50,432  

Other assets

     1,994       2,785  
  

 

 

   

 

 

 

Total assets

   $ 240,727     $ 221,068  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 9,005     $ 16,149  

Accrued compensation and benefits

     10,410       10,657  

Accrued expenses

     2,690       2,631  

Sales allowances

     741       548  

Short-term lease liabilities

     1,520           

Accrued severance and other charges

              234  

Income taxes payable

     57       710  

Short-term deferred revenue and customer prepayments

     5,507       5,069  
  

 

 

   

 

 

 

Total current liabilities

     29,930       35,998  

Long-term deferred revenue

     1,054       232  

Contingent consideration obligations

     451       408  

Long-term income taxes payable

     567       238  

Long-term lease liabilities

     2,855       102  
  

 

 

   

 

 

 

Total liabilities

     34,857       36,978  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     201,774       193,977  

Retained earnings

     143,098       129,000  

Accumulated other comprehensive loss

     (383 )      (394 ) 

Treasury stock

     (138,927 )      (138,927 ) 
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     205,562       183,656  

Noncontrolling interest

     308       434  
  

 

 

   

 

 

 

Total equity

     205,870       184,090  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 240,727     $ 221,068