UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.02. | Results of Operations and Financial Condition |
On October 22, 2020, Vicor Corporation issued a press release announcing its financial results for the three and nine months ended September 30, 2020. 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 22, 2020
Exhibit Index
| Exhibit No. |
Description | |
| 99.1 | Press Release of Vicor Corporation dated October 22, 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: October 22, 2020 | By: | /s/ James A. Simms | ||||
| James A. Simms | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
NEWS RELEASE
FINANCIAL NEWS BRIEF
October 22, 2020
For Immediate Release
Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2020
Andover, MA, October 22, 2020 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 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 third quarter ended September 30, 2020 totaled $78.1 million, a 10.4% increase from $70.8 million for the corresponding period a year ago, and also a 10.4% sequential increase from $70.8 million for the second quarter of 2020.
Gross margin increased to $33.3 million for the third quarter of 2020, compared to $33.0 million for the corresponding period a year ago, and increased sequentially from $30.3 million for the second quarter of 2020. Gross margin, as a percentage of revenue, decreased to 42.7% for the third quarter of 2020, compared to 46.6% for the corresponding period a year ago, and decreased from 42.8% for the second quarter of 2020.
Net income for the third quarter was $5.8 million, or $0.13 per diluted share, compared to net income of $5.9 million or $0.14 per diluted share, for the corresponding period a year ago and net income of $2.7 million, or $0.06 per diluted share, for the second quarter of 2020.
Cash and cash equivalents sequentially increased by $6.9 million to approximately $203.6 million at the end of the third quarter of 2020, from $196.7 million at the end of the second quarter of 2020. Incremental capital expenditures for the third quarter of 2020 totaled $8.1 million, as compared with $3.3 million for the corresponding period a year ago and $5.7 million for the second quarter of 2020.
Third quarter bookings increased 49.5% to $90.5 million, from $60.5 million for the corresponding period a year ago, and increased sequentially from $87.5 million for the second quarter of 2020. Total backlog at the end of the third quarter of 2020 was $140.0 million, representing an increase of 9.8% from $127.5 million at the end of the second quarter of 2020 and 34.4 % from $104.2 million at the end of 2019.
Commenting on the third quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Despite supply-chain and product mix challenges, higher shipments of Advanced Products led to an increase in third quarter revenue. Bookings for Advanced Products grew across a multiplicity of applications and end markets. Our outlook for the fourth quarter is for a sequential increase in revenue and earnings per share. Capacity expansion is on schedule and vertical integration in our new manufacturing facility of all of the process steps required by Advanced Products should soon lead to shorter cycle times, greater efficiencies, and improved gross and net margins.”
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 22, 2020 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call who have not pre-registered should call 877-299-4502 at approximately 4:30 p.m. and use the Passcode 12469708. 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 6, 2020. The replay dial-in number is 888-286-8010 and the Passcode is 78499292. 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, 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
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, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net revenues |
$ | 78,112 | $ | 70,772 | $ | 212,274 | $ | 199,852 | ||||||||
| Cost of revenues |
44,765 | 37,770 | 121,278 | 106,647 | ||||||||||||
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| Gross margin |
33,347 | 33,002 | 90,996 | 93,205 | ||||||||||||
| Operating expenses: |
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| Selling, general and administrative |
15,212 | 15,443 | 47,036 | 45,846 | ||||||||||||
| Research and development |
12,032 | 11,507 | 38,197 | 34,433 | ||||||||||||
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| Total operating expenses |
27,244 | 26,950 | 85,233 | 80,279 | ||||||||||||
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| Income from operations |
6,103 | 6,052 | 5,763 | 12,926 | ||||||||||||
| Other income (expense), net |
334 | 146 | 715 | 673 | ||||||||||||
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| Income before income taxes |
6,437 | 6,198 | 6,478 | 13,599 | ||||||||||||
| Less: Provision (benefit) for income taxes |
651 | 266 | (249 | ) | 805 | |||||||||||
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| Consolidated net income |
5,786 | 5,932 | 6,727 | 12,794 | ||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest |
1 | (5 | ) | 10 | 8 | |||||||||||
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| Net income attributable to Vicor Corporation |
$ | 5,785 | $ | 5,937 | $ | 6,717 | $ | 12,786 | ||||||||
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| Net income per share attributable to Vicor Corporation: |
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| Basic |
$ | 0.13 | $ | 0.15 | $ | 0.16 | $ | 0.32 | ||||||||
| Diluted |
$ | 0.13 | $ | 0.14 | $ | 0.15 | $ | 0.31 | ||||||||
| Shares outstanding: |
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| Basic |
43,164 | 40,332 | 41,814 | 40,279 | ||||||||||||
| Diluted |
44,743 | 42,194 | 43,567 | 41,435 | ||||||||||||
VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
| SEPT 30, | DEC 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 203,605 | $ | 84,668 | ||||
| Accounts receivable, net |
41,136 | 38,115 | ||||||
| Inventories, net |
58,169 | 49,187 | ||||||
| Other current assets |
6,872 | 7,096 | ||||||
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| Total current assets |
309,782 | 179,066 | ||||||
| Long-term deferred tax assets |
189 | 205 | ||||||
| Long-term investment, net |
2,591 | 2,510 | ||||||
| Property, plant and equipment, net |
65,780 | 56,952 | ||||||
| Other assets |
1,777 | 1,994 | ||||||
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| Total assets |
$ | 380,119 | $ | 240,727 | ||||
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| Liabilities and Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 11,911 | $ | 9,005 | ||||
| Accrued compensation and benefits |
13,248 | 10,410 | ||||||
| Accrued expenses |
2,417 | 2,690 | ||||||
| Sales allowances |
736 | 741 | ||||||
| Short-term lease liabilities |
1,563 | 1,520 | ||||||
| Income taxes payable |
62 | 57 | ||||||
| Short-term deferred revenue and customer prepayments |
8,061 | 5,507 | ||||||
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| Total current liabilities |
37,998 | 29,930 | ||||||
| Long-term deferred revenue |
813 | 1,054 | ||||||
| Contingent consideration obligations |
265 | 451 | ||||||
| Long-term income taxes payable |
575 | 567 | ||||||
| Long-term lease liabilities |
2,880 | 2,855 | ||||||
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| Total liabilities |
42,531 | 34,857 | ||||||
| Equity: |
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| Vicor Corporation stockholders’ equity: |
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| Capital stock |
326,577 | 201,774 | ||||||
| Retained earnings |
149,815 | 143,098 | ||||||
| Accumulated other comprehensive loss |
(203 | ) | (383 | ) | ||||
| Treasury stock |
(138,927 | ) | (138,927 | ) | ||||
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| Total Vicor Corporation stockholders’ equity |
337,262 | 205,562 | ||||||
| Noncontrolling interest |
326 | 308 | ||||||
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| Total equity |
337,588 | 205,870 | ||||||
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| Total liabilities and equity |
$ | 380,119 | $ | 240,727 | ||||
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