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 21, 2021, Vicor Corporation issued a press release announcing its financial results for the three and nine months ended September 30, 2021. 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 21, 2021 |
Exhibit Index
| Exhibit No. |
Description | |
| 99.1 | Press Release of Vicor Corporation dated October 21, 2021 | |
| 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 21, 2021 | By: | /s/ James F. Schmidt | ||||
| James F. Schmidt | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
NEWS RELEASE
FINANCIAL NEWS BRIEF
October 21, 2021
For Immediate Release
Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2021
Andover, MA, October 21, 2021 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2021. 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, 2021 totaled $84.9 million, an 8.7% increase from $78.1 million for the corresponding period a year ago, but an 11.0% sequential decrease from $95.4 million in the second quarter of 2021.
Gross margin increased to $42.8 million for the third quarter of 2021, compared to $33.3 million for the corresponding period a year ago, but decreased sequentially from $49.9 million for the second quarter of 2021. Gross margin, as a percentage of revenue, increased to 50.4% for the third quarter of 2021, compared to 42.7% for the corresponding period a year ago, but decreased from 52.3% for the second quarter of 2021.
Net income for the third quarter was $13.3 million, or $0.29 per diluted share, compared to net income of $5.8 million or $0.13 per diluted share, for the corresponding period a year ago and net income of $19.4 million, or $0.43 per diluted share, for the second quarter of 2021.
Cash flow from operations totaled $10.1 million for the third quarter, compared to cash flow from operations of $11.6 million for the corresponding period a year ago, and cash flow from operations of $12.3 million in the second quarter of 2021. Capital expenditures for the third quarter totaled $15.2 million, compared to $8.1 million for the corresponding period a year ago and $6.5 million for the second quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of September 30, 2021 remained basically unchanged at $229.0 million, compared to June 30, 2021.
Commenting on third quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Semiconductor component shortages and capacity constraints caused Q3 revenues to fall short of expectations with a negative impact on margins. Improved semiconductor component availability and increased capacity should support a significant step up in Q4 revenues”.
The Q3 book-to-bill ratio came in at 2.0 and Q3 ending backlog stood at $296 million, as compared with $140 million at the end of Q3, 2020. Advanced Products shipments in Q4 are expected to significantly exceed legacy bricks. Our factory expansion is on track to be completed in Q4 with production equipment coming on line starting in Q1 ’22.”
Dr. Vinciarelli concluded, “In Q3, we executed our first OEM License Agreement and received initial license purchase orders from a major OEM wishing to secure access to systems utilizing power modules covered by Vicor IP.”
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 21, 2021 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to pre-register with BT Conferencing, the service provider hosting the conference call, so that he or she, on the day of the call, may avoid waiting for the BT Conferencing operator to register callers individually. Those pre-registering on BT Conferencing’s website will receive a special dial-in number and PIN for call access. Pre-registration may be completed at any time prior to 5:00 p.m. on October 21, 2021. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 94629394. 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 5, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 33342563. 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, 2020, 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 F. Schmidt, 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, 2021 |
SEPT 30, 2020 |
SEPT 30, 2021 |
SEPT 30, 2020 |
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| Net revenues |
$ | 84,911 | $ | 78,112 | $ | 269,083 | $ | 212,274 | ||||||||
| Cost of revenues |
42,098 | 44,765 | 131,699 | 121,278 | ||||||||||||
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| Gross margin |
42,813 | 33,347 | 137,384 | 90,996 | ||||||||||||
| Operating expenses: |
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| Selling, general and administrative |
17,322 | 15,212 | 50,865 | 47,036 | ||||||||||||
| Research and development |
13,519 | 12,032 | 39,818 | 38,197 | ||||||||||||
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| Total operating expenses |
30,841 | 27,244 | 90,683 | 85,233 | ||||||||||||
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| Income from operations |
11,972 | 6,103 | 46,701 | 5,763 | ||||||||||||
| Other income (expense), net |
394 | 334 | 999 | 715 | ||||||||||||
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| Income before income taxes |
12,366 | 6,437 | 47,700 | 6,478 | ||||||||||||
| Less: (Benefit) provision for income taxes |
(886 | ) | 651 | (30 | ) | (249 | ) | |||||||||
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| Consolidated net income |
13,252 | 5,786 | 47,730 | 6,727 | ||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest |
(7 | ) | 1 | (15 | ) | 10 | ||||||||||
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| Net income attributable to Vicor Corporation |
$ | 13,259 | $ | 5,785 | $ | 47,745 | $ | 6,717 | ||||||||
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| Net income per share attributable to Vicor Corporation: |
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| Basic |
$ | 0.30 | $ | 0.13 | $ | 1.10 | $ | 0.16 | ||||||||
| Diluted |
$ | 0.29 | $ | 0.13 | $ | 1.06 | $ | 0.15 | ||||||||
| Shares outstanding: |
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| Basic |
43,710 | 43,164 | 43,573 | 41,814 | ||||||||||||
| Diluted |
45,034 | 44,743 | 44,905 | 43,567 | ||||||||||||
VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
| SEPT 30, 2021 (Unaudited) |
DEC 31, 2020 (Unaudited) |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 178,663 | $ | 161,742 | ||||
| Short-term investments |
50,217 | 50,166 | ||||||
| Accounts receivable, net |
51,080 | 40,999 | ||||||
| Inventories, net |
63,409 | 57,269 | ||||||
| Other current assets |
6,633 | 6,756 | ||||||
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| Total current assets |
350,002 | 316,932 | ||||||
| Long-term deferred tax assets |
221 | 226 | ||||||
| Long-term investment, net |
2,598 | 2,517 | ||||||
| Property, plant and equipment, net |
104,446 | 74,843 | ||||||
| Other assets |
1,563 | 1,721 | ||||||
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| Total assets |
$ | 458,830 | $ | 396,239 | ||||
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| Liabilities and Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 18,346 | $ | 14,121 | ||||
| Accrued compensation and benefits |
13,994 | 14,094 | ||||||
| Accrued expenses |
3,589 | 2,624 | ||||||
| Sales allowances |
1,661 | 597 | ||||||
| Short-term lease liabilities |
1,625 | 1,629 | ||||||
| Income taxes payable |
10 | 139 | ||||||
| Short-term deferred revenue and customer prepayments |
3,390 | 7,309 | ||||||
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| Total current liabilities |
42,615 | 40,513 | ||||||
| Long-term deferred revenue |
493 | 733 | ||||||
| Contingent consideration obligations |
— | 227 | ||||||
| Long-term income taxes payable |
564 | 643 | ||||||
| Long-term lease liabilities |
3,504 | 2,968 | ||||||
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| Total liabilities |
47,176 | 45,084 | ||||||
| Equity: |
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| Vicor Corporation stockholders’ equity: |
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| Capital stock |
342,569 | 328,943 | ||||||
| Retained earnings |
208,753 | 161,008 | ||||||
| Accumulated other comprehensive loss |
(1,040 | ) | (204 | ) | ||||
| Treasury stock |
(138,927 | ) | (138,927 | ) | ||||
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| Total Vicor Corporation stockholders’ equity |
411,355 | 350,820 | ||||||
| Noncontrolling interest |
299 | 335 | ||||||
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| Total equity |
411,654 | 351,155 | ||||||
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| Total liabilities and equity |
$ | 458,830 | $ | 396,239 | ||||
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