8-K
VICOR CORP false 0000751978 0000751978 2022-02-24 2022-02-24

 

 

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 24, 2022

 

 

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 24, 2022, Vicor Corporation issued a press release announcing its financial results for the fourth quarter and year ended December 31, 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 February 24, 2022

Exhibit Index

 

Exhibit No.   

Description

99.1    Press Release of Vicor Corporation dated February 24, 2022
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 24, 2022     By:  

/s/ James F. Schmidt

      James F. Schmidt
      Chief Financial Officer
EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

February 24, 2022

For Immediate Release

Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2021

Andover, MA, February 24, 2022 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 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 below.

Revenues for the fourth quarter ended December 31, 2021 totaled $90.3 million, a 7.1% increase from $84.3 million for the corresponding period a year ago, and a 6.3% sequential increase from $84.9 million in the third quarter of 2021.

Gross margin increased to $40.8 million for the fourth quarter of 2021, compared to $40.5 million for the corresponding period a year ago, but decreased sequentially from $42.8 million for the third quarter of 2021. Gross margin, as a percentage of revenue, decreased to 45.2% for the fourth quarter of 2021, compared to 48.0% for the corresponding period a year ago, and from 50.4% for the third quarter of 2021.

Net income for the fourth quarter was $8.9 million, or $0.20 per diluted share, compared to net income of $11.2 million or $0.25 per diluted share, for the corresponding period a year ago and net income of $13.3 million, or $0.29 per diluted share, for the third quarter of 2021.

Cash flow from operations totaled $14.2 million for the fourth quarter, compared to cash flow from operations of $19.3 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the third quarter of 2021. Capital expenditures for the fourth quarter totaled $16.8 million, compared to $11.8 million for the corresponding period a year ago and $15.2 million for the third quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of December 31, 2021 decreased 0.5% sequentially to approximately $227.6 million compared to approximately $228.9 million as of September 30, 2021.

Revenues for the year ended December 31, 2021 increased 21.2% to $359.4 million, from $296.6 million for the prior year. Gross margin, as a percentage of revenue, increased to 49.6% for the year ended December 31, 2021, compared to 44.3% for the prior year. Net income for 2021 was $56.6 million, or $1.26 per diluted share and 15.8% of revenues, compared to $17.9 million, or $0.41 per diluted share and 6.0% of revenue in the prior year. Cash flows from operations totaled $54.4 million for the year ended December 31, 2021, a 56.8% increase from cash flows from operations of $34.7 million for the prior year.

Commenting on fourth quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Once again, component shortages and capacity constraints caused Q4 revenues to fall short of expectations with higher costs and manufacturing inefficiencies having a negative impact on margins. Substantial progress on production rates and margins awaits our vertically integrated manufacturing facility which is nearing completion for operations to start in Q3”.

“Advanced Products revenues, which grew 18% sequentially, exceeded revenues from legacy bricks. The Q4 book-to-bill ratio came in well above 1, with one-year backlog increasing 17% from the prior quarter and by a factor of 2.3 from the prior 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, February 24, 2022 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 February 24, 2022. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 88597864. 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, 2022. The replay dial-in number is 888-286-8010 and the Passcode is 63075291. 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
(Unaudited)
     YEAR ENDED
(Unaudited)
 
     DEC 31,
2021
     DEC 31,
2020
     DEC 31,
2021
     DEC 31,
2020
 

Net revenues

   $ 90,281      $ 84,302      $ 359,364      $ 296,576  

Cost of revenues

     49,465        43,851        181,164        165,129  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross margin

     40,816        40,451        178,200        131,447  

Operating expenses:

           

Selling, general and administrative

     18,619        16,127        69,484        63,163  

Research and development

     13,296        12,719        53,114        50,916  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     31,915        28,846        122,598        114,079  
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     8,901        11,605        55,602        17,368  

Other income (expense), net

     204        378        1,203        1,093  
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     9,105        11,983        56,805        18,461  

Less: Provision for income taxes

     206        788        176        539  
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated net income

     8,899        11,195        56,629        17,922  

Less: Net income attributable to noncontrolling interest

     19        2        4        12  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Vicor Corporation

   $ 8,880      $ 11,193      $ 56,625      $ 17,910  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share attributable to Vicor Corporation:

           

Basic

   $ 0.20      $ 0.26      $ 1.30      $ 0.42  

Diluted

   $ 0.20      $ 0.25      $ 1.26      $ 0.41  

Shares outstanding:

           

Basic

     43,887        43,301        43,651        42,186  

Diluted

     45,148        44,772        44,966        43,869  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     DEC 31,
2021

(Unaudited)
    DEC 31,
2020

(Unaudited)
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 182,418     $ 161,742  

Short-term investments

     45,215       50,166  

Accounts receivable, net

     55,097       40,999  

Inventories, net

     67,322       57,269  

Other current assets

     6,708       6,756  
  

 

 

   

 

 

 

Total current assets

     356,760       316,932  

Long-term deferred tax assets

     208       226  

Long-term investment, net

     2,639       2,517  

Property, plant and equipment, net

     115,975       74,843  

Other assets

     1,623       1,721  
  

 

 

   

 

 

 

Total assets

   $ 477,205     $ 396,239  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 21,189     $ 14,121  

Accrued compensation and benefits

     12,753       14,094  

Accrued expenses

     4,158       2,624  

Sales allowances

     1,464       597  

Short-term lease liabilities

     1,551       1,629  

Income taxes payable

     66       139  

Short-term deferred revenue and customer prepayments

     7,912       7,309  
  

 

 

   

 

 

 

Total current liabilities

     49,093       40,513  

Long-term deferred revenue

     413       733  

Contingent consideration obligations

     —         227  

Long-term income taxes payable

     569       643  

Long-term lease liabilities

     3,225       2,968  
  

 

 

   

 

 

 

Total liabilities

     53,300       45,084  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     346,221       328,943  

Retained earnings

     217,633       161,008  

Accumulated other comprehensive loss

     (1,328     (204

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     423,599       350,820  

Noncontrolling interest

     306       335  
  

 

 

   

 

 

 

Total equity

     423,905       351,155  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 477,205     $ 396,239