8-K
VICOR CORP false 0000751978 0000751978 2022-07-21 2022-07-21

 

 

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): July 21, 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 July 21, 2022, Vicor Corporation issued a press release announcing its financial results for the three and six months ended June 30, 2022. 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 July 21, 2022

Exhibit Index

 

Exhibit No.

  

Description

99.1    Press Release of Vicor Corporation dated July 21, 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: July 21, 2022   By:  

/s/ James F. Schmidt

    James F. Schmidt
    Chief Financial Officer
EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

July 21, 2022

For Immediate Release

Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2022

Andover, MA, July 21, 2022 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2022. 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 second quarter ended June 30, 2022 totaled $102.2 million, a 7.1% increase from $95.4 million for the corresponding period a year ago, and a 15.7% sequential increase from $88.3 million in the first quarter of 2022.

Gross margin decreased to $46.8 million for the second quarter of 2022, compared to $49.9 million for the corresponding period a year ago, and increased sequentially from $37.6 million for the first quarter of 2022. Gross margin, as a percentage of revenue, decreased to 45.8% for the second quarter of 2022, compared to 52.3% for the corresponding period a year ago, and increased from 42.6% for the first quarter of 2022.

Net income for the second quarter was $10.6 million, or $0.24 per diluted share, compared to net income of $19.4 million or $0.43 per diluted share, for the corresponding period a year ago and net income of $5.0 million, or $0.11 per diluted share, for the first quarter of 2022.

Cash flow from operations totaled $10.8 million for the second quarter, compared to cash flow from operations of $12.3 million for the corresponding period a year ago, and cash flow from operations of $4.6 million in the first quarter of 2022. Capital expenditures for the second quarter totaled $14.2 million, compared to $6.5 million for the corresponding period a year ago and $22.7 million for the first quarter of 2022. The sum of cash, cash equivalents, and short-term investments as of June 30, 2022 decreased 1.6% sequentially to approximately $207.6 million compared to approximately $211.1 million as of March 31, 2022.

Commenting on second quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Q2 revenues growth included 28% sequential growth in Advanced Products. To better serve our customers, our Operations team had to overcome component shortages and outsourced capacity bottlenecks, which precluded commensurate improvements in product margins. Vertically integrated capacity will enable revenue growth with substantially improved gross margins.”

“The Q2 book-to-bill ratio came in below 1, with one-year backlog standing at just over $400 million. We look forward to reducing production lead times and getting caught up with our backlog.”

“Capital investment into our first ChiP foundry continued in Q2 as our Andover fab, with its one million panels per year capacity, approaches completion. Scalable vertical integration of Advanced Products, including next generation current multipliers and converters, is key to increased market penetration in demanding AI and automotive applications.”


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, July 21, 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 July 21, 2022. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 43881772. 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 August 5, 2022. The replay dial-in number is 888-286-8010 and the Passcode is 64490033. 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, 2021, 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)
    SIX MONTHS ENDED
(Unaudited)
 
     JUNE 30,
2022
    JUNE 30,
2021
    JUNE 30,
2022
    JUNE 30,
2021
 

Net revenues

   $ 102,186     $ 95,376     $ 190,468     $ 184,172  

Cost of revenues

     55,337       45,505       106,018       89,601  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     46,849       49,871       84,450       94,571  

Operating expenses:

        

Selling, general and administrative

     20,035       16,589       38,603       33,543  

Research and development

     15,516       13,273       29,769       26,299  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     35,551       29,862       68,372       59,842  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     11,298       20,009       16,078       34,729  

Other income (expense), net

     84       373       246       605  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     11,382       20,382       16,324       35,334  

Less: Provision for income taxes

     802       999       754       856  
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net income

     10,580       19,383       15,570       34,478  

Less: Net loss attributable to noncontrolling interest

     (13     (11     (22     (8
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Vicor Corporation

   $ 10,593     $ 19,394     $ 15,592     $ 34,486  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to Vicor Corporation:

        

Basic

   $ 0.24     $ 0.45     $ 0.35     $ 0.79  

Diluted

   $ 0.24     $ 0.43     $ 0.35     $ 0.77  

Shares outstanding:

        

Basic

     43,973       43,553       43,963       43,504  

Diluted

     44,866       44,841       44,910       44,841  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     JUNE 30,
2022
(Unaudited)
    DEC 31,
2021
(Unaudited)
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 187,677     $ 182,418  

Short-term investments

     19,921       45,215  

Accounts receivable, net

     54,536       55,097  

Inventories, net

     83,055       67,322  

Other current assets

     7,142       6,708  
  

 

 

   

 

 

 

Total current assets

     352,331       356,760  

Long-term deferred tax assets

     266       208  

Long-term investment, net

     2,552       2,639  

Property, plant and equipment, net

     156,815       115,975  

Other assets

     1,392       1,623  
  

 

 

   

 

 

 

Total assets

   $ 513,356     $ 477,205  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 32,032     $ 21,189  

Accrued compensation and benefits

     13,128       12,753  

Accrued expenses

     4,011       4,158  

Sales allowances

     1,006       1,464  

Short-term lease liabilities

     1,572       1,551  

Income taxes payable

     2       66  

Short-term deferred revenue and customer prepayments

     7,702       7,912  
  

 

 

   

 

 

 

Total current liabilities

     59,453       49,093  

Long-term deferred revenue

     270       413  

Long-term income taxes payable

     577       569  

Long-term lease liabilities

     7,952       3,225  
  

 

 

   

 

 

 

Total liabilities

     68,252       53,300  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     352,811       346,221  

Retained earnings

     233,225       217,633  

Accumulated other comprehensive loss

     (2,246     (1,328

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     444,863       423,599  

Noncontrolling interest

     241       306  
  

 

 

   

 

 

 

Total equity

     445,104       423,905  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 513,356     $ 477,205