8-K
VICOR CORP false 0000751978 0000751978 2023-07-25 2023-07-25

 

 

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): July 25, 2023

 

 

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 25, 2023, Vicor Corporation issued a press release announcing its financial results for the three and six months ended June 30, 2023. 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 25, 2023

Exhibit Index

 

Exhibit
No.

  

Description

99.1    Press Release of Vicor Corporation dated July 25, 2023
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 25, 2023     By:  

/s/ James F. Schmidt

      James F. Schmidt
      Chief Financial Officer
EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

July 25, 2023

For Immediate Release

Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2023

Andover, Mass., July 25, 2023 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2023. 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, 2023 totaled $106.7 million, a 4.5% increase from $102.2 million for the corresponding period a year ago, and a 9.1% sequential increase from $97.8 million in the first quarter of 2023.

Gross margin increased to $55.2 million for the second quarter of 2023, compared to $46.8 million for the corresponding period a year ago, and increased sequentially from $46.5 million for the first quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.7% for the second quarter of 2023, compared to 45.8% for the corresponding period a year ago, and from 47.6% for the first quarter of 2023.

Net income for the second quarter was $17.1 million, or $0.38 per diluted share, compared to net income of $10.6 million or $0.24 per diluted share, for the corresponding period a year ago and net income of $11.2 million, or $0.25 per diluted share, for the first quarter of 2023.

Cash flow from operations totaled $19.0 million for the second quarter, compared to cash flow from operations of $10.8 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the first quarter of 2023. Capital expenditures for the second quarter totaled $8.5 million, compared to $14.2 million for the corresponding period a year ago and $10.1 million for the first quarter of 2023. Cash and cash equivalents as of June 30, 2023 increased 5.7% sequentially to approximately $203.8 million compared to approximately $192.9 million as of March 31, 2023.

Backlog for the second quarter ended June 30, 2023 totaled $217.3 million, a 47.0% decrease from $410.0 million for the corresponding period a year ago, and 19.9% sequential decrease from $271.3 million at the end of the first quarter of 2023.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Q2 bookings remained weak, ahead of production release of an AI platform with a Lateral Power Distribution Network (“PDN”) using a 4G ChiP-set, now expected to ramp in Q4. The same 4G ChiP-set will support a more adept Lateral-Vertical PDN, enabling a reduction of nearly 100W in total power consumption at heavy workloads and superior processor performance.”

“Further performance improvements will be enabled by 5G MCMs, raising current density by nearly 3X. High current density is necessary for 2nd Gen VPD to circumvent the stacking complexity and cost of 1st Gen VPD modules.”

“With the imminent completion of our first foundry, with 5G FPA enabling scalable, high efficiency Vertical Power Delivery (“VPD”), and with automotive electrification driving broad acceptance of ChiPs, I am confident about Vicor’s future growth and profitability.”

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, July 25, 2023 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with BT Conferencing, the service provider hosting the conference call. Those registering on BT Conferencing’s website will receive a webinar link and dial-in numbers. Registration may be completed at any time prior to 5:00 p.m. on July 25, 2023. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26305285638 and passcode 95763875, before 5:00 p.m. (Eastern) on July 25, 2023. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor’s website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor’s website.

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, 2022, 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 to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.

For further information contact:

James F. Schmidt, Chief Financial Officer

Office: (978) 470-2900

Email: 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,      JUNE 30,     JUNE 30,      JUNE 30,  
     2023      2022     2023      2022  

Net revenues

   $  106,747      $  102,186     $  204,563      $  190,468  

Cost of revenues

     51,574        55,337       102,856        106,018  
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross margin

     55,173        46,849       101,707        84,450  

Operating expenses:

          

Selling, general and administrative

     20,375        20,035       40,598        38,603  

Research and development

     16,935        15,516       32,804        29,769  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     37,310        35,551       73,402        68,372  
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations

     17,863        11,298       28,305        16,078  

Other income (expense), net

     1,776        84       3,726        246  
  

 

 

    

 

 

   

 

 

    

 

 

 

Income before income taxes

     19,639        11,382       32,031        16,324  

Less: Provision for income taxes

     2,537        802       3,678        754  
  

 

 

    

 

 

   

 

 

    

 

 

 

Consolidated net income

     17,102        10,580       28,353        15,570  

Less: Net income (loss) attributable to noncontrolling interest

     1        (13     8        (22
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income attributable to Vicor Corporation

   $ 17,101      $ 10,593     $ 28,345      $ 15,592  
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income per share attributable to Vicor Corporation:

          

Basic

   $ 0.39      $ 0.24     $ 0.64      $ 0.35  

Diluted

   $ 0.38      $ 0.24     $ 0.63      $ 0.35  

Shares outstanding:

          

Basic

     44,230        43,973       44,196        43,963  

Diluted

     44,906        44,866       44,907        44,910  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     JUNE 30,     DEC 31,  
     2023     2022  
     (Unaudited)     (Unaudited)  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 203,829     $ 190,611  

Accounts receivable, net

     63,818       65,429  

Inventories

     106,606       101,410  

Other current assets

     4,533       5,154  
  

 

 

   

 

 

 

Total current assets

     378,786       362,604  

Long-term deferred tax assets

     343       280  

Long-term investment, net

     2,591       2,622  

Property, plant and equipment, net

     169,401       166,009  

Other assets

     9,540       5,386  
  

 

 

   

 

 

 

Total assets

   $ 560,661     $ 536,901  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 15,325     $ 22,207  

Accrued compensation and benefits

     12,103       10,849  

Accrued expenses

     4,284       8,613  

Accrued litigation

     6,500       6,500  

Sales allowances

     2,571       1,661  

Short-term lease liabilities

     1,749       1,450  

Income taxes payable

     824       72  

Short-term deferred revenue and customer prepayments

     6,620       13,197  
  

 

 

   

 

 

 

Total current liabilities

     49,976       64,549  

Long-term deferred revenue

     1,761       145  

Long-term income taxes payable

     875       862  

Long-term lease liabilities

     7,030       7,009  
  

 

 

   

 

 

 

Total liabilities

     59,642       72,565  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     369,475       360,924  

Retained earnings

     271,424       243,079  

Accumulated other comprehensive loss

     (1,195     (988

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     500,777       464,088  

Noncontrolling interest

     242       248  
  

 

 

   

 

 

 

Total equity

     501,019       464,336  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 560,661     $ 536,901