8-K
VICOR CORP false 0000751978 0000751978 2024-04-23 2024-04-23

 

 

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): April 23, 2024

 

 

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 April 23, 2024, Vicor Corporation issued a press release announcing its financial results for the first quarter ended March 31, 2024. 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 April 23, 2024

Exhibit Index

 

Exhibit No.

  

Description

99.1    Press Release of Vicor Corporation dated April 23, 2024
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: April 23, 2024     By:  

/s/ James F. Schmidt

      James F. Schmidt
      Chief Financial Officer
EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

April 23, 2024

For Immediate Release

Vicor Corporation Reports Results for the First Quarter Ended March 31, 2024

Andover, Mass., April 23, 2024 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2024. 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 first quarter ended March 31, 2024 totaled $83.9 million, a 14.3% decrease from $97.8 million for the corresponding period a year ago, and a 9.5% sequential decrease from $92.7 million in the fourth quarter of 2023.

Gross margin decreased to $45.1 million for the first quarter of 2024, compared to $46.5 million for the corresponding period a year ago, and decreased sequentially from $47.3 million for the fourth quarter of 2023. Gross margin, as a percentage of revenue, increased to 53.8% for the first quarter of 2024, compared to 47.6% for the corresponding period a year ago, and increased from 51.1% for the fourth quarter of 2023. Operating expenses increased to $44.0 million for the first quarter of 2024, compared to $36.1 million for the corresponding period a year ago, and increased sequentially from $40.0 million for the fourth quarter of 2023, primarily due to an increase in legal expenses.

Net income for the first quarter was $2.6 million, or $0.06 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 $8.7 million, or $0.19 per diluted share, for the fourth quarter of 2023.

Cash flow from operations totaled $2.7 million for the first quarter, compared to cash flow from operations of $10.1 million for the corresponding period a year ago, and cash flow from operations of $22.1 million in the fourth quarter of 2023. Capital expenditures for the first quarter totaled $7.4 million, compared to $10.1 million for the corresponding period a year ago and $7.7 million for the fourth quarter of 2023. Cash and cash equivalents as of March 31, 2024 decreased 1.3% sequentially to approximately $239.2 million compared to approximately $242.2 million as of December 31, 2023.

Backlog for the first quarter ended March 31, 2024 totaled $150.3 million, a 44.6% decrease from $271.3 million for the corresponding period a year ago, and 6.5% sequential decrease from $160.8 million at the end of the fourth quarter of 2023.

Commenting on first quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Q1 gross margins and operating expenses reflect a step up in royalty income and legal expenses relating to our campaign to assert Vicor Intellectual Property. Licenses to OEMs, giving access to patented power system technology from otherwise infringing suppliers, will complement future revenues from our 5G product line and ChiP foundry. These capabilities position Vicor ahead of demands for escalating current and power density, with superior performance and foundry capacity that anticipate market requirements.”

“As we confront challenges and pursue opportunities, 2024 will be seen as the year in which our product strategy, selective licensing of Intellectual Property and clarity of purpose secured Vicor’s future growth and profitability. We are pleased with our execution of this comprehensive vision.”

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, April 23, 2024 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on April 23, 2024. 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, 2023, 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)  
     MAR 31,      MAR 31,  
     2024      2023  

Net revenues

   $ 83,872      $ 97,816  

Cost of revenues

     38,749        51,282  
  

 

 

    

 

 

 

Gross margin

     45,123        46,534  

Operating expenses:

     

Selling, general and administrative

     25,999        20,223  

Research and development

     18,039        15,869  
  

 

 

    

 

 

 

Total operating expenses

     44,038        36,092  
  

 

 

    

 

 

 

Income from operations

     1,085        10,442  

Other income (expense), net

     2,724        1,950  
  

 

 

    

 

 

 

Income before income taxes

     3,809        12,392  

Less: Provision for income taxes

     1,194        1,141  
  

 

 

    

 

 

 

Consolidated net income

     2,615        11,251  

Less: Net income attributable to noncontrolling interest

     11        7  
  

 

 

    

 

 

 

Net income attributable to Vicor Corporation

   $ 2,604      $ 11,244  
  

 

 

    

 

 

 

Net income per share attributable to Vicor Corporation:

     

Basic

   $ 0.06      $ 0.25  

Diluted

   $ 0.06      $ 0.25  

Shares outstanding:

     

Basic

     44,516        44,162  

Diluted

     45,031        44,907  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     MAR 31,     DEC 31,  
     2024     2023  
     (Unaudited)     (Unaudited)  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 239,172     $ 242,219  

Accounts receivable, net

     57,604       52,631  

Inventories

     112,316       106,579  

Other current assets

     19,173       18,937  
  

 

 

   

 

 

 

Total current assets

     428,265       420,366  

Long-term deferred tax assets

     277       296  

Long-term investment, net

     2,622       2,530  

Property, plant and equipment, net

     157,677       157,689  

Other assets

     16,276       14,006  
  

 

 

   

 

 

 

Total assets

   $ 605,117     $ 594,887  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 12,438     $ 12,100  

Accrued compensation and benefits

     11,636       11,227  

Accrued expenses

     7,078       5,093  

Accrued litigation

     6,500       6,500  

Sales allowances

     3,130       3,482  

Short-term lease liabilities

     1,812       1,864  

Income taxes payable

     1,726       746  

Short-term deferred revenue and customer prepayments

     2,684       3,157  
  

 

 

   

 

 

 

Total current liabilities

     47,004       44,169  

Long-term deferred revenue

     660       1,020  

Long-term income taxes payable

     2,236       2,228  

Long-term lease liabilities

     6,094       6,364  
  

 

 

   

 

 

 

Total liabilities

     55,994       53,781  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     389,931       384,395  

Retained earnings

     299,278       296,674  

Accumulated other comprehensive loss

     (1,390     (1,273

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     548,892       540,869  

Noncontrolling interest

     231       237  
  

 

 

   

 

 

 

Total equity

     549,123       541,106  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 605,117     $ 594,887