UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: October 23, 2006
(Date of earliest event reported)
Vicor Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
0-18277
(Commission File Number)
04-2742817
(IRS Employer
Identification Number)
25 Frontage Road, Andover, Massachuesetts
(Address of principal executive offices)
01810
(Zip Code)
(978) 470-2900
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Item 2.02. Results of Operations and Financial Condition On October 23, 2006, Vicor Corporation issued a press release announcing its financial results for the third quarter of 2006. 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
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.
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Dated: October 23, 2006 |
VICOR CORPORATION
By: /s/ Mark A. Glazer |
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Exhibit No. | Description |
99.1 | Press Release of Vicor Corporation dated October 23, 2006 |
ANDOVER, MA -- 10/23/2006 -- Vicor Corporation (NASDAQ: VICR) today reported its financial results for the third quarter ended September 30, 2006.
Revenues for the quarter increased to $46,932,000 compared to $45,298,000 for the corresponding period a year ago. Net income for Q3 was $2,462,000, or $.06 per diluted share compared to net income of $1,708,000, or $.04 per diluted share, in Q3 2005.
For the nine months ended September 30, 2006 revenues increased to $144,014,000 from $133,057,000 for the same period of 2005. The Company reported net income for the period of $8,412,000, or $.20 per diluted share compared to net income of $1,836,000 or $.04 per diluted share in 2005.
Gross margin improved to 42.5% in Q3 2006 from 42.0% in Q3 2005 and decreased on a sequential basis from 42.9% in Q2 2006. The book-to-bill ratio for Q3 2006 was 1.00:1 as compared to 0.86:1 in Q2 2006. Backlog at the end of Q3 2006 was $39.3 million as compared to $38.6 million at the end of 2005.
In Q3 2006, the Company recorded $173,000 for expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R).
Commenting on the third quarter, Vicor's CEO Patrizio Vinciarelli noted: "Demand improved in Q3 from the lackluster level in Q2 as orders increased by approximately 11%. In Q3 we continued to experience delays in certain significant orders projected to be booked in that quarter. As in Q2, these delays caused the book-to-bill and revenue levels to be short of expectations."
Vinciarelli went on to say: "The slow down that Vicor experienced beginning in Q2 has now been seen by other component manufacturers selling to the electronics industry at large. Customers continue to say that their orders have slipped by only a few months. However, the slow down may reflect more than an inventory correction. Aside from soft demand for Vicor bricks, a significant V-I Chip program has, for a second time, been delayed by 6 months.
"Given the revenue shortfall, Q3 margins were generally in line with expectations. Subject to increasing demand, we expect planned productivity improvements to support a resumption of incremental quarterly expansion in margins and overall profitability. In Q3, V-I Chip and Picor made progress with their product roadmaps and in major engagements with key customers. These developments may contribute top line growth and further improvements to the bottom line starting in the 2nd half of 2007."
Depreciation and amortization in Q3 was $3.3 million and capital additions were $1.3 million. For the first nine months of 2006 depreciation and amortization was $10.6 million and capital additions were $4.2 million. This compares to $12.8 million and $6.6 million, respectively for the first nine months of 2005. Cash and short and long-term investments decreased by $9.2 million in Q3, to approximately $116.4 million from $125.6 million at the end of Q2 2006. During the quarter the Company paid a dividend of approximately $6.3 million and repurchased 538,000 shares, for approximately $5.9 million. During the first nine months of 2006 the Company has paid approximately $11.3 million in dividends and repurchased 825,700 shares, for approximately $10.8 million. At the end of Q3 2006 there was approximately $8.5 million remaining in the authorized stock buy-back plan.
In 2006, the tax provision included estimated income taxes for federal and state taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns, for the Federal alternative minimum tax and for estimated income taxes due in various state and international taxing jurisdictions. In the third quarter of 2006, the Company reduced its tax reserves by $468,000 due to closing tax periods in certain jurisdictions.
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, Monday, October 23, 2006 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call, should call 888-482-0024 at approximately 4:50 p.m. and use the Passcode 65829008. Internet users can listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor's website at www.vicorpower.com/irwebcast. 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 a replay will be available, shortly after the conclusion of the call, through November 6, 2006. The replay dial-in number is 888-286-8010 and the Passcode is 54982045. 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/irwebcast beginning shortly after the conclusion of the call.
This press release contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words "may," "will," "would," "should," "plans," "expects," "anticipates," "believes," "continue," "estimate," "prospective," "project," "intend," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include our ability to develop and market new products and technologies cost-effectively, to leverage design wins into increased product sales, to decrease manufacturing costs, to enter into licensing agreements that amplify the market opportunity and accelerate market penetration, to realize significant royalties under license agreements, to achieve a sustainable increased bookings rate over a longer period, to hire key personnel and build our business units, and to successfully leverage the V-I Chips in standard products to promote market acceptance of Factorized Power, factors impacting the company's various end markets, including Consumer Electronics, Communications, Information Technology and Automotive, as well as those risks and uncertainties identified in the Company's Annual Report on Form 10-K. The risk factors contained in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in that Form 10-K should be read together with other reports and documents that the Company files with the SEC from time to time, which may supplement, modify, supersede or update those risk factors.
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 the communications, information technology, industrial control and military electronics markets.
VICOR CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (Thousands except for per share amounts) QUARTER ENDED NINE MONTHS ENDED (Unaudited) (Unaudited) --------- --------- ---------- --------- SEPT 30, SEPT 30, SEPT 30, SEPT 30, 2006 2005 2006 2005 --------- --------- ---------- --------- Net revenues $ 46,932 $ 45,298 $ 144,014 $ 133,057 Cost of sales 26,981 26,284 81,852 81,419 --------- --------- ---------- --------- Gross margin 19,951 19,014 62,162 51,638 Operating expenses: Sales & administration 11,225 10,144 33,796 30,385 Research & development 7,961 7,590 23,531 22,066 Gain from litigation-related settlement, net 0 0 0 (2,250) --------- --------- ---------- --------- Total operating expenses 19,186 17,734 57,327 50,201 Income from operations 765 1,280 4,835 1,437 --------- --------- ---------- --------- Other income (expense), net 1,318 261 3,787 938 --------- --------- ---------- --------- Income before income taxes 2,083 1,541 8,622 2,375 (Benefit) provision for income taxes (379) (167) 210 539 --------- --------- ---------- --------- Net income $ 2,462 $ 1,708 $ 8,412 $ 1,836 ========= ========= ========== ========= Net income per share: Basic $ 0.06 $ 0.04 $ 0.20 $ 0.04 Diluted $ 0.06 $ 0.04 $ 0.20 $ 0.04 Shares outstanding: Basic 41,703 41,912 41,932 41,896 Diluted 41,771 42,093 42,212 42,049 VICOR CORPORATION CONSOLIDATED BALANCE SHEET (Thousands) SEPT 30, DEC 31, 2006 2005 (Unaudited) (Unaudited) ============= ============= Assets Current assets: Cash and cash equivalents $ 28,376 $ 34,024 Short-term investments 87,971 88,692 Accounts receivable, net 30,101 28,072 Inventories, net 20,931 17,168 Deferred tax assets 2,673 2,673 Other current assets 2,359 2,518 ------------- ------------- Total current assets 172,411 173,147 Long-term investments 0 3,348 Property and equipment, net 53,358 59,114 Other assets 8,329 10,146 ------------- ------------- $ 234,098 $ 245,755 ============= ============= Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 7,728 $ 8,741 Accrued compensation and benefits 4,839 4,583 Other accrued liabilities 5,585 9,438 ------------- ------------- Total current liabilities 18,152 22,762 Deferred income taxes 3,259 3,172 Minority interests 3,448 3,031 Stockholders' equity: Capital stock 158,337 152,122 Retained earnings 172,729 175,660 Treasury stock (121,827) (110,992) ------------- ------------- Total stockholders' equity 209,239 216,790 ------------- ------------- $ 234,098 $ 245,755 ============= =============
For further information contact: Mark A. Glazer Chief Financial Officer Vicor Corporation Tel: 978-470-2900 Fax: 978-749-3439