SOURCE: Vicor Corporation

April 26, 2016 16:05 ET

Vicor Corporation Reports Results for the First Quarter Ended March 31, 2016

ANDOVER, MA--(Marketwired - Apr 26, 2016) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2016. 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 presented below.

Revenues for the first quarter ended March 31, 2016 decreased to $46,027,000, compared to $64,017,000 for the corresponding period a year ago, and decreased from $51,394,000 for the fourth quarter of 2015. First quarter bookings decreased to $49,000,000 from $59,541,000 for the corresponding period a year ago, but increased from $46,636,000 for the fourth quarter of 2015.

Gross margin decreased to $19,316,000 for the first quarter of 2016, compared to $28,891,000 for the corresponding period a year ago, and decreased from $22,831,000 for the fourth quarter of 2015. Gross margin, as a percentage of revenue, decreased to 42.0% for the first quarter of 2016, compared to 45.1% for the first quarter of 2015, and 44.4% for the fourth quarter of 2015. 

Net loss for the first quarter was ($5,351,000), or ($0.14) per share, compared to net income of $3,371,000, or $0.09 per diluted share, for the corresponding period a year ago and a net loss of ($1,752,000), or ($0.05) per share, for the fourth quarter of 2015.

Cash used for operating activities totaled $834,000 for the first quarter of 2016, compared to cash provided by operations of $5,070,000 for the corresponding period a year ago. Cash and cash equivalents sequentially decreased by $3,270,000 to approximately $59,710,000 at the end of the first quarter of 2016 from $62,980,000 at the end of the fourth quarter of 2015.

Total backlog at the end of the first quarter of 2016 was $42,096,000, compared to $39,073,000 at the end of 2015.

Addressing first quarter's results, Dr. Patrizio Vinciarelli, Chief Executive Officer, commented, "The circumstances described in connection with our fourth quarter and full year results continued to have a negative influence on our revenue and profitability. Weakness in demand for our legacy products contributed to poor capacity utilization. As described before, our profitability is highly correlated with production volume, and pivots on a breakeven point of nearly $55 million in revenue. Given the volume of new opportunities for advanced products and an anticipated rebound of our legacy business, we expect to be profitable for the second half of 2016."

Dr. Vinciarelli continued, "Highlighting the first quarter, our differentiated solutions for powering datacenter processors from a 48V bus have received unprecedented attention from existing and potential customers, after the announcement by Google of its joining the Open Compute Project (OCP), contributing its 48V server rack specifications as a first step to drive adoption of 48V architecture in datacenters. Google's advocacy affirms the superiority of a 48V power system infrastructure, and our years of investment in Factorized Power Systems leveraging 48V have put us in a leadership position for the long-expected uptake of more dense and efficient power system solutions. Other encouraging announcements within the quarter included the expansion of the OCP Telco Project, which is focused on the application of OCP's datacenter solutions to communication systems, which have used 48V in their traditional infrastructure. Numerous vendors, already familiar with 48V, will now be exposed to the density and efficiency advantages of Factorized Power systems in datacenters."

"We believe our recently weak operating results belie the progress made toward fulfilling our strategic vision. Purchase orders for 48V solutions meeting Intel's VR 12.5 standard have resumed, and we expect orders for the delayed VR 13 solution to ramp later this year. Demand for Vicor Point-of-Load solutions, accompanied by growing demand for Vicor Front End solutions, should soon enable growth in revenue 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, April 26, 2016 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 888-339-2688 at approximately 4:50 p.m. and use the Passcode 37529386. 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 May11, 2016. The replay dial-in number is 888-286-8010 and the Passcode is 95049218. 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," "intend," "estimate," "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, 2015, 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.

Vicor and Factorized Power Architecture are trademarks of Vicor Corporation. All other trademarks, service marks, registered marks, or registered service marks are the property of their respective owners.

             
VICOR CORPORATION  
   
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS  
(Thousands except for per share amounts)  
             
    QUARTER ENDED  
    (Unaudited)  
             
    MAR 31,     MAR 31,  
    2016     2015  
                 
                 
Net revenues   $ 46,027     $ 64,017  
Cost of revenues     26,711       35,126  
  Gross margin     19,316       28,891  
                 
Operating expenses:                
  Selling, general and administrative     14,016       14,862  
  Research and development     10,729       10,419  
    Total operating expenses     24,745       25,281  
                 
Income (loss) from operations     (5,429 )     3,610  
                 
Other income (expense), net     75       (29 )
                 
Income (loss) before income taxes     (5,354 )     3,581  
                 
Less: Provision for income taxes     22       139  
                 
Consolidated net income (loss)     (5,376 )     3,442  
                 
Less: Net income (loss) attributable to noncontrolling interest     (25 )     71  
                 
Net income (loss) attributable to Vicor Corporation   $ (5,351 )   $ 3,371  
                 
Net income (loss) per share attributableto Vicor Corporation:                
  Basic   $ (0.14 )   $ 0.09  
  Diluted   $ (0.14 )   $ 0.09  
                 
Shares outstanding:                
  Basic     38,794       38,689  
  Diluted     38,794       39,149  
                 
             
VICOR CORPORATION  
   
CONDENSED CONSOLIDATED BALANCE SHEET  
(Thousands)  
             
    MAR 31,     DEC 31,  
    2016     2015  
    (Unaudited)     (Unaudited)  
Assets                
                 
Current assets:                
    Cash and cash equivalents   $ 59,710     $ 62,980  
    Accounts receivable, net     23,349       25,982  
    Inventories, net     24,150       23,442  
    Other current assets     3,048       3,102  
      Total current assets     110,257       115,506  
                 
Deferred tax assets     15       15  
Long-term investments     2,553       2,866  
Property, plant and equipment, net     37,177       37,450  
Other assets     1,908       1,708  
                 
    $ 151,910     $ 157,545  
                 
Liabilities and Equity                
                 
Current liabilities:                
    Accounts payable   $ 8,232     $ 7,470  
    Accrued compensation and benefits     8,145       8,349  
    Accrued expenses     2,220       2,568  
    Accrued severance charges     37       195  
    Income taxes payable     29       31  
    Deferred revenue     1,933       1,988  
      Total current liabilities     20,596       20,601  
                 
Long-term deferred revenue     433       468  
Long-term income taxes payable     193       192  
Contingent consideration obligations     352       144  
Deferred income taxes     -       55  
      Total liabilities     21,574       21,460  
                 
Equity:                
  Vicor Corporation stockholders' equity:                
    Capital stock     175,118       174,850  
    Retained earnings     94,334       99,685  
    Accumulated other comprehensive loss     (394 )     (577 )
    Treasury stock     (138,927 )     (138,927 )
      Total Vicor Corporation stockholders' equity     130,131       135,031  
  Noncontrolling interest     205       1,054  
    Total equity     130,336       136,085  
                 
    $ 151,910     $ 157,545  
                 

Contact Information

  • For further information contact:

    James A. Simms
    Chief Financial Officer
    Voice: 978-470-2900
    Facsimile: 978-749-3439
    Email Contact