SOURCE: Vicor Corporation

Vicor Corporation

February 22, 2012 16:02 ET

Vicor Corporation Reports Results for the Fourth Quarter Ended December 31, 2011

ANDOVER, MA--(Marketwire - Feb 22, 2012) - Vicor Corporation (NASDAQ: VICR) today reported its financial results for the fourth quarter and year ended December 31, 2011.

Revenues for the fourth fiscal quarter ended December 31, 2011, decreased to $58,551,000, compared to $72,975,000 for the corresponding period a year ago, and decreased from $58,560,000 for the third quarter of 2011.

Gross margin decreased to $24,491,000 for the fourth quarter of 2011, compared to $32,984,000 for the corresponding period a year ago, but increased from $24,440,000 for the third quarter of 2011. Gross margin, as a percentage of revenue, decreased to 41.8% for the fourth quarter of 2011, compared to 45.2% for the fourth quarter of 2010, but increased on a sequential basis from 41.7% for the third quarter of 2011.

Net income for the fourth quarter was $677,000, or $0.02 per diluted share, compared to a net income of $10,807,000, or $0.26 per diluted share, for the corresponding period a year ago and net income of $1,082,000, or $0.03 per diluted share, for the third quarter of 2011.

Revenues for the year ended December 31, 2011, increased by 0.9% to $252,968,000 from $250,733,000 for the corresponding period a year ago. Net income for the year was $8,843,000, or $0.21 per diluted share, compared to net income of $33,325,000 or $0.80 per diluted share, for the corresponding period a year ago.

The 2011 provision for income taxes approximates a full statutory tax rate, as compared with the lower effective tax rate for 2010, due to the utilization by the end of 2010 of all federal operating loss carry-forwards. During the third and fourth quarters of 2010, the Company recorded non-recurring, non-cash tax benefits of $5,158,000, or approximately $0.12 per diluted share, and $1,159,000, or approximately $0.03 per diluted share, respectively, due to the release of portions of its deferred tax valuation allowance. These tax benefits were partially offset by estimated federal, state and foreign income taxes on the Company's 2010 pre-tax income and estimated federal and state income taxes for certain non-controlling interests that are not part of the Company's consolidated income tax returns.

Total backlog at the end of the fourth quarter was $54,234,000, compared to $78,876,000, at the end of 2010.

Commenting on fourth quarter performance, Patrizio Vinciarelli, Chief Executive Officer, stated, "Fourth quarter results reflect ongoing weakness in some of the markets we serve, as well as higher expenses associated with our expanded sales and marketing activities. Given recent booking trends, we expect continued softness for the first half of this year. Through the fourth quarter we actually saw an increase in design and product qualification activity, leading us to be optimistic that we may experience improved order flow for the second half of 2012. With an expanded go-to-market strategy and lines of highly differentiated products, we believe Vicor is well-positioned for future growth."

Dr. Vinciarelli continued, "Consolidated fourth quarter revenue was essentially unchanged sequentially, as an increase in the Brick Business Unit's revenue was offset by lower VI Chip revenue. The decline in VI Chip revenue and reduction in quarterly bookings was the result of the large program termination reported last quarter. Consolidated bookings declined over 11% sequentially. Product level profitability was essentially unchanged at 41.8% for the fourth quarter, while Operating Income, as a percentage of revenue, declined slightly from 2.9% last quarter to 2.1% this quarter, reflecting the higher headcount and increased spending in the front end of our business."

Concluding his remarks, Dr. Vinciarelli stated, "Vicor continued to make progress with new product and market initiatives during the quarter. Despite current conditions, we remain committed to our vision for growth based on next generation power components from Picor, VI Chip and the BBU."

Depreciation and amortization for the fourth quarter of 2011 was approximately $2,791,000, and capital additions totaled $1,215,000. In 2011, depreciation and amortization was $11,005,000, and capital additions were $7,466,000, compared to $10,222,000 and $12,103,000, respectively, for 2010. Cash and cash equivalents increased by $22,629,000 to approximately $71,908,000 at the end of 2011 from $49,279,000 at the end of 2010. There were no share repurchases during the quarter, and approximately $8,500,000 remains authorized for additional purchases under the company's stock repurchase plan.

For more information on Vicor and its products, please visit www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, February 22, 2012, at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 866-515-2912 at approximately 4:50 p.m. and use the Passcode 15571372. 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 in the conference call, a replay will be available, shortly after the conclusion of the call, through March 8, 2012. The replay dial-in number is 888-286-8010, and the Passcode is 68031223. 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 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 the company's Annual Report on Form 10-K for the year ended December 31, 2010, 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 the company files 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. The company 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 CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED YEAR ENDED
(Unaudited) (Unaudited)
DEC 31, DEC 31, DEC 31, DEC 31,
2011 2010 2011 2010
Net revenues $ 58,551 $ 72,975 $ 252,968 $ 250,733
Cost of revenues 34,060 39,991 146,274 136,213
Gross margin 24,491 32,984 106,694 114,520
Operating expenses:
Sales & administration 13,767 13,310 54,041 49,417
Research & development 9,516 9,151 38,967 35,981
Total operating expenses 23,283 22,461 93,008 85,398
Income from operations 1,208 10,523 13,686 29,122
Other income (expense), net (2 ) (82 ) 346 497
Income before income taxes 1,206 10,441 14,032 29,619
Provision (benefit) for income taxes 445 (477 ) 4,723 (3,920 )
Consolidated net income 761 10,918 9,309 33,539
Less: Net income attributable to noncontrolling interest 84 111 466 214
Net income attributable to Vicor Corporation $ 677 $ 10,807 $ 8,843 $ 33,325
Net income per share attributable to Vicor Corporation:
Basic $ 0.02 $ 0.26 $ 0.21 $ 0.80
Diluted $ 0.02 $ 0.26 $ 0.21 $ 0.80
Shares outstanding:
Basic 41,810 41,753 41,797 41,700
Diluted 41,826 41,860 41,856 41,772
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
DEC 31, DEC 31,
2011 2010
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 71,908 $ 49,279
Accounts receivable, net 31,410 38,825
Inventories, net 35,752 35,489
Deferred tax assets 2,176 2,164
Other current assets 3,088 2,397
Total current assets 144,334 128,154
Long-term investments 9,585 18,417
Property and equipment, net 47,241 50,848
Long-term deferred tax assets, net 2,542 2,805
Other assets 4,439 4,688
$ 208,141 $ 204,912
Liabilities and Equity
Current liabilities:
Accounts payable $ 8,151 $ 11,999
Accrued compensation and benefits 7,337 6,772
Accrued expenses 2,846 3,138
Income taxes payable 420 102
Deferred revenue 1,194 689
Total current liabilities 19,948 22,700
Long-term deferred revenue 2,124 2,178
Long-term income taxes payable 1,359 1,022
Equity:
Vicor Corporation stockholders' equity:
Capital stock 166,732 164,436
Retained earnings 136,362 133,791
Accumulated other comprehensive loss (322 ) (1,369 )
Treasury stock (121,827 ) (121,827 )
Total Vicor Corporation stockholders' equity 180,945 175,031
Noncontrolling interest 3,765 3,981
Total equity 184,710 179,012
$ 208,141 $ 204,912

Contact Information

  • For further information contact:
    James A. Simms
    Chief Financial Officer
    Tel: 978-470-2900
    Fax: 978-749-3439