SOURCE: Vicor Corporation

Vicor Corporation

March 13, 2014 16:05 ET

Vicor Corporation Reports Results for the Fourth Quarter Ended December 31, 2013

ANDOVER, MA--(Marketwired - Mar 13, 2014) - Vicor Corporation (NASDAQ: VICR) (the "Company") today reported its financial results for the fourth quarter and year ended December 31, 2013. 

Revenues for the fourth fiscal quarter ended December 31, 2013 increased to $55,258,000, compared to $50,424,000 for the corresponding period a year ago, and increased from $55,091,000 for the third quarter of 2013. 

Gross margin increased to $23,431,000 for the fourth quarter of 2013, compared to $20,125,000 for the corresponding period a year ago, and increased from $22,980,000 for the third quarter of 2013. Gross margin, as a percentage of revenue, increased to 42.4% for the fourth quarter of 2013, compared to 39.9% for the fourth quarter of 2012, and increased on a sequential basis from 41.7% for the third quarter of 2013. 

Net loss for the fourth quarter of 2013 was ($13,102,000), or ($0.34) per share, compared to a net loss of ($4,814,000), or ($0.12) per share, for the corresponding period a year ago and a net loss of ($932,000), or ($0.02) per share, for the third quarter of 2013. As noted in our press release of March 6, 2014, the Company increased the reserve for all remaining federal net deferred tax assets on our balance sheet as of December 31, 2013, by approximately $10,200,000, which has been recorded in our statement of operations as a corresponding increase in our fourth quarter tax provision. The impact of this non-cash increase in our quarterly tax provision was to reduce reported earnings (loss) per share for the fourth quarter by approximately $0.26. 

Revenues for the year ended December 31, 2013, decreased by 8.9% to $199,160,000 from $218,507,000 for the corresponding period a year ago. Net loss for the year ended December 31, 2013 was ($23,640,000), or ($0.60) per share, compared to a net loss of ($4,077,000), or ($0.10) per share, for the corresponding period a year ago. 

Total backlog at the end of the fourth quarter was $44,659,000, compared to $53,888,000 at the end of the third quarter, and $31,405,000 at the end of 2012. 

Commenting on current performance, Patrizio Vinciarelli, Chief Executive Officer, stated, "Despite the reported loss per share, I believe Vicor's progress toward its strategic goals accelerated during the fourth quarter. We have achieved important milestones with new products that will enable us to take advantage of the broad range of opportunities available to our ChiP and SiP platforms. We are encouraged by customers' positive responses and acceptance of our new products which will strengthen our competitive position and add momentum to our strategic repositioning as a vendor of highly differentiated power management components and systems from the power source to the point-of-load."

Dr. Vinciarelli continued, "Our recent financial performance has been affected, not only by the non-cash adjustment we recorded to reduce the carried value of our deferred tax assets, but by the significant increase in legal fees associated with our defense against baseless patent infringement claims made by a competitor that has threatened our customers. For the fourth quarter, but for these legal fees, we would have recorded pre-tax results at roughly the breakeven level. As I have stated in reference to prior quarters' results, Vicor's financial performance near-term likely will reflect the continued uncertainty in markets served by the Brick Business Unit. However, Vicor is well positioned with differentiated products and solutions addressing high growth opportunities."

Depreciation and amortization for the fourth quarter of 2013 summed to approximately $2,453,000, and capital additions totaled $2,152,000. In 2013, depreciation and amortization was $10,008,000 and capital additions totaled $6,179,000, compared to $10,423,000 and $7,396,000, respectively, for 2012. Cash and cash equivalents decreased by $28,215,000 to approximately $56,339,000 at the end of 2013, from $84,554,000 at the end of 2012. Contributing to the decrease in cash and cash equivalents, in addition to the net operating loss and capital additions, was approximately $17,100,000 paid to purchase shares of Common Stock in connection with two tender offers completed in the first and second quarters of 2013. 

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, Thursday, March 13, 2014, 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 24295376. 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. 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 28, 2014. The replay dial-in number is 888-286-8010 and the Passcode is 88759524. 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 the Company's capital resources. These statements are based upon the Company'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, 2012, 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,  
    2013     2012     2013     2012  
                                 
                                 
Net revenues   $ 55,258     $ 50,424     $ 199,160     $ 218,507  
Cost of revenues     31,827       30,299       117,681       126,856  
  Gross margin     23,431       20,125       81,479       91,651  
                                 
Operating expenses:                                
  Sales & administration     16,917       14,405       60,737       55,655  
  Research & development     10,148       9,937       39,848       38,744  
  Severance charges     -       -       1,361       -  
  Impairment of goodwill     -       2,012       -       2,012  
  Gain from litigation-related settlement     -       (1,975 )     -       (1,975 )
    Total operating expenses     27,065       24,379       101,946       94,436  
                                 
Loss from operations     (3,634 )     (4,254 )     (20,467 )     (2,785 )
                                 
Other income (expense), net     (10 )     (11 )     2       194  
                                 
Loss before income taxes     (3,644 )     (4,265 )     (20,465 )     (2,591 )
                                 
Provision for income taxes     9,376       398       3,039       1,207  
                                 
Consolidated net loss     (13,020 )     (4,663 )     (23,504 )     (3,798 )
                                 
Less: Net income attributable to noncontrolling interest     82       151       136       279  
                                 
Net loss attributable to Vicor Corporation   $ (13,102 )   $ (4,814 )   $ (23,640 )   $ (4,077 )
                                 
                                 
Net loss per share attributable to Vicor Corporation:                                
  Basic   $ (0.34 )   $ (0.12 )   $ (0.60 )   $ (0.10 )
  Diluted   $ (0.34 )   $ (0.12 )   $ (0.60 )   $ (0.10 )
                                 
Shares outstanding:                                
  Basic     38,539       41,811       39,195       41,811  
  Diluted     38,539       41,811       39,195       41,811  
                                   
                                   
                                   
VICOR CORPORATION  
   
CONSOLIDATED BALANCE SHEET  
(Thousands)  
             
    DEC 31,     DEC 31,  
    2013     2012  
    (Unaudited)     (Unaudited)  
Assets                
                 
Current assets:                
    Cash and cash equivalents   $ 56,339     $ 84,554  
    Short-term investments     463       -  
    Accounts receivable, net     27,683       27,165  
    Inventories, net     29,696       29,955  
    Deferred tax assets     131       1,776  
    Other current assets     4,212       2,613  
      Total current assets     118,524       146,063  
                 
Long-term investments     5,188       6,736  
Property and equipment, net     40,092       44,092  
Long-term deferred tax assets, net     -       3,523  
Other assets     1,836       2,167  
                 
    $ 165,640     $ 202,581  
                 
Liabilities and Equity                
                 
Current liabilities:                
    Accounts payable   $ 8,677     $ 6,812  
    Accrued compensation and benefits     8,055       7,400  
    Accrued severance charge     49       -  
    Accrued expenses     2,841       2,233  
    Income taxes payable     15       336  
    Deferred revenue     1,018       784  
        Total current liabilities     20,655       17,565  
                 
Long-term deferred revenue     974       1,549  
Long-term income taxes payable     1,339       1,494  
Deferred income taxes     335       -  
                 
Equity:                
  Vicor Corporation stockholders' equity:                
    Capital stock     169,984       168,006  
    Retained earnings     108,645       132,285  
    Accumulated other comprehensive loss     (526 )     (112 )
    Treasury stock     (138,927 )     (121,827 )
      Total Vicor Corporation stockholders' equity     139,176       178,352  
  Noncontrolling interest     3,161       3,621  
    Total equity     142,337       181,973  
                 
    $ 165,640     $ 202,581  
                 

Contact Information

  • For further information contact:

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