ANDOVER, MA--(Marketwire - February 22, 2011) - Vicor Corporation (
NASDAQ:
VICR) (the
"Company") today reported its financial results for the quarter and year
ended December 31, 2010.
Revenues for the fourth fiscal quarter ended December 31, 2010, increased
to $72,975,000, compared to $49,138,000 for the corresponding period a year
ago, and increased from $68,672,000 for the third quarter of 2010. Gross
margin increased to $32,984,000 for the fourth quarter of 2010, compared to
$22,497,000 for the corresponding period a year ago and $32,473,000 for the
third quarter of 2010. Gross margin, as a percentage of revenue, decreased
to 45.2% for the fourth quarter of 2010 compared to 45.8% for the fourth
quarter of 2009 and 47.3% for the third quarter of 2010. Net income for
the fourth quarter was $10,807,000, or $0.26 per diluted share, compared to
net income of $2,309,000, or $0.06 per diluted share, for the corresponding
period a year ago and net income of $15,819,000, or $0.38 per diluted
share, for the third quarter of 2010.
Revenues for the year ended December 31, 2010, increased by 26.7% to
$250,733,000 from $197,959,000 for the prior year. Net income for the year
was $33,325,000, or $0.80 per diluted share, compared to net income of
$2,798,000 or $0.07 per diluted share, for the corresponding period a year
ago.
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.
The consolidated book-to-bill ratio for the fourth quarter was 0.66, as
compared to 1.02 for the third quarter of 2010. Total backlog at the end
of the fourth quarter was $78,876,000, compared to $57,234,000, at the end
of 2009.
Commenting on the Company's performance, Patrizio Vinciarelli, Chief
Executive Officer, stated: "Vicor recognized a record level of quarterly
revenue for the fourth quarter as a result of substantial bookings recorded
earlier in the year. Consolidated revenue increased on a sequential basis
by 6%, driven largely by a near doubling of V-I Chip™ shipments.
Relative to a weak fourth quarter, bookings activity has thus far
experienced a nearly 50% increase in the first quarter of 2011."
Dr. Vinciarelli went on to say, "We also are pleased by the progress we are
making in manufacturing and operational efficiencies across the
organization. While fourth quarter margins came under pressure due to a
shift in mix to V-I Chip products, we are projecting benefits from
volume-driven economies of scale once revenue levels resume their advance."
Dr. Vinciarelli concluded, "Our differentiated building blocks, Brick, V-I
Chip and Picor power components, continue to gain traction across new
markets. Recently introduced Brick Bus Converters, with double the density
and efficiency of industry standard bricks, have underscored the
capabilities of our power conversion technology and given it unique
visibility with leading Original Equipment Manufacturers seeking continuity
of supply and competitive advantages enabled by higher density. This
initiative has already opened doors at major networking and data storage
accounts, supporting greater diversification and long term momentum."
Depreciation and amortization for the fourth quarter of 2010 was
approximately $2,607,000, and capital additions totaled $4,362,000. In
2010, depreciation and amortization was $10,159,000 and capital additions
were $12,103,000, compared to $10,198,000 and $10,643,000, respectively,
for 2009. Cash, restricted cash equivalents, and short-term investments
increased by $6,280,000 to approximately $49,279,000 at the end of 2010
from $42,999,000 at the end of 2009. 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.
As of December 31, 2010, the Company held approximately $19,075,000, at par
value, of auction rate securities classified as long-term investments
purchased though broker / dealer affiliates of Bank of America NA. As
previously disclosed, conditions in the market for auction rate securities
and the repeated failure of auctions by which such securities are priced
have led the Company to classify its holdings as long-term investments and
reduce their carrying value to an estimated market value. Based on the
Company's ability to access cash and other short-term investments and its
expected operating cash flows, management does not anticipate the current
lack of liquidity of holdings of auction rate securities will affect the
Company's ability to execute its current operating plan.
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, February 22,
2011, at 5:00 p.m. Eastern Time. Shareholders interested in participating
in the call should call 877-703-6109 at approximately 4:50 p.m. and use the
Passcode 30118753. 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 9, 2011. The replay dial-in number is 888-286-8010 and the
Passcode is 47604980. 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 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, 2009, 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 the electronic data processing, industrial control,
military electronics and telecommunications 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,
2010 2009 2010 2009
------- ------- -------- --------
Net revenues $72,975 $49,138 $250,733 $197,959
Cost of revenues 39,991 26,641 136,213 110,365
------- ------- -------- --------
Gross margin 32,984 22,497 114,520 87,594
Operating expenses:
Sales & administration 13,310 11,465 49,417 47,932
Research & development 9,151 8,443 35,981 31,636
Severance charges 0 16 0 4,099
Gain from litigation-related
and other settlements, net 0 0 0 (846)
------- ------- -------- --------
Total operating expenses 22,461 19,924 85,398 82,821
------- ------- -------- --------
Income from operations 10,523 2,573 29,122 4,773
Other income (expense), net (82) 120 497 682
------- ------- -------- --------
Income before income taxes 10,441 2,693 29,619 5,455
(Benefit) provision for income taxes (477) 197 (3,920) 1,362
------- ------- -------- --------
Consolidated net income 10,918 2,496 33,539 4,093
Less: Net income attributable to
noncontrolling interest 111 187 214 1,295
------- ------- -------- --------
Net income attributable to Vicor
Corporation $10,807 $ 2,309 $ 33,325 $ 2,798
======= ======= ======== ========
Net income per share attributable to
Vicor Corporation:
Basic $ 0.26 $ 0.06 $ 0.80 $ 0.07
Diluted $ 0.26 $ 0.06 $ 0.80 $ 0.07
Shares outstanding:
Basic 41,753 41,665 41,700 41,665
Diluted 41,860 41,678 41,772 41,671
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
DEC 31, DEC 31,
2010 2009
(Unaudited) (Unaudited)
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 49,279 $ 40,224
Restricted cash equivalents 0 192
Short-term investments 0 2,583
Accounts receivable, net 38,825 26,565
Inventories, net 35,489 21,357
Deferred tax assets 2,164 181
Other current assets 2,397 4,345
---------- ----------
Total current assets 128,154 95,447
Restricted cash and cash equivalents 0 223
Long-term investments 18,417 30,957
Property and equipment, net 50,848 49,009
Long-term deferred tax assets, net 2,805 0
Other assets 4,688 4,941
---------- ----------
$ 204,912 $ 180,577
========== ==========
Liabilities and Equity
Current liabilities:
Accounts payable $ 11,999 $ 9,458
Accrued compensation and benefits 6,772 5,740
Accrued severance charge 0 259
Other accrued liabilities 3,240 2,678
Deferred revenue 689 2,521
---------- ----------
Total current liabilities 22,700 20,656
Long-term deferred revenue 2,178 2,196
Long-term income taxes payable 1,022 384
Deferred income taxes, net 0 1,275
Equity:
Vicor Corporation stockholders' equity:
Capital stock 164,436 162,248
Retained earnings 133,791 112,972
Accumulated other comprehensive loss (1,369) (1,608)
Treasury stock (121,827) (121,827)
---------- ----------
Total Vicor Corporation stockholders'
equity 175,031 151,785
Noncontrolling interest 3,981 4,281
---------- ----------
Total equity 179,012 156,066
---------- ----------
$ 204,912 $ 180,577
========== ==========
Contact Information: For further information contact:
James A. Simms
Chief Financial Officer
Tel: 978-470-2900
Fax: 978-749-3439