Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2012

ANDOVER, MA--(Marketwire - Jul 23, 2012) - Vicor Corporation (NASDAQ: VICR) (the "Company") today reported its financial results for the second quarter and six months ended June 30, 2012. 

Revenues for the second fiscal quarter ended June 30, 2012, decreased to $55,467,000, compared to $65,402,000 for the corresponding period a year ago, and decreased from $59,668,000 for the first quarter of 2012. 

Gross margin decreased to $24,106,000 for the second quarter of 2012, compared to $27,309,000 for the corresponding period a year ago, and decreased from $24,467,000 for the first quarter of 2012. Gross margin, as a percentage of revenue increased to 43.5% for the second quarter of 2012 compared to 41.8% for the second quarter of 2011, and increased on a sequential basis from 41.0% for the first quarter of 2012. 

Net income for the second quarter was $220,000, or $0.01 per diluted share, compared to net income of $3,066,000, or $0.07 per diluted share, for the corresponding period a year ago and net income of $326,000, or $0.01 per diluted share, for the first quarter of 2012.

Revenues for the six months ended June 30, 2012, decreased by 15.3% to $115,135,000 from $135,857,000 for the corresponding period a year ago. Net income for the six month period was $546,000, or $0.01 per diluted share, compared to net income of $7,084,000 or $0.17 per diluted share, for the corresponding period a year ago.

The 2012 provision for income taxes, which is based on an estimated annual effective tax rate for 2012, is higher than a full statutory tax rate. This is primarily due to lower expected consolidated pre-tax income for 2012, high state tax expense from separate company calculations based off expected taxable income from Vicor-only operations that cannot be offset by operating losses in other business segments, and the inability to generate federal research and development credits as those credits have yet to be extended by Congress for 2012. 

Total backlog at the end of the second quarter was $42,219,000, compared to $54,234,000, at the end of 2011. 

Commenting on the second quarter, Patrizio Vinciarelli, Chief Executive Officer, stated, "Trends discussed in prior investor communications continue to influence our consolidated performance. Many of the market segments and geographies we serve remain soft. A sharp decline in VI Chip unit shipments for the second quarter, reflecting lower than expected bookings in preceding quarters, underscores VI Chip's dependence on a limited number of customers.

"We expect our new product initiatives and expanding market presence to contribute to both a diversification of our customer base and an improved outlook for 2013." Dr. Vinciarelli concluded, "We remain confident our strategic assumptions are sound and intend to stay the course, despite headwinds with specific programs and the economy at large." 

Depreciation and amortization for the second quarter of 2012 was approximately $2,612,000, and capital additions totaled $1,524,000. For the first six months of 2012, depreciation and amortization was $5,244,000 and capital additions totaled $2,785,000, compared to $5,401,000 and $5,035,000, respectively, for the first six months of 2011. Cash and cash equivalents increased by $3,994,000 to approximately $82,244,000 at the end of the second quarter of 2012 from $78,250,000 at the end of first quarter of 2012. 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 the Company's website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Monday, July 23, 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 11571851. 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 August 7, 2012. The replay dial-in number is 888-286-8010 and the Passcode is 37541014. 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, 2011, 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						SIX MONTHS ENDED
				(Unaudited)						(Unaudited)
				JUNE 30,			JUNE 30,			JUNE 30,			JUNE 30,
				2012			2011			2012			2011
Net revenues				$	55,467		$	65,402		$	115,135		$	135,857
Cost of revenues					31,361			38,093			66,562			78,094
	Gross margin				24,106			27,309			48,573			57,763
Operating expenses:
	Sales & administration				13,665			13,022			27,825			27,202
	Research & development				9,732			9,903			19,575			19,757
		Total operating expenses			23,397			22,925			47,400			46,959
Income from operations					709			4,384			1,173			10,804
Other income, net					82			546			135			348
Income before income taxes					791			4,930			1,308			11,152
Provision for income taxes					547			1,726			723			3,779
Consolidated net income					244			3,204			585			7,373
Less: Net income attributable to noncontrolling interest					24			138			39			289
Net income attributable to Vicor Corporation				$	220		$	3,066		$	546		$	7,084
Net income per share attributable to Vicor Corporation:
	Basic			$	0.01		$	0.07		$	0.01		$	0.17
	Diluted			$	0.01		$	0.07		$	0.01		$	0.17
Shares outstanding:
	Basic				41,811			41,798			41,811			41,785
	Diluted				41,812			41,887			41,819			41,873

VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
					JUNE 30,				DEC 31,
					2012				2011
					(Unaudited)				(Unaudited)
Assets
Current assets:
	Cash and cash equivalents				$	82,244			$	71,908
	Accounts receivable, net					29,185				31,410
	Inventories, net					30,730				35,752
	Deferred tax assets					2,228				2,176
	Other current assets					2,802				3,088
			Total current assets			147,189				144,334
Long-term investments						9,635				9,585
Property and equipment, net						44,722				47,241
Long-term deferred tax assets, net						3,039				2,542
Other assets						4,257				4,439
					$	208,842			$	208,141
Liabilities and Equity
Current liabilities:
	Accounts payable				$	7,181			$	8,151
	Accrued compensation and benefits					8,047				7,337
	Accrued expenses					2,523				2,846
	Income taxes payable					1,223				420
	Deferred revenue					604				1,194
			Total current liabilities			19,578				19,948
Long-term deferred revenue						1,836				2,124
Long-term income taxes payable						1,341				1,359
Equity:
Vicor Corporation stockholders' equity:
	Capital stock					167,410				166,732
	Retained earnings					136,908				136,362
	Accumulated other comprehensive loss					(197	)			(322	)
	Treasury stock					(121,827	)			(121,827	)
		Total Vicor Corporation stockholders' equity				182,294				180,945
Noncontrolling interest						3,793				3,765
	Total equity					186,087				184,710
					$	208,842			$	208,141