SOURCE: Vicor Corporation

Vicor Corporation

July 23, 2012 16:02 ET

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  

Contact Information

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