SOURCE: Vicor Corporation

July 28, 2015 16:05 ET

Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2015

ANDOVER, MA--(Marketwired - Jul 28, 2015) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter and six months ended June 30, 2015. These results will be discussed later today at 5:00 p.m. Eastern Time, during management's quarterly investor conference call. The details for the call are presented below.

Revenues for the second quarter ended June 30, 2015 increased to $56,119,000, compared to $53,361,000 for the corresponding period a year ago, but decreased from $64,017,000 for the first quarter of 2015. Second quarter bookings decreased to $48,096,000 from $57,579,000 for the corresponding period a year ago, and decreased from $59,541,000 for the first quarter of 2015.

Gross margin increased to $26,510,000 for the second quarter of 2015, compared to $22,662,000 for the corresponding period a year ago, but decreased from $28,891,000 for the first quarter of 2015. Gross margin, as a percentage of revenue, increased to 47.2% for the second quarter of 2015, compared to 42.5% for the second quarter of 2014, and increased from 45.1% for the first quarter of 2015.

Net income for the second quarter was $805,000, or $0.02 per diluted share, compared to a net loss of ($4,835,000), or ($0.13) per share, for the corresponding period a year ago and net income of $3,371,000, or $0.09 per diluted share, for the first quarter of 2015.

Revenues for the six months ended June 30, 2015, increased by 12.7% to $120,136,000 from $106,594,000 for the corresponding period a year ago. Net income for the six month period was $4,176,000, or $0.11 per diluted share, compared to a net loss of ($10,213,000), or ($0.26) per share, for the corresponding period a year ago.

Cash provided by operating activities totaled $7,206,000 for the second quarter of 2015 compared to $2,259,000 for the corresponding period a year ago. Cash and cash equivalents increased by $5,826,000 to approximately $65,148,000 at the end of the second quarter of 2015 from $59,322,000 at the end of the first quarter of 2015.

Total backlog at the end of the second quarter of 2015 was $41,616,000, compared to $49,838,000 at the end of the first quarter, and $54,249,000 at the end of 2014.

Commenting on recent results, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, "Vicor's second quarter performance reflects the circumstances described during our February and April earnings calls as the pull-in of shipments from Q2 into Q1 of our Gen 3 VTM/PRM solution for data center servers and a delayed transition from the current voltage regulation standard, VR 12.5, to Intel's next generation standard, VR 13.0, have caused a temporary reduction in revenues and bookings. We are prepared to ship our next generation solution meeting VR 13.0 requirements, but await definiteness as to the exact timing of the expected ramp for data center servers due to ship in robust volumes in 2016."

"Despite near-term disappointment in our revenue levels and bottom line, I continue to see escalating interest in Vicor power components and system products. We are achieving design wins in numerous applications across targeted market segments, which I am confident will expand our revenue, while diversifying our customer base. We will be rolling out exciting new products through the second half of the year at a pace similar to that achieved for the first half, with high performance SiP (System in Package), ChiP (Converter housed in Package™) solutions for motherboard applications and VIA (Vicor Integrated Adapter™) front-end systems. I am pleased Vicor was profitable and generated cash for the second quarter, despite short-term challenges. I also am pleased the organization is focused on our long-term objective of redefining the market for high performance, cost effective modular power solutions."

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, Tuesday, July 28, 2015 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 80327273. Internet users may 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 August 12, 2015. The replay dial-in number is 888-286-8010 and the Passcode is 31503478. 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 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 Vicor's Annual Report on Form 10-K for the year ended December 31, 2014, 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 filed 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. Vicor 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,  
    2015     2014     2015   2014  
                               
                               
Net revenues   $ 56,119     $ 53,361     $ 120,136   $ 106,594  
Cost of revenues     29,609       30,699       64,735     61,140  
  Gross margin     26,510       22,662       55,401     45,454  
                               
Operating expenses:                              
  Sales & administration     15,086       17,033       29,948     35,013  
  Research & development     10,631       10,643       21,050     20,894  
    Total operating expenses     25,717       27,676       50,998     55,907  
                               
Income (loss) from operations     793       (5,014 )     4,403     (10,453 )
                               
Other income (loss), net     39       82       10     112  
                               
Income (loss) before income taxes     832       (4,932 )     4,413     (10,341 )
                               
Provision for income taxes     61       -       200     17  
                               
Consolidated net income (loss)     771       (4,932 )     4,213     (10,358 )
                               
Less: Net income (loss) attributable to noncontrolling interest    
(34
)    
(97
)    
37
   
(145
)
                               
Net Income (loss) attributable to Vicor Corporation   $ 805     $ (4,835 )   $ 4,176   $ (10,213 )
                               
                               
Net income (loss) per share attributable to Vicor Corporation:                              
  Basic   $ 0.02     $ (0.13 )   $ 0.11   $ (0.26 )
  Diluted   $ 0.02     $ (0.13 )   $ 0.11   $ (0.26 )
                               
Shares outstanding:                              
  Basic     38,750       38,542       38,719     38,541  
  Diluted     39,293       38,542       39,221     38,541  
                               
             
VICOR CORPORATION  
   
CONSOLIDATED BALANCE SHEET  
(Thousands)  
             
    JUNE 30,     DEC 31,  
    2015     2014  
    (Unaudited)     (Unaudited)  
Assets                
                 
Current assets:                
    Cash and cash equivalents   $ 65,148     $ 55,187  
    Short-term investments     -       270  
    Accounts receivable, net     27,069       28,431  
    Inventories, net     25,462       26,328  
    Deferred tax assets     106       107  
    Other current assets     3,346       3,155  
      Total current assets     121,131       113,478  
                 
Long-term investments     2,955       3,002  
Property and equipment, net     36,031       37,387  
Other assets     1,670       1,675  
                 
    $ 161,787     $ 155,542  
                 
Liabilities and Equity                
                 
Current liabilities:                
    Accounts payable   $ 9,397     $ 7,932  
    Accrued compensation and benefits     9,040       8,663  
    Accrued expenses     2,240       3,178  
    Accrued severance charges     742       1,904  
    Income taxes payable     8       41  
    Deferred revenue     2,185       1,439  
      Total current liabilities     23,612       23,157  
                 
Long-term deferred revenue     537       637  
Long-term income taxes payable     869       867  
Deferred income taxes     329       329  
                 
Equity:                
  Vicor Corporation stockholders' equity:                
    Capital stock     174,150       172,412  
    Retained earnings     98,934       94,758  
    Accumulated other comprehensive loss     (529 )     (471 )
    Treasury stock     (138,927 )     (138,927 )
      Total Vicor Corporation stockholders' equity     133,628       127,772  
  Noncontrolling interest     2,812       2,780  
    Total equity     136,440       130,552  
                 
    $ 161,787     $ 155,542  
                 

Contact Information

  • For further information contact:

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