SOURCE: Vicor Corporation

October 27, 2015 16:05 ET

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2015

ANDOVER, MA--(Marketwired - Oct 27, 2015) -  Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter and nine months ended September 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 third quarter ended September 30, 2015 decreased to $48,664,000, compared to $58,402,000 for the corresponding period a year ago, and decreased from $56,119,000 for the second quarter of 2015. Third quarter bookings decreased to $50,368,000 from $65,559,000 for the corresponding period a year ago, but increased from $48,096,000 for the second quarter of 2015.

Gross margin decreased to $21,286,000 for the third quarter of 2015, compared to $25,550,000 for the corresponding period a year ago, and decreased from $26,510,000 for the second quarter of 2015. Gross margin, as a percentage of revenue, at 43.7% for the third quarter of 2015, remained the same as for the third quarter of 2014, but decreased from 47.2% for the second quarter of 2015. 

Net income for the third quarter was $2,503,000, or $0.06 per diluted share, compared to a net loss of ($3,674,000), or ($0.10) per share, for the corresponding period a year ago and net income of $805,000, or $0.02 per diluted share, for the second quarter of 2015. Included in net income for the third quarter of 2015 was a gain from equity method investment of $5,000,000, representing cash consideration received for the Company's investment in Great Wall Semiconductor Corporation ("GWS"), following the acquisition of GWS by Intersil Corporation in September 2015.

Revenues for the nine months ended September 30, 2015, increased by 2.3% to $168,800,000 from $164,996,000 for the corresponding period a year ago. Net income for the nine month period was $6,679,000, or $0.17 per diluted share, compared to a net loss of ($13,887,000), or ($0.36) per share, for the corresponding period a year ago. 

Cash provided by operating activities totaled $5,673,000 for the third quarter of 2015 compared to $3,672,000 for the corresponding period a year ago. Cash and cash equivalents increased by $3,423,000 to approximately $68,571,000 at the end of the third quarter of 2015 from $65,148,000 at the end of the second quarter of 2015.

Total backlog at the end of the third quarter of 2015 was $43,344,000, compared to $41,616,000 at the end of the second quarter, and $54,249,000 at the end of 2014.

Dr. Patrizio Vinciarelli, Chief Executive Officer, commented, "Vicor's third quarter operating performance reflected generally soft demand and delayed shipments of datacenter solutions due to customer migration to Intel's next generation VR13 processor, now due to ramp in Q3 2016. While revenues from our 48 Volt solutions to VR13 applications have been delayed, this has enabled us to expand our VR13 customer base in datacenters, networking and high end computing applications. We are also making progress toward substantial design wins in other major markets, including automotive. Our roll-out of new SiP (System in Package) and ChiP (Converter housed in Package™) modules for motherboard applications, complemented by new ChiP and VIA (Vicor Integrated Adapter™) front-end systems, is expected to continue at an accelerating pace into 2016 and should set the stage for significant revenue growth."

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, October 27, 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 74491284. 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 November 11, 2015. The replay dial-in number is 888-286-8010 and the Passcode is 11574949. 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     NINE MONTHS ENDED  
    (Unaudited)     (Unaudited)  
                       
    SEPT 30,     SEPT 30,     SEPT 30,   SEPT 30,  
    2015     2014     2015   2014  
                               
                               
Net revenues   $ 48,664     $ 58,402     $ 168,800   $ 164,996  
Cost of revenues     27,378       32,852       92,113     93,992  
  Gross margin     21,286       25,550       76,687     71,004  
                               
Operating expenses:                              
  Sales & administration     13,383       17,354       43,331     52,367  
  Research & development     10,121       10,345       31,171     31,239  
  Severance & other charges     0       1,983       0     1,983  
    Total operating expenses     23,504       29,682       74,502     85,589  
                               
Income (loss) from operations     (2,218 )     (4,132 )     2,185     (14,585 )
                               
Other income (expense), net     1       (64 )     11     48  
                               
Income (loss) before income taxes     (2,217 )     (4,196 )     2,196     (14,537 )
                               
Less: Provision (benefit) for income taxes     174       (527 )     374     (510 )
                               
Gain from equity method investment, net of tax     5,000       0       5,000     0  
                               
Consolidated net income (loss)     2,609       (3,669 )     6,822     (14,027 )
                               
Less: Net income (loss) attributable to noncontrolling interest     106       5       143     (140 )
                               
Net income (loss) attributable to Vicor Corporation   $ 2,503     $ (3,674 )   $ 6,679   $ (13,887 )
                               
                               
Net income (loss) per share attributable to Vicor Corporation:                              
  Basic   $ 0.06     $ (0.10 )   $ 0.17   $ (0.36 )
  Diluted   $ 0.06     $ (0.10 )   $ 0.17   $ (0.36 )
                               
Shares outstanding:                              
  Basic     38,786       38,552       38,742     38,545  
  Diluted     39,086       38,552       39,176     38,545  
                               
                               
                               
VICOR CORPORATION  
   
CONSOLIDATED BALANCE SHEET  
(Thousands)  
   
    SEPT 30,     DEC 31,  
    2015     2014  
    (Unaudited)     (Unaudited)  
Assets                
                 
Current assets:                
    Cash and cash equivalents   $ 68,571     $ 55,187  
    Short-term investments     -       270  
    Accounts receivable, net     24,614       28,431  
    Inventories, net     26,259       26,328  
    Deferred tax assets     106       107  
    Other current assets     2,929       3,155  
      Total current assets     122,479       113,478  
                 
Long-term investments     2,970       3,002  
Property, plant and equipment, net     36,108       37,387  
Other assets     1,718       1,675  
                 
    $ 163,275     $ 155,542  
                 
Liabilities and Equity                
                 
Current liabilities:                
    Accounts payable   $ 8,803     $ 7,932  
    Accrued compensation and benefits     8,628       8,663  
    Accrued expenses     2,341       3,178  
    Accrued severance charges     334       1,904  
    Income taxes payable     7       41  
    Deferred revenue     1,899       1,439  
      Total current liabilities     22,012       23,157  
                 
Long-term deferred revenue     503       637  
Long-term income taxes payable     875       867  
Deferred income taxes     329       329  
                 
Equity:                
  Vicor Corporation stockholders' equity:                
    Capital stock     174,585       172,412  
    Retained earnings     101,437       94,758  
    Accumulated other comprehensive loss     (461 )     (471 )
    Treasury stock     (138,927 )     (138,927 )
      Total Vicor Corporation stockholders' equity     136,634       127,772  
  Noncontrolling interest     2,922       2,780  
    Total equity     139,556       130,552  
                 
    $ 163,275     $ 155,542  

Contact Information

  • For further information contact:

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