Vicor Corporation (NASDAQ: VICR) today reported financial results
for the third quarter and nine months ended September 30,
2018. These results will be discussed on October 18, 2018 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, 2018 increased 37.2% to $78,035,000, from $56,888,000 for the
corresponding period a year ago, and increased 5.2% sequentially
from $74,196,000 for the second quarter of 2018. Third quarter
bookings increased 41.6% to $91,051,000, from $64,280,000 for the
corresponding period a year ago, and increased 4.1% sequentially
from $87,448,000 for the second quarter of 2018.
Gross margin increased to $39,004,000 for the
third quarter of 2018, compared to $25,143,000 for the
corresponding period a year ago, and increased from $35,883,000 for
the second quarter of 2018. Gross margin, as a percentage of
revenue, increased to 50.0% for the third quarter of 2018, compared
to 44.2% for the corresponding period a year ago, and increased
from 48.4% for the second quarter of 2018.
Net income for the third quarter was
$13,012,000, or $0.32 per diluted share, compared to a net loss of
$(11,000), or $(0.00) per share, for the corresponding period a
year ago, and net income of $7,860,000, or $0.19 per diluted share,
for the second quarter of 2018.
Revenues for the nine months ended September 30,
2018, increased 28.7% to $217,500,000 from $169,059,000 for the
corresponding period a year ago. Net income for the nine
month period was $24,815,000, or $0.61 per diluted share, compared
to a net loss of $(1,444,000), or $(0.04) per share, for the
corresponding period a year ago.
Cash provided by operating activities totaled
$14,314,000 for the third quarter of 2018, compared to cash
provided by operating activities of $1,341,000 for the
corresponding period a year ago and cash provided by operating
activities of $9,340,000 for the preceding second quarter of 2018.
Cash and cash equivalents sequentially increased by $14,286,000 to
approximately $68,206,000 at the end of the third quarter of 2018,
from $53,920,000 at the end of the second quarter of 2018.
Total backlog at the end of the third quarter of
2018 was $116,123,000, compared to $103,100,000 at the end of the
second quarter of 2018 and $73,054,000 at the end of 2017.
Commenting on third quarter performance, Dr.
Patrizio Vinciarelli, Chief Executive Officer, stated: “With
increased production rates and improved productivity, Q3 gross
margins reached 50% and, with reduced operating expenses, led to
appreciably higher profitability. Increasing profit margins reflect
the leverage of our business model, while the broadening adoption
of our highly differentiated solutions is beginning to reflect the
substantial investments we have made in advanced technologies over
the last fifteen years. We believe that our Intellectual Property
will drive substantial long term returns as Vicor continues to
expand its leadership in high performance power systems.”
Dr. Vinciarelli went on to state, “Confronted
with customer adoption of 48V power systems, competitors with past
accomplishments at 12V have recently made claims of better
performance and cost at 48V predicated on the “intermediate bus”
power distribution architecture (i.e., two-step conversion) getting
a new lease on life using new components, such as GaN FETs.
These initiatives cannot circumvent the multiplicity of
fundamental obstacles to delivering hundreds of amperes at less
than 1V. Advanced power conversion topologies, power distribution
architectures and Power-on-Package technology are the necessary
keys to high performance AI applications powered “directly” from
48V. With increasing peak current requirements, global competitors
driving to win the AI race are adopting Vicor Power-on-Package
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 as scheduled, on Thursday, October 18, 2018 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 90653087. 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 2, 2018. The replay dial-in number is 888-286-8010
and the Passcode is 77605130. 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,” “intends,” “estimates,” “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, 2017, 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 to the power systems market, including
enterprise and high performance computing, industrial equipment and
automation, telecommunications and network infrastructure, vehicles
and transportation, aerospace and defense.
For further information
contact:
James A. Simms, Chief Financial OfficerVoice:
978-470-2900Facsimile: 978-749-3439invrel@vicorpower.com
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VICOR
CORPORATION |
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CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS |
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(Thousands
except for per share amounts) |
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QUARTER ENDED |
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NINE MONTHS ENDED |
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(Unaudited) |
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(Unaudited) |
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SEPT 30, |
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SEPT 30, |
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SEPT 30, |
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SEPT 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Net
revenues |
$78,035 |
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$56,888 |
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$217,500 |
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$169,059 |
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Cost of
revenues |
39,031 |
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31,745 |
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112,402 |
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94,334 |
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Gross margin |
39,004 |
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25,143 |
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105,098 |
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74,725 |
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Operating
expenses: |
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Selling, general and administrative |
15,280 |
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14,500 |
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46,493 |
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43,059 |
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Research and development |
10,691 |
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10,543 |
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33,220 |
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33,482 |
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Severance and other charges |
(10 |
) |
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- |
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340 |
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- |
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Total operating expenses |
25,961 |
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25,043 |
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80,053 |
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76,541 |
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Income (loss)
from operations |
13,043 |
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100 |
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25,045 |
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(1,816 |
) |
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Other income
(expense), net |
232 |
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309 |
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618 |
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994 |
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Income (loss)
before income taxes |
13,275 |
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409 |
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25,663 |
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(822 |
) |
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Less:
Provision for income taxes |
227 |
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371 |
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724 |
|
539 |
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Consolidated
net income (loss) |
13,048 |
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38 |
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24,939 |
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(1,361 |
) |
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Less: Net
income attributable to |
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noncontrolling interest |
36 |
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49 |
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124 |
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83 |
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Net income
(loss) attributable to |
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Vicor Corporation |
$13,012 |
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($11 |
) |
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$24,815 |
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($1,444 |
) |
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Net income
(loss) per share attributable |
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to Vicor Corporation: |
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Basic |
$0.32 |
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($0.00 |
) |
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$0.62 |
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($0.04 |
) |
Diluted |
$0.32 |
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($0.00 |
) |
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$0.61 |
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($0.04 |
) |
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Shares
outstanding: |
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Basic |
40,120 |
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39,288 |
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39,769 |
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39,177 |
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Diluted |
41,124 |
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39,288 |
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40,645 |
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39,177 |
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VICOR
CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(Thousands) |
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SEPT
30, |
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DEC
31, |
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2018 |
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2017 |
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(Unaudited) |
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(Unaudited) |
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Assets |
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Current
assets: |
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Cash and cash equivalents |
$68,206 |
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$44,230 |
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Accounts receivable, net |
45,052 |
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34,487 |
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Inventories, net |
43,444 |
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36,499 |
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Other current assets |
3,900 |
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3,616 |
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Total current assets |
160,602 |
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118,832 |
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Long-term
deferred tax assets |
184 |
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210 |
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Long-term
investments, net |
2,613 |
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2,525 |
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Property, plant
and equipment, net |
41,465 |
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41,356 |
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Other
assets |
2,801 |
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2,801 |
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Total assets |
$207,665 |
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$165,724 |
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Liabilities and
Equity |
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Current
liabilities: |
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Accounts payable |
$13,106 |
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$9,065 |
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Accrued compensation and benefits |
9,159 |
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9,891 |
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Accrued expenses |
2,384 |
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2,989 |
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Sales allowances |
567 |
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- |
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Accrued severance and other charges |
325 |
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- |
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Income taxes payable |
708 |
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300 |
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Deferred revenue |
4,442 |
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5,791 |
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Total current liabilities |
30,691 |
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28,036 |
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Long-term
deferred revenue |
249 |
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|
303 |
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Contingent
consideration obligations |
470 |
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|
678 |
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Long-term
income taxes payable |
195 |
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|
195 |
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Other long-term
liabilities |
100 |
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|
93 |
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Total liabilities |
31,705 |
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29,305 |
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Equity: |
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Vicor Corporation stockholders' equity: |
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Capital stock |
192,893 |
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|
181,914 |
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Retained earnings |
122,090 |
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|
93,605 |
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Accumulated other comprehensive loss |
(516 |
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(478 |
) |
Treasury stock |
(138,927 |
) |
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(138,927 |
) |
Total Vicor Corporation stockholders' equity |
175,540 |
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|
136,114 |
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Noncontrolling interest |
420 |
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|
305 |
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Total equity |
175,960 |
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|
136,419 |
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Total liabilities and equity |
$207,665 |
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$165,724 |
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