VICR Vicor Corp

Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2021. 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, 2021 totaled $84.9 million, an 8.7% increase from $78.1 million for the corresponding period a year ago, but an 11.0% sequential decrease from $95.4 million in the second quarter of 2021.

Gross margin increased to $42.8 million for the third quarter of 2021, compared to $33.3 million for the corresponding period a year ago, but decreased sequentially from $49.9 million for the second quarter of 2021. Gross margin, as a percentage of revenue, increased to 50.4% for the third quarter of 2021, compared to 42.7% for the corresponding period a year ago, but decreased from 52.3% for the second quarter of 2021.

Net income for the third quarter was $13.3 million, or $0.29 per diluted share, compared to net income of $5.8 million or $0.13 per diluted share, for the corresponding period a year ago and net income of $19.4 million, or $0.43 per diluted share, for the second quarter of 2021.

Cash flow from operations totaled $10.1 million for the third quarter, compared to cash flow from operations of $11.6 million for the corresponding period a year ago, and cash flow from operations of $12.3 million in the second quarter of 2021. Capital expenditures for the third quarter totaled $15.2 million, compared to $8.1 million for the corresponding period a year ago and $6.5 million for the second quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of September 30, 2021 remained basically unchanged at $229.0 million, compared to June 30, 2021.

Commenting on third quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Semiconductor component shortages and capacity constraints caused Q3 revenues to fall short of expectations with a negative impact on margins. Improved semiconductor component availability and increased capacity should support a significant step up in Q4 revenues.”

The Q3 book-to-bill ratio came in at 2.0 and Q3 ending backlog stood at $296 million, as compared with $140 million at the end of Q3, 2020.  Advanced Products shipments in Q4 are expected to significantly exceed legacy bricks. Our factory expansion is on track to be completed in Q4 with production equipment coming on line starting in Q1 ’22.” 

Dr. Vinciarelli concluded, “In Q3, we executed our first OEM License Agreement and received initial license purchase orders from a major OEM wishing to secure access to systems utilizing power modules covered by Vicor IP.”

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, Thursday, October 21, 2021 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to pre-register with BT Conferencing, the service provider hosting the conference call, so that he or she, on the day of the call, may avoid waiting for the BT Conferencing operator to register callers individually. Those pre-registering on BT Conferencing’s website will receive a special dial-in number and PIN for call access. Pre-registration may be completed at any time prior to 5:00 p.m. on October 21, 2021.  Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 94629394. 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 5, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 33342563. 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, 2020, 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.

For further information contact:

James F. Schmidt, Chief Financial OfficerVoice: 978-470-2900Facsimile: 978-749-3439invrel@vicorpower.com

VICOR CORPORATION
CONDENSED 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,
	2021				2020				2021				2020
Net revenues	$	84,911			$	78,112			$	269,083			$	212,274
Cost of revenues		42,098				44,765				131,699				121,278
Gross margin		42,813				33,347				137,384				90,996
Operating expenses:
Selling, general and administrative		17,322				15,212				50,865				47,036
Research and development		13,519				12,032				39,818				38,197
Total operating expenses		30,841				27,244				90,683				85,233
Income from operations		11,972				6,103				46,701				5,763
Other income (expense), net		394				334				999				715
Income before income taxes		12,366				6,437				47,700				6,478
Less: (Benefit) provision for income taxes		(886	)			651				(30	)			(249	)
Consolidated net income		13,252				5,786				47,730				6,727
Less: Net income (loss) attributable to
noncontrolling interest		(7	)			1				(15	)			10
Net income attributable to
Vicor Corporation	$	13,259			$	5,785			$	47,745			$	6,717
Net income per share attributable
to Vicor Corporation:
Basic	$	0.30			$	0.13			$	1.10			$	0.16
Diluted	$	0.29			$	0.13			$	1.06			$	0.15
Shares outstanding:
Basic		43,710				43,164				43,573				41,814
Diluted		45,034				44,743				44,905				43,567

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	SEPT 30,				DEC 31,
	2021				2020
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	178,663			$	161,742
Short-term investments		50,217				50,166
Accounts receivable, net		51,080				40,999
Inventories, net		63,409				57,269
Other current assets		6,633				6,756
Total current assets		350,002				316,932
Long-term deferred tax assets		221				226
Long-term investment, net		2,598				2,517
Property, plant and equipment, net		104,446				74,843
Other assets		1,563				1,721
Total assets	$	458,830			$	396,239
Liabilities and Equity
Current liabilities:
Accounts payable	$	18,346			$	14,121
Accrued compensation and benefits		13,994				14,094
Accrued expenses		3,589				2,624
Sales allowances		1,661				597
Short-term lease liabilities		1,625				1,629
Income taxes payable		10				139
Short-term deferred revenue and customer prepayments		3,390				7,309
Total current liabilities		42,615				40,513
Long-term deferred revenue		493				733
Contingent consideration obligations		-				227
Long-term income taxes payable		564				643
Long-term lease liabilities		3,504				2,968
Total liabilities		47,176				45,084
Equity:
Vicor Corporation stockholders' equity:
Capital stock		342,569				328,943
Retained earnings		208,753				161,008
Accumulated other comprehensive loss		(1,040	)			(204	)
Treasury stock		(138,927	)			(138,927	)
Total Vicor Corporation stockholders' equity		411,355				350,820
Noncontrolling interest		299				335
Total equity		411,654				351,155
Total liabilities and equity	$	458,830			$	396,239