Vicor Corporation (NASDAQ: VICR) today reported financial results
for the third quarter ended September 30, 2022. 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 below.
Revenues for the third quarter ended September
30, 2022 totaled $103.1 million, a 21.4% increase from $84.9
million for the corresponding period a year ago, and a 0.9%
sequential increase from $102.2 million in the second quarter of
2022.
Gross margin increased to $47.0 million for the
third quarter of 2022, compared to $42.8 million for the
corresponding period a year ago, and increased sequentially from
$46.8 million for the second quarter of 2022. Gross margin, as a
percentage of revenue, decreased to 45.5% for the third quarter of
2022, compared to 50.4% for the corresponding period a year ago,
and decreased from 45.8% for the second quarter of 2022.
Net income for the third quarter was $8.1
million, or $0.18 per diluted share, compared to net income of
$13.3 million or $0.29 per diluted share, for the corresponding
period a year ago and net income of $10.6 million, or $0.24 per
diluted share, for the second quarter of 2022.
Cash flow from operations totaled $6.6 million
for the third quarter, compared to cash flow from operations of
$10.1 million for the corresponding period a year ago, and cash
flow from operations of $10.8 million in the second quarter of
2022. Capital expenditures for the third quarter totaled $14.4
million, compared to $15.2 million for the corresponding period a
year ago and $14.2 million for the second quarter of 2022. The sum
of cash, cash equivalents, and short-term investments as of
September 30, 2022 decreased 2.7% sequentially to approximately
$202.0 million compared to approximately $207.6 million as of June
30, 2022.
Commenting on third quarter performance, Dr.
Patrizio Vinciarelli, Chief Executive Officer, stated, “A
deteriorating macroeconomic environment caused a shortfall in
demand for electronic products. Q3 profitability was significantly
impacted by legal expenses ahead of a recent intellectual property
litigation trial.”
“Reflecting a reduction in demand caused by
recent market conditions, the Q3 book-to-bill ratio came in below
1. We look forward to reducing production lead times and getting
caught up with our backlog.”
“Capital investment in our first ChiP foundry
continued in Q3 to enable our Andover fab to support Advanced
Product revenues with up to approximately one billion dollars per
year total capacity. Major advances in power density by our next
generation ChiPs and recent design wins in our primary markets bode
well for the future utilization of this capacity.”
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 25, 2022 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 25, 2022. Telephone participants who are
unable to pre-register should dial 877-299-4502 at approximately
4:45 p.m. and use the Passcode 27044173. 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 9, 2022. The replay dial-in number is
888-286-8010 and the Passcode is 10145508. 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, 2021, 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 |
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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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|
2022 |
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|
2021 |
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|
2022 |
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|
|
2021 |
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Net
revenues |
$ |
103,118 |
|
|
$ |
84,911 |
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|
$ |
293,586 |
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|
$ |
269,083 |
|
Cost
of revenues |
|
56,148 |
|
|
|
42,098 |
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|
|
162,166 |
|
|
|
131,699 |
|
Gross margin |
|
46,970 |
|
|
|
42,813 |
|
|
|
131,420 |
|
|
|
137,384 |
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Operating expenses: |
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Selling, general and administrative |
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22,719 |
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|
17,322 |
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61,322 |
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|
50,865 |
|
Research and development |
|
14,747 |
|
|
|
13,519 |
|
|
|
44,516 |
|
|
|
39,818 |
|
Total operating expenses |
|
37,466 |
|
|
|
30,841 |
|
|
|
105,838 |
|
|
|
90,683 |
|
|
|
|
|
|
|
|
|
Income from operations |
|
9,504 |
|
|
|
11,972 |
|
|
|
25,582 |
|
|
|
46,701 |
|
|
|
|
|
|
|
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Other income (expense), net |
|
(568 |
) |
|
|
394 |
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|
|
(322 |
) |
|
|
999 |
|
|
|
|
|
|
|
|
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Income before income taxes |
|
8,936 |
|
|
|
12,366 |
|
|
|
25,260 |
|
|
|
47,700 |
|
|
|
|
|
|
|
|
|
Less: Provision (benefit) for income taxes |
|
842 |
|
|
|
(886 |
) |
|
|
1,596 |
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|
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(30 |
) |
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|
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Consolidated net income |
|
8,094 |
|
|
|
13,252 |
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|
|
23,664 |
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|
47,730 |
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Less: Net income (loss) attributable to |
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|
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|
|
|
|
noncontrolling interest |
|
3 |
|
|
|
(7 |
) |
|
|
(19 |
) |
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|
(15 |
) |
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Net
income attributable to |
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|
Vicor Corporation |
$ |
8,091 |
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|
$ |
13,259 |
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|
$ |
23,683 |
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|
$ |
47,745 |
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Net
income per share attributable |
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|
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|
to Vicor Corporation: |
|
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|
|
Basic |
$ |
0.18 |
|
|
$ |
0.30 |
|
|
$ |
0.54 |
|
|
$ |
1.10 |
|
Diluted |
$ |
0.18 |
|
|
$ |
0.29 |
|
|
$ |
0.53 |
|
|
$ |
1.06 |
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|
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Shares outstanding: |
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|
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Basic |
|
44,031 |
|
|
|
43,710 |
|
|
|
43,986 |
|
|
|
43,573 |
|
Diluted |
|
44,898 |
|
|
|
45,034 |
|
|
|
44,906 |
|
|
|
44,905 |
|
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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, |
|
DEC
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
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Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
182,098 |
|
|
$ |
182,418 |
|
|
Short-term investments |
|
19,949 |
|
|
|
45,215 |
|
|
Accounts receivable, net |
|
56,287 |
|
|
|
55,097 |
|
|
Inventories, net |
|
94,336 |
|
|
|
67,322 |
|
|
Other current assets |
|
5,283 |
|
|
|
6,708 |
|
|
Total current assets |
|
357,953 |
|
|
|
356,760 |
|
|
|
|
|
|
|
Long-term deferred tax assets |
|
260 |
|
|
|
208 |
|
|
Long-term investment, net |
|
2,552 |
|
|
|
2,639 |
|
|
Property, plant and equipment, net |
|
163,198 |
|
|
|
115,975 |
|
|
Other assets |
|
2,939 |
|
|
|
1,623 |
|
|
|
|
|
|
|
Total assets |
$ |
526,902 |
|
|
$ |
477,205 |
|
|
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|
Liabilities and Equity |
|
|
|
|
|
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Current liabilities: |
|
|
|
|
Accounts payable |
$ |
24,005 |
|
|
$ |
21,189 |
|
|
Accrued compensation and benefits |
|
13,070 |
|
|
|
12,753 |
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|
Accrued expenses |
|
5,754 |
|
|
|
4,158 |
|
|
Sales allowances |
|
1,427 |
|
|
|
1,464 |
|
|
Short-term lease liabilities |
|
1,449 |
|
|
|
1,551 |
|
|
Income taxes payable |
|
7 |
|
|
|
66 |
|
|
Short-term deferred revenue and customer
prepayments |
|
12,148 |
|
|
|
7,912 |
|
|
|
|
|
|
|
Total current liabilities |
|
57,860 |
|
|
|
49,093 |
|
|
|
|
|
|
|
Long-term deferred revenue |
|
1,833 |
|
|
|
413 |
|
|
Long-term income taxes payable |
|
529 |
|
|
|
569 |
|
|
Long-term lease liabilities |
|
7,520 |
|
|
|
3,225 |
|
|
Total liabilities |
|
67,742 |
|
|
|
53,300 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
Vicor Corporation stockholders' equity: |
|
|
|
|
Capital stock |
|
357,813 |
|
|
|
346,221 |
|
|
Retained earnings |
|
241,316 |
|
|
|
217,633 |
|
|
Accumulated other comprehensive loss |
|
(1,279 |
) |
|
|
(1,328 |
) |
|
Treasury stock |
|
(138,927 |
) |
|
|
(138,927 |
) |
|
Total Vicor Corporation stockholders' equity |
|
458,923 |
|
|
|
423,599 |
|
|
Noncontrolling interest |
|
237 |
|
|
|
306 |
|
|
Total equity |
|
459,160 |
|
|
|
423,905 |
|
|
|
|
|
|
|
Total liabilities and equity |
$ |
526,902 |
|
|
$ |
477,205 |
|
|
|
|
|
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|
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