Vicor Corporation (NASDAQ: VICR) today reported financial results
for the fourth quarter and year ended December 31, 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 fourth quarter ended December
31, 2022 totaled $105.5 million, a 16.8% increase from $90.3
million for the corresponding period a year ago, and a 2.3%
sequential increase from $103.1 million in the third quarter of
2022.
Gross margin increased to $49.1 million for the
fourth quarter of 2022, compared to $40.8 million for the
corresponding period a year ago, and increased sequentially from
$47.0 million for the third quarter of 2022. Gross margin, as a
percentage of revenue, increased to 46.6% for the fourth quarter of
2022, compared to 45.2% for the corresponding period a year ago,
and from 45.5% for the third quarter of 2022.
Net income for the fourth quarter was $8.1
million, or $0.18 per diluted share, compared to net income of $8.9
million or $0.20 per diluted share, for the corresponding period a
year ago and net income of $1.8 million, or $0.04 per diluted
share, for the third quarter of 2022.
Cash flow from operations totaled $0.9 million
for the fourth quarter, compared to cash flow from operations of
$14.2 million for the corresponding period a year ago, and cash
flow from operations of $6.6 million in the third quarter of 2022.
Capital expenditures for the fourth quarter totaled $12.7 million,
compared to $16.8 million for the corresponding period a year ago
and $14.4 million for the third quarter of 2022. The sum of cash,
cash equivalents, and short-term investments as of December 31,
2022 decreased 5.7% sequentially to approximately $190.6 million
compared to approximately $202.0 million as of September 30,
2022.
Revenues for the year ended December 31, 2022
increased 11.1% to $399.1 million, from $359.4 million for the
prior year. Gross margin, as a percentage of revenue, decreased to
45.2% for the year ended December 31, 2022, compared to 49.6% for
the prior year. Net income for 2022 was $25.5 million, or $0.57 per
diluted share and 6.4% of revenues, compared to $56.6 million, or
$1.26 per diluted share and 15.8% of revenue in the prior year.
Cash flows from operations totaled $22.9 million for the year ended
December 31, 2022, a 57.9% decrease from cash flows from operations
of $54.4 million for the prior year.
Commenting on fourth quarter performance, Dr.
Patrizio Vinciarelli, Chief Executive Officer, stated, “Demand has
fallen short of last year’s peak and is anticipated to stay subdued
until new AI, datacenter and automotive applications using advanced
Power Distribution Networks (PDNs) get to production ramps. The Q4
book-to-bill came in far below 1 while backlog, which declined to
$304 million, can only support essentially flat quarterly revenue
in the near term.”
“Q4 profitability reflected manufacturing
inefficiencies as Advanced Products have not yet fully transitioned
to vertically integrated processes in our first ChiP foundry. We
look forward to cutting manufacturing cycle times by nearly 2X soon
after the balance of key outsourced processes are vertically
integrated, which we anticipate to be Q2 2023.”
“Capital investment continued in Q4 to provide
approximately one billion dollars per year total capacity in our
Andover fab. A 3X advance in current density by ChiPs leveraging
advanced processes, components and next generation silicon bodes
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, Thursday, February 23, 2023 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 February 23, 2023. Telephone participants who are
unable to pre-register should dial 800-230-3019 at approximately
4:45 p.m. and use the Passcode 51835082. 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 March 10, 2023. The replay dial-in number is
888-286-8010 and the Passcode is 99813947. 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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YEAR
ENDED |
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(Unaudited) |
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(Unaudited) |
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DEC
31, |
|
DEC
31, |
|
DEC
31, |
|
DEC
31, |
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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 |
$ |
105,493 |
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|
$ |
90,281 |
|
$ |
399,079 |
|
|
$ |
359,364 |
Cost
of revenues |
|
56,354 |
|
|
|
49,465 |
|
|
218,520 |
|
|
|
181,164 |
Gross
margin |
|
49,139 |
|
|
|
40,816 |
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|
180,559 |
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|
|
178,200 |
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|
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Operating expenses: |
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Selling,
general and administrative |
|
24,942 |
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|
18,619 |
|
|
86,264 |
|
|
|
69,484 |
Research
and development |
|
16,078 |
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|
|
13,296 |
|
|
60,594 |
|
|
|
53,114 |
Litigation-related |
|
- |
|
|
|
- |
|
|
6,500 |
|
|
|
- |
Total
operating expenses |
|
41,020 |
|
|
|
31,915 |
|
|
153,358 |
|
|
|
122,598 |
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|
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|
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|
Income from operations |
|
8,119 |
|
|
|
8,901 |
|
|
27,201 |
|
|
|
55,602 |
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|
|
|
|
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Other income (expense), net |
|
1,808 |
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|
|
204 |
|
|
1,486 |
|
|
|
1,203 |
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|
|
|
|
|
|
|
Income before income taxes |
|
9,927 |
|
|
|
9,105 |
|
|
28,687 |
|
|
|
56,805 |
|
|
|
|
|
|
|
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Less: Provision for income taxes |
|
1,866 |
|
|
|
206 |
|
|
3,261 |
|
|
|
176 |
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Consolidated net income |
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8,061 |
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|
8,899 |
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|
25,426 |
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56,629 |
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Less: Net (loss) income attributable to |
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noncontrolling interest |
|
(1 |
) |
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|
19 |
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(20 |
) |
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4 |
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Net
income attributable to |
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Vicor Corporation |
$ |
8,062 |
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|
$ |
8,880 |
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$ |
25,446 |
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$ |
56,625 |
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Net
income per share attributable |
|
|
|
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|
to Vicor Corporation: |
|
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|
Basic |
$ |
0.18 |
|
|
$ |
0.20 |
|
$ |
0.58 |
|
|
$ |
1.30 |
Diluted |
$ |
0.18 |
|
|
$ |
0.20 |
|
$ |
0.57 |
|
|
$ |
1.26 |
|
|
|
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Shares outstanding: |
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Basic |
|
44,062 |
|
|
|
43,887 |
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|
44,005 |
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|
|
43,651 |
Diluted |
|
44,859 |
|
|
|
45,148 |
|
|
44,894 |
|
|
|
44,966 |
|
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VICOR CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(Thousands) |
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DEC
31, |
|
DEC
31, |
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|
2022 |
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|
2021 |
|
|
(Unaudited) |
|
(Unaudited) |
Assets |
|
|
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Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
190,611 |
|
|
$ |
182,418 |
|
Short-term
investments |
|
- |
|
|
|
45,215 |
|
Accounts
receivable, net |
|
65,429 |
|
|
|
55,097 |
|
Inventories |
|
101,410 |
|
|
|
67,322 |
|
Other
current assets |
|
5,154 |
|
|
|
6,708 |
|
Total
current assets |
|
362,604 |
|
|
|
356,760 |
|
|
|
|
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Long-term deferred tax assets |
|
280 |
|
|
|
208 |
|
Long-term investment, net |
|
2,622 |
|
|
|
2,639 |
|
Property, plant and equipment, net |
|
166,009 |
|
|
|
115,975 |
|
Other assets |
|
5,386 |
|
|
|
1,623 |
|
|
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Total
assets |
$ |
536,901 |
|
|
$ |
477,205 |
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Liabilities and Equity |
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Current liabilities: |
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Accounts
payable |
$ |
22,207 |
|
|
$ |
21,189 |
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Accrued
compensation and benefits |
|
10,849 |
|
|
|
12,753 |
|
Accrued
expenses |
|
8,613 |
|
|
|
4,158 |
|
Accrued
litigation |
|
6,500 |
|
|
|
- |
|
Sales
allowances |
|
1,661 |
|
|
|
1,464 |
|
Short-term
lease liabilities |
|
1,450 |
|
|
|
1,551 |
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Income
taxes payable |
|
72 |
|
|
|
66 |
|
Short-term
deferred revenue and customer prepayments |
|
13,197 |
|
|
|
7,912 |
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Total
current liabilities |
|
64,549 |
|
|
|
49,093 |
|
|
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Long-term deferred revenue |
|
145 |
|
|
|
413 |
|
Long-term income taxes payable |
|
862 |
|
|
|
569 |
|
Long-term lease liabilities |
|
7,009 |
|
|
|
3,225 |
|
Total
liabilities |
|
72,565 |
|
|
|
53,300 |
|
|
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Equity: |
|
|
|
Vicor Corporation stockholders'
equity: |
|
|
|
Capital
stock |
|
360,924 |
|
|
|
346,221 |
|
Retained
earnings |
|
243,079 |
|
|
|
217,633 |
|
Accumulated
other comprehensive loss |
|
(988 |
) |
|
|
(1,328 |
) |
Treasury
stock |
|
(138,927 |
) |
|
|
(138,927 |
) |
Total
Vicor Corporation stockholders' equity |
|
464,088 |
|
|
|
423,599 |
|
Noncontrolling interest |
|
248 |
|
|
|
306 |
|
Total
equity |
|
464,336 |
|
|
|
423,905 |
|
|
|
|
|
Total
liabilities and equity |
$ |
536,901 |
|
|
$ |
477,205 |
|
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