Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2024

ANDOVER, Mass., July 23, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the second quarter ended June 30, 2024. 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 second quarter ended June 30, 2024 totaled $85.9 million, a 19.6% decrease from $106.7 million for the corresponding period a year ago, and a 2.4% sequential increase from $83.9 million in the first quarter of 2024.

Gross margin decreased to $42.8 million for the second quarter of 2024, compared to $55.2 million for the corresponding period a year ago and $45.1 million for the first quarter of 2024. Gross margin, as a percentage of revenue, decreased to 49.8% for the second quarter of 2024, compared to 51.7% for the corresponding period a year ago and 53.8% for the first quarter of 2024. Operating expenses increased to $42.6 million for the second quarter of 2024, compared to $37.3 million for the corresponding period a year ago, and decreased sequentially from $61.2 million for the first quarter of 2024.

Net loss for the second quarter was $(1.2) million, or $(0.03) per diluted share, compared to net income of $17.1 million or $0.38 per diluted share, for the corresponding period a year ago and net loss of $(14.5) million, or $(0.33) per diluted share, for the first quarter of 2024.

Cash flow from operations totaled $15.6 million for the second quarter, compared to cash flow from operations of $19.0 million for the corresponding period a year ago, and cash flow from operations of $2.6 million in the first quarter of 2024. Capital expenditures for the second quarter totaled $6.1 million, compared to $8.5 million for the corresponding period a year ago and $7.3 million for the first quarter of 2024. Cash and cash equivalents as of June 30, 2024 increased 5.3% sequentially to approximately $251.9 million compared to approximately $239.2 million as of March 31, 2024.

Backlog for the second quarter ended June 30, 2024 totaled $153.8 million, a 29.2% decrease from $217.3 million for the corresponding period a year ago, and 2.3% sequential increase from $150.3 million at the end of the first quarter of 2024.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: "Backlog, revenues and cash flow improved in Q2 while gross margins and profitability were impacted by changes in product mix and taxes."

"Our technology, products and fabrication methodology are focused on satisfying emerging requirements for high current and power density. We are pleased with our competitive position and market opportunity."

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, July 23, 2024 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified's website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on July 23, 2024. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.

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, 2023, 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, and aerospace and defense electronics.

For further information contact:

James F. Schmidt, Chief Financial Officer

Office: (978) 470-2900

Email: [email protected]

VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
	QUARTER ENDED								YEAR ENDED
	(Unaudited)								(Unaudited)
	JUN 30,				JUN 30,				JUN 30,				JUN 30,
		2024				2023				2024				2023
Net revenues	$	85,854			$	106,747			$	169,726			$	204,563
Cost of revenues		43,083				51,574				81,832				102,856
Gross margin		42,771				55,173				87,894				101,707
Operating expenses:
Selling, general and administrative		23,318				20,375				49,317				40,598
Research and development		16,939				16,935				34,978				32,804
Litigation-contingency expense		2,300				-				19,500				-
Total operating expenses		42,557				37,310				103,795				73,402
Income (loss) from operations		214				17,863				(15,901	)			28,305
Other income (expense), net		2,807				1,776				5,531				3,726
Income (loss) before income taxes		3,021				19,639				(10,370	)			32,031
Less: Provision for income taxes		4,216				2,537				5,287				3,678
Consolidated net (loss) income		(1,195	)			17,102				(15,657	)			28,353
Less: Net income attributable to noncontrolling interest		1				1				12				8
Net (loss) income attributable to Vicor Corporation	$	(1,196	)		$	17,101			$	(15,669	)		$	28,345
Net (loss) income per share attributable to Vicor Corporation:
Basic	$	(0.03	)		$	0.39			$	(0.35	)		$	0.64
Diluted	$	(0.03	)		$	0.38			$	(0.35	)		$	0.63
Shares outstanding:
Basic		44,855				44,230				44,686				44,196
Diluted		44,855				44,906				44,686				44,907

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	JUN 30,				DEC 31,
		2024				2023
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	251,884			$	242,219
Accounts receivable, net		54,857				52,631
Inventories		109,084				106,579
Other current assets		19,510				18,937
Total current assets		435,335				420,366
Long-term deferred tax assets		258				296
Long-term investment, net		2,600				2,530
Property, plant and equipment, net		156,689				157,689
Other assets		18,352				14,006
Total assets	$	613,234			$	594,887
Liabilities and Equity
Current liabilities:
Accounts payable	$	12,269			$	12,100
Accrued compensation and benefits		12,109				11,227
Accrued expenses		6,170				5,093
Accrued litigation		26,212				6,500
Sales allowances		2,989				3,482
Short-term lease liabilities		1,757				1,864
Income taxes payable		3,674				746
Short-term deferred revenue and customer prepayments		2,656				3,157
Total current liabilities		67,836				44,169
Long-term deferred revenue		300				1,020
Long-term income taxes payable		1,917				2,228
Long-term lease liabilities		5,724				6,364
Total liabilities		75,777				53,781
Equity:
Vicor Corporation stockholders' equity:
Capital stock		396,744				384,395
Retained earnings		281,005				296,674
Accumulated other comprehensive loss		(1,583	)			(1,273	)
Treasury stock		(138,927	)			(138,927	)
Total Vicor Corporation stockholders' equity		537,239				540,869
Noncontrolling interest		218				237
Total equity		537,457				541,106
Total liabilities and equity	$	613,234			$	594,887