Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2023

ANDOVER, Mass., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the third quarter ended September 30, 2023. 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, 2023 totaled $107.8 million, a 4.6% increase from $103.1 million for the corresponding period a year ago, and a 1.0% sequential increase from $106.7 million in the second quarter of 2023.

Gross margin increased to $55.9 million for the third quarter of 2023, compared to $47.0 million for the corresponding period a year ago, and increased sequentially from $55.2 million for the second quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.8% for the third quarter of 2023, compared to 45.5% for the corresponding period a year ago, and from 51.7% for the second quarter of 2023.

Net income for the third quarter was $16.6 million, or $0.37 per diluted share, compared to net income of $1.8 million or $0.04 per diluted share, for the corresponding period a year ago and net income of $17.1 million, or $0.38 per diluted share, for the second quarter of 2023.

Cash flow from operations totaled $23.8 million for the third quarter, compared to cash flow from operations of $6.6 million for the corresponding period a year ago, and cash flow from operations of $19.0 million in the second quarter of 2023. Capital expenditures for the third quarter totaled $7.7 million, compared to $14.4 million for the corresponding period a year ago and $8.5 million for the second quarter of 2023. Cash and cash equivalents as of September 30, 2023 increased 11.8% sequentially to approximately $227.8 million compared to approximately $203.8 million as of June 30, 2023.

Backlog for the third quarter ended September 30, 2023 totaled $174.7 million, a 53.0% decrease from $371.6 million for the corresponding period a year ago, and 19.6% sequential decrease from $217.3 million at the end of the second quarter of 2023.

Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: "While Q3 bookings remained weak, I am pleased with progress made with our ChiP foundry and our 5G product line."

"Competitive AI platforms will soon require higher current density and Vertical Power Delivery ("VPD"). Our investment in the world's first ChiP foundry and 5G power system capability anticipated the evolving requirements of AI power systems, as reflected in recent customer engagements. With its intellectual property and ChiP capacity, Vicor is uniquely positioned to diversify and expand its share of the AI power system market."

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 24, 2023 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with BT Conferencing, the service provider hosting the conference call. Those registering on BT Conferencing's website will receive a webinar link and dial-in numbers. Registration may be completed at any time prior to 5:00 p.m. on October 24, 2023. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26335689205 and passcode 64954586, before 5:00 p.m. (Eastern) on October 24, 2023. 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, 2022, 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								NINE MONTHS ENDED
	(Unaudited)								(Unaudited)
	SEPT 30,				SEPT 30,				SEPT 30,				SEPT 30,
		2023				2022				2023				2022
Net revenues	$	107,844			$	103,118			$	312,407			$	293,586
Cost of revenues		51,966				56,148				154,822				162,166
Gross margin		55,878				46,970				157,585				131,420
Operating expenses:
Selling, general and administrative		22,422				22,719				63,020				61,322
Research and development		17,752				14,747				50,556				44,516
Litigation-related		-				6,500				-				6,500
Total operating expenses		40,174				43,966				113,576				112,338
Income from operations		15,704				3,004				44,009				19,082
Other income (expense), net		1,917				(568	)			5,643				(322	)
Income before income taxes		17,621				2,436				49,652				18,760
Less: Provision for income taxes		1,038				641				4,716				1,395
Consolidated net income		16,583				1,795				44,936				17,365
Less: Net income (loss) attributable to
noncontrolling interest		1				3				9				(19	)
Net income attributable to
Vicor Corporation	$	16,582			$	1,792			$	44,927			$	17,384
Net income per share attributable
to Vicor Corporation:
Basic	$	0.37			$	0.04			$	1.01			$	0.40
Diluted	$	0.37			$	0.04			$	1.00			$	0.39
Shares outstanding:
Basic		44,433				44,031				44,275				43,986
Diluted		45,187				44,898				45,000				44,906

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	SEPT 30,				DEC 31,
		2023				2022
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	227,784			$	190,611
Accounts receivable, net		62,638				65,429
Inventories		104,570				101,410
Other current assets		3,975				5,154
Total current assets		398,967				362,604
Long-term deferred tax assets		341				280
Long-term investment, net		2,611				2,622
Property, plant and equipment, net		170,596				166,009
Other assets		11,620				5,386
Total assets	$	584,135			$	536,901
Liabilities and Equity
Current liabilities:
Accounts payable	$	14,146			$	22,207
Accrued compensation and benefits		11,534				10,849
Accrued expenses		5,438				8,613
Accrued litigation		6,500				6,500
Sales allowances		2,553				1,661
Short-term lease liabilities		1,698				1,450
Income taxes payable		1,046				72
Short-term deferred revenue and customer prepayments		3,618				13,197
Total current liabilities		46,533				64,549
Long-term deferred revenue		1,380				145
Long-term income taxes payable		848				862
Long-term lease liabilities		6,590				7,009
Total liabilities		55,351				72,565
Equity:
Vicor Corporation stockholders' equity:
Capital stock		380,714				360,924
Retained earnings		288,006				243,079
Accumulated other comprehensive loss		(1,245	)			(988	)
Treasury stock		(138,927	)			(138,927	)
Total Vicor Corporation stockholders' equity		528,548				464,088
Noncontrolling interest		236				248
Total equity		528,784				464,336
Total liabilities and equity	$	584,135			$	536,901