Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2020

Andover, Massachusetts, UNITED STATES

ANDOVER, Mass., July 23, 2020 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2020.  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 second quarter ended June 30, 2020 totaled $70.7 million, an 11.7% increase from $63.4 million for the corresponding period a year ago, and an 11.6% sequential increase from $63.4 million for the first quarter of 2020. 

Gross margin increased to $30.3 million for the second quarter of 2020, compared to $29.1 million for the corresponding period a year ago, and increased sequentially from $27.3 million for the first quarter of 2020.  Gross margin, as a percentage of revenue, decreased to 42.8% for the second quarter of 2020, compared to 46.0% for the corresponding period a year ago, and decreased from 43.1% for the first quarter of 2020. 

Net income for the second quarter was $2.7 million, or $0.06 per diluted share, compared to net income of $2.6 million or $0.06 per diluted share, for the corresponding period a year ago and a net loss of ($1.7) million, or ($0.04) per basic share, for the first quarter of 2020.

Results for the second quarter of 2020 included a non-cash charge of $1.2 million associated with the accelerated recognition of equity-based compensation expenses resulting from stock option awards made during the period. 
Cash and cash equivalents sequentially increased by $114.0 million to approximately $196.7 million at the end of the second quarter of 2020, from $82.7 million at the end of the first quarter of 2020.  The Company completed an underwritten public offering of its common stock in June, resulting in net proceeds of approximately $109.7 million.  Incremental capital expenditures for the second quarter of 2020 totaled $5.7 million, as compared with $2.5 million for the corresponding period a year ago and $3.0 million for the first quarter of 2020.

Second quarter bookings increased 45.4% to $87.5 million, from $60.2 million for the corresponding period a year ago, and increased sequentially 24.9% from $70.1 million for the first quarter of 2020.  Total backlog at the end of the second quarter of 2020 was $127.5 million, representing an increase of 15.1% from  backlog of $110.8 million at the end of the first quarter of 2020 and 22.4 % from $104.2 million at the end of 2019.

Commenting on the second quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Second quarter bookings reflected accelerating demand for Advanced Products. Second quarter revenue recovered sequentially reflecting ramping shipments of lateral power system solutions for AI accelerators and recovery of Asian demand, which had been impacted during the first quarter by COVID-19.  For the second quarter, the impact of the pandemic shifted from Asia to other regions, notably the United States, which experienced a 16% sequential decline in shipments, as non-essential manufacturing slowed considerably. COVID-19 continued to have an influence on our supply chain during the second quarter, causing production inefficiencies.” 

Dr. Vinciarelli concluded, “Despite the continuing effects of COVID-19 on the global economy, Vicor’s outlook remains positive, and our confidence in our long-term opportunity is high.  Expansion of our manufacturing facilities is underway, and we have placed substantial orders for additional equipment to expand manufacturing capacity and enable us to manufacture high volume products with high efficiency. Our outlook for the third quarter is for a sequential increase in revenue and earnings per share.”

For more information on Vicor and its products, please visit the Company’s website at

Earnings Conference Call

Vicor will be holding its investor conference call today, Thursday, July 23, 2020 at 5:00 p.m. Eastern Time.  Shareholders interested in participating in the call who have not pre-registered should call 800-219-3192 at approximately 4:30 p.m. and use the Passcode 25071226.  Internet users may listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor’s website at  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 August 7, 2020.  The replay dial-in number is 888-286-8010 and the Passcode is 41685203.  In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor’s website at 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, 2019, 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 A. Simms, Chief Financial Officer
Voice: 978-470-2900
Facsimile: 978-749-3439

(Thousands except for per share amounts)      
 (Unaudited) (Unaudited)
 JUNE 30, JUNE 30, JUNE 30, JUNE 30,
 2020 2019 2020 2019
Net revenues$ 70,761  $ 63,355  $ 134,162  $ 129,080
Cost of revenues40,443  34,238  76,513  68,877
Gross margin30,318  29,117  57,649  60,203
Operating expenses:       
Selling, general and administrative15,455  15,030  31,824  30,403
Research and development12,830  11,706  26,165  22,926
Total operating expenses28,285  26,736  57,989  53,329
Income (loss) from operations2,033  2,381  (340) 6,874
Other income (expense), net233  288  381  527
Income before income taxes2,266  2,669  41  7,401
Less: (Benefit) provision for income taxes(406) 113  (900) 539
Consolidated net income 2,672  2,556  941  6,862
Less: Net income (loss) attributable to noncontrolling interest5  (7) 9  13
Net income attributable to Vicor Corporation$2,667  $2,563  $932  $6,849
Net income per share attributable to Vicor Corporation:       
  Basic$0.06  $0.06  $0.02  $0.17
  Diluted$0.06  $0.06  $0.02  $0.17
Shares outstanding:       
  Basic41,643  40,275  41,140  40,252
  Diluted43,385  41,081  42,980  41,055

 JUNE 30, DEC 31, 
 2020 2019 
 (Unaudited) (Unaudited) 
Current assets:    
Cash and cash equivalents$ 196,704  $ 84,668  
Accounts receivable, net48,502  38,115  
Inventories, net55,630  49,187  
Other current assets7,842  7,096  
Total current assets308,678  179,066  
Long-term deferred tax assets188  205  
Long-term investment, net2,555  2,510  
Property, plant and equipment, net 59,475  56,952  
Other assets1,838  1,994  
Total assets$ 372,734  $ 240,727  
Liabilities and Equity    
Current liabilities:    
Accounts payable$ 15,647  $ 9,005  
Accrued compensation and benefits13,687  10,410  
Accrued expenses2,689  2,690  
Sales allowances867  741  
Short-term lease liabilities1,156  1,520  
Income taxes payable56  57  
Short-term deferred revenue and customer prepayments 7,817  5,507  
Total current liabilities41,919  29,930  
Long-term deferred revenue894  1,054  
Contingent consideration obligations307  451  
Long-term income taxes payable571  567  
Long-term lease liabilities 2,400  2,855  
Total liabilities46,091  34,857  
Vicor Corporation stockholders' equity:    
Capital stock321,537  201,774  
Retained earnings144,030  143,098  
Accumulated other comprehensive loss(316) (383) 
Treasury stock(138,927) (138,927) 
Total Vicor Corporation stockholders' equity326,324  205,562  
Noncontrolling interest319  308  
Total equity326,643  205,870  
Total liabilities and equity$ 372,734  $ 240,727