Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2020

Andover, Massachusetts, UNITED STATES


ANDOVER, Mass., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 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 third quarter ended September 30, 2020 totaled $78.1 million, a 10.4% increase from $70.8 million for the corresponding period a year ago, and also a 10.4% sequential increase from $70.8 million for the second quarter of 2020.

Gross margin increased to $33.3 million for the third quarter of 2020, compared to $33.0 million for the corresponding period a year ago, and increased sequentially from $30.3 million for the second quarter of 2020. Gross margin, as a percentage of revenue, decreased to 42.7% for the third quarter of 2020, compared to 46.6% for the corresponding period a year ago, and decreased from 42.8% for the second quarter of 2020.

Net income for the third quarter was $5.8 million, or $0.13 per diluted share, compared to net income of $5.9 million or $0.14 per diluted share, for the corresponding period a year ago and net income of $2.7 million, or $0.06 per diluted share, for the second quarter of 2020.

Cash and cash equivalents sequentially increased by $6.9 million to approximately $203.6 million at the end of the third quarter of 2020, from $196.7 million at the end of the second quarter of 2020.  Incremental capital expenditures for the third quarter of 2020 totaled $8.1 million, as compared with $3.3 million for the corresponding period a year ago and $5.7 million for the second quarter of 2020.

Third quarter bookings increased 49.5% to $90.5 million, from $60.5 million for the corresponding period a year ago, and increased sequentially from $87.5 million for the second quarter of 2020. Total backlog at the end of the third quarter of 2020 was $140.0 million, representing an increase of 9.8% from $127.5 million at the end of the second quarter of 2020 and 34.4 % from $104.2 million at the end of 2019.

Commenting on the third quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Despite supply-chain and product mix challenges, higher shipments of Advanced Products led to an increase in third quarter revenue.  Bookings for Advanced Products grew across a multiplicity of applications and end markets. Our outlook for the fourth quarter is for a sequential increase in revenue and earnings per share. Capacity expansion is on schedule and vertical integration in our new manufacturing facility of all of the process steps required by Advanced Products should soon lead to shorter cycle times, greater efficiencies, and improved gross and net margins.”

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, October 22, 2020 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call who have not pre-registered should call 877-299-4502 at approximately 4:30 p.m. and use the Passcode 12469708. 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 6, 2020. The replay dial-in number is 888-286-8010 and the Passcode is 78499292. 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, 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
invrel@vicorpower.com

        
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,
  2020   2019   2020   2019 
        
        
Net revenues $ 78,112  $ 70,772  $ 212,274   $ 199,852 
Cost of revenues 44,765   37,770   121,278   106,647 
         Gross margin 33,347   33,002   90,996   93,205 
        
Operating expenses:       
          Selling, general and administrative 15,212   15,443   47,036   45,846 
          Research and development 12,032   11,507   38,197   34,433 
             Total operating expenses 27,244   26,950   85,233   80,279 
        
Income from operations 6,103   6,052   5,763   12,926 
        
Other income (expense), net 334   146   715   673 
        
Income before income taxes 6,437   6,198   6,478   13,599 
        
 Less: Provision (benefit) for income taxes 651   266   (249)  805 
        
Consolidated net income  5,786   5,932   6,727   12,794 
        
Less: Net income (loss) attributable to        
  noncontrolling interest 1   (5)  10   8 
        
Net income attributable to       
  Vicor Corporation $5,785  $5,937  $6,717   $12,786 
        
        
Net income per share attributable       
  to Vicor Corporation:       
           Basic $0.13  $0.15  $0.16   $0.32 
           Diluted $0.13  $0.14  $0.15   $0.31 
        
Shares outstanding:       
           Basic 43,164   40,332   41,814   40,279 
           Diluted 44,743   42,194   43,567   41,435 
        



    
    
VICOR CORPORATION   
    
CONDENSED CONSOLIDATED BALANCE SHEET   
(Thousands)   
    
    
 SEPT 30, DEC 31,
  2020   2019 
 (Unaudited) (Unaudited)
Assets   
    
Current assets:   
        Cash and cash equivalents$ 203,605  $ 84,668 
        Accounts receivable, net 41,136   38,115 
        Inventories, net 58,169   49,187 
        Other current assets 6,872   7,096 
                  Total current assets 309,782   179,066 
    
Long-term deferred tax assets 189   205 
Long-term investment, net 2,591   2,510 
Property, plant and equipment, net  65,780   56,952 
Other assets 1,777   1,994 
    
                  Total assets$ 380,119  $ 240,727 
    
Liabilities and Equity   
    
Current liabilities:   
        Accounts payable$ 11,911  $ 9,005 
        Accrued compensation and benefits 13,248   10,410 
        Accrued expenses 2,417   2,690 
        Sales allowances 736   741 
        Short-term lease liabilities 1,563   1,520 
        Income taxes payable 62   57 
        Short-term deferred revenue and customer prepayments  8,061   5,507 
    
                 Total current liabilities 37,998   29,930 
    
Long-term deferred revenue 813   1,054 
Contingent consideration obligations 265   451 
Long-term income taxes payable 575   567 
Long-term lease liabilities  2,880   2,855 
                 Total liabilities 42,531   34,857 
    
Equity:   
  Vicor Corporation stockholders' equity:   
        Capital stock 326,577   201,774 
        Retained earnings 149,815   143,098 
        Accumulated other comprehensive loss (203)  (383)
        Treasury stock (138,927)  (138,927)
             Total Vicor Corporation stockholders' equity 337,262   205,562 
  Noncontrolling interest 326   308 
        Total equity 337,588   205,870 
    
                  Total liabilities and equity$ 380,119  $ 240,727