Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2021

Andover, Massachusetts, UNITED STATES


ANDOVER, Mass., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2021. 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, 2021 totaled $90.3 million, a 7.1% increase from $84.3 million for the corresponding period a year ago, and a 6.3% sequential increase from $84.9 million in the third quarter of 2021.

Gross margin increased to $40.8 million for the fourth quarter of 2021, compared to $40.5 million for the corresponding period a year ago, but decreased sequentially from $42.8 million for the third quarter of 2021. Gross margin, as a percentage of revenue, decreased to 45.2% for the fourth quarter of 2021, compared to 48.0% for the corresponding period a year ago, and from 50.4% for the third quarter of 2021.

Net income for the fourth quarter was $8.9 million, or $0.20 per diluted share, compared to net income of $11.2 million or $0.25 per diluted share, for the corresponding period a year ago and net income of $13.3 million, or $0.29 per diluted share, for the third quarter of 2021.

Cash flow from operations totaled $14.2 million for the fourth quarter, compared to cash flow from operations of $19.3 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the third quarter of 2021. Capital expenditures for the fourth quarter totaled $16.8 million, compared to $11.8 million for the corresponding period a year ago and $15.2 million for the third quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of December 31, 2021 decreased 0.5% sequentially to approximately $227.6 million compared to approximately $228.9 million as of September 30, 2021.

Revenues for the year ended December 31, 2021 increased 21.2% to $359.4 million, from $296.6 million for the prior year. Gross margin, as a percentage of revenue, increased to 49.6% for the year ended December 31, 2021, compared to 44.3% for the prior year. Net income for 2021 was $56.6 million, or $1.26 per diluted share and 15.8% of revenues, compared to $17.9 million, or $0.41 per diluted share and 6.0% of revenue in the prior year. Cash flows from operations totaled $54.4 million for the year ended December 31, 2021, a 56.8% increase from cash flows from operations of $34.7 million for the prior year.

Commenting on fourth quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Once again, component shortages and capacity constraints caused Q4 revenues to fall short of expectations with higher costs and manufacturing inefficiencies having a negative impact on margins. Substantial progress on production rates and margins awaits our vertically integrated manufacturing facility which is nearing completion for operations to start in Q3”.

“Advanced Products revenues, which grew 18% sequentially, exceeded revenues from legacy bricks. The Q4 book-to-bill ratio came in well above 1, with one-year backlog increasing 17% from the prior quarter and by a factor of 2.3 from the prior year.”

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 24, 2022 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 24, 2022. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 88597864. 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 11, 2022. The replay dial-in number is 888-286-8010 and the Passcode is 63075291. 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, 2020, 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 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 YEAR ENDED
  (Unaudited) (Unaudited)
         
  DEC 31, DEC 31, DEC 31, DEC 31,
  2021 2020 2021 2020
         
         
Net revenues $ 90,281 $ 84,302 $ 359,364 $ 296,576
Cost of revenues  49,465  43,851  181,164  165,129
Gross margin  40,816  40,451  178,200  131,447
         
Operating expenses:        
Selling, general and administrative  18,619  16,127  69,484  63,163
Research and development  13,296  12,719  53,114  50,916
 Total operating expenses  31,915  28,846  122,598  114,079
         
Income from operations  8,901  11,605  55,602  17,368
         
Other income (expense), net  204  378  1,203  1,093
         
Income before income taxes  9,105  11,983  56,805  18,461
         
Less: Provision for income taxes  206  788  176  539
         
Consolidated net income   8,899  11,195  56,629  17,922
         
Less: Net income attributable to         
noncontrolling interest  19  2  4  12
         
Net income attributable to        
Vicor Corporation $8,880 $11,193 $56,625 $17,910
         
         
Net income per share attributable        
to Vicor Corporation:        
Basic $0.20 $0.26 $1.30 $0.42
Diluted $0.20 $0.25 $1.26 $0.41
         
Shares outstanding:        
Basic  43,887  43,301  43,651  42,186
Diluted  45,148  44,772  44,966  43,869
         


VICOR CORPORATION
    
CONDENSED CONSOLIDATED BALANCE SHEET   
(Thousands)
    
    
 DEC 31, DEC 31,
  2021   2020 
 (Unaudited) (Unaudited)
Assets   
    
Current assets:   
Cash and cash equivalents$ 182,418  $ 161,742 
Short-term investments 45,215   50,166 
Accounts receivable, net 55,097   40,999 
Inventories, net 67,322   57,269 
Other current assets 6,708   6,756 
Total current assets 356,760   316,932 
    
Long-term deferred tax assets 208   226 
Long-term investment, net 2,639   2,517 
Property, plant and equipment, net  115,975   74,843 
Other assets 1,623   1,721 
    
Total assets$ 477,205  $ 396,239 
    
Liabilities and Equity   
    
Current liabilities:   
Accounts payable$ 21,189  $ 14,121 
Accrued compensation and benefits 12,753   14,094 
Accrued expenses 4,158   2,624 
Sales allowances 1,464   597 
Short-term lease liabilities 1,551   1,629 
Income taxes payable 66   139 
Short-term deferred revenue and customer prepayments  7,912   7,309 
    
Total current liabilities 49,093   40,513 
    
Long-term deferred revenue 413   733 
Contingent consideration obligations                    -   227 
Long-term income taxes payable 569   643 
Long-term lease liabilities  3,225   2,968 
Total liabilities 53,300   45,084 
    
Equity:   
Vicor Corporation stockholders' equity:   
Capital stock 346,221   328,943 
Retained earnings 217,633   161,008 
Accumulated other comprehensive loss (1,328)  (204)
Treasury stock (138,927)  (138,927)
Total Vicor Corporation stockholders' equity 423,599   350,820 
Noncontrolling interest 306   335 
Total equity 423,905   351,155 
    
      Total liabilities and equity$ 477,205  $ 396,239