Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2022

Andover, Massachusetts, UNITED STATES


ANDOVER, Mass., July 21, 2022 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2022. 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, 2022 totaled $102.2 million, a 7.1% increase from $95.4 million for the corresponding period a year ago, and a 15.7% sequential increase from $88.3 million in the first quarter of 2022.

Gross margin decreased to $46.8 million for the second quarter of 2022, compared to $49.9 million for the corresponding period a year ago, and increased sequentially from $37.6 million for the first quarter of 2022. Gross margin, as a percentage of revenue, decreased to 45.8% for the second quarter of 2022, compared to 52.3% for the corresponding period a year ago, and increased from 42.6% for the first quarter of 2022.

Net income for the second quarter was $10.6 million, or $0.24 per diluted share, compared to net income of $19.4 million or $0.43 per diluted share, for the corresponding period a year ago and net income of $5.0 million, or $0.11 per diluted share, for the first quarter of 2022.        

Cash flow from operations totaled $10.8 million for the second quarter, compared to cash flow from operations of $12.3 million for the corresponding period a year ago, and cash flow from operations of $4.6 million in the first quarter of 2022. Capital expenditures for the second quarter totaled $14.2 million, compared to $6.5 million for the corresponding period a year ago and $22.7 million for the first quarter of 2022. The sum of cash, cash equivalents, and short-term investments as of June 30, 2022 decreased 1.6% sequentially to approximately $207.6 million compared to approximately $211.1 million as of March 31, 2022.

Commenting on second quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Q2 revenues growth included 28% sequential growth in Advanced Products. To better serve our customers, our Operations team had to overcome component shortages and outsourced capacity bottlenecks, which precluded commensurate improvements in product margins. Vertically integrated capacity will enable revenue growth with substantially improved gross margins.”

“The Q2 book-to-bill ratio came in below 1, with one-year backlog standing at just over $400 million. We look forward to reducing production lead times and getting caught up with our backlog.”

“Capital investment into our first ChiP foundry continued in Q2 as our Andover fab, with its one million panels per year capacity, approaches completion. Scalable vertical integration of Advanced Products, including next generation current multipliers and converters, is key to increased market penetration in demanding AI and automotive applications.”

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, July 21, 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 July 21, 2022. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 43881772. 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 August 5, 2022. The replay dial-in number is 888-286-8010 and the Passcode is 64490033. 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, 2021, 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 SIX MONTHS ENDED
 (Unaudited) (Unaudited)
        
 JUNE 30, JUNE 30, JUNE 30, JUNE 30,
 2022 2021 2022 2021
        
        
Net revenues$102,186  $95,376  $190,468  $184,172 
Cost of revenues 55,337   45,505   106,018   89,601 
Gross margin 46,849   49,871   84,450   94,571 
        
Operating expenses:       
Selling, general and administrative 20,035   16,589   38,603   33,543 
Research and development 15,516   13,273   29,769   26,299 
Total operating expenses 35,551   29,862   68,372   59,842 
        
Income from operations 11,298   20,009   16,078   34,729 
        
Other income (expense), net 84   373   246   605 
        
Income before income taxes 11,382   20,382   16,324   35,334 
        
Less: Provision for income taxes 802   999   754   856 
        
Consolidated net income 10,580   19,383   15,570   34,478 
        
Less: Net loss attributable to       
noncontrolling interest (13)  (11)  (22)  (8)
        
Net income attributable to       
Vicor Corporation$10,593  $19,394  $15,592  $34,486 
        
        
Net income per share attributable       
to Vicor Corporation:       
Basic$0.24  $0.45  $0.35  $0.79 
Diluted$0.24  $0.43  $0.35  $0.77 
        
Shares outstanding:       
Basic 43,973   43,553   43,963   43,504 
Diluted 44,866   44,841   44,910   44,841 
        


    
    
VICOR CORPORATION   
    
CONDENSED CONSOLIDATED BALANCE SHEET  
(Thousands)   
    
    
 JUNE 30, DEC 31,
 2022 2021
 (Unaudited) (Unaudited)
Assets   
    
Current assets:   
Cash and cash equivalents$187,677  $182,418 
Short-term investments 19,921   45,215 
Accounts receivable, net 54,536   55,097 
Inventories, net 83,055   67,322 
Other current assets 7,142   6,708 
Total current assets 352,331   356,760 
    
Long-term deferred tax assets 266   208 
Long-term investment, net 2,552   2,639 
Property, plant and equipment, net 156,815   115,975 
Other assets 1,392   1,623 
    
Total assets$513,356  $477,205 
    
Liabilities and Equity   
    
Current liabilities:   
Accounts payable$32,032  $21,189 
Accrued compensation and benefits 13,128   12,753 
Accrued expenses 4,011   4,158 
Sales allowances 1,006   1,464 
Short-term lease liabilities 1,572   1,551 
Income taxes payable 2   66 
Short-term deferred revenue and customer prepayments 7,702   7,912 
    
Total current liabilities 59,453   49,093 
    
Long-term deferred revenue 270   413 
Long-term income taxes payable 577   569 
Long-term lease liabilities 7,952   3,225 
Total liabilities 68,252   53,300 
    
Equity:   
Vicor Corporation stockholders' equity:   
Capital stock 352,811   346,221 
Retained earnings 233,225   217,633 
Accumulated other comprehensive loss (2,246)  (1,328)
Treasury stock (138,927)  (138,927)
Total Vicor Corporation stockholders' equity 444,863   423,599 
Noncontrolling interest 241   306 
Total equity 445,104   423,905 
    
Total liabilities and equity$513,356  $477,205