Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2022

Andover, Massachusetts, UNITED STATES

ANDOVER, Mass., Oct. 25, 2022 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 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 third quarter ended September 30, 2022 totaled $103.1 million, a 21.4% increase from $84.9 million for the corresponding period a year ago, and a 0.9% sequential increase from $102.2 million in the second quarter of 2022.

Gross margin increased to $47.0 million for the third quarter of 2022, compared to $42.8 million for the corresponding period a year ago, and increased sequentially from $46.8 million for the second quarter of 2022. Gross margin, as a percentage of revenue, decreased to 45.5% for the third quarter of 2022, compared to 50.4% for the corresponding period a year ago, and decreased from 45.8% for the second quarter of 2022.

Net income for the third quarter was $8.1 million, or $0.18 per diluted share, compared to net income of $13.3 million or $0.29 per diluted share, for the corresponding period a year ago and net income of $10.6 million, or $0.24 per diluted share, for the second quarter of 2022.

Cash flow from operations totaled $6.6 million for the third quarter, compared to cash flow from operations of $10.1 million for the corresponding period a year ago, and cash flow from operations of $10.8 million in the second quarter of 2022. Capital expenditures for the third quarter totaled $14.4 million, compared to $15.2 million for the corresponding period a year ago and $14.2 million for the second quarter of 2022. The sum of cash, cash equivalents, and short-term investments as of September 30, 2022 decreased 2.7% sequentially to approximately $202.0 million compared to approximately $207.6 million as of June 30, 2022.

Commenting on third quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “A deteriorating macroeconomic environment caused a shortfall in demand for electronic products. Q3 profitability was significantly impacted by legal expenses ahead of a recent intellectual property litigation trial.”

“Reflecting a reduction in demand caused by recent market conditions, the Q3 book-to-bill ratio came in below 1. We look forward to reducing production lead times and getting caught up with our backlog.”

“Capital investment in our first ChiP foundry continued in Q3 to enable our Andover fab to support Advanced Product revenues with up to approximately one billion dollars per year total capacity. Major advances in power density by our next generation ChiPs and recent design wins in our primary markets bode well for the future utilization of this capacity.”

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, Tuesday, October 25, 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 October 25, 2022. Telephone participants who are unable to pre-register should dial 877-299-4502 at approximately 4:45 p.m. and use the Passcode 27044173. 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 November 9, 2022. The replay dial-in number is 888-286-8010 and the Passcode is 10145508. 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, 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

(Thousands except for per share amounts)       
 (Unaudited) (Unaudited)
 SEPT 30, SEPT 30, SEPT 30, SEPT 30,
  2022   2021   2022   2021 
Net revenues$ 103,118  $ 84,911  $ 293,586  $ 269,083 
Cost of revenues 56,148   42,098   162,166   131,699 
Gross margin 46,970   42,813   131,420   137,384 
Operating expenses:       
Selling, general and administrative 22,719   17,322   61,322   50,865 
Research and development 14,747   13,519   44,516   39,818 
Total operating expenses 37,466   30,841   105,838   90,683 
Income from operations 9,504   11,972   25,582   46,701 
Other income (expense), net (568)  394   (322)  999 
Income before income taxes 8,936   12,366   25,260   47,700 
Less: Provision (benefit) for income taxes 842   (886)  1,596   (30)
Consolidated net income  8,094   13,252   23,664   47,730 
Less: Net income (loss) attributable to        
noncontrolling interest 3   (7)  (19)  (15)
Net income attributable to       
Vicor Corporation$8,091  $13,259  $23,683  $47,745 
Net income per share attributable       
to Vicor Corporation:       
Basic$0.18  $0.30  $0.54  $1.10 
Diluted$0.18  $0.29  $0.53  $1.06 
Shares outstanding:       
Basic 44,031   43,710   43,986   43,573 
Diluted 44,898   45,034   44,906   44,905 

 SEPT 30, DEC 31, 
  2022   2021  
 (Unaudited) (Unaudited) 
Current assets:    
Cash and cash equivalents$ 182,098  $ 182,418  
Short-term investments 19,949   45,215  
Accounts receivable, net 56,287   55,097  
Inventories, net 94,336   67,322  
Other current assets 5,283   6,708  
Total current assets 357,953   356,760  
Long-term deferred tax assets 260   208  
Long-term investment, net 2,552   2,639  
Property, plant and equipment, net  163,198   115,975  
Other assets 2,939   1,623  
Total assets$ 526,902  $ 477,205  
Liabilities and Equity    
Current liabilities:    
Accounts payable$ 24,005  $ 21,189  
Accrued compensation and benefits 13,070   12,753  
Accrued expenses 5,754   4,158  
Sales allowances 1,427   1,464  
Short-term lease liabilities 1,449   1,551  
Income taxes payable 7   66  
Short-term deferred revenue and customer prepayments  12,148   7,912  
Total current liabilities 57,860   49,093  
Long-term deferred revenue 1,833   413  
Long-term income taxes payable 529   569  
Long-term lease liabilities  7,520   3,225  
Total liabilities 67,742   53,300  
 Vicor Corporation stockholders' equity:    
Capital stock 357,813   346,221  
Retained earnings 241,316   217,633  
Accumulated other comprehensive loss (1,279)  (1,328) 
Treasury stock (138,927)  (138,927) 
Total Vicor Corporation stockholders' equity 458,923   423,599  
Noncontrolling interest 237   306  
Total equity 459,160   423,905  
Total liabilities and equity$ 526,902  $ 477,205