ANDOVER, MA -- (MARKET WIRE) -- April 25, 2007 --Vicor Corporation (
NASDAQ:
VICR) today reported
its financial results for the first quarter of 2007 ended March 31, 2007.
Revenues for the quarter decreased to $46,981,000 compared to $47,872,000
for the corresponding period a year ago. Net income for Q1 was $2,402,000,
or $.06 per diluted share compared to net income of $3,076,000, or $.07 per
diluted share, in Q1 2006.
Gross margin decreased to 43.1% in Q1 2007 from 44.1% in Q1 2006 and
increased on a sequential basis from 41.0% in Q4 2006. The book-to-bill
ratio for Q1 2007 was 1.00:1 as compared to 0.94:1 in Q4 2006. Backlog at
the end of Q1 2007 was $36.6 million as compared to $36.4 million at the
end of 2006.
In Q1 2007, the Company recorded $194,000 for expensing stock-based
compensation in accordance with Statement of Financial Accounting Standards
No. 123 (revised 2004) (FAS 123R).
Commenting on the first quarter, Vicor's CEO Patrizio Vinciarelli noted:
"Demand for bricks improved from Q4 levels and we achieved record bookings
and shipments of V-I Chips. Margins improved due to better capacity
utilization."
Vinciarelli went on to say: "We are looking forward to 2008 for V-I Chip
sales to become significant, enabling us to break out of the revenue range
of recent years. Our Brick Business Unit, V-I Chip and Picor have
synergistic plans for profitable growth while being focused on their
respective missions. We have unique technology, products and market
opportunities to achieve outstanding returns on our longstanding
investments."
Depreciation and amortization in Q1 2007 was $3.1 million and capital
additions were $2.1 million. In Q1 2006, depreciation and amortization was
$4.0 million and capital additions were $1.6 million. Cash and short-term
investments decreased by $41.9 million to approximately $76.7 million at
the end of Q1 2007 from $118.6 million at the end of 2006. During the
quarter the Company paid approximately $37.2 million, net of insurance
proceeds, following the settlement earlier reported and paid a dividend of
approximately $6.2 million. There were no share repurchases during Q1
2007. At the end of Q1 2007 there was approximately $8.5 million remaining
in the authorized stock buy-back plan.
In 2007, the tax provision included estimated federal and state income
taxes for certain minority-owned subsidiaries that are not part of the
Company's consolidated income tax returns, for estimated income taxes due
in various state and international taxing jurisdictions and for increases
in tax reserves for potential liabilities. The expense was offset
principally by refunds of interest received and recorded as a benefit
during the quarter as final settlement for the audit of its federal tax
returns for tax periods 1994 though 2002 by the Internal Revenue Service.
The Company's adoption of FIN 48, "Accounting for Uncertainty in Income
Taxes" as of January 1, 2007 did not have a material impact on the
Company's financial position or results of operations.
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, Wednesday, April
25, 2007 at 5:00 p.m. Eastern Time. Shareholders interested in
participating in the call should call 888-482-0024 at approximately 4:50
p.m. and use the Passcode 39258062. Internet users can listen to a
real-time audio broadcast of the conference call on the Investor Relations
section of Vicor's website at
www.vicorpower.com/irwebcast. 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, a replay
will be available, shortly after the conclusion of the call, through May
10, 2007. The replay dial-in number is 888-286-8010 and the Passcode is
75803060. 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/irwebcast beginning shortly after the conclusion of the
call.
This press release contains certain forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. You
can identify these statements by our use of the words "may," "will,"
"would," "should," "plans," "expects," "anticipates," "believes,"
"continue," "estimate," "prospective," "project," "intend," and similar
expressions. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
those projected or anticipated. These risks and uncertainties include our
ability to develop and market new products and technologies
cost-effectively, to leverage design wins into increased product sales, to
continue to make progress with key customers and prospects, to decrease
manufacturing costs, to enter into licensing agreements that amplify the
market opportunity and accelerate market penetration, to realize
significant royalties under license agreements, to achieve a sustainable
increased bookings rate over a longer period, to hire key personnel and to
continue to build our three business units, and to successfully leverage
the V-I Chips in standard products to promote market acceptance of
Factorized Power, factors impacting the company's various end markets, as
well as those risks and uncertainties identified in the Company's Annual
Report on Form 10-K. The risk factors contained in the Annual Report on
Form 10-K may not be exhaustive. Therefore, the information contained in
that Form 10-K should be read together with other reports and documents
that the Company files with the SEC from time to time, which may
supplement, modify, supersede or update those risk factors.
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 the communications, information technology,
industrial control and military electronics markets.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED
(Unaudited)
-------- ---------
MAR 31, MAR 31,
2007 2006
-------- ---------
Net revenues $ 46,981 $ 47,872
Cost of revenues 26,754 26,770
-------- ---------
Gross margin 20,227 21,102
Operating expenses:
Sales & administration 12,013 10,914
Research & development 7,400 7,542
-------- ---------
Total operating expenses 19,413 18,456
Income from operations 814 2,646
-------- ---------
Other income (expense), net 1,577 1,060
-------- ---------
Income before income taxes 2,391 3,706
(Benefit) provision for income taxes (11) 630
-------- ---------
Net income $ 2,402 $ 3,076
======== =========
Net income per share:
Basic $ 0.06 $ 0.07
Diluted $ 0.06 $ 0.07
Shares outstanding:
Basic 41,565 41,948
Diluted 41,614 42,384
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
MAR 31, DEC 31,
2007 2006
(Unaudited) (Unaudited)
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 32,864 $ 36,185
Short-term investments 43,788 82,401
Accounts receivable, net 30,957 30,399
Insurance receivable for litigation 0 12,800
Inventories, net 22,585 22,001
Deferred tax assets 3,648 3,702
Other current assets 2,575 2,181
----------- -----------
Total current assets 136,417 189,669
Property and equipment, net 50,838 51,573
Other assets 6,614 6,865
----------- -----------
$ 193,869 $ 248,107
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 7,505 $ 7,273
Accrued compensation and benefits 4,884 5,192
Other accrued liabilities 5,961 6,314
Accrual for litigation settlement 0 50,000
----------- -----------
Total current liabilities 18,350 68,779
Deferred income taxes 4,346 4,389
Minority interests 3,610 3,593
Stockholders' equity:
Capital stock 158,644 158,594
Retained earnings 130,746 134,579
Treasury stock (121,827) (121,827)
----------- -----------
Total stockholders' equity 167,563 171,346
----------- -----------
$ 193,869 $ 248,107
=========== ===========
Contact Information: For further information contact:
Mark A. Glazer
Chief Financial Officer
Vicor Corporation
Tel: 978-470-2900
Fax: 978-749-3439