ANDOVER, MA--(Marketwire - August 4, 2009) - Vicor Corporation (
NASDAQ:
VICR) today reported
its financial results for the second quarter and six months ended June 30,
2009.
Revenues for the second quarter increased to $50,627,000, compared to
$49,297,000 for the corresponding period a year ago and $50,448,000 for the
first quarter of 2009. Gross margin increased to $22,598,000 for the
second quarter of 2009, compared to $21,113,000 for the corresponding
period a year ago and $21,831,000 for the first quarter of 2009. Gross
margin, as a percentage of revenue, increased to 44.6% for the second
quarter of 2009 compared to 42.8% for the second quarter of 2008, and
increased on a sequential basis from 43.3% for the first quarter of 2009.
Net income for the second quarter was $1,341,000, or $0.03 per diluted
share, compared to a net loss of $(1,323,000), or $(0.03) per diluted
share, for the corresponding period a year ago and a net loss of
$(2,543,000), or $(0.06) per diluted share, for the first quarter of 2009.
During the second quarter, the Company recorded a pre-tax charge of
$859,000 for the cost of severance and other employee-related costs in
connection with reductions to its workforce, which were completed in June
2009.
Revenues for the six months ended June 30, 2009 decreased by 1.6% to
$101,075,000 from $102,766,000 for the corresponding period a year ago.
Net loss for the six month period was $(1,202,000), or $(0.03) per diluted
share, compared to a net loss of $(703,000) or $(0.02) per diluted share,
for the corresponding period a year ago. The net loss for the six month
period was primarily due to an aggregate pre-tax charge of $3,957,000 for
the cost of severance and other employee-related costs in connection with
the Company's workforce reductions implemented in the first and second
quarters of 2009.
The book-to-bill ratio for the second quarter of 2009 was 0.79:1, as
compared to 0.99:1 for the first quarter of 2009. Backlog at the end of
the second quarter of 2009 was $41,515,000, as compared to $52,068,000 at
the end of the first quarter of 2009.
Commenting on the Company's second quarter performance, Patrizio
Vinciarelli, Chairman of the Board, President and Chief Executive Officer,
stated: "During the second quarter, Vicor's gross margin and profitability
improved reflecting, in part, recent expense reductions. While encouraged
by improvements in operational efficiency, we continue to pursue
performance improvements throughout the organization."
Dr. Vinciarelli continued, "Consolidated revenue for the second quarter was
essentially unchanged from the corresponding quarter of 2008. This relative
stability in the midst of a double digit slump in the global market for
electronic products may be comforting. However, our book-to-bill ratio for
the second quarter was disappointing and we remain cautious about the
Company's near-term outlook, in light of continued weakness in the global
economy. Our quarterly book-to-bill ratio has been volatile, and we have
cautioned that the ratio is not always an accurate indicator of future
revenue. However, given the magnitude of the ratio's decline for the second
quarter, and our quarter-end backlog, we anticipate that the Company is
likely to experience a sequential decline in revenue for the third
quarter."
"We remain focused on the longer-term growth prospects of our considerable
investments in Picor, V-I Chip™ and VI BRICK™ product lines. We have
initiated a significant expansion of V-I Chip manufacturing capacity to be
completed by Q1 2010 in anticipation of higher demand in 2010. We believe
that Vicor remains well-capitalized and capable of making the investments
necessary to facilitate future growth in the face of a severe recession."
Depreciation and amortization for the second quarter of 2009 was
approximately $2,609,000, and capital additions totaled $1,720,000. For
the first six months of 2009, depreciation and amortization was $5,234,000
and capital additions were $2,749,000, compared to $5,211,000 and
$4,169,000, respectively, for the first six months of 2008. Cash,
restricted cash equivalents and short-term investments increased by
$4,985,000 to approximately $31,450,000 at the end of the second quarter of
2009 from $26,465,000 at the end of the first quarter of 2009. There were
no share repurchases during the quarter, and approximately $8,500,000
remains authorized for additional purchases under the Company's stock
repurchase plan. The Company previously announced an indefinite suspension
of its semi-annual dividend.
As of June 30, 2009, the Company held approximately $38,275,000, at par
value, of auction rate securities. As previously disclosed, conditions in
the market for auction rate securities and the repeated failure of auctions
by which such securities are priced have led the Company to continue to
classify its holdings as long-term investments. Based on the Company's
ability to access cash and other short-term investments and its expected
operating cash flows, management does not anticipate the current lack of
liquidity of holdings of auction rate securities will affect the Company's
ability to execute its current operating plan.
The tax provision in 2009 provides for estimated income taxes due in
various state and international taxing jurisdictions for which losses
incurred by the Company cannot be offset, and for estimated federal and
state income taxes for certain minority-owned subsidiaries that are not
part of the Company's consolidated income tax returns. The 2009 tax
provision also includes discrete items, including a benefit for the receipt
of a refund for a net operating loss carryback claim and expense for
certain state assessments, each of which involved a minority-owned
subsidiary, and for increases in accrued interest for potential
liabilities. In 2008, the tax provision was based on the estimated annual
effective tax rate for 2008, which includes estimated federal, state and
foreign income taxes on the Company's projected annual pre-tax income and
estimated federal and state income taxes for certain minority-owned
subsidiaries that are not part of the Company's consolidated income tax
returns, offset by the expected utilization of federal and foreign net
operating loss carryforwards. The 2008 tax provision also includes
discrete items, principally for increases in accrued interest for potential
liabilities and expense associated with a reduction in state income tax
refunds receivable.
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, Tuesday, August
4, 2009, at 5:00 p.m. Eastern Time. Shareholders interested in
participating in the call should call 800-573-4840 at approximately 4:50
p.m. and use the Passcode 56478099. 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 in the
conference call, a replay will be available, shortly after the conclusion
of the call, through August 19, 2009. The replay dial-in number is
888-286-8010 and the Passcode is 91114083. 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 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," "intend," "estimate," "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, and the Company's capital resources. These statements are
based upon the Company'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 the
Company's Annual Report on Form 10-K for the year ended December 31, 2008,
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 the Company files 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. The Company
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 the electronic data processing, industrial control,
military electronics and telecommunications markets.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED
(Unaudited) SIX MONTHS ENDED
--------------------- --------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2009 2008 2009 2008
---------- --------- --------- ---------
Net revenues $ 50,627 $ 49,297 $ 101,075 $ 102,766
Cost of revenues 28,029 28,184 56,646 59,193
---------- --------- --------- ---------
Gross margin 22,598 21,113 44,429 43,573
Operating expenses:
Sales & administration 12,019 13,975 24,842 28,027
Research & development 7,611 8,080 15,362 15,591
Severance charges 859 0 3,957 0
Gain from litigation-related
settlements, net 0 (177) 0 (177)
---------- --------- --------- ---------
Total operating expenses 20,489 21,878 44,161 43,441
---------- --------- --------- ---------
Income (loss) from operations 2,109 (765) 268 132
Other income (expense), net 193 470 311 1,670
---------- --------- --------- ---------
Income (loss) before income
taxes 2,302 (295) 579 1,802
Provision for income taxes 544 350 972 592
Loss from equity method
investment, net of tax 0 172 0 962
---------- --------- --------- ---------
Consolidated net income (loss) 1,758 (817) (393) 248
Less: Net income attributable
to noncontrolling interest 417 506 809 951
---------- --------- --------- ---------
Net income (loss) attributable
to Vicor Corporation $ 1,341 ($ 1,323) ($ 1,202) ($ 703)
========== ========= ========= =========
Net income (loss) per share
attributable to Vicor
Corporation:
Basic $ 0.03 ($ 0.03) ($ 0.03) ($ 0.02)
Diluted $ 0.03 ($ 0.03) ($ 0.03) ($ 0.02)
Shares outstanding:
Basic 41,665 41,643 41,665 41,640
Diluted 41,665 41,643 41,665 41,640
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
JUNE 30,
2009 DEC 31,
(Unaudited) 2008
================ ================
Assets
Current assets:
Cash and cash equivalents $ 30,429 $ 22,639
Restricted cash equivalents 176 176
Short-term investments 845 1,773
Accounts receivable, net 25,985 28,757
Inventories, net 24,763 26,681
Deferred tax assets 451 451
Other current assets 3,119 2,279
---------------- ----------------
Total current assets 85,768 82,756
Restricted cash and cash equivalents 388 561
Long-term investments 37,536 35,661
Property and equipment, net 45,912 48,254
Other assets 4,982 4,690
---------------- ----------------
$ 174,586 $ 171,922
================ ================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,142 $ 5,592
Accrued compensation and benefits 7,114 6,783
Accrued severance charge 1,810 0
Other accrued liabilities 3,095 4,422
Deferred revenue 1,312 662
---------------- ----------------
Total current liabilities 19,473 17,459
Long-term deferred revenue 1,314 1,118
Long-term income taxes payable 276 259
Deferred income taxes 1,659 1,660
Equity:
Vicor Corporation stockholders' equity:
Capital stock 161,954 161,591
Retained earnings 108,972 110,174
Accumulated other comprehensive (loss)
income (1,686) (2,767)
Treasury stock (121,827) (121,827)
---------------- ----------------
Total Vicor Corporation
stockholders' equity 147,413 147,171
Noncontrolling interest 4,451 4,255
---------------- ----------------
Total equity 151,864 151,426
---------------- ----------------
$ 174,586 $ 171,922
================ ================
Contact Information: For further information contact:
James A. Simms
Chief Financial Officer
Tel: 978-470-2900
Fax: 978-749-3439