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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2021

July 22, 2021 GMT

ANDOVER, Mass., July 22, 2021 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 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 presented below.  

Revenues for the second quarter ended June 30, 2021 totaled $95.4 million, a 34.8% increase from $70.8 million for the corresponding period a year ago, and a 7.4% sequential increase from $88.8 million in the first quarter of 2021.

Gross margin increased to $49.9 million for the second quarter of 2021, compared to $30.3 million for the corresponding period a year ago, and increased sequentially from $44.7 million for the first quarter of 2021. Gross margin, as a percentage of revenue, increased to 52.3% for the second quarter of 2021, compared to 42.8% for the corresponding period a year ago, and increased from 50.3% for the first quarter of 2021.

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Net income for the second quarter was $19.4 million, or $0.43 per diluted share, compared to net income of $2.7 million or $0.06 per share, for the corresponding period a year ago and net income of $15.1 million, or $0.34 per diluted share, for the first quarter of 2021.        

Cash flow from operations totaled $12.3 million for the second quarter, compared to cash flow from operations of $4.7 million for the corresponding period a year ago, and cash flow from operations of $17.8 million in the first quarter of 2021. Capital expenditures for the second quarter totaled $15.0 million, compared to $5.7 million for the corresponding period a year ago and $9.3 million for the first quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of June 30, 2021 sequentially rose 3.2% to approximately $230.2 million compared to March 31, 2021.

Commenting on second quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Q2 revenues and gross margins reflected strong demand and improved manufacturing efficiencies. Vertical integration of power packaging processes and increased capacity in expanded facilities are on track for completion by Q1 ’22, setting the stage for reduced factory cycle time, greater operational efficiency and significant margin expansion in 2022.”

Dr. Vinciarelli concluded, “Anticipating the need for even higher levels of performance in 48V power systems for AI and automotive applications, we are completing development of next generation components and processes that will enable considerably higher power density, scalability and bandwidth.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

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Vicor will be holding its investor conference call today, Thursday, July 22, 2021 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 22, 2021. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 55293440. 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 6, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 18601464. 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   SIX MONTHS ENDED
  (Unaudited)   (Unaudited)
               
  JUNE 30,   JUNE 30,   JUNE 30,   JUNE 30,
    2021       2020       2021       2020  
               
               
Net revenues $ 95,376     $ 70,761     $ 184,172     $ 134,162  
Cost of revenues   45,505       40,443       89,601       76,513  
Gross margin   49,871       30,318       94,571       57,649  
               
Operating expenses:              
Selling, general and administrative   16,589       15,455       33,543       31,824  
Research and development   13,273       12,830       26,299       26,165  
                               
                               
Total operating expenses   29,862       28,285       59,842       57,989  
               
Income (loss) from operations   20,009       2,033       34,729       (340 )
               
Other income (expense), net   373       233       605       381  
               
Income before income taxes   20,382       2,266       35,334       41  
               
Less: Provision (benefit) for income taxes   999       (406 )     856       (900 )
               
Consolidated net income   19,383       2,672       34,478       941  
               
Less: Net income (loss) attributable to              
noncontrolling interest   (11 )     5       (8 )     9  
               
Net income attributable to              
Vicor Corporation $ 19,394     $ 2,667     $ 34,486     $ 932  
               
               
Net income per share attributable              
to Vicor Corporation:              
Basic $ 0.45     $ 0.06     $ 0.79     $ 0.02  
Diluted $ 0.43     $ 0.06     $ 0.77     $ 0.02  
               
Shares outstanding:              
Basic   43,553       41,643       43,504       41,140  
Diluted   44,841       43,385       44,841       42,980  
               
VICOR CORPORATION      
       
CONDENSED CONSOLIDATED BALANCE SHEET      
(Thousands)      
       
       
  JUNE 30,   DEC 31,
    2021       2020  
  (Unaudited)   (Unaudited)
Assets      
       
Current assets:      
Cash and cash equivalents $ 159,763     $ 161,742  
Short-term investments   70,469       50,166  
Accounts receivable, net   55,012       40,999  
Inventories, net   57,129       57,269  
Other current assets   6,657       6,756  
Total current assets   349,030       316,932  
       
Long-term deferred tax assets   221       226  
Long-term investment, net   2,561       2,517  
Property, plant and equipment, net   92,956       74,843  
Other assets   1,608       1,721  
       
Total assets $ 446,376     $ 396,239  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $ 22,081     $ 14,121  
Accrued compensation and benefits   15,794       14,094  
Accrued expenses   3,618       2,624  
Sales allowances   1,919       597  
Short-term lease liabilities   1,559       1,629  
Income taxes payable   890       139  
Short-term deferred revenue and customer prepayments   3,916       7,309  
       
Total current liabilities   49,777       40,513  
       
Long-term deferred revenue   573       733  
Contingent consideration obligations   46       227  
Long-term income taxes payable   649       643  
Long-term lease liabilities   2,439       2,968  
Total liabilities   53,484       45,084  
       
Equity:      
Vicor Corporation stockholders' equity:      
Capital stock   336,832       328,943  
Retained earnings   195,494       161,008  
Accumulated other comprehensive loss   (813 )     (204 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders' equity   392,586       350,820  
Noncontrolling interest   306       335  
Total equity   392,892       351,155  
       
Total liabilities and equity $ 446,376     $ 396,239