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Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2018

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ANDOVER, Mass., July 24, 2018 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the second quarter and six months ended June 30, 2018.  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, 2018 increased 28.6% to $74,196,000, from $57,709,000 for the corresponding period a year ago, and increased 13.7% sequentially from $65,269,000 for the first quarter of 2018. Second quarter bookings increased 47.3% to $87,448,000, from $59,387,000 for the corresponding period a year ago, and increased 6.8% sequentially from $81,907,000 for the first quarter of 2018.

Gross margin increased to $35,883,000 for the second quarter of 2018, compared to $25,930,000 for the corresponding period a year ago, and increased from $30,211,000 for the first quarter of 2018.  Gross margin, as a percentage of revenue, increased to 48.4% for the second quarter of 2018, compared to 44.9% for the corresponding period a year ago, and increased from 46.3% for the first quarter of 2018. 

Net income for the second quarter was $7,860,000, or $0.19 per diluted share, compared to a net loss of $(459,000), or $(0.01) per share, for the corresponding period a year ago, and net income of $3,943,000, or $0.10 per diluted share, for the first quarter of 2018.

Revenues for the six months ended June 30, 2018, increased 24.3% to $139,465,000 from $112,171,000 for the corresponding period a year ago.  Net income for the six month period was $11,803,000, or $0.29 per diluted share, compared to a net loss of $(1,433,000), or $(0.04) per share, for the corresponding period a year ago.          

Cash provided by operating activities totaled $9,340,000 for the second quarter of 2018, compared to cash provided by operating activities of $644,000 for the corresponding period a year ago and cash used for operating activities of $812,000 for the preceding first quarter of 2018. Cash and cash equivalents sequentially increased by $11,242,000 to approximately $53,920,000 at the end of the second quarter of 2018, from $42,678,000 at the end of the first quarter of 2018.

Total backlog at the end of the second quarter of 2018 was $103,100,000, compared to $89,975,000 at the end of the first quarter of 2018 and $73,054,000 at the end of 2017.

Commenting on second quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, "Demand for Factorized Power solutions, including PRM-VTM systems powering CPUs directly from 48V in high efficiency datacenters, led to sequentially higher bookings and shipments. Having made their debut next to a high performance GPU, high density Power-on-Package MCD-MCM systems are finding new homes next to 7nm, high current ASICs for Artificial Intelligence ("AI") applications extending parallel computing beyond the limits of Moore's Law.

With contributions from Power-on-Package and other state-of-the-art power modules, backlog crossed the $100 million level.  Sequential quarterly increases in shipments should result in further improvements in profitability and cash generation in anticipation of future expansions in manufacturing capacity."   

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, July 24, 2018 at 5:00 p.m. Eastern Time.  Shareholders interested in participating in the call should call 888-339-2688 at approximately 4:50 p.m. and use the Passcode 91743505.  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 8, 2018.  The replay dial-in number is 888-286-8010 and the Passcode is 68688022.  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, 2017, 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 A. Simms, 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,
  2018
  2017
  2018   2017
               
               
Net revenues $ 74,196     $ 57,709     $ 139,465   $ 112,171  
Cost of revenues   38,313       31,779       73,371     62,589  
Gross margin   35,883       25,930       66,094     49,582  
 
Operating expenses:              
Selling, general and administrative   15,814       14,536       31,213     28,559  
Research and development   11,403       11,932       22,529     22,939  
Severance charge   350         -       350       -  
Total operating expenses   27,567       26,468       54,092     51,498  
               
Income (loss) from operations   8,316       (538 )     12,002     (1,916 )
               
Other income (expense), net   (44 )     360       386     685  
               
Income (loss) before income taxes   8,272       (178 )     12,388     (1,231 )
               
Less:  Provision for income taxes     363         267       497     168  
               
Consolidated net income (loss)   7,909       (445 )     11,891     (1,399 )
               
Less:  Net income attributable to               
noncontrolling interest   49       14       88     34  
               
Net income (loss) attributable to              
Vicor Corporation $ 7,860     $ (459 )   $ 11,803   $ (1,433 )
               
               
Net income (loss) per share attributable              
to Vicor Corporation:              
Basic $ 0.20     $ (0.01 )   $ 0.30   $ (0.04 )
Diluted $ 0.19     $ (0.01 )   $ 0.29   $ (0.04 )
               
Shares outstanding:              
Basic   39,709       39,172       39,594     39,121  
Diluted   40,646       39,172       40,406     39,121  
             


         
VICOR CORPORATION        
         
CONDENSED CONSOLIDATED BALANCE SHEET       
(Thousands)        
         
  JUNE 30,   DEC 31,  
  2018   2017  
  (Unaudited)   (Unaudited)  
Assets        
         
Current  assets:        
Cash and cash equivalents $   53,920     $   44,230    
Accounts receivable, net   45,056       34,487    
Inventories, net   41,753       36,499    
Other current assets   4,102       3,616    
Total current assets   144,831       118,832    
         
Long-term deferred tax assets   185       210    
Long-term investments, net   2,581       2,525    
Property, plant and equipment, net   40,433       41,356    
Other assets   2,813       2,801    
         
Total assets $   190,843     $   165,724    
         
Liabilities and Equity        
         
Current liabilities:        
Accounts payable $   11,219     $   9,065    
Accrued compensation and benefits   11,049       9,891    
Accrued expenses   2,535       2,989    
Sales allowances   550         -    
Accrued severance charge   350         -    
Income taxes payable     526         300    
Deferred revenue   4,610       5,791    
         
Total current liabilities   30,839       28,036    
         
Long-term deferred revenue   267       303    
Contingent consideration obligations   506       678    
Long-term income taxes payable   195       195    
Other long-term liabilities   98       93    
Total liabilities   31,905       29,305    
         
Equity:        
Vicor Corporation stockholders' equity:        
Capital stock   188,793       181,914    
Retained earnings   109,078       93,605    
Accumulated other comprehensive loss   (401 )     (478 )  
Treasury stock   (138,927 )     (138,927 )  
Total Vicor Corporation stockholders' equity   158,543       136,114    
Noncontrolling interest   395       305    
Total equity   158,938       136,419    
         
Total liabilities and equity $   190,843     $   165,724    
         

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