Market Overview

Vicor Corporation Reports Results for the Fourth Quarter Ended December 31, 2018

Share:

ANDOVER, Mass., Feb. 26, 2019 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the fourth quarter and year ended December 31, 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 accessing the call are presented below. 

Revenues for the fourth quarter ended December 31, 2018 totaled $73.7 million, a 25.4% increase from $58.8 million for the corresponding period a year ago, and a 5.5% sequential decrease from $78.0 million for the third quarter of 2018. Revenues for the year ended December 31, 2018 were $291.2 million, an increase of 27.8% from $227.8 million the prior year. 

Gross margin increased to $33.9 million for the fourth quarter of 2018, compared to $26.9 million for the corresponding period a year ago, and decreased sequentially from $39.0 million for the third quarter of 2018.  Gross margin, as a percentage of revenue, increased to 45.9% for the fourth quarter of 2018, compared to 45.8% for the corresponding period a year ago and decreased from 50.0% for the third quarter of 2018. 

Net income for the fourth quarter was $6.9 million, or $0.17 per diluted share, compared to net income of $1.6 million, or $0.04 per share, for the corresponding period a year ago, and net income of $13.0 million, or $0.32 per diluted share, for the third quarter of 2018.  Net income for 2018 was $31.7 million, or $0.78 per diluted share, compared to net income of $167,000, or $0.00 per diluted share, for the prior year.          

Cash and cash equivalents sequentially increased by $2.4 million to approximately $70.6 million at the end of the fourth quarter of 2018, from $68.2 million at the end of the third quarter of 2018.  Capital expenditures for the fourth quarter totaled $11.3 million, up from $3.3 million for the third quarter and $2.4 million for the corresponding period a year ago.

Fourth quarter bookings decreased 15.2% to $60.5 million, from $71.3 million for the corresponding period a year ago, and decreased sequentially 33.6% from $91.1 million for the third quarter of 2018. Total backlog at the end of the fourth quarter of 2018 was $103.0 million, up 41% from $73.1 million at the end of 2017. 

Commenting on the fourth quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated: "Our Q4 results reflect sudden headwinds including temporary softness in data center spending and the impact of tariffs on imports by China.  Our revenue was lower than forecast as orders were delayed and deliveries rescheduled. Lower production volumes and inefficiency caused by shifting mix caused a sequential decline in gross margins. Nevertheless, year-over-year Vicor recorded a 28% increase in revenue and a 41% increase in backlog."

Dr. Vinciarelli continued: "AI ASICs and GPUs drawing hundreds of Amperes below 1 Volt are adopting Vicor's Power-on-Package™ ("PoP") solutions.  PoP design-in activity using MCMs recently took on a new dimension with design wins leveraging Geared MCMs, or "GCMs". By providing efficient Vertical Power Delivery, GCMs support peak currents in the thousands of Amperes fueling the computational power necessary to make AI even smarter. Advanced solutions are extending Vicor's lead over competition anchored by legacy 12V infrastructure or confused by misinformed claims about GaN."

"In automotive, Vicor is getting significant traction with OEMs and Tier 1 suppliers challenged by electrification and the advent of the 48V bus. Our value proposition importantly includes the high density and modular flexibility needed by advanced autonomous driving systems. Based on the trajectory of early engagements, we expect that within a few years our growth in the automotive segment will be comparable to the growth we are now experiencing powering AI and servers in datacenters."   

"In general, across key growth markets, Vicor is recognized for unrivaled technological leadership in high performance power system solutions.  We are addressing major opportunities and scaling up capacity to support forecast production requirements."

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 as scheduled, on Tuesday, February 26, 2019 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 64676641.  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 March 13, 2019.  The replay dial-in number is 888-286-8010 and the Passcode is 10247812.  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 to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, aerospace and defense.

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   YEAR ENDED
  (Unaudited)   (Unaudited)
               
  DEC 31,   DEC 31,   DEC 31,   DEC 31,
  2018   2017   2018   2017
               
               
Net revenues $ 73,720     $ 58,771     $ 291,220   $ 227,830  
Cost of revenues   39,847       31,840       152,249     126,174  
Gross margin   33,873       26,931       138,971     101,656  
 
Operating expenses:              
Selling, general and administrative   15,731       15,033       62,224     58,092  
Research and development   11,066       11,442       44,286     44,924  
Severance and other charges     62         -         402       -  
Total operating expenses   26,859       26,475       106,912     103,016  
               
Income (loss) from operations   7,014       456       32,059     (1,360 )
               
Other income (expense), net   256       268       874     1,262  
               
Income (loss) before income taxes   7,270       724       32,933     (98 )
               
Less:  (Benefit) provision for income taxes   363       (895 )     1,087     (356 )
               
Consolidated net income    6,907       1,619       31,846     258  
               
Less:  Net income (loss) attributable to               
noncontrolling interest   (3 )     8       121     91  
               
Net income attributable to              
Vicor Corporation $6,910     $1,611     $31,725   $167  
               
               
Net income per share attributable              
to Vicor Corporation:              
Basic $0.17     $0.04     $0.80   $0.00  
Diluted $0.17     $0.04     $0.78   $0.00  
               
Shares outstanding:              
Basic   40,182       39,383       39,872     39,228  
Diluted   40,981       40,135       40,729     39,933  
             

 

VICOR CORPORATION      
       
CONDENSED CONSOLIDATED BALANCE SHEET     
(Thousands)      
       
       
  DEC 31,   DEC 31,
  2018
  2017
  (Unaudited)   (Unaudited)
Assets      
       
Current  assets:      
Cash and cash equivalents $   70,557     $   44,230  
Accounts receivable, net   43,673       34,487  
Inventories, net   47,370       36,499  
Other current assets   3,460       3,616  
Total current assets   165,060       118,832  
       
Long-term deferred tax assets   265       210  
Long-term investment, net   2,526       2,525  
Property, plant and equipment, net   50,432       41,356  
Other assets   2,785       2,801  
       
Total assets $   221,068     $   165,724  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $   16,149     $   9,065  
Accrued compensation and benefits   10,657       9,891  
Accrued expenses   2,631       2,989  
Sales allowances   548         -  
Accrued severance and other charges   234         -  
Income taxes payable     710         300  
Deferred revenue   5,069       5,791  
       
Total current liabilities   35,998       28,036  
       
Long-term deferred revenue   232       303  
Contingent consideration obligations   408       678  
Long-term income taxes payable   238       195  
Other long-term liabilities   102       93  
Total liabilities   36,978       29,305  
       
Equity:      
Vicor Corporation stockholders' equity:      
Capital stock   193,977       181,914  
Retained earnings   129,000       93,605  
Accumulated other comprehensive loss   (394 )     (478 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders' equity   183,656       136,114  
Noncontrolling interest   434       305  
Total equity   184,090       136,419  
       
Total liabilities and equity $   221,068     $   165,724  

 

 

Vicor Logo.jpg

View Comments and Join the Discussion!