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

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.

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

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