Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2024
ANDOVER, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the third quarter ended September 30, 2024. 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 below.
Revenues for the third quarter ended September 30, 2024 totaled $93.2 million, a 13.6% decrease from $107.8 million for the corresponding period a year ago, and an 8.5% sequential increase from $85.9 million in the second quarter of 2024.
Gross margin decreased to $45.7 million for the third quarter of 2024, compared to $55.9 million for the corresponding period a year ago but increased from $42.8 million for the second quarter of 2024. Gross margin, as a percentage of revenue, decreased to 49.1% for the third quarter of 2024, compared to 51.8% for the corresponding period a year ago and 49.8% for the second quarter of 2024. Operating expenses increased to $40.4 million for the third quarter of 2024, compared to $40.2 million for the corresponding period a year ago, and decreased sequentially from $42.6 million for the second quarter of 2024.
Net income for the third quarter was $11.6 million, or $0.26 per diluted share, compared to net income of $16.6 million or $0.37 per diluted share, for the corresponding period a year ago and net loss of $(1.2) million, or $(0.03) per diluted share, for the second quarter of 2024.
Cash flow from operations totaled $22.6 million for the third quarter, compared to cash flow from operations of $23.8 million for the corresponding period a year ago, and cash flow from operations of $15.6 million in the second quarter of 2024. Capital expenditures for the third quarter totaled $8.4 million, compared to $7.7 million for the corresponding period a year ago and $6.1 million for the second quarter of 2024. Cash and cash equivalents as of September 30, 2024 increased 6.2% sequentially to approximately $267.6 million compared to approximately $251.9 million as of June 30, 2024.
Backlog for the third quarter ended September 30, 2024 totaled $150.6 million, a 13.8% decrease from $174.7 million for the corresponding period a year ago, and 2.1% sequential decrease from $153.8 million at the end of the second quarter of 2024.
Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: "Revenues and cash flow improved in Q3 while gross margins were impacted primarily by product mix. We are close to initial deliveries of 2nd generation, high density VPD systems for leading AI applications with current multipliers achieving superior density, bandwidth and signal integrity. Vicor's VPD will enable AI processors setting new standards for compute performance and power system efficiency."
"We are off to a good start asserting our Intellectual Property against unscrupulous actors playing a game of "catch me if you can". As indicated in a recent Initial Determination from the International Trade Commission ("ITC"), contract manufacturers may be precluded from importing computing systems using infringing modules. Redesigned modules, or discrete alternatives, may still infringe and OEMs condoning infringement are taking chances with their supply chain. Leaders in Artificial Intelligence licensing Vicor IP are wisely securing a resilient supply chain of enabling power system solutions."
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, October 22, 2024 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified's website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on October 22, 2024. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.
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, 2023, 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, and aerospace and defense electronics.
For further information contact:
James F. Schmidt, Chief Financial OfficerOffice: (978) 470-2900Email:
VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED
YEAR ENDED
(Unaudited)
(Unaudited)
SEPT 30,
SEPT 30,
SEPT 30,
SEPT 30,
2024
2023
2024
2023
Net revenues
$93,166
$107,844
$262,892
$312,407
Cost of revenues
47,422
51,966
129,254
154,822
Gross margin
45,744
55,878
133,638
157,585
Operating expenses:
Selling, general and administrative
23,398
22,422
72,715
63,020
Research and development
16,960
17,752
51,938
50,556
Litigation-contingency expense
-
-
19,500
-
Total operating expenses
40,358
