Vicor anticipates break-even results for 4th qtr

Vicor anticipates break-even results for 4th quarter as it deals with declining demand

Associated Press

BOSTON (AP) -- Vicor anticipates break-even results for its fourth quarter and a loss for 2013's first quarter as it contends with declining demand and a slowdown in bookings.

A year ago Vicor reported fourth-quarter net income of $677,000, or 2 cents per share, on revenue of $58.6 million.

The company, which makes power-related products, said Monday that it is dealing with rising operating expenses, delays in new product development and softening demand.

Chairman and CEO Patrizio Vinciarelli said in a statement that some of the weakening demand is due to the defense electronics segment, which is facing federal budget limitations. The commercial market segments, which include industrial equipment and transportation, are also cutting their spending, he added.

Vinciarelli said that fourth-quarter bookings through Nov. 23 are about one-third lower than the same time in the third quarter. The slowdown in orders and a delay in some chip orders have led to furloughs of manufacturing workers within its Brick business division and within the VI Chip subsidiary. Vinciarelli said that both furloughs will begin in December.

The company also said Monday that it is starting a modified "Dutch auction" tender offer to buy back up to $20 million of its shares.

A "Dutch auction" offer allows shareholders to say how many shares they want to tender and at what price within a specified range. Based on that information, the company then determines the lowest price per share within the range that lets it buy the amount of shares that it wants.

Shareholders of Vicor will have the opportunity to tender some of all of their stock for no more than $5.38 per share and no less than $4.30 per share.

The tender offer is set to expire on Dec. 31 unless extended.

Shares of Vicor Corp., which is based in Andover, Mass., fell 12 cents, or 2.2 percent, to $5.40 in midday trading. The stock has traded in a 52-week range of $5 to $10.42.

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