Vicor Corporation Reports Results for the First Quarter Ended March 31, 2013

Marketwired

ANDOVER, MA--(Marketwired - Apr 25, 2013) -   Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2013. 

Revenues for the first quarter ended March 31, 2013, decreased to $41,946,000, compared to $59,668,000 for the corresponding period a year ago, and decreased from $50,424,000 for the fourth quarter of 2012. 

Gross margin decreased to $16,607,000 for the first quarter of 2013, compared to $24,467,000 for the corresponding period a year ago, and decreased from $20,125,000 for the fourth quarter of 2012. Gross margin, as a percentage of revenue, decreased to 39.6% for the first quarter of 2013 compared to 41.0% for the first quarter of 2012, and decreased on a sequential basis from 39.9% for the fourth quarter of 2012. 

Net loss for the first quarter was ($4,990,000), or ($0.12) per share, compared to net income of $326,000, or $0.01 per diluted share, for the corresponding period a year ago and net loss of ($4,814,000), or ($0.12) per share, for the fourth quarter of 2012. Contributing to the net loss in the first quarter was a pre-tax charge of $1,361,000 for the cost of severance and other employee-related costs associated with a reduction in force implemented in February 2013.

Total backlog at the end of the first quarter was $37,934,000, compared to $31,405,000 at the end of the fourth quarter of 2012.

Commenting on the first quarter of 2013, Patrizio Vinciarelli, Chief Executive Officer, remarked: "First quarter bookings rose 24% from the depressed level of the fourth quarter, but we still see weakness across many of our targeted markets. New products are being well-received, but are early in their sales cycle. I continue to believe Vicor has a bright future, despite current disappointments."

For the first quarter of 2013, a net income tax benefit was recorded, driven in part by a potential net operating loss carryback for federal income tax purposes and the recognition of the full federal research and development tax credit for 2012. On January 2, 2013, Congress passed the American Taxpayer Relief Act of 2012, extending the research and development tax credit for both 2012 and 2013. 

Depreciation and amortization for the first quarter of 2013 was approximately $2,494,000, and capital additions totaled $1,171,000. For the same period of 2012, depreciation and amortization was $2,632,000 and capital additions totaled $1,261,000. Cash and cash equivalents decreased by $13,151,000 to approximately $71,403,000 at the end of the first quarter of 2013 from $84,554,000 at the end of 2012. During the quarter, the Company purchased, via a tender offer that expired on March 1, 2013, 1,931,513 shares of its common stock for a cost, inclusive of related fees and expenses, of approximately $10,500,000. 

On March 21, 2013, the Company initiated a second tender offer to purchase shares of its common stock valued, in aggregate, up to $10,000,000. This tender offer expired on April 22, 2013, and, based on preliminary data as of that date, the Company believes it will purchase up to 1,344,585 shares of its common stock for a total cost of approximately $6,700,000, excluding related fees and expenses. Final data will be announced as soon as the depositary for the tender offer, Computershare Trust Company, N.A., completes the process of confirming shares properly tendered and not withdrawn, including those shares tendered through notice of guaranteed delivery presented for valid tender to the depositary. 

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, April 25, 2013 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 27468332. 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/irwebcast. 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 May 10, 2013. The replay dial-in number is 888-286-8010 and the Passcode is 44260860. 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/irwebcast 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," "intend," "estimate," "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, 2012, 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.

 
VICOR CORPORATION
 
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
    QUARTER ENDED
    (Unaudited)
           
    MAR 31,     MAR 31,
    2013     2012
               
               
Net revenues   $ 41,946     $ 59,668
Cost of revenues     25,339       35,201
  Gross margin     16,607       24,467
               
Operating expenses:              
  Sales & administration     13,887       14,160
  Research & development     9,855       9,843
  Severance charge     1,361       -
    Total operating expenses     25,103       24,003
               
Income (loss) from operations     (8,496 )     464
               
Other income, net     15       53
               
Income (loss) before income taxes     (8,481 )     517
               
(Benefit) provision for income taxes     (3,495 )     176
               
Consolidated net income (loss)     (4,986 )     341
               
Less: Net income attributable to noncontrolling interest     4       15
               
Net income (loss) attributable to Vicor Corporation   $ (4,990 )   $ 326
               
Net income (loss) per share attributable              
to Vicor Corporation:              
  Basic   $ (0.12 )   $ 0.01
  Diluted   $ (0.12 )   $ 0.01
               
Shares outstanding:              
  Basic     41,167       41,811
  Diluted     41,167       41,826
                 
                 
                 
VICOR CORPORATION  
   
CONSOLIDATED BALANCE SHEET  
(Thousands)  
   
    MAR 31,     DEC 31,  
    2013     2012  
    (Unaudited)     (Unaudited)  
Assets                
                 
Current assets:                
    Cash and cash equivalents   $ 71,403     $ 84,554  
    Accounts receivable, net     23,725       27,165  
    Inventories, net     29,921       29,955  
    Deferred tax assets     1,575       1,776  
    Other current assets     2,601       2,613  
      Total current assets     129,225       146,063  
                 
Long-term investments     6,554       6,736  
Property and equipment, net     42,738       44,092  
Long-term deferred tax assets, net     7,271       3,523  
Other assets     2,055       2,167  
                 
    $ 187,843     $ 202,581  
                 
Liabilities and Equity                
                 
Current liabilities:                
    Accounts payable   $ 6,473     $ 6,812  
    Accrued compensation and benefits     8,024       7,400  
    Accrued severance charge     1,079       -  
    Accrued expenses     1,971       2,233  
    Income taxes payable     50       336  
    Deferred revenue     699       784  
      Total current liabilities     18,296       17,565  
                 
Long-term deferred revenue     1,405       1,549  
Long-term income taxes payable     1,504       1,494  
                 
Equity:                
  Vicor Corporation stockholders' equity:                
    Capital stock     168,266       168,006  
    Retained earnings     127,295       132,285  
    Accumulated other comprehensive income (loss)     (301 )     (112 )
    Treasury stock     (132,219 )     (121,827 )
      Total Vicor Corporation stockholders' equity     163,041       178,352  
Noncontrolling interest     3,597       3,621  
    Total equity     166,638       181,973  
                 
    $ 187,843     $ 202,581  
 
Contact:
For further information contact:

James A. Simms
Chief Financial Officer
Voice: 978-470-2900
Facsimile: 978-749-3439

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