Vicor Corp (VICR) Q3 2023 Earnings: Revenue and Net Income Rise, Backlog Decreases
Vicor Corp (NASDAQ:VICR) reports Q3 2023 revenue of $107.8 million, a 4.6% YoY increase, and a 1.0% sequential increase from Q2 2023.
Net income for Q3 2023 was $16.6 million, a significant increase from $1.8 million YoY, but a slight decrease from $17.1 million in Q2 2023.
Backlog for Q3 2023 totaled $174.7 million, a 53.0% decrease from the corresponding period a year ago.
Cash and cash equivalents as of September 30, 2023, increased 11.8% sequentially to approximately $227.8 million.
On October 24, 2023, Vicor Corp (NASDAQ:VICR) released its Q3 2023 earnings report. The company reported a revenue of $107.8 million, marking a 4.6% increase from the same period last year and a 1.0% sequential increase from the second quarter of 2023. The gross margin increased to $55.9 million for Q3 2023, compared to $47.0 million for the same period a year ago, and sequentially from $55.2 million for Q2 2023.
Financial Performance
Vicor Corp (NASDAQ:VICR) reported a net income of $16.6 million for Q3 2023, a significant increase from $1.8 million for the same period a year ago. However, this represents a slight decrease from the net income of $17.1 million reported in Q2 2023. Cash flow from operations totaled $23.8 million for the third quarter, compared to $6.6 million for the corresponding period a year ago, and $19.0 million in Q2 2023. Capital expenditures for Q3 2023 totaled $7.7 million, compared to $14.4 million for the same period a year ago and $8.5 million for Q2 2023.
Balance Sheet and Backlog
As of September 30, 2023, Vicor Corp (NASDAQ:VICR) reported cash and cash equivalents of approximately $227.8 million, an 11.8% sequential increase from approximately $203.8 million as of June 30, 2023. However, the company's backlog for Q3 2023 totaled $174.7 million, a significant 53.0% decrease from $371.6 million for the corresponding period a year ago, and a 19.6% sequential decrease from $217.3 million at the end of Q2 2023.
CEO Commentary
While Q3 bookings remained weak, I am pleased with progress made with our ChiP foundry and our 5G product line. - Dr. Patrizio Vinciarelli, CEO of Vicor Corp (NASDAQ:VICR)
Competitive AI platforms will soon require higher current density and Vertical Power Delivery (VPD). Our investment in the worlds first ChiP foundry and 5G power system capability anticipated the evolving requirements of AI power systems, as reflected in recent customer engagements. With its intellectual property and ChiP capacity, Vicor is uniquely positioned to diversify and expand its share of the AI power system market. - Dr. Patrizio Vinciarelli, CEO of Vicor Corp (NASDAQ:VICR)
Looking Ahead
Despite a decrease in backlog, Vicor Corp (NASDAQ:VICR) has demonstrated strong financial performance in Q3 2023. The company's investments in ChiP foundry and 5G product line are expected to contribute to future growth, particularly in the AI power system market. However, investors should closely monitor the company's backlog and booking trends in the upcoming quarters.
This article first appeared on GuruFocus.
