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Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2019

ANDOVER, Mass., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Vicor Corporation (VICR) today reported financial results for the third quarter and nine months ended September 30, 2019.  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 third quarter ended September 30, 2019 totaled $70.8 million, a 9.3% decrease from $78.0 million for the corresponding period a year ago, and an 11.7% sequential increase from $63.4 million in the second quarter of 2019. 

Gross margin decreased to $33.0 million for the third quarter of 2019, compared to $39.0 million for the corresponding period a year ago, but increased sequentially from $29.1 million for the second quarter of 2019.  Gross margin, as a percentage of revenue, decreased to 46.6% for the third quarter of 2019, compared to 50.0% for the corresponding period a year ago, but increased from 46.0% for the second quarter of 2019. 

Net income for the third quarter was $5.9 million, or $0.14 per diluted share, compared to net income of $13.0 million or $0.32 per diluted share, for the corresponding period a year ago and net income of $2.6 million, or $0.06 per diluted share, for the second quarter of 2019. 

Revenues for the nine months ended September 30, 2019, decreased 8.1% to $199.9 million from $217.5 million for the corresponding period a year ago.  Net income for the nine month period was $12.8 million, or $0.31 per diluted share, compared to net income of $24.8 million, or $0.61 per diluted share, for the corresponding period a year ago.          
    
Cash and cash equivalents sequentially increased by $9.7 million to approximately $81.2 million at the end of the third quarter of 2019, from $71.5 million at the end of the second quarter of 2019.  Capital expenditures for the third quarter of 2019 totaled $3.3 million, up from $2.5 million for the second quarter of 2019.

Third quarter bookings of $60.5 million compare with $91.1 million for the corresponding period a year ago and $60.2 million for the second quarter of 2019.  Total backlog at the end of the third quarter of 2019 was $90.1 million, down 10.5 % from $100.7 million at the end of the second quarter of 2019, and down 12.5% from $103.0 million at the end of 2018.

Dr. Patrizio Vinciarelli, Chairman and Chief Executive Officer, commented on third quarter performance: “For the third quarter, consolidated revenue grew sequentially, largely reflecting the resumption of Advanced Products shipments for an existing hyperscaler application.  In contrast, Brick Products revenue was unchanged sequentially, as domestic growth was offset by tariff-related declines in China and economic weakness in Europe.”

Dr. Vinciarelli continued, “I am pleased with the pace of design wins and breadth of customer engagements.  Our Advanced Products have positioned Vicor to lead the transition to 48V in high growth segments of the datacenter and automotive markets.  Bookings leading to volume production of solutions for AI acceleration, hyperscale computing, and supercomputing are expected to step up from recent levels, beginning in the fourth quarter.  Longer term design wins in automotive systems and AI for Autonomous vehicles are queuing up, with initial projects scheduled for 2022 production for the 2023 model year.”

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, October 17, 2019 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 51404993.  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 November 1, 2019.  The replay dial-in number is 888-286-8010 and the Passcode is 70495083.  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, 2018, 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 A. Simms, 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   NINE MONTHS ENDED
  (Unaudited)   (Unaudited)
               
  SEPT 30,   SEPT 30,   SEPT 30,   SEPT 30,
    2019       2018       2019     2018
               
               
Net revenues $ 70,772     $ 78,035     $ 199,852   $ 217,500
Cost of revenues   37,770       39,031       106,647     112,402
Gross margin   33,002       39,004       93,205     105,098
               
Operating expenses:              
Selling, general and administrative   15,443       15,280       45,846     46,493
Research and development   11,507       10,691       34,433     33,220
Severance and other charges     -       (10 )       -     340
Total operating expenses   26,950       25,961       80,279     80,053
               
Income from operations   6,052       13,043       12,926     25,045
               
Other income (expense), net   146       232       673     618
               
Income before income taxes   6,198       13,275       13,599     25,663
               
 Less:  Provision for income taxes   266       227       805     724
               
Consolidated net income   5,932       13,048       12,794     24,939
               
Less:  Net income (loss) attributable to noncontrolling interest   (5 )     36       8     124
               
Net income attributable to Vicor Corporation $5,937     $13,012     $12,786   $24,815
               
               
Net income per share attributable to Vicor Corporation:              
Basic $0.15     $0.32     $0.32   $0.62
Diluted $0.14     $0.32     $0.31   $0.61
               
Shares outstanding:              
Basic   40,332       40,120       40,279     39,769
Diluted   42,194       41,124       41,435     40,645


VICOR CORPORATION      
       
CONDENSED CONSOLIDATED BALANCE SHEET    
(Thousands)      
       
       
  SEPT 30,   DEC 31,
    2019       2018  
  (Unaudited)   (Unaudited)
Assets      
       
Current  assets:      
Cash and cash equivalents $  81,229     $  70,557  
Accounts receivable, net   39,987       43,673  
Inventories, net   49,688       47,370  
Other current assets   5,114       3,460  
Total current assets   176,018       165,060  
       
Long-term deferred tax assets   241       265  
Long-term investment, net   2,576       2,526  
Property, plant and equipment, net   56,336       50,432  
Other assets   2,739       2,785  
       
Total assets $  237,910     $  221,068  
       
Liabilities and Equity      
       
Current liabilities:      
Accounts payable $  10,329     $  16,149  
Accrued compensation and benefits   9,548       10,657  
Accrued expenses   2,335       2,631  
Short term lease liabilities   1,580         -  
Sales allowances   1,076       548  
Accrued severance and other charges     -       234  
Income taxes payable     57         710  
Deferred revenue   5,843       5,069  
       
Total current liabilities   30,768       35,998  
       
Long-term deferred revenue   1,134       232  
Contingent consideration obligations   210       408  
Long-term income taxes payable   237       238  
Long-term lease payable   2,845       102  
Total liabilities   35,194       36,978  
       
Equity:      
Vicor Corporation stockholders' equity:      
Capital stock   199,688       193,977  
Retained earnings   141,786       129,000  
Accumulated other comprehensive loss   (278 )     (394 )
Treasury stock   (138,927 )     (138,927 )
Total Vicor Corporation stockholders' equity   202,269       183,656  
Noncontrolling interest   447       434  
Total equity   202,716       184,090  
       
Total liabilities and equity $  237,910     $  221,068