Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2021
07/22/2021 - 04:05 PM
ANDOVER, Mass., July 22, 2021 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2021. 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 second quarter ended June 30, 2021 totaled $95.4 million , a 34.8% increase from $70.8 million for the corresponding period a year ago, and a 7.4% sequential increase from $88.8 million in the first quarter of 2021.
Gross margin increased to $49.9 million for the second quarter of 2021, compared to $30.3 million for the corresponding period a year ago, and increased sequentially from $44.7 million for the first quarter of 2021. Gross margin, as a percentage of revenue, increased to 52.3% for the second quarter of 2021, compared to 42.8% for the corresponding period a year ago, and increased from 50.3% for the first quarter of 2021.
Net income for the second quarter was $19.4 million , or $0.43 per diluted share, compared to net income of $2.7 million or $0.06 per share, for the corresponding period a year ago and net income of $15.1 million , or $0.34 per diluted share, for the first quarter of 2021.
Cash flow from operations totaled $12.3 million for the second quarter, compared to cash flow from operations of $4.7 million for the corresponding period a year ago, and cash flow from operations of $17.8 million in the first quarter of 2021. Capital expenditures for the second quarter totaled $15.0 million , compared to $5.7 million for the corresponding period a year ago and $9.3 million for the first quarter of 2021. The sum of cash, cash equivalents, and short-term investments as of June 30, 2021 sequentially rose 3.2% to approximately $230.2 million compared to March 31, 2021.
Commenting on second quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Q2 revenues and gross margins reflected strong demand and improved manufacturing efficiencies. Vertical integration of power packaging processes and increased capacity in expanded facilities are on track for completion by Q1 ‘22, setting the stage for reduced factory cycle time, greater operational efficiency and significant margin expansion in 2022.”
Dr. Vinciarelli concluded, “Anticipating the need for even higher levels of performance in 48V power systems for AI and automotive applications, we are completing development of next generation components and processes that will enable considerably higher power density, scalability and bandwidth.”
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, July 22, 2021 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to pre-register with BT Conferencing, the service provider hosting the conference call, so that he or she, on the day of the call, may avoid waiting for the BT Conferencing operator to register callers individually. Those pre-registering on BT Conferencing’s website will receive a special dial-in number and PIN for call access. Pre-registration may be completed at any time prior to 5:00 p.m. on July 22, 2021. Telephone participants who are unable to pre-register should dial 800-230-3019 at approximately 4:45 p.m. and use the Passcode 55293440. 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 August 6, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 18601464. 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, 2020, 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. invrel@vicorpower.com
VICOR CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Thousands except for per share amounts) QUARTER ENDED SIX MONTHS ENDED (Unaudited) (Unaudited) JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2021 2020 2021 2020 Net revenues $ 95,376 $ 70,761 $ 184,172 $ 134,162 Cost of revenues 45,505 40,443 89,601 76,513 Gross margin 49,871 30,318 94,571 57,649 Operating expenses: Selling, general and administrative 16,589 15,455 33,543 31,824 Research and development 13,273 12,830 26,299 26,165 Total operating expenses 29,862 28,285 59,842 57,989 Income (loss) from operations 20,009 2,033 34,729 (340 ) Other income (expense), net 373 233 605 381 Income before income taxes 20,382 2,266 35,334 41 Less: Provision (benefit) for income taxes 999 (406 ) 856 (900 ) Consolidated net income 19,383 2,672 34,478 941 Less: Net income (loss) attributable to noncontrolling interest (11 ) 5 (8 ) 9 Net income attributable to Vicor Corporation $ 19,394 $ 2,667 $ 34,486 $ 932 Net income per share attributable to Vicor Corporation: Basic $ 0.45 $ 0.06 $ 0.79 $ 0.02 Diluted $ 0.43 $ 0.06 $ 0.77 $ 0.02 Shares outstanding: Basic 43,553 41,643 43,504 41,140 Diluted 44,841 43,385 44,841 42,980
VICOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Thousands) JUNE 30, DEC 31, 2021 2020 (Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 159,763 $ 161,742 Short-term investments 70,469 50,166 Accounts receivable, net 55,012 40,999 Inventories, net 57,129 57,269 Other current assets 6,657 6,756 Total current assets 349,030 316,932 Long-term deferred tax assets 221 226 Long-term investment, net 2,561 2,517 Property, plant and equipment, net 92,956 74,843 Other assets 1,608 1,721 Total assets $ 446,376 $ 396,239 Liabilities and Equity Current liabilities: Accounts payable $ 22,081 $ 14,121 Accrued compensation and benefits 15,794 14,094 Accrued expenses 3,618 2,624 Sales allowances 1,919 597 Short-term lease liabilities 1,559 1,629 Income taxes payable 890 139 Short-term deferred revenue and customer prepayments 3,916 7,309 Total current liabilities 49,777 40,513 Long-term deferred revenue 573 733 Contingent consideration obligations 46 227 Long-term income taxes payable 649 643 Long-term lease liabilities 2,439 2,968 Total liabilities 53,484 45,084 Equity: Vicor Corporation stockholders' equity: Capital stock 336,832 328,943 Retained earnings 195,494 161,008 Accumulated other comprehensive loss (813 ) (204 ) Treasury stock (138,927 ) (138,927 ) Total Vicor Corporation stockholders' equity 392,586 350,820 Noncontrolling interest 306 335 Total equity 392,892 351,155 Total liabilities and equity $ 446,376 $ 396,239
