Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2024
Rhea-AI Summary
Vicor (NASDAQ: VICR) reported financial results for Q3 2024. Revenues decreased 13.6% year-over-year to $93.2 million but increased 8.5% sequentially. Gross margin declined to 49.1% from 51.8% a year ago. Net income was $11.6 million ($0.26 per diluted share), compared to $16.6 million ($0.37 per share) in Q3 2023. Cash flow from operations totaled $22.6 million. Backlog decreased 13.8% year-over-year to $150.6 million.
CEO Dr. Patrizio Vinciarelli highlighted the company's progress in delivering 2nd generation, high-density VPD systems for AI applications. He also mentioned Vicor's efforts to assert its intellectual property rights against potential infringers, noting a recent Initial Determination from the ITC that may impact contract manufacturers importing computing systems using infringing modules.
Positive
- Sequential revenue increase of 8.5% to $93.2 million
- Net income of $11.6 million, improving from a net loss in Q2 2024
- Cash flow from operations of $22.6 million
- Cash and cash equivalents increased 6.2% sequentially to $267.6 million
- Progress in delivering 2nd generation VPD systems for AI applications
Negative
- Year-over-year revenue decrease of 13.6%
- Gross margin declined to 49.1% from 51.8% year-over-year
- Operating expenses increased slightly year-over-year
- Backlog decreased 13.8% year-over-year to $150.6 million
- Net income decreased from $16.6 million in Q3 2023 to $11.6 million in Q3 2024
News Market Reaction 1 Alert
On the day this news was published, VICR gained 13.70%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ANDOVER, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2024. 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 below.
Revenues for the third quarter ended September 30, 2024 totaled
Gross margin decreased to
Net income for the third quarter was
Cash flow from operations totaled
Backlog for the third quarter ended September 30, 2024 totaled
Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Revenues and cash flow improved in Q3 while gross margins were impacted primarily by product mix. We are close to initial deliveries of 2nd generation, high density VPD systems for leading AI applications with current multipliers achieving superior density, bandwidth and signal integrity. Vicor’s VPD will enable AI processors setting new standards for compute performance and power system efficiency.”
“We are off to a good start asserting our Intellectual Property against unscrupulous actors playing a game of “catch me if you can”. As indicated in a recent Initial Determination from the International Trade Commission (“ITC”), contract manufacturers may be precluded from importing computing systems using infringing modules. Redesigned modules, or discrete alternatives, may still infringe and OEMs condoning infringement are taking chances with their supply chain. Leaders in Artificial Intelligence licensing Vicor IP are wisely securing a resilient supply chain of enabling power system solutions.”
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, Tuesday, October 22, 2024 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on October 22, 2024. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.
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, 2023, 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 to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.
For further information contact:
James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com
| VICOR CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| (Thousands except for per share amounts) | |||||||||||||||
| QUARTER ENDED | YEAR ENDED | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| SEPT 30, | SEPT 30, | SEPT 30, | SEPT 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net revenues | |||||||||||||||
| Cost of revenues | 47,422 | 51,966 | 129,254 | 154,822 | |||||||||||
| Gross margin | 45,744 | 55,878 | 133,638 | 157,585 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 23,398 | 22,422 | 72,715 | 63,020 | |||||||||||
| Research and development | 16,960 | 17,752 | 51,938 | 50,556 | |||||||||||
| Litigation-contingency expense | - | - | 19,500 | - | |||||||||||
| Total operating expenses | 40,358 | 40,174 | 144,153 | 113,576 | |||||||||||
| Income (loss) from operations | 5,386 | 15,704 | (10,515 | ) | 44,009 | ||||||||||
| Other income (expense), net | 3,713 | 1,917 | 9,244 | 5,643 | |||||||||||
| Income (loss) before income taxes | 9,099 | 17,621 | (1,271 | ) | 49,652 | ||||||||||
| Less: (Benefit) provision for income taxes | (2,455 | ) | 1,038 | 2,832 | 4,716 | ||||||||||
| Consolidated net income (loss) | 11,554 | 16,583 | (4,103 | ) | 44,936 | ||||||||||
| Less: Net income attributable to noncontrolling interest | 2 | 1 | 14 | 9 | |||||||||||
| Net income (loss) attributable to Vicor Corporation | ( | ) | |||||||||||||
| Net income (loss) per share attributable to Vicor Corporation: | |||||||||||||||
| Basic | ( | ) | |||||||||||||
| Diluted | ( | ) | |||||||||||||
| Shares outstanding: | |||||||||||||||
| Basic | 45,117 | 44,433 | 44,829 | 44,275 | |||||||||||
| Diluted | 45,174 | 45,187 | 44,829 | 45,000 | |||||||||||
| VICOR CORPORATION | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | |||||||
| (Thousands) | |||||||
| SEPT 30, | DEC 31, | ||||||
| 2024 | 2023 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 267,605 | $ | 242,219 | |||
| Accounts receivable, net | 58,525 | 52,631 | |||||
| Inventories | 105,761 | 106,579 | |||||
| Other current assets | 18,933 | 18,937 | |||||
| Total current assets | 450,824 | 420,366 | |||||
| Long-term deferred tax assets | 288 | 296 | |||||
| Long-term investment, net | 2,640 | 2,530 | |||||
| Property, plant and equipment, net | 158,779 | 157,689 | |||||
| Other assets | 20,231 | 14,006 | |||||
| Total assets | $ | 632,762 | $ | 594,887 | |||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 15,724 | $ | 12,100 | |||
| Accrued compensation and benefits | 12,449 | 11,227 | |||||
| Accrued expenses | 6,429 | 5,093 | |||||
| Accrued litigation | 26,550 | 6,500 | |||||
| Sales allowances | 2,640 | 3,482 | |||||
| Short-term lease liabilities | 1,739 | 1,864 | |||||
| Income taxes payable | 642 | 746 | |||||
| Short-term deferred revenue and customer prepayments | 4,198 | 3,157 | |||||
| Total current liabilities | 70,371 | 44,169 | |||||
| Long-term deferred revenue | - | 1,020 | |||||
| Long-term income taxes payable | 1,916 | 2,228 | |||||
| Long-term lease liabilities | 5,605 | 6,364 | |||||
| Total liabilities | 77,892 | 53,781 | |||||
| Equity: | |||||||
| Vicor Corporation stockholders' equity: | |||||||
| Capital stock | 402,687 | 384,395 | |||||
| Retained earnings | 292,557 | 296,674 | |||||
| Accumulated other comprehensive loss | (1,198 | ) | (1,273 | ) | |||
| Treasury stock | (139,424 | ) | (138,927 | ) | |||
| Total Vicor Corporation stockholders' equity | 554,622 | 540,869 | |||||
| Noncontrolling interest | 248 | 237 | |||||
| Total equity | 554,870 | 541,106 | |||||
| Total liabilities and equity | $ | 632,762 | $ | 594,887 | |||
FAQ
What was Vicor's revenue for Q3 2024?
How did Vicor's gross margin change in Q3 2024?
What was Vicor's net income for Q3 2024?
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What was Vicor's backlog at the end of Q3 2024?
