ANDOVER, Mass., July 25, 2023 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ:VICR) today reported financial results for the second quarter ended June 30, 2023. 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 second quarter ended June 30, 2023 totaled $106.7 million, a 4.5% increase from $102.2 million for the corresponding period a year ago, and a 9.1% sequential increase from $97.8 million in the first quarter of 2023.

Gross margin increased to $55.2 million for the second quarter of 2023, compared to $46.8 million for the corresponding period a year ago, and increased sequentially from $46.5 million for the first quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.7% for the second quarter of 2023, compared to 45.8% for the corresponding period a year ago, and from 47.6% for the first quarter of 2023.

Net income for the second quarter was $17.1 million, or $0.38 per diluted share, compared to net income of $10.6 million or $0.24 per diluted share, for the corresponding period a year ago and net income of $11.2 million, or $0.25 per diluted share, for the first quarter of 2023.

Cash flow from operations totaled $19.0 million for the second quarter, compared to cash flow from operations of $10.8 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the first quarter of 2023. Capital expenditures for the second quarter totaled $8.5 million, compared to $14.2 million for the corresponding period a year ago and $10.1 million for the first quarter of 2023. Cash and cash equivalents as of June 30, 2023 increased 5.7% sequentially to approximately $203.8 million compared to approximately $192.9 million as of March 31, 2023.

Backlog for the second quarter ended June 30, 2023 totaled $217.3 million, a 47.0% decrease from $410.0 million for the corresponding period a year ago, and 19.9% sequential decrease from $271.3 million at the end of the first quarter of 2023.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: "Q2 bookings remained weak, ahead of production release of an AI platform with a Lateral Power Distribution Network ("PDN") using a 4G ChiP-set, now expected to ramp in Q4. The same 4G ChiP-set will support a more adept Lateral-Vertical PDN, enabling a reduction of nearly 100W in total power consumption at heavy workloads and superior processor performance."

"Further performance improvements will be enabled by 5G MCMs, raising current density by nearly 3X. High current density is necessary for 2^nd Gen VPD to circumvent the stacking complexity and cost of 1^st Gen VPD modules."

"With the imminent completion of our first foundry, with 5G FPA enabling scalable, high efficiency Vertical Power Delivery ("VPD"), and with automotive electrification driving broad acceptance of ChiPs, I am confident about Vicor's future growth and profitability."

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, July 25, 2023 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with BT Conferencing, the service provider hosting the conference call. Those registering on BT Conferencing's website will receive a webinar link and dial-in numbers. Registration may be completed at any time prior to 5:00 p.m. on July 25, 2023. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26305285638 and passcode 95763875, before 5:00 p.m. (Eastern) on July 25, 2023. 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, 2022, 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

SIX MONTHS ENDED

(Unaudited)

JUNE 30,

2023

2022

2023

2022

Net revenues

106,747

102,186

204,563

190,468

Cost of revenues

51,574

55,337

102,856

106,018

Gross margin

55,173

46,849

101,707

84,450

Operating expenses:

Selling, general and administrative

20,375

20,035

40,598

38,603

Research and development

16,935

15,516

32,804

29,769

Total operating expenses

37,310

35,551

73,402

68,372

Income from operations

17,863

11,298

28,305

16,078

Other income (expense), net

1,776

3,726

246

Income before income taxes

19,639

11,382

32,031

16,324

Less: Provision for income taxes

2,537

802

3,678

754

Consolidated net income

17,102

10,580

28,353

15,570

Less: Net income (loss) attributable to noncontrolling interest

(13

)

(22

)

Net income attributable to Vicor Corporation

17,101

10,593

28,345

15,592

Net income per share attributable to Vicor Corporation:

Basic

0.39

0.24

0.64

0.35

Diluted

0.38

0.24

0.63

0.35

Shares outstanding:

Basic

44,230

43,973

44,196

43,963

Diluted

44,906

44,866

44,907

44,910

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)

	JUNE 30,			DEC 31,
		2023			2022
	(Unaudited)			(Unaudited)
Assets

Current assets:
Cash and cash equivalents	$	203,829		$	190,611
Accounts receivable, net		63,818			65,429
Inventories		106,606			101,410
Other current assets		4,533			5,154
Total current assets		378,786			362,604

Long-term deferred tax assets		343			280
Long-term investment, net		2,591			2,622
Property, plant and equipment, net		169,401			166,009
Other assets		9,540			5,386

Total assets	$	560,661		$	536,901

Liabilities and Equity

Current liabilities:
Accounts payable	$	15,325		$	22,207
Accrued compensation and benefits		12,103			10,849
Accrued expenses		4,284			8,613
Accrued litigation		6,500			6,500
Sales allowances		2,571			1,661
Short-term lease liabilities		1,749			1,450
Income taxes payable		824			72
Short-term deferred revenue and customer prepayments		6,620			13,197

Total current liabilities		49,976			64,549

Long-term deferred revenue		1,761			145
Long-term income taxes payable		875			862
Long-term lease liabilities		7,030			7,009
Total liabilities		59,642			72,565

Equity:
Vicor Corporation stockholders' equity:
Capital stock		369,475			360,924
Retained earnings		271,424			243,079
Accumulated other comprehensive loss		(1,195	)		(988	)
Treasury stock		(138,927	)		(138,927	)
Total Vicor Corporation stockholders' equity		500,777			464,088
Noncontrolling interest		242			248
Total equity		501,019			464,336

Total liabilities and equity	$	560,661		$	536,901

Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2023