UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: February 23, 2015
(Date of earliest event reported)
Vicor Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
0-18277
(Commission File Number)
04-2742817
(IRS Employer
Identification Number)
25 Frontage Road, Andover, Massachusetts
(Address of principal executive offices)
01810
(Zip Code)
(978) 470-2900
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On February 23, 2015, Vicor Corporation issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2014. The full text of that press release is attached as Exhibit 99.1 hereto and incorporated by reference herein. The information furnished under this Item 2.02, including the Exhibit attached hereto, shall not be deemed "filed" for any purpose, including for purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: February 23, 2015 |
VICOR CORPORATION
By: /s/ James A. Simms |
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| Exhibit No. | Description |
| 99.1 | Press Release of Vicor Corporation dated February 23, 2015 |
Exhibit 99.1
Vicor Corporation Reports Results for Fourth Quarter and Year Ended December 31, 2014ANDOVER, MA -- (Marketwired - February 23, 2015) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2014. 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 fourth quarter ended December 31, 2014, increased to $60,735,000, compared to $55,258,000 for the corresponding period a year ago, and increased from $58,402,000 for the third quarter of 2014. Fourth quarter bookings increased to $62,336,000 from $46,251,000 for the corresponding period a year ago, but decreased from $65,559,000 for the third quarter of 2014.
Gross margin increased to $26,116,000 for the fourth quarter of 2014, compared to $23,431,000 for the corresponding period a year ago, and increased from $25,550,000 for the third quarter of 2014. Gross margin, as a percentage of revenue, increased to 43.0% for the fourth quarter of 2014, compared to 42.4% for the fourth quarter of 2013, but declined from 43.7% for the third quarter of 2014.
Net loss for the fourth quarter was nil, or $0.00 per share, compared to a net loss of ($13,102,000), or ($0.34) per share, for the corresponding period a year ago and a net loss of ($3,674,000), or ($0.10) per share, for the third quarter of 2014. Included in the net loss for the fourth quarter of 2013 was an increase in the valuation allowance for all remaining federal net deferred tax assets on our balance sheet as of December 31, 2013, by approximately $10,200,000, which was recorded in our statement of operations as a corresponding increase in the fourth quarter of 2013 tax provision. Also included in the net loss for the third quarter of 2014 were a charge of approximately $2,000,000 for the cost of severance and other employee-related costs associated with the consolidation of Sunnyvale, CA, manufacturing operations to Andover, MA, and approximately $3,023,000 of legal fees related to ongoing intellectual property litigation. For the fourth quarter of 2014, such legal fees totaled approximately $1,455,000.
Revenues for the year ended December 31, 2014, increased by 13.3% to $225,731,000 from $199,160,000 for the prior year. Net loss for the current year was ($13,887,000), or ($0.36) per share, compared to a net loss of ($23,640,000), or ($0.60) per share, for the prior year.
Cash flow from operations totaled $740,000 for the fourth quarter and $2,191,000 for the year ended December 31, 2014, compared to cash used for operations of ($2,010,000) for the fourth quarter of 2013 and ($4,690,000) for the year ended December 31, 2013. Cash and cash equivalents increased by $2,001,000 to approximately $55,187,000 at the end of the fourth quarter of 2014 from $53,186,000 at the end of the third quarter of 2014.
Total backlog at the end of 2014 was $54,249,000, compared to $52,544,000 at the end of the third quarter, and $44,659,000 at the end of 2013.
Regarding fourth quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, commented, "I am pleased with the progress evidenced by the sequential increase in consolidated revenue, which drove a break-even performance for the period. Increasing contributions from VI Chip and Picor were complemented by steady results from the Brick Business Unit."
"Throughout 2015, the pace of introduction of highly differentiated Vicor products will accelerate, enabling end-to-end implementation of Factorized Power solutions across a broad range of applications. Families of ChiP BCMs, NBMs, DCMs, VTMs, and PRMs are scheduled for release, as are additional members of our family of SiP point of load regulators. For chassis-mount front-end applications, upstream of the point of load, we will unveil next generation system solutions, which we are calling "VIA" (short for Vicor Integrated Adapter) products. VIAs incorporate ChiPs within mechanically and thermally adept packages. Among the game-changers in the VIA family are PFM-based AC-DC converters, as well as BCM, NBM and DCM DC-DC converters. Architected with ease of use in mind, VIA front ends will provide attractive power system solutions across a multiplicity of markets."
"In December we completed the previously announced consolidation of our Westcor manufacturing operations, based in Sunnyvale, into our Andover facility. I am pleased with the smooth transition, as we began manufacturing Westcor AC systems in Andover in January. Considerable strategic benefits and operational efficiencies are expected from this consolidation."
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, Monday, February 23, 2015 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 62672218. 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 March 10, 2015. The replay dial-in number is 888-286-8010 and the Passcode is 26564337. 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," "intend," "estimate," "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, 2013, 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.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED YEAR ENDED
(Unaudited) (Unaudited)
---------- ---------- ---------- ----------
DEC 31, DEC 31, DEC 31, DEC 31,
2014 2013 2014 2013
---------- ---------- ---------- ----------
Net revenues $ 60,735 $ 55,258 $ 225,731 $ 199,160
Cost of revenues 34,619 31,827 128,611 117,681
---------- ---------- ---------- ----------
Gross margin 26,116 23,431 97,120 81,479
Operating expenses:
Sales & administration 15,830 16,917 68,197 60,737
Research & development 10,240 10,148 41,479 39,848
Severance and other
charges 224 - 2,207 1,361
---------- ---------- ---------- ----------
Total operating
expenses 26,294 27,065 111,883 101,946
---------- ---------- ---------- ----------
Loss from operations (178) (3,634) (14,763) (20,467)
Other income (expense), net 220 (10) 268 2
---------- ---------- ---------- ----------
Income (loss) before income
taxes 42 (3,644) (14,495) (20,465)
Provision (benefit) for
income taxes 85 9,376 (425) 3,039
---------- ---------- ---------- ----------
Consolidated net loss (43) (13,020) (14,070) (23,504)
Less: Net income (loss)
attributable to
noncontrolling interest (43) 82 (183) 136
---------- ---------- ---------- ----------
Net loss attributable to
Vicor Corporation $ 0 $ (13,102) $ (13,887) $ (23,640)
========== ========== ========== ==========
Net loss per share
attributable to Vicor
Corporation:
Basic $ 0.00 $ (0.34) $ (0.36) $ (0.60)
Diluted $ 0.00 $ (0.34) $ (0.36) $ (0.60)
Shares outstanding:
Basic 38,641 38,539 38,569 39,195
Diluted 38,641 38,539 38,569 39,195
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
DEC 31, DEC 31,
2014 2013
(Unaudited) (Unaudited)
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 55,187 $ 56,339
Short-term investments 270 463
Accounts receivable, net 28,431 27,683
Inventories, net 26,328 29,696
Deferred tax assets 107 131
Other current assets 3,155 4,212
------------- -------------
Total current assets 113,478 118,524
Long-term investments 3,002 5,188
Property and equipment, net 37,387 40,092
Other assets 1,675 1,836
------------- -------------
$ 155,542 $ 165,640
============= =============
Liabilities and Equity
Current liabilities:
Accounts payable $ 7,932 $ 8,677
Accrued compensation and benefits 8,663 8,055
Accrued expenses 3,178 2,841
Accrued severance charges 1,904 49
Income taxes payable 41 15
Deferred revenue 1,439 1,018
------------- -------------
Total current liabilities 23,157 20,655
Long-term deferred revenue 637 974
Long-term income taxes payable 867 1,339
Deferred income taxes 329 335
Equity:
Vicor Corporation stockholders' equity:
Capital stock 172,412 169,984
Retained earnings 94,758 108,645
Accumulated other comprehensive loss (471) (526)
Treasury stock (138,927) (138,927)
------------- -------------
Total Vicor Corporation stockholders'
equity 127,772 139,176
Noncontrolling interest 2,780 3,161
------------- -------------
Total equity 130,552 142,337
------------- -------------
$ 155,542 $ 165,640
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For further information contact: James A. Simms Chief Financial Officer Voice: 978-470-2900 Facsimile: 978-749-3439 invrel@vicorpower.com