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: April 26, 2016
(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 April 26, 2016, Vicor Corporation issued a press release announcing its financial results for the first quarter of 2016. 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: April 26, 2016 |
VICOR CORPORATION
By: /s/ James A. Simms |
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| Exhibit No. | Description |
| 99.1 | Press Release of Vicor Corporation dated April 26, 2016 |
Exhibit 99.1
Vicor Corporation Reports Results for the First Quarter Ended March 31, 2016ANDOVER, MA -- (Marketwired - April 26, 2016) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2016. 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 first quarter ended March 31, 2016 decreased to $46,027,000, compared to $64,017,000 for the corresponding period a year ago, and decreased from $51,394,000 for the fourth quarter of 2015. First quarter bookings decreased to $49,000,000 from $59,541,000 for the corresponding period a year ago, but increased from $46,636,000 for the fourth quarter of 2015.
Gross margin decreased to $19,316,000 for the first quarter of 2016, compared to $28,891,000 for the corresponding period a year ago, and decreased from $22,831,000 for the fourth quarter of 2015. Gross margin, as a percentage of revenue, decreased to 42.0% for the first quarter of 2016, compared to 45.1% for the first quarter of 2015, and 44.4% for the fourth quarter of 2015.
Net loss for the first quarter was ($5,351,000), or ($0.14) per share, compared to net income of $3,371,000, or $0.09 per diluted share, for the corresponding period a year ago and a net loss of ($1,752,000), or ($0.05) per share, for the fourth quarter of 2015.
Cash used for operating activities totaled $834,000 for the first quarter of 2016, compared to cash provided by operations of $5,070,000 for the corresponding period a year ago. Cash and cash equivalents sequentially decreased by $3,270,000 to approximately $59,710,000 at the end of the first quarter of 2016 from $62,980,000 at the end of the fourth quarter of 2015.
Total backlog at the end of the first quarter of 2016 was $42,096,000, compared to $39,073,000 at the end of 2015.
Addressing first quarter's results, Dr. Patrizio Vinciarelli, Chief Executive Officer, commented, "The circumstances described in connection with our fourth quarter and full year results continued to have a negative influence on our revenue and profitability. Weakness in demand for our legacy products contributed to poor capacity utilization. As described before, our profitability is highly correlated with production volume, and pivots on a breakeven point of nearly $55 million in revenue. Given the volume of new opportunities for advanced products and an anticipated rebound of our legacy business, we expect to be profitable for the second half of 2016."
Dr. Vinciarelli continued, "Highlighting the first quarter, our differentiated solutions for powering datacenter processors from a 48V bus have received unprecedented attention from existing and potential customers, after the announcement by Google of its joining the Open Compute Project (OCP), contributing its 48V server rack specifications as a first step to drive adoption of 48V architecture in datacenters. Google's advocacy affirms the superiority of a 48V power system infrastructure, and our years of investment in Factorized Power Systems leveraging 48V have put us in a leadership position for the long-expected uptake of more dense and efficient power system solutions. Other encouraging announcements within the quarter included the expansion of the OCP Telco Project, which is focused on the application of OCP's datacenter solutions to communication systems, which have used 48V in their traditional infrastructure. Numerous vendors, already familiar with 48V, will now be exposed to the density and efficiency advantages of Factorized Power systems in datacenters."
"We believe our recently weak operating results belie the progress made toward fulfilling our strategic vision. Purchase orders for 48V solutions meeting Intel's VR 12.5 standard have resumed, and we expect orders for the delayed VR 13 solution to ramp later this year. Demand for Vicor Point-of-Load solutions, accompanied by growing demand for Vicor Front End solutions, should soon enable growth in revenue 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, April 26, 2016 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 37529386. 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 May11, 2016. The replay dial-in number is 888-286-8010 and the Passcode is 95049218. 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, 2015, 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 and Factorized Power Architecture are trademarks of Vicor Corporation. All other trademarks, service marks, registered marks, or registered service marks are the property of their respective owners.
VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED
(Unaudited)
----------- -----------
MAR 31, MAR 31,
2016 2015
----------- -----------
Net revenues $ 46,027 $ 64,017
Cost of revenues 26,711 35,126
----------- -----------
Gross margin 19,316 28,891
Operating expenses:
Selling, general and administrative 14,016 14,862
Research and development 10,729 10,419
----------- -----------
Total operating expenses 24,745 25,281
----------- -----------
Income (loss) from operations (5,429) 3,610
Other income (expense), net 75 (29)
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Income (loss) before income taxes (5,354) 3,581
Less: Provision for income taxes 22 139
----------- -----------
Consolidated net income (loss) (5,376) 3,442
Less: Net income (loss) attributable to
noncontrolling interest (25) 71
----------- -----------
Net income (loss) attributable to Vicor
Corporation $ (5,351) $ 3,371
=========== ===========
Net income (loss) per share attributableto Vicor
Corporation:
Basic $ (0.14) $ 0.09
Diluted $ (0.14) $ 0.09
Shares outstanding:
Basic 38,794 38,689
Diluted 38,794 39,149
VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
MAR 31, DEC 31,
2016 2015
(Unaudited) (Unaudited)
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 59,710 $ 62,980
Accounts receivable, net 23,349 25,982
Inventories, net 24,150 23,442
Other current assets 3,048 3,102
----------- -----------
Total current assets 110,257 115,506
Deferred tax assets 15 15
Long-term investments 2,553 2,866
Property, plant and equipment, net 37,177 37,450
Other assets 1,908 1,708
----------- -----------
$ 151,910 $ 157,545
=========== ===========
Liabilities and Equity
Current liabilities:
Accounts payable $ 8,232 $ 7,470
Accrued compensation and benefits 8,145 8,349
Accrued expenses 2,220 2,568
Accrued severance charges 37 195
Income taxes payable 29 31
Deferred revenue 1,933 1,988
----------- -----------
Total current liabilities 20,596 20,601
Long-term deferred revenue 433 468
Long-term income taxes payable 193 192
Contingent consideration obligations 352 144
Deferred income taxes - 55
----------- -----------
Total liabilities 21,574 21,460
Equity:
Vicor Corporation stockholders' equity:
Capital stock 175,118 174,850
Retained earnings 94,334 99,685
Accumulated other comprehensive loss (394) (577)
Treasury stock (138,927) (138,927)
----------- -----------
Total Vicor Corporation stockholders' equity 130,131 135,031
Noncontrolling interest 205 1,054
----------- -----------
Total equity 130,336 136,085
----------- -----------
$ 151,910 $ 157,545
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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