EX-99.1 2 d779516dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

February 22, 2024

For Immediate Release

Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023

Andover, Mass., February 22, 2024 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 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 fourth quarter ended December 31, 2023 totaled $92.7 million, a 12.2% decrease from $105.5 million for the corresponding period a year ago, and a 14.1% sequential decrease from $107.8 million in the third quarter of 2023.

Gross margin decreased to $47.3 million for the fourth quarter of 2023, compared to $49.1 million for the corresponding period a year ago, and decreased sequentially from $55.9 million for the third quarter of 2023. Gross margin, as a percentage of revenue, increased to 51.1% for the fourth quarter of 2023, compared to 46.6% for the corresponding period a year ago, but decreased from 51.8% for the third quarter of 2023.

Net income for the fourth quarter was $8.7 million, or $0.19 per diluted share, compared to net income of $8.1 million or $0.18 per diluted share, for the corresponding period a year ago and net income of $16.6 million, or $0.37 per diluted share, for the third quarter of 2023.

Cash flow from operations totaled $22.1 million for the fourth quarter, compared to cash flow from operations of $0.9 million for the corresponding period a year ago, and cash flow from operations of $23.8 million in the third quarter of 2023. Capital expenditures for the fourth quarter totaled $7.7 million, compared to $12.7 million for the corresponding period a year ago and $7.7 million for the third quarter of 2023. Cash and cash equivalents as of December 31, 2023 increased 6.3% sequentially to approximately $242.2 million compared to approximately $227.8 million as of September 30, 2023.

Backlog for the fourth quarter ended December 31, 2023 totaled $160.8 million, a 47.2% decrease from $304.4 million for the corresponding period a year ago, and 8.0% sequential decrease from $174.7 million at the end of the third quarter of 2023.

Revenues for the year ended December 31, 2023 increased 1.5% to $405.1 million, from $399.1 million for the prior year. Gross margin, as a percentage of revenue, increased to 50.6% for the year ended December 31, 2023, compared to 45.2% for the prior year. Net income for 2023 was $53.6 million, or $1.19 per diluted share and 13.2% of revenues, compared to $25.4 million, or $0.57 per diluted share and 6.4% of revenue in the prior year. Cash flows from operations totaled $75.1 million for the year ended December 31, 2023, a 227.3% increase from cash flows from operations of $22.9 million for the prior year.

Commenting on fourth quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “As our products and applications pipeline create demand to fill our vertically integrated foundry, we have turned down deals that would have been inconsistent with our long term strategy.”

“Competitive AI platforms require higher current density and Vertical Power Delivery (“VPD”). PoL systems with a large multiplicity of phases have inadequate current density. Our 5G product line and ChiP foundry put us well ahead of AI power system requirements, providing superior performance and scalable capacity to expand the market opportunity.”

“We are also making progress protecting our IP from NBM copycat makers and users. Our initial action seeks to exclude importation of unlicensed servers and AI processors using infringing NBMs. Our OEM license provides access to NBMs and VPD from otherwise infringing sources, de-risking reliance on an ecosystem of copycat suppliers lacking the requisite power system IP.”

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, February 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 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 February 22, 2024. Telephone participants who are unable to register should dial 833-954-8887, followed by access code 26312760358 and passcode 39424573, before 5:00 p.m. (Eastern) on February 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, 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
(Unaudited)		     YEAR ENDED
(Unaudited)		  
     DEC 31,
2023		     DEC 31,
2022		     DEC 31,
2023		      DEC 31,
2022		  

Net revenues

    $ 92,652     $ 105,493     $ 405,059      $ 399,079  

Cost of revenues

      45,308       56,354       200,130        218,520  
  

 

 

    

 

 

    

 

 

     

 

 

  

Gross margin

      47,344       49,139       204,929        180,559  

Operating expenses:

          

Selling, general and administrative

      22,694       24,942       85,714        86,264  

Research and development

      17,301       16,078       67,857        60,594  

Litigation-contingency expense

      —        —        —         6,500  
  

 

 

    

 

 

    

 

 

     

 

 

  

Total operating expenses

      39,995       41,020       153,571        153,358  
  

 

 

    

 

 

    

 

 

     

 

 

  

Income from operations

      7,349       8,119       51,358        27,201  

Other income (expense), net

      3,243       1,808       8,886        1,486  
  

 

 

    

 

 

    

 

 

     

 

 

  

Income before income taxes

      10,592       9,927       60,244        28,687  

Less: Provision for income taxes

      1,928       1,866       6,644        3,261  
  

 

 

    

 

 

    

 

 

     

 

 

  

Consolidated net income

      8,664       8,061       53,600        25,426  

Less: Net (loss) income attributable to noncontrolling interest

      (4 )      (1 )      5        (20 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Net income attributable to Vicor Corporation

    $ 8,668     $ 8,062     $ 53,595      $ 25,446  
  

 

 

    

 

 

    

 

 

     

 

 

  

Net income per share attributable to Vicor Corporation:

          

Basic

    $ 0.19     $ 0.18     $ 1.21      $ 0.58  

Diluted

    $ 0.19     $ 0.18     $ 1.19      $ 0.57  

Shares outstanding:

          

Basic

      44,455       44,062       44,320        44,005  

Diluted

      45,017       44,859       45,004        44,894  

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     DEC 31,     DEC 31,  
     2023     2022  
     (Unaudited)     (Unaudited)  

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 242,219     $ 190,611  

Accounts receivable, net

      52,631       65,429  

Inventories

      106,579       101,410  

Other current assets

      18,937       5,154  
  

 

 

    

 

 

  

Total current assets

      420,366       362,604  

Long-term deferred tax assets

      296       280  

Long-term investment, net

      2,530       2,622  

Property, plant and equipment, net

      157,689       166,009  

Other assets

      14,006       5,386  
  

 

 

    

 

 

  

Total assets

    $ 594,887     $ 536,901  
  

 

 

    

 

 

  

Liabilities and Equity

     

Current liabilities:

     

Accounts payable

    $ 12,100     $ 22,207  

Accrued compensation and benefits

      11,227       10,849  

Accrued expenses

      5,093       8,613  

Accrued litigation

      6,500       6,500  

Sales allowances

      3,482       1,661  

Short-term lease liabilities

      1,864       1,450  

Income taxes payable

      746       72  

Short-term deferred revenue and customer prepayments

      3,157       13,197  
  

 

 

    

 

 

  

Total current liabilities

      44,169       64,549  

Long-term deferred revenue

      1,020       145  

Long-term income taxes payable

      2,228       862  

Long-term lease liabilities

      6,364       7,009  
  

 

 

    

 

 

  

Total liabilities

      53,781       72,565  

Equity:

     

Vicor Corporation stockholders’ equity:

     

Capital stock

      384,395       360,924  

Retained earnings

      296,674       243,079  

Accumulated other comprehensive loss

      (1,273 )      (988 ) 

Treasury stock

      (138,927 )      (138,927 ) 
  

 

 

    

 

 

  

Total Vicor Corporation stockholders’ equity

      540,869       464,088  

Noncontrolling interest

      237       248  
  

 

 

    

 

 

  

Total equity

      541,106       464,336  
  

 

 

    

 

 

  

Total liabilities and equity

    $ 594,887     $ 536,901