Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2020

Thursday, 25. February 2021 22:05

ANDOVER, Mass., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter ended December 31, 2020.  

Fourth quarter and full year financial 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, 2020 totaled $84.3 million, a 33.5% increase from $63.1 million for the corresponding period a year ago, and a 7.9% sequential increase from $78.1 million for the third quarter of 2020.

Gross margin increased to $40.5 million for the fourth quarter of 2020, compared to $29.8 million for the corresponding period a year ago, and increased sequentially from $33.3 million for the third quarter of 2020. Gross margin, as a percentage of revenue, increased to 48.0% for the fourth quarter of 2020, compared to 47.1% for the corresponding period a year ago, and increased from 42.7% for the third quarter of 2020.  

Net income for the fourth quarter was $11.2 million, or $0.25 per diluted share, compared to net income of $1.3 million or $0.03 per diluted share, for the corresponding period a year ago and net income of $5.8 million, or $0.13 per diluted share, for the third quarter of 2020.  

Revenues for the year ended December 31, 2020, increased 12.8% to $296.6 million from $263.0 million for the corresponding period a year ago. Net income for 2020 was $17.9 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.34 per diluted share, for the corresponding period a year ago.

Cash flow from operations totaled $19.3 million for the fourth quarter, a sequential increase of 66.9%, and totaled $34.5 million for the year, an increase of 55.6% over the total for 2019. Capital expenditures for the fourth quarter totaled $11.8 million, compared to $8.1 million for the prior quarter and $3.4 million for the fourth quarter of 2019. The sum of cash, cash equivalents, and short-term investments sequentially rose 4.1% to approximately $211.9 million. During the fourth quarter, the company transferred approximately $130.2 million from cash accounts to short-term investment accounts.

Fourth quarter bookings increased 19.1% to $91.5 million, from $76.8 million for the corresponding period a year ago, and increased 1.2% sequentially from $90.5 million for the third quarter of 2020. Total bookings for the year totaled $339.7 million, an increase of 28.6% over the 2019 total. Total backlog at the end of the fourth quarter of 2020 was $147.6 million, representing an increase of 5.4% from $140.0 million at the end of the third quarter of 2020 and 41.7 % from $104.2 million at the end of 2019.

Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Fourth quarter results reflect improved margins in spite of manufacturing inefficiencies caused by outsourcing of critical process steps. Advanced Products bookings increased approximately 30%, offsetting a reduction in Brick Products orders. Our capacity expansion is on schedule and vertical integration of all of the process steps required by Advanced Products in our new facility should soon lead to shorter cycle times, greater efficiencies, and further improvements in gross and net margins.”

Vicor also announced that James A. Simms, Corporate Vice President, Chief Financial Officer, Treasurer, and Secretary, will be resigning, effective June 30, 2021. The Company has initiated a search for a new Chief Financial Officer, a process with which Mr. Simms will be assisting. Mr. Simms’ resignation is not related to Vicor's operations, policies, or practices, including its internal controls or other matters related to financial reporting.

Commenting on Mr. Simms’ pending resignation, Dr. Vinciarelli stated, “I wish Jamie success in all his future endeavors. Over his 13 year tenure as CFO, Jamie has made significant contributions to Vicor’s success.”

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 25, 2021 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call who have not pre-registered should call 877-299-4502 at approximately 4:30 p.m. and use the Passcode 14095952. 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 12, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 33109701. 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,” “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, 2019, 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.

For further information contact:
        
James A. Simms, Chief Financial Officer
Voice: 978-470-2900
Facsimile: 978-749-3439
invrel@vicorpower.com 

        
        
VICOR CORPORATION       
        
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS   
(Thousands except for per share amounts)       
        
 QUARTER ENDED YEAR ENDED
 (Unaudited) (Unaudited)
        
 DEC 31, DEC 31, DEC 31, DEC 31,
 2020 2019 2020 2019
        
        
Net revenues$ 84,302 $ 63,125  $ 296,576 $ 262,977
Cost of revenues 43,851  33,364   165,129  140,011
Gross margin 40,451  29,761   131,447  122,966
        
Operating expenses:       
Selling, general and administrative 16,127  16,711   63,163  62,557
Research and development 12,719  12,155   50,916  46,588
  Total operating expenses 28,846  28,866   114,079  109,145
             
Income from operations 11,605  895   17,368  13,821
        
Other income (expense), net 378  393   1,093  1,066
        
Income before income taxes 11,983  1,288   18,461  14,887
        
Less: Provision (benefit) for income taxes 788  (27)  539  778
        
Consolidated net income  11,195  1,315   17,922  14,109
        
Less: Net income attributable to        
noncontrolling interest 2  3   12  11
        
Net income attributable to       
Vicor Corporation$11,193 $1,312  $17,910 $14,098
        
        
Net income per share attributable       
to Vicor Corporation:       
Basic$0.26 $0.03  $0.42 $0.35
Diluted$0.25 $0.03  $0.41 $0.34
        
Shares outstanding:       
Basic 43,301  40,482   42,186  40,330
Diluted 44,772  42,404   43,869  41,677
        


VICOR CORPORATION   
    
CONDENSED CONSOLIDATED BALANCE SHEET   
(Thousands)   
    
    
 DEC 31, DEC 31,
  2020   2019 
 (Unaudited) (Unaudited)
Assets   
    
Current assets:   
Cash and cash equivalents$ 161,742  $ 84,668 
Short-term investments 50,166   - 
Accounts receivable, net 40,999   38,115 
 Inventories, net 57,269   49,187 
Other current assets 6,756   7,096 
  Total current assets 316,932   179,066 
    
Long-term deferred tax assets 226   205 
Long-term investment, net 2,517   2,510 
Property, plant and equipment, net  74,843   56,952 
Other assets 1,721   1,994 
    
  Total assets$ 396,239  $ 240,727 
    
Liabilities and Equity   
    
Current liabilities:   
Accounts payable$ 14,121  $ 9,005 
Accrued compensation and benefits 14,094   10,410 
Accrued expenses 2,624   2,690 
Sales allowances 597   741 
Short-term lease liabilities 1,629   1,520 
Income taxes payable 139   57 
Short-term deferred revenue and customer prepayments  7,309   5,507 
    
  Total current liabilities 40,513   29,930 
    
Long-term deferred revenue 733   1,054 
Contingent consideration obligations 227   451 
Long-term income taxes payable 643   567 
Long-term lease liabilities  2,968   2,855 
Total liabilities 45,084   34,857 
    
Equity:   
Vicor Corporation stockholders' equity:   
Capital stock 328,943   201,774 
Retained earnings 161,008   143,098 
Accumulated other comprehensive loss (204)  (383)
Treasury stock (138,927)  (138,927)
  Total Vicor Corporation stockholders' equity 350,820   205,562 
Noncontrolling interest 335   308 
Total equity 351,155   205,870 
    
       Total liabilities and equity$ 396,239  $ 240,727 
    

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