☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-2742817 | |
(State or other jurisdiction of incorporation or organization) | (IRS employer identification no.) | |
25 Frontage Road, Andover, Massachusetts | 01810 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | VICR | The NASDAQ Stock Market LLC |
Large Accelerated Filer ☑ | Accelerated Filer ☐ | Non-accelerated Filer ☐ | Smaller Reporting Company ☐ | |||
Emerging growth company ☐ | ||||||
Title of Each Class | Number of Shares of Common Stock Outstanding as of February 18, 2021 | |
Common Stock | ||
Class B Common Stock | 11,758,218 |
ITEM 1. | BUSINESS |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Number of Shares Purchased | per Share | Shares Purchased as Part of Publicly Announced Plans or Programs | Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||
Month of Fourth Quarter 2020 | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased Pursuant to November 2000 Plan | Remaining Dollar Value of Shares Authorized For Purchase Pursuant to November 2000 Plan | ||||||||||||
October 1 — 31, 2020 | — | $ | — | — | $ | 8,541,000 | ||||||||||
November 1 — 30, 2020 | — | $ | — | — | $ | 8,541,000 | ||||||||||
December 1 — 31, 2020 | — | $ | — | — | $ | 8,541,000 | ||||||||||
Total | — | $ | — | — | $ | 8,541,000 | ||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
Vicor Corporation | $100.00 | $ | 75.37 | $ | 124.79 | $ | 172.73 | $ | 312.31 | $ | 386.12 | ||||||||||||||
S&P 500 Index | $100.00 | $ | 101.38 | $ | 113.51 | $ | 138.29 | $ | 132.23 | $ | 173.86 | ||||||||||||||
S&P SmallCap 600 Index | $100.00 | $ | 98.03 | $ | 124.06 | $ | 140.48 | $ | 128.56 | $ | 157.85 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||
Vicor Corporation | $100.00 | $ | 165.57 | $ | 229.17 | $ | 414.36 | $ | 512.28 | $ | 1,011.18 | |||||||||||
S&P 500 Index | $100.00 | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 | |||||||||||
S&P SmallCap 600 Index | $100.00 | $ | 126.56 | $ | 143.30 | $ | 131.15 | $ | 161.03 | $ | 179.20 |
ITEM 6. | SELECTED FINANCIAL DATA |
Year Ended December 31, | ||||||||||||||||||||
Statement of Operations Data | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Net revenues | $ | 262,977 | $ | 291,220 | $ | 227,830 | $ | 200,280 | $ | 220,194 | ||||||||||
Net income (loss) from operations | 13,821 | 32,059 | (1,360 | ) | (6,314 | ) | (267 | ) | ||||||||||||
Consolidated net income (loss) | 14,109 | 31,846 | 258 | (6,261 | ) | 5,159 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | 11 | 121 | 91 | (14 | ) | 232 | ||||||||||||||
Net income (loss) attributable to Vicor Corporation | 14,098 | 31,725 | 167 | (6,247 | ) | 4,927 | ||||||||||||||
Net income (loss) per share — basic attributable to Vicor Corporation | 0.35 | 0.80 | 0.00 | (0.16 | ) | 0.13 | ||||||||||||||
Net income (loss) per share — diluted attributable to Vicor Corporation | 0.34 | 0.78 | 0.00 | (0.16 | ) | 0.13 | ||||||||||||||
Weighted average shares — basic | 40,330 | 39,872 | 39,228 | 38,842 | 38,754 | |||||||||||||||
Weighted average shares — diluted | 41,677 | 40,729 | 39,933 | 38,842 | 39,146 |
Year Ended December 31, | ||||||||||||||||||||
Statement of Operations Data | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Net revenues | $ | 296,576 | $ | 262,977 | $ | 291,220 | $ | 227,830 | $ | 200,280 | ||||||||||
Income (loss) from operations | 17,368 | 13,821 | 32,059 | (1,360 | ) | (6,314 | ) | |||||||||||||
Consolidated net income (loss) | 17,922 | 14,109 | 31,846 | 258 | (6,261 | ) | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | 12 | 11 | 121 | 91 | (14 | ) | ||||||||||||||
Net income (loss) attributable to Vicor Corporation | 17,910 | 14,098 | 31,725 | 167 | (6,247 | ) | ||||||||||||||
Net income (loss) per share — basic attributable to Vicor Corporation | 0.42 | 0.35 | 0.80 | 0.00 | (0.16 | ) | ||||||||||||||
Net income (loss) per share — diluted attributable to Vicor Corporation | 0.41 | 0.34 | 0.78 | 0.00 | (0.16 | ) | ||||||||||||||
Weighted average shares — basic | 42,186 | 40,330 | 39,872 | 39,228 | 38,842 | |||||||||||||||
Weighted average shares — diluted | 43,869 | 41,677 | 40,729 | 39,933 | 38,842 |
As of December 31, | ||||||||||||||||||||
Balance Sheet Data | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Working capital | $ | 276,419 | $ | 149,136 | $ | 129,062 | $ | 90,796 | $ | 89,545 | ||||||||||
Total assets | 396,239 | 240,727 | 221,068 | 165,724 | 154,067 | |||||||||||||||
Total liabilities | 45,084 | 34,857 | 36,978 | 29,305 | 23,050 | |||||||||||||||
Total equity | 351,155 | 205,870 | 184,090 | 136,419 | 131,017 |
As of December 31, | ||||||||||||||||||||
Balance Sheet Data | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Working capital | $ | 149,136 | $ | 129,062 | $ | 90,796 | $ | 89,545 | $ | 94,905 | ||||||||||
Total assets | 240,727 | 221,068 | 165,724 | 154,067 | 157,545 | |||||||||||||||
Total liabilities | 34,857 | 36,978 | 29,305 | 23,050 | 21,460 | |||||||||||||||
Total equity | 205,870 | 184,090 | 136,419 | 131,017 | 136,085 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Gross margin | 46.8 | % | 47.7 | % | 44.6 | % | ||||||
Selling, general and administrative expenses | 23.8 | % | 21.4 | % | 25.5 | % | ||||||
Research and development expenses | 17.7 | % | 15.2 | % | 19.7 | % | ||||||
Income (loss) before income taxes | 5.7 | % | 11.3 | % | (0.0 | )% |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Net revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Gross margin | 44.3 | % | 46.8 | % | 47.7 | % | ||||||
Selling, general and administrative expenses | 21.3 | % | 23.8 | % | 21.4 | % | ||||||
Research and development expenses | 17.2 | % | 17.7 | % | 15.2 | % | ||||||
Income before income taxes | 6.2 | % | 5.7 | % | 11.3 | % |
Increase (decrease) | ||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||
Brick Products | $ | 187,896 | $ | 186,704 | $ | 1,192 | 0.6 | % | ||||||||
Advanced Products | 75,081 | 104,516 | (29,435 | ) | (28.2 | )% | ||||||||||
Total | $ | 262,977 | $ | 291,220 | $ | (28,243 | ) | (9.7 | )% | |||||||
Increase | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 190,256 | $ | 187,896 | $ | 2,360 | 1.3 | % | ||||||||
Advanced Products | 106,320 | 75,081 | 31,239 | 41.6 | % | |||||||||||
Total | $ | 296,576 | $ | 262,977 | $ | 33,599 | 12.8 | % | ||||||||
Increase (decrease) | ||||||||
Depreciation and amortization | $ | 384 | 15.8 | %(1) | ||||
Outside services | 285 | 15.0 | %(2) | |||||
Advertising expenses | 217 | 7.1 | %(3) | |||||
Facilities allocations | 156 | 10.4 | %(4) | |||||
Commissions | 104 | 3.0 | % | |||||
Bad debt expense | (209 | ) | (321.7 | )%(5) | ||||
Legal fees | (223 | ) | (12.2 | )%(6) | ||||
Compensation | (362 | ) | (0.9 | )%(7) | ||||
Other, net | (19 | ) | (0.2 | )% | ||||
$ | 333 | 0.5 | % | |||||
Increase (decrease) | ||||||||
Compensation | $ | 3,153 | 8.2 | %(1) | ||||
Depreciation and amortization | 318 | 11.3 | %(2) | |||||
Legal fees | 231 | 14.5 | %(3) | |||||
Facilities allocations | (137 | ) | (8.3 | )% | ||||
Outside services | (191 | ) | (8.7 | )%(4) | ||||
Advertising expenses | (281 | ) | (8.5 | )%(5) | ||||
Commissions | (326 | ) | (9.1 | )%(6) | ||||
Travel expense | (1,973 | ) | (63.3 | )%(7) | ||||
Other, net | (188 | ) | (3.2 | )% | ||||
$ | 606 | 1.0 | % | |||||
(1) | Increase primarily attributable to merit-based compensation increases for non-exempt hourly employees in May 2020, increases in headcount and higher stock-based compensation expense associated with stock options awarded in June 2020. |
(2) | Increase attributable to |
(3) | Increase primarily attributable to higher use of outside legal services associated with the December 2019 ransomware incident, which carried into the first quarter of 2020, and other corporate legal matters. |
Decrease primarily attributable to a decrease in the use of outside service providers |
Decrease primarily attributed to |
(6) |
Decrease primarily attributable to |
(7) | Decrease primarily attributable to reduced travel by |
Increase (decrease) | ||||||||
Compensation | $ | 1,580 | 5.0 | %(1) | ||||
Project and pre-production materials | 1,548 | 28.4 | %(2) | |||||
Depreciation and amortization | (141 | ) | (7.3 | )% | ||||
Deferred costs | (761 | ) | (77.5 | )%(3) | ||||
Other, net | 76 | 1.2 | % | |||||
$ | 2,302 | 5.2 | % | |||||
Increase (decrease) | ||||||||
Compensation | $ | 2,613 | 7.9 | %(1) | ||||
Deferred costs | 1,004 | 57.6 | %(2) | |||||
Project and pre-production materials | 789 | 11.3 | %(3) | |||||
Computer expense | 170 | 33.3 | % | |||||
Depreciation and amortization | 164 | 9.1 | % | |||||
Overhead absorption | (296 | ) | (33.1 | )%(4) | ||||
Other, net | (116 | ) | (1.7 | )% | ||||
$4,328 | 9.3% | |||||||
(1) | Increase primarily attributable to non-exempt hourly employees in May |
(2) | Increase primarily attributable to |
non-recurring engineering projects for which the related revenues have been deferred. |
(3) | Increase primarily attributable to higher spending for new product development of Advanced Products. |
(4) | Decrease primarily attributable to a decrease in research and development (“R&D”) personnel incurring time on production activities, compared to R&D activities. |
2019 | 2018 | Increase (decrease) | ||||||||||
Rental income | $ | 792 | $ | 792 | $ | — | ||||||
Interest income | 300 | 257 | 43 | |||||||||
Foreign currency losses, net | (108 | ) | (260 | ) | 152 | |||||||
Gain on disposal of equipment | 38 | 57 | (19 | ) | ||||||||
Credit gains on available-for-sale securities | 4 | 7 | (3 | ) | ||||||||
Other | 40 | 21 | 19 | |||||||||
$ | 1,066 | $ | 874 | $ | 192 | |||||||
�� |
2020 | 2019 | Increase (decrease) | ||||||||||
Rental income | $ | 792 | $ | 792 | $ | — | ||||||
Foreign currency gains (losses), net | 181 | (108 | ) | 289 | ||||||||
Interest income | 95 | 300 | (205 | ) | ||||||||
Gain on disposal of equipment | 13 | 38 | (25 | ) | ||||||||
Credit gains on available-for-sale | 4 | 4 | — | |||||||||
Other | 8 | 40 | (32 | ) | ||||||||
$ | 1,093 | $ | 1,066 | $ | 27 | |||||||
2019 | 2018 | |||||||
Provision for income taxes | $ | 778 | $ | 1,087 | ||||
Effective income tax rate | 5.2 | % | 3.3 | % |
2020 | 2019 | |||||||
Provision for income taxes | $ | 539 | $ | 778 | ||||
Effective income tax rate | 2.9 | % | 5.2 | % |
Increase (decrease) | ||||
Cash and cash equivalents | $ | 14,111 | ||
Accounts receivable | (5,558 | ) | ||
Inventories | 1,817 | |||
Other current assets | 3,636 | |||
Accounts payable | 7,144 | |||
Accrued compensation and benefits | 247 | |||
Accrued expenses | (59 | ) | ||
Sales allowances | (193 | ) | ||
Accrued severance and other charges | 234 | |||
Short-term lease liabilities | (1,520 | ) | ||
Income taxes payable | 653 | |||
Short-term deferred revenue and customer prepayments | (438 | ) | ||
$ | 20,074 | |||
Increase (decrease) | ||||
Cash and cash equivalents | $ | 77,074 | ||
Short-term investments | 50,166 | |||
Accounts receivable | 2,884 | |||
Inventories | 8,082 | |||
Other current assets | (340 | ) | ||
Accounts payable | (5,116 | ) | ||
Accrued compensation and benefits | (3,684 | ) | ||
Accrued expenses | 66 | |||
Sales allowances | 144 | |||
Short-term lease liabilities | (109 | ) | ||
Income taxes payable | (82 | ) | ||
Short-term deferred revenue and customer prepayments | (1,802 | ) | ||
$ | 127,283 | |||
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | Years 2 & 3 | Years 4 & 5 | More Than 5 Years | |||||||||||||||
Operating lease obligations (1) | $ | 4,711 | $ | 1,657 | $ | 1,690 | $ | 1,193 | $ | 171 | ||||||||||
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | Years 2 & 3 | Years 4 & 5 | More Than 5 Years | |||||||||||||||
Operating lease obligations (1) | $ | 4,919 | $ | 1,740 | $ | 2,199 | $ | 980 | $ | — | ||||||||||
(1) | For further information, refer to Note 13 Leases 10-K. |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Page | |||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 84,668 | $ | 70,557 | ||||
Accounts receivable, less allowance of $59 in 2019 and $224 in 2018 | 38,115 | 43,673 | ||||||
Inventories, net | 49,187 | 47,370 | ||||||
Other current assets | 7,096 | 3,460 | ||||||
Total current assets | 179,066 | 165,060 | ||||||
Long-term deferred tax assets | 205 | 265 | ||||||
Long-term investment, net | 2,510 | 2,526 | ||||||
Property, plant and equipment, net | 56,952 | 50,432 | ||||||
Other assets | 1,994 | 2,785 | ||||||
Total assets | $ | 240,727 | $ | 221,068 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 9,005 | $ | 16,149 | ||||
Accrued compensation and benefits | 10,410 | 10,657 | ||||||
Accrued expenses | 2,690 | 2,631 | ||||||
Sales allowances | 741 | 548 | ||||||
Short-term lease liabilities | 1,520 | — | ||||||
Accrued severance and other charges | — | 234 | ||||||
Income taxes payable | 57 | 710 | ||||||
Short-term deferred revenue and customer prepayments | 5,507 | 5,069 | ||||||
Total current liabilities | 29,930 | 35,998 | ||||||
Long-term deferred revenue | 1,054 | 232 | ||||||
Contingent consideration obligations | 451 | 408 | ||||||
Long-term income taxes payable | 567 | 238 | ||||||
Long-term lease liabilities | 2,855 | 102 | ||||||
Total liabilities | 34,857 | 36,978 | ||||||
Commitments and contingencies (Note 17) | ||||||||
Equity: | ||||||||
Vicor Corporation stockholders’ equity: | ||||||||
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,758,218 shares issued and outstanding in 2019 and 2018 | 118 | 118 | ||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized 40,403,058 shares issued and 28,768,252 shares outstanding in 2019; 40,066,710 shares issued and 28,430,971 shares outstanding in 2018 | 405 | 402 | ||||||
Additional paid-in capital | 201,251 | 193,457 | ||||||
Retained earnings | 143,098 | 129,000 | ||||||
Accumulated other comprehensive loss | (383 | ) | (394 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2019 and 11,635,739 shares in 2018 | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 205,562 | 183,656 | ||||||
Noncontrolling interest | 308 | 434 | ||||||
Total equity | 205,870 | 184,090 | ||||||
Total liabilities and equity | $ | 240,727 | $ | 221,068 | ||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 161,742 | $ | 84,668 | ||||
Short-term investments | 50,166 | — | ||||||
Accounts receivable, less allowance of $82 in 2020 and $59 in 2019 | 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 | ||||||
Commitments and contingencies (Note 17) | 0 | 0 | ||||||
Equity: | ||||||||
Vicor Corporation stockholders’ equity: | ||||||||
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,758,218 shares issued and outstanding in 2020 and 2019 | 118 | 118 | ||||||
Common Stock: 1vote per share, $.01 par value, 62,000,000 shares authorized 43,204,671 shares issued and 31,569,865 shares outstanding in 2020; 40,403,058 shares issued and 28,768,252 shares outstanding in 2019 | 433 | 405 | ||||||
Additional paid-in capital | 328,392 | 201,251 | ||||||
Retained earnings | 161,008 | 143,098 | ||||||
Accumulated other comprehensive loss | (204 | ) | (383 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2020 and 2019 | (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 | ||||
2019 | 2018 | 2017 | ||||||||||
Net revenues | $ | 262,977 | $ | 291,220 | $ | 227,830 | ||||||
Cost of revenues | 140,011 | 152,249 | 126,174 | |||||||||
Gross margin | 122,966 | 138,971 | 101,656 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 62,557 | 62,224 | 58,092 | |||||||||
Research and development | 46,588 | 44,286 | 44,924 | |||||||||
Severance and other charges | — | 402 | — | |||||||||
Total operating expenses | 109,145 | 106,912 | 103,016 | |||||||||
Income (loss) from operations | 13,821 | 32,059 | (1,360 | ) | ||||||||
Other income (expense), net: | ||||||||||||
Total unrealized (losses) gains on available-for-sale securities, net | (16 | ) | 1 | 17 | ||||||||
Portion of losses (gains) recognized in other comprehensive income (loss) | 20 | 6 | (6 | ) | ||||||||
Net credit gains recognized in earnings | 4 | 7 | 11 | |||||||||
Other income (expense), net | 1,062 | 867 | 1,251 | |||||||||
Total other income (expense), net | 1,066 | 874 | 1,262 | |||||||||
Income (loss) before income taxes | 14,887 | 32,933 | (98 | ) | ||||||||
Less: Provision (benefit) for income taxes | 778 | 1,087 | (356 | ) | ||||||||
Consolidated net income | 14,109 | 31,846 | 258 | |||||||||
Less: Net income attributable to noncontrolling interest | 11 | 121 | 91 | |||||||||
Net income attributable to Vicor Corporation | $ | 14,098 | $ | 31,725 | $ | 167 | ||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||
Basic | $ | 0.35 | $ | 0.80 | $ | 0.00 | ||||||
Diluted | $ | 0.34 | $ | 0.78 | $ | 0.00 | ||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||
Basic | 40,330 | 39,872 | 39,228 | |||||||||
Diluted | 41,677 | 40,729 | 39,933 |
2020 | 2019 | 2018 | ||||||||||
Net revenues | $ | 296,576 | $ | 262,977 | $ | 291,220 | ||||||
Cost of revenues | 165,129 | 140,011 | 152,249 | |||||||||
Gross margin | 131,447 | 122,966 | 138,971 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 63,163 | 62,557 | 62,224 | |||||||||
Research and development | 50,916 | 46,588 | 44,286 | |||||||||
Severance and other charges | — | — | 402 | |||||||||
Total operating expenses | 114,079 | 109,145 | 106,912 | |||||||||
Income from operations | 17,368 | 13,821 | 32,059 | |||||||||
Other income (expense), net: | ||||||||||||
Total unrealized gains (losses) on available-for-sale | 7 | (16 | ) | 1 | ||||||||
Portion of losses (gains) recognized in other comprehensive income (loss) | (3 | ) | 20 | 6 | ||||||||
Net credit gains recognized in earnings | 4 | 4 | 7 | |||||||||
Other income (expense), net | 1,089 | 1,062 | 867 | |||||||||
Total other income (expense), net | 1,093 | 1,066 | 874 | |||||||||
Income before income taxes | 18,461 | 14,887 | 32,933 | |||||||||
Less: Provision for income taxes | 539 | 778 | 1,087 | |||||||||
Consolidated net income | 17,922 | 14,109 | 31,846 | |||||||||
Less: Net income attributable to noncontrolling interest | 12 | 11 | 121 | |||||||||
Net income attributable to Vicor Corporation | $ | 17,910 | $ | 14,098 | $ | 31,725 | ||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||
Basic | $ | 0.42 | $ | 0.35 | $ | 0.80 | ||||||
Diluted | $ | 0.41 | $ | 0.34 | $ | 0.78 | ||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||
Basic | 42,186 | 40,330 | 39,872 | |||||||||
Diluted | 43,869 | 41,677 | 40,729 |
2019 | 2018 | 2017 | ||||||||||
Consolidated net income | $ | 14,109 | $ | 31,846 | $ | 258 | ||||||
Foreign currency translation gains, net of tax benefit (1) | 33 | 98 | 83 | |||||||||
Unrealized (losses) gains on available-for-sale securities, net of tax (1) | (20 | ) | (6 | ) | 6 | |||||||
Other comprehensive income | 13 | 92 | 89 | |||||||||
Consolidated comprehensive income | 14,122 | 31,938 | 347 | |||||||||
Less: Comprehensive income attributable to noncontrolling interest | 13 | 129 | 97 | |||||||||
Comprehensive income attributable to Vicor Corporation | $ | 14,109 | $ | 31,809 | $ | 250 | ||||||
2020 | 2019 | 2018 | ||||||||||
Consolidated net income | $ | 17,922 | $ | 14,109 | $ | 31,846 | ||||||
Foreign currency translation gains, net of tax benefit (1) | 200 | 33 | 98 | |||||||||
Unrealized losses on available-for-sale | (6 | ) | (20 | ) | (6 | ) | ||||||
Other comprehensive income | 194 | 13 | 92 | |||||||||
Consolidated comprehensive income | 18,116 | 14,122 | 31,938 | |||||||||
Less: Comprehensive income attributable to noncontrolling interest | 27 | 13 | 129 | |||||||||
Comprehensive income attributable to Vicor Corporation | $ | 18,089 | $ | 14,109 | $ | 31,809 | ||||||
(1) | The deferred tax assets associated with cumulative foreign currency translation gains and cumulative unrealized |
2019 | 2018 | 2017 | ||||||||||
Operating activities: | ||||||||||||
Consolidated net income | $ | 14,109 | $ | 31,846 | $ | 258 | ||||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operating activities: | ||||||||||||
Depreciation and amortization | 10,334 | 9,254 | 8,893 | |||||||||
Stock-based compensation expense | 3,036 | 3,396 | 1,735 | |||||||||
Increase (decrease) in long-term income taxes payable | 329 | 43 | (1 | ) | ||||||||
Deferred income taxes | 60 | (55 | ) | (172 | ) | |||||||
Increase (decrease) in long-term deferred revenue | 822 | (71 | ) | (71 | ) | |||||||
Increase in other long-term liabilities | — | 9 | 93 | |||||||||
Gain on disposal of equipment | (38 | ) | (57 | ) | (14 | ) | ||||||
(Benefit) provision for doubtful accounts | (144 | ) | 65 | 6 | ||||||||
Credit gain on available-for-sale securities | (4 | ) | (7 | ) | (11 | ) | ||||||
Increase in refundable income taxes | — | — | (736 | ) | ||||||||
Increase in contingent consideration obligations | 280 | — | 650 | |||||||||
Change in current assets and liabilities, net | (6,576 | ) | (8,252 | ) | (13,094 | ) | ||||||
Net cash provided by (used for) operating activities | 22,208 | 36,171 | (2,464 | ) | ||||||||
Investing activities: | ||||||||||||
Additions to property, plant and equipment | (12,485 | ) | (18,211 | ) | (12,545 | ) | ||||||
Proceeds from sale of equipment | 38 | 57 | 14 | |||||||||
(Decrease) increase in other assets | (35 | ) | (85 | ) | 5 | |||||||
Net cash used for investing activities | (12,482 | ) | (18,239 | ) | (12,526 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from issuance of Common Stock | 4,742 | 8,656 | 3,300 | |||||||||
Payment of contingent consideration obligations | (237 | ) | (270 | ) | (225 | ) | ||||||
Noncontrolling interest dividend paid | (139 | ) | — | — | ||||||||
Net cash provided by financing activities | 4,366 | 8,386 | 3,075 | |||||||||
Effect of foreign exchange rates on cash | 19 | 9 | (25 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 14,111 | 26,327 | (11,940 | ) | ||||||||
Cash and cash equivalents at beginning of year | 70,557 | 44,230 | 56,170 | |||||||||
Cash and cash equivalents at end of year | $ | 84,668 | $ | 70,557 | $ | 44,230 | ||||||
Change in current assets and liabilities, excluding effects of deconsolidation of subsidiary: | ||||||||||||
Accounts receivable | $ | 5,714 | $ | (8,834 | ) | $ | (9,210 | ) | ||||
Inventories, net | (1,812 | ) | (10,827 | ) | (9,309 | ) | ||||||
Other current assets | (2,895 | ) | 176 | (357 | ) | |||||||
Accounts payable and accrued liabilities | (7,339 | ) | 7,450 | 3,186 | ||||||||
Accrued severance and other charges | (234 | ) | 234 | — | ||||||||
Short-term lease payable | 12 | — | — | |||||||||
Income taxes payable | (653 | ) | 410 | 208 | ||||||||
Deferred revenue | 631 | 3,139 | 2,388 | |||||||||
Change in current assets and liabilities, net | $ | (6,576 | ) | $ | (8,252 | ) | $ | (13,094 | ) | |||
Supplemental disclosures: | ||||||||||||
Cash paid during the year for income taxes, net of refunds | $ | 2,194 | $ | 743 | $ | 373 |
2020 | 2019 | 2018 | ||||||||||
Operating activities: | ||||||||||||
Consolidated net income | $ | 17,922 | $ | 14,109 | $ | 31,846 | ||||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 11,056 | 10,334 | 9,254 | |||||||||
Stock-based compensation expense | 5,883 | 3,036 | 3,396 | |||||||||
(Decrease) increase in long-term deferred revenue | (321 | ) | 822 | (71 | ) | |||||||
Increase in long-term income taxes payable | 76 | 329 | 43 | |||||||||
Deferred income taxes | (21 | ) | 60 | (55 | ) | |||||||
Increase in other long-term liabilities | — | — | 9 | |||||||||
Gain on disposal of equipment | (13 | ) | (38 | ) | (57 | ) | ||||||
Provision (recovery) for doubtful accounts | 23 | (144 | ) | 65 | ||||||||
Credit gain on available-for-sale | (4 | ) | (4 | ) | (7 | ) | ||||||
Increase in contingent consideration obligations | — | 280 | — | |||||||||
Change in current assets and liabilities, net | (54 | ) | (6,576 | ) | (8,252 | ) | ||||||
Net cash provided by operating activities | 34,547 | 22,208 | 36,171 | |||||||||
Investing activities: | ||||||||||||
Purchases of short-term investments | (50,166 | ) | — | — | ||||||||
Additions to property, plant and equipment | (28,653 | ) | (12,485 | ) | (18,211 | ) | ||||||
Proceeds from sale of equipment | 13 | 38 | 57 | |||||||||
Decrease (increase) in other assets | 182 | (35 | ) | (85 | ) | |||||||
Net cash used for investing activities | (78,624 | ) | (12,482 | ) | (18,239 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from public offering of Common Stock | 109,681 | — | — | |||||||||
Proceeds from employee stock plans | 11,585 | 4,742 | 8,656 | |||||||||
Payment of contingent consideration obligations | (224 | ) | (237 | ) | (270 | ) | ||||||
Noncontrolling interest dividend paid | — | (139 | ) | — | ||||||||
Net cash provided by financing activities | 121,042 | 4,366 | 8,386 | |||||||||
Effect of foreign exchange rates on cash | 109 | 19 | 9 | |||||||||
Net increase in cash and cash equivalents | 77,074 | 14,111 | 26,327 | |||||||||
Cash and cash equivalents at beginning of year | 84,668 | 70,557 | 44,230 | |||||||||
Cash and cash equivalents at end of year | $ | 161,742 | $ | 84,668 | $ | 70,557 | ||||||
Change in current assets and liabilities: | ||||||||||||
Accounts receivable | $ | (2,816 | ) | $ | 5,714 | $ | (8,834 | ) | ||||
Inventories, net | (8,049 | ) | (1,812 | ) | (10,827 | ) | ||||||
Other current assets | 369 | (2,895 | ) | 176 | ||||||||
Accounts payable and accrued liabilities | 8,668 | (7,339 | ) | 7,450 | ||||||||
Accrued severance and other charges | — | (234 | ) | 234 | ||||||||
Short-term lease payable | 34 | 12 | — | |||||||||
Income taxes payable | 82 | (653 | ) | 410 | ||||||||
Deferred revenue | 1,658 | 631 | 3,139 | |||||||||
Change in current assets and liabilities, net | $ | (54 | ) | $ | (6,576 | ) | $ | (8,252 | ) | |||
Supplemental disclosures: | ||||||||||||
Cash paid during the year for income taxes, net of refunds | $ | 79 | $ | 2,194 | $ | 743 |
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Balance on December 31, 2016 | $ | 118 | $ | 397 | $ | 176,344 | $ | 93,438 | $ | (561 | ) | $ | (138,927 | ) | $ | 130,809 | $ | 208 | $ | 131,017 | ||||||||||||||||
Sales of Common Stock | 4 | 3,296 | 3,300 | 3,300 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,735 | 1,735 | 1,735 | |||||||||||||||||||||||||||||||||
Other | 20 | 20 | 20 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax | ||||||||||||||||||||||||||||||||||||
Net income | 167 | 167 | 91 | 258 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 83 | 83 | 6 | 89 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 250 | 97 | 347 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2017 | 118 | 401 | 181,395 | 93,605 | (478 | ) | (138,927 | ) | 136,114 | 305 | 136,419 | |||||||||||||||||||||||||
Sales of Common Stock | 6 | 6,776 | 6,782 | 6,782 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,396 | 3,396 | 3,396 | |||||||||||||||||||||||||||||||||
Issuances of stock through employee stock purchase plan | 1 | 1,873 | 1,874 | 1,874 | ||||||||||||||||||||||||||||||||
Cumulative effect of adoption of new accounting principle (Topic 606) | 3,670 | 3,670 | 3,670 | |||||||||||||||||||||||||||||||||
Other | (6 | ) | 17 | 11 | 11 | |||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax | ||||||||||||||||||||||||||||||||||||
Net income | 31,725 | 31,725 | 121 | 31,846 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 84 | 84 | 8 | 92 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 31,809 | 129 | 31,938 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2018 | 118 | 402 | 193,457 | 129,000 | (394 | ) | (138,927 | ) | 183,656 | 434 | 184,090 | |||||||||||||||||||||||||
Sales of Common Stock | 2 | 2,435 | 2,437 | 2,437 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,036 | 3,036 | 3,036 | |||||||||||||||||||||||||||||||||
Issuances of stock through employee stock purchase plan | 1 | 2,304 | 2,305 | 2,305 | ||||||||||||||||||||||||||||||||
Noncontrolling interest dividend paid | — | (139 | ) | (139 | ) | |||||||||||||||||||||||||||||||
Other | 19 | 19 | 19 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax | ||||||||||||||||||||||||||||||||||||
Net income | 14,098 | 14,098 | 11 | 14,109 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 11 | 11 | 2 | 13 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 14,109 | 13 | 14,122 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2019 | $ | 118 | $ | 405 | $ | 201,251 | $ | 143,098 | $ | (383 | ) | $ | (138,927 | ) | $ | 205,562 | $ | 308 | $ | 205,870 | ||||||||||||||||
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Balance on December 31, 2017 | $ | 118 | $ | 401 | $ | 181,395 | $ | 93,605 | $ | (478 | ) | $ | (138,927 | ) | $ | 136,114 | $ | 305 | $ | 136,419 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 7 | 8,649 | 8,656 | 8,656 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,396 | 3,396 | 3,396 | |||||||||||||||||||||||||||||||||
Cumulative effect of adoption of new accounting principle (Topic 606) | 3,670 | 3,670 | 3,670 | |||||||||||||||||||||||||||||||||
Other | (6 | ) | 17 | 11 | 11 | |||||||||||||||||||||||||||||||
Components of comprehensive income, net of ta x | ||||||||||||||||||||||||||||||||||||
Net income | 31,725 | 31,725 | 121 | 31,846 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 84 | 84 | 8 | 92 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 31,809 | 129 | 31,938 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2018 | 118 | 402 | 193,457 | 129,000 | (394 | ) | (138,927 | ) | 183,656 | 434 | 184,090 | |||||||||||||||||||||||||
Issuance of Common Stock under employee stock plans | 3 | 4,739 | 4,742 | 4,742 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,036 | 3,036 | 3,036 | |||||||||||||||||||||||||||||||||
Noncontrolling interest dividend paid | — | (139 | ) | (139 | ) | |||||||||||||||||||||||||||||||
Other | 19 | 19 | 19 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax | ||||||||||||||||||||||||||||||||||||
Net income | 14,098 | 14,098 | 11 | 14,109 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 11 | 11 | 2 | 13 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 14,109 | 13 | 14,122 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2019 | 118 | 405 | 201,251 | 143,098 | (383 | ) | (138,927 | ) | 205,562 | 308 | 205,870 | |||||||||||||||||||||||||
Issuance of Common Stock under employee stock plans | 10 | 11,575 | 11,585 | 11,585 | ||||||||||||||||||||||||||||||||
Issuance of Common Stock in public offering, net (See Note 1 0 ) | 18 | 109,663 | 109,681 | 109,681 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 5,883 | 5,883 | 5,883 | |||||||||||||||||||||||||||||||||
Other | 20 | 20 | 20 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax | ||||||||||||||||||||||||||||||||||||
Net income | 17,910 | 17,910 | 12 | 17,922 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 179 | 179 | 15 | 194 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 18,089 | 27 | 18,116 | |||||||||||||||||||||||||||||||||
Balance on December 31, 2020 | $ | 118 | $ | 433 | $ | 328,392 | $ | 161,008 | $ | (204 | ) | $ | (138,927 | ) | $ | 350,820 | $ | 335 | $ | 351,155 | ||||||||||||||||
As of December 31, 2018 | ||||||||||||
As reported | Adjustments | Balances without adoption of Topic 606 | ||||||||||
Accounts receivable, net | $ | 43,673 | $ | (72 | ) | $ | 43,601 | |||||
Inventories, net | 47,370 | (110 | ) | 47,260 | ||||||||
Total assets | 221,068 | (182 | ) | 220,886 | ||||||||
Income taxes payable | 710 | (59 | ) | 651 | ||||||||
Deferred revenue | 5,069 | 5,768 | 10,837 | |||||||||
Sales allowances | 548 | (483 | ) | 65 | ||||||||
Total liabilities | 36,978 | 5,226 | 42,204 | |||||||||
Retained earnings | 129,000 | (5,408 | ) | 123,592 | ||||||||
Total equity | 184,090 | (5,408 | ) | 178,682 | ||||||||
Total liabilities and equity | 221,068 | (182 | ) | 220,886 |
Year Ended December 31, 2018 | ||||||||||||
As reported | Adjustments | Balances without adoption of Topic 606 | ||||||||||
Net revenues | $ | 291,220 | $(3,946) | $ | 287,274 | |||||||
Cost of revenues | 152,249 | (2,149 | ) | 150,100 | ||||||||
Gross margin | 138,971 | (1,797 | ) | 137,174 | ||||||||
Income before income taxes | 32,933 | (1,797 | ) | 31,136 | ||||||||
Provision for income taxes | 1,087 | (59 | ) | 1,028 | ||||||||
Consolidated net income | 31,846 | (1,738 | ) | 30,108 | ||||||||
Net income attributable to Vicor Corporation | 31,725 | (1,738 | ) | 29,987 |
Level 1 | Inputs used to measure fair value are unadjusted quoted prices available in active markets for the identical assets or liabilities as of the reporting date. | ||
Level 2 | Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in inactive markets. Level 2 also includes assets and liabilities valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | ||
Level 3 | Inputs used to measure fair value are unobservable inputs supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. |
2019 | 2018 | 2017 | ||||||||||
Numerator: | ||||||||||||
Net income attributable to Vicor Corporation | $ | 14,098 | $ | 31,725 | $ | 167 | ||||||
Denominator: | ||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 40,330 | 39,872 | 39,228 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options (2) | 1,347 | 857 | 705 | |||||||||
Denominator for diluted net income per share-adjusted weighted-average shares and assumed conversions (3) | 41,677 | 40,729 | 39,933 | |||||||||
Basic net income per share | $ | 0.35 | $ | 0.80 | $ | 0.00 | ||||||
Diluted net income per share | $ | 0.34 | $ | 0.78 | $ | 0.00 | ||||||
2020 | 2019 | 2018 | ||||||||||
Numerator: | ||||||||||||
Net income attributable to Vicor Corporation | $ | 17,910 | $ | 14,098 | $ | 31,725 | ||||||
Denominator: | ||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 42,186 | 40,330 | 39,872 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options (2) | 1,683 | 1,347 | 857 | |||||||||
Denominator for diluted net income per share-adjusted weighted-average shares and assumed conversions (3) | 43,869 | 41,677 | 40,729 | |||||||||
Basic net income per share | $ | 0.42 | $ | 0.35 | $ | 0.80 | ||||||
Diluted net income per share | $ | 0.41 | $ | 0.34 | $ | 0.78 | ||||||
(1) | Denominator represents weighted average number of Common Shares and Class B Common Shares outstanding. |
(2) | Options to purchase 181,196, 164,367 and 67,247 shares of Common Stock in 2020, 2019, and 2018, respectively, were not included in the calculation of net income per share as the effect would have been antidilutive. |
(3) | Denominator represents weighted average number of Common Shares and Class B Common Shares outstanding for the year, adjusted to include the dilutive effect, if any, of outstanding options. |
2019 | 2018 | |||||||
Raw materials | $ | 35,901 | $ | 37,696 | ||||
Work-in-process | 5,184 | 4,740 | ||||||
Finished goods | 8,102 | 4,934 | ||||||
$ | 49,187 | $ | 47,370 | |||||
2020 | 2019 | |||||||
Raw materials | $ | 42,556 | $ | 35,901 | ||||
Work-in-process | 7,424 | 5,184 | ||||||
Finished goods | 7,289 | 8,102 | ||||||
$ | 57,269 | $ | 49,187 | |||||
December 31, 2020 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money Market Funds | $ | 69,493 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | 19,998 | 50,166 | — | |||||||||
Failed Auction Security | — | — | 2,517 | |||||||||
Total | 89,491 | 50,166 | 2,517 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 72,251 | — | — | |||||||||
Total | $ | 161,742 | $ | 50,166 | $ | 2,517 | ||||||
December 31, 2019 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money Market Funds | $ | 9,630 | $ | — | $ | — | ||||||
Failed Auction Security | — | — | 2,510 | |||||||||
Total | 9,630 | — | 2,510 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 75,038 | — | — | |||||||||
Total | $ | 84,668 | $ | — | $ | 2,510 | ||||||
December 31, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
December 31, 2018 | ||||||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 474 | $ | 2,526 | ||||||||
December 31, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury Obligations | $ | 70,172 | $ | — | $ | 8 | $ | 70,164 | ||||||||
Failed Auction Security | 3,000 | — | 483 | 2,517 | ||||||||||||
December 31, 2019 | ||||||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
Cost | Estimated Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,510 | ||||
U.S. Treasury Obligations: | ||||||||
Cost | Estimated Fair Value | |||||||
Maturities greater than three months but less than one year | $ | 50,174 | $ | 50,166 | ||||
Maturities less than three months | 19,998 | 19,998 | ||||||
$ | 70,172 | $ | 70,164 | |||||
Failed Auction Security: | ||||||||
Cost | Estimated Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,517 | ||||
2019 | 2018 | 2017 | ||||||||||
Balance at the beginning of the period | $ | 41 | $ | 48 | $ | 59 | ||||||
Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized | (4 | ) | (7 | ) | (11 | ) | ||||||
Balance at the end of the period | $ | 37 | $ | 41 | $ | 48 | ||||||
2020 | 2019 | 2018 | ||||||||||
Balance at the beginning of the period | $ | 37 | $ | 41 | $ | 48 | ||||||
Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized | (4 | ) | (4 | ) | (7 | ) | ||||||
Balance at the end of the period | $ | 33 | $ | 37 | $ | 41 | ||||||
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2019 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,630 | $ | — | $ | — | $ | 9,630 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,510 | 2,510 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (451 | ) | (451 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | $ | 69,493 | ||||||||
U.S. Treasury Obligations | 19,998 | — | — | 19,998 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 50,166 | — | — | 50,166 | ||||||||||||
Long-term investments: | �� | |||||||||||||||
Failed Auction Security | — | — | 2,517 | 2,517 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (227 | ) | (227 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2018 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,433 | $ | — | $ | — | $ | 9,433 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,526 | 2,526 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (408 | ) | (408 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2019 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,630 | $ | — | $ | — | $ | 9,630 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,510 | 2,510 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (451 | ) | (451 | ) |
Fair Value | Valuation | Unobservable Input | Weighted Average | |||||||||||
Failed Auction Security | $ | 2,510 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.11 | % | ||||||||
Cumulative probability of principal return prior to maturity | 93.66 | % | ||||||||||||
Cumulative probability of default | 6.24 | % | ||||||||||||
Liquidity risk premium | 5.00 | % | ||||||||||||
Recovery rate in default | 40.00 | % |
Fair Value | Valuation Technique | Unobservable Input | Weighted Average | |||||||||
Failed Auction Security | $ | 2,517 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.14 | % | ||||||
Cumulative probability of principal return prior to maturity | 93.62 | % | ||||||||||
Cumulative probability of default | 6.23 | % | ||||||||||
Liquidity risk premium | 5.00 | % | ||||||||||
Recovery rate in default | 40.00 | % |
Balance at the beginning of the period | $ | 2,526 | ||
Credit gain on available-for-sale security included in Other income (expense), net | 4 | |||
Gain included in Other comprehensive income (loss) | (20 | ) | ||
Balance at the end of the period | $ | 2,510 | ||
Balance at the beginning of the period | $ | 2,510 | ||
Credit gain on available-for-sale | 4 | |||
Gain included in Other comprehensive income | 3 | |||
Balance at the end of the period | $ | 2,517 | ||
Balance at the beginning of the period | $ | 408 | ||
Increase in estimated contingent consideration obligations (see Note 9) | 280 | |||
Payments | (237 | ) | ||
Balance at the end of the period | $ | 451 | ||
Balance at the beginning of the period | $ | 451 | ||
Payments | (224 | ) | ||
Balance at the end of the period | $ | 227 | ||
2019 | 2018 | |||||||
Land | $ | 3,600 | $ | 2,089 | ||||
Buildings and improvements | 45,791 | 45,170 | ||||||
Machinery and equipment | 220,405 | 208,135 | ||||||
Furniture and fixtures | 8,231 | 7,239 | ||||||
Construction in-progress and deposits | 4,362 | 9,251 | ||||||
282,389 | 271,884 | |||||||
Accumulated depreciation and amortization | (229,698 | ) | (221,452 | ) | ||||
Right of use asset — net | 4,261 | — | ||||||
Net balance | $ | 56,952 | $ | 50,432 | ||||
2020 | 2019 | |||||||
Land | $ | 3,600 | $ | 3,600 | ||||
Buildings and improvements | 45,905 | 45,791 | ||||||
Machinery and equipment | 233,635 | 220,405 | ||||||
Furniture and fixtures | 8,429 | 8,231 | ||||||
Construction in-progress and deposits | 17,987 | 4,362 | ||||||
309,556 | 282,389 | |||||||
Accumulated depreciation and amortization | (239,162 | ) | (229,698 | ) | ||||
Right of use asset — net | 4,449 | 4,261 | ||||||
Net balance | $ | 74,843 | $ | 56,952 | ||||
2019 | 2018 | |||||||
Patent costs | $ | 1,992 | $ | 1,979 | ||||
Accumulated amortization | (1,483 | ) | (1,380 | ) | ||||
$ | 509 | $ | 599 | |||||
2020 | 2019 | |||||||
Patent costs | $ | 1,859 | $ | 1,992 | ||||
Accumulated amortization | (1,434 | ) | (1,483 | ) | ||||
$ | 425 | $ | 509 | |||||
2019 | 2018 | 2017 | ||||||||||
Balance at the beginning of the period | $ | 268 | $ | 290 | $ | 214 | ||||||
Accruals for warranties for products sold in the period | 250 | 173 | 346 | |||||||||
Fulfillment of warranty obligations | (140 | ) | (117 | ) | (194 | ) | ||||||
Revisions of estimated obligations | (6 | ) | (78 | ) | (76 | ) | ||||||
Balance at the end of the period | $ | 372 | $ | 268 | $ | 290 | ||||||
2020 | 2019 | 2018 | ||||||||||
Balance at the beginning of the period | $ | 372 | $ | 268 | $ | 290 | ||||||
Accruals for warranties for products sold in the period | 366 | 250 | 173 | |||||||||
Fulfillment of warranty obligations | (398 | ) | (140 | ) | (117 | ) | ||||||
Revisions of estimated obligations | (32 | ) | (6 | ) | (78 | ) | ||||||
Balance at the end of the period | $ | 308 | $ | 372 | $ | 268 | ||||||
Twelve Months Ended December 31, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 98,822 | $ | 22,806 | $ | 121,628 | ||||||
Europe | 22,172 | 5,090 | 27,262 | |||||||||
Asia Pacific | 62,720 | 46,107 | 108,827 | |||||||||
All other | 4,182 | 1,078 | 5,260 | |||||||||
$ | 187,896 | $ | 75,081 | $ | 262,977 | |||||||
Twelve Months Ended December 31, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 80,065 | $ | 25,493 | $ | 105,558 | ||||||
Europe | 23,491 | 6,641 | 30,132 | |||||||||
Asia Pacific | 83,985 | 73,899 | 157,884 | |||||||||
All other | 2,715 | 287 | 3,002 | |||||||||
$ | 190,256 | $ | 106,320 | $ | 296,576 | |||||||
Twelve Months Ended December 31, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 77,995 | $ | 32,784 | $ | 110,779 | ||||||
Europe | 23,484 | 4,205 | 27,689 | |||||||||
Asia Pacific | 80,097 | 66,981 | 147,078 | |||||||||
All other | 5,128 | 546 | 5,674 | |||||||||
$ | 186,704 | $ | 104,516 | $ | 291,220 | |||||||
Twelve Months Ended December 31, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 98,822 | $ | 22,806 | $ | 121,628 | ||||||
Europe | 22,172 | 5,090 | 27,262 | |||||||||
Asia Pacific | 62,720 | 46,107 | 108,827 | |||||||||
All other | 4,182 | 1,078 | 5,260 | |||||||||
$ | 187,896 | $ | 75,081 | $ | 262,977 | |||||||
Twelve Months Ended December 31, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 77,995 | $ | 32,784 | $ | 110,779 | ||||||
Europe | 23,484 | 4,205 | 27,689 | |||||||||
Asia Pacific | 80,097 | 66,981 | 147,078 | |||||||||
All other | 5,128 | 546 | 5,674 | |||||||||
$ | 186,704 | $ | 104,516 | $ | 291,220 | |||||||
Twelve Months Ended December 31, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 159,135 | $ | 63,567 | $ | 222,702 | ||||||
Stocking distributors, net of sales allowances | 27,797 | 9,802 | 37,599 | |||||||||
Non-recurring engineering | 843 | 1,614 | 2,457 | |||||||||
Royalties | 121 | 24 | 145 | |||||||||
Other | — | 74 | 74 | |||||||||
$ | 187,896 | $ | 75,081 | $ | 262,977 | |||||||
Twelve Months Ended December 31, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 160,004 | $ | 91,405 | $ | 251,409 | ||||||
Stocking distributors, net of sales allowances | 29,411 | 8,510 | 37,921 | |||||||||
Non-recurring engineering | 841 | 6,181 | 7,022 | |||||||||
Royalties | — | 152 | 152 | |||||||||
Other | — | 72 | 72 | |||||||||
$ | 190,256 | $ | 106,320 | $ | 296,576 | |||||||
Twelve Months Ended December 31, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 159,135 | $ | 63,567 | $ | 222,702 | ||||||
Stocking distributors, net of sales allowances | 27,797 | 9,802 | 37,599 | |||||||||
Non-recurring engineering | 843 | 1,614 | 2,457 | |||||||||
Royalties | 121 | 24 | 145 | |||||||||
Other | — | 74 | 74 | |||||||||
$ | 187,896 | $ | 75,081 | $ | 262,977 | |||||||
Twelve Months Ended December 31, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 163,206 | $ | 91,579 | $ | 254,785 | ||||||
Stocking distributors, net of sales allowances | 22,362 | 9,370 | 31,732 | |||||||||
Non-recurring engineering | 1,066 | 3,356 | 4,422 | |||||||||
Royalties | 70 | 140 | 210 | |||||||||
Other | — | 71 | 71 | |||||||||
$ | 186,704 | $ | 104,516 | $ | 291,220 | |||||||
December 31, 2019 | December 31, 2018 | Change | ||||||||||
Accounts receivable | $ | 38,115 | $ | 43,673 | $ | (5,558 | ) | |||||
Short-term deferred revenue and customer prepayment s | (5,507 | ) | (5,069 | ) | (438 | ) | ||||||
Long-term deferred revenue | (1,054 | ) | (232 | ) | (822 | ) | ||||||
Deferred expenses | 1,897 | 501 | 1,396 | |||||||||
Sales allowances | (741 | ) | (548 | ) | (193 | ) |
December 31, 2020 | December 31, 2019 | Change | ||||||||||
Accounts receivable | $ | 40,999 | $ | 38,115 | $ | 2,884 | ||||||
Short-term deferred revenue and customer prepayments | (7,309 | ) | (5,507 | ) | (1,802 | ) | ||||||
Long-term deferred revenue | (733 | ) | (1,054 | ) | 321 | |||||||
Deferred expenses | 1,650 | 1,897 | (247 | ) | ||||||||
Sales allowances | (597 | ) | (741 | ) | 144 |
2019 | 2018 | 2017 | ||||||||||
United States | $ | 121,628 | $ | 110,779 | $ | 83,871 | ||||||
Europe | 27,262 | 27,689 | 24,078 | |||||||||
Asia Pacific | 108,827 | 147,078 | 114,365 | |||||||||
All other | 5,260 | 5,674 | 5,516 | |||||||||
$ | 262,977 | $ | 291,220 | $ | 227,830 | |||||||
2020 | 2019 | 2018 | ||||||||||
United States | $ | 105,558 | $ | 121,628 | $ | 110,779 | ||||||
Europe | 30,132 | 27,262 | 27,689 | |||||||||
Asia Pacific | 157,884 | 108,827 | 147,078 | |||||||||
All other | 3,002 | 5,260 | 5,674 | |||||||||
$ | 296,576 | $ | 262,977 | $ | 291,220 | |||||||
2019 | 2018 | 2017 | ||||||||||
Cost of revenues | $ | 342 | $ | 237 | $ | 187 | ||||||
Selling, general and administrative | 1,979 | 2,517 | 1,125 | |||||||||
Research and development | 715 | 642 | 423 | |||||||||
Total stock-based compensation | $ | 3,036 | $ | 3,396 | $ | 1,735 | ||||||
2020 | 2019 | 2018 | ||||||||||
Cost of revenues | $ | 934 | $ | 342 | $ | 237 | ||||||
Selling, general and administrative | 3,164 | 1,979 | 2,517 | |||||||||
Research and development | 1,785 | 715 | 642 | |||||||||
Total stock-based compensation | $ | 5,883 | $ | 3,036 | $ | 3,396 | ||||||
2019 | 2018 | 2017 | ||||||||||
Stock options | $ | 2,072 | $ | 2,649 | $ | 1,546 | ||||||
ESPP | 964 | 747 | 189 | |||||||||
Total stock-based compensation | $ | 3,036 | $ | 3,396 | $ | 1,735 | ||||||
2020 | 2019 | 2018 | ||||||||||
Stock options | $ | 4,982 | $ | 2,072 | $ | 2,649 | ||||||
ESPP | 901 | 964 | 747 | |||||||||
Total stock-based compensation | $ | 5,883 | $ | 3,036 | $ | 3,396 | ||||||
2019 | 2018 | 2017 | ||||||||||
Risk-free interest rate | 1.8 | % | 2.9 | % | 2.1 | % | ||||||
Expected dividend yield | — | — | — | |||||||||
Expected volatility | 42 | % | 44 | % | 43 | % | ||||||
Expected lives (years) | 6.3 | 6.4 | 7.1 |
2020 | 2019 | 2018 | ||||||||||
Risk-free interest rate | 0.5 | % | 1.8 | % | 2.9 | % | ||||||
Expected dividend yield | — | — | — | |||||||||
Expected volatility | 48 | % | 42 | % | 44 | % | ||||||
Expected lives (years) | 6.1 | 6.3 | 6.4 |
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||||||
Outstanding on December 31, 2018 | 1,382,981 | $ | 13.41 | |||||||||||||
Granted | 115,753 | $ | 31.76 | |||||||||||||
Options transferred from VI Chip Merge r | 1,476,371 | $ | 6.79 | |||||||||||||
Forfeited and expired | (36,228 | ) | $ | 21.37 | ||||||||||||
Exercised | (250,981 | ) | $ | 9.71 | ||||||||||||
Outstanding on December 31, 2019 | 2,687,896 | $ | 10.81 | 4.65 | $ | 96,665 | ||||||||||
Exercisable on December 31, 2019 | 1,475,947 | $ | 8.74 | 4.10 | $ | 56,079 | ||||||||||
Vested or expected to vest as of December 31, 2019(1) | 2,601,076 | $ | 10.65 | 4.62 | $ | 93,938 | ||||||||||
Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||||||
Outstanding on December 31, 2019 | 2,687,896 | $ | 10.81 | |||||||||||||
Granted | 354,075 | $ | 68.34 | |||||||||||||
Forfeited and expired | (69,987 | ) | $ | 23.77 | ||||||||||||
Exercised | (948,507 | ) | $ | 9.62 | ||||||||||||
Outstanding on December 31, 2020 | 2,023,477 | $ | 20.98 | 4.87 | $ | 144,153 | ||||||||||
Exercisable on December 31, 2020 | 924,964 | $ | 9.05 | 3.41 | $ | 76,932 | ||||||||||
Vested or expected to vest as of December 31, 2020(1) | 1,947,127 | $ | 20.22 | 4.79 | $ | 140,186 | ||||||||||
(1) | In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. |
Options Outstanding | Weighted- Average Exercise Price | |||||||
Outstanding on December 31, 2018 (1) | 10,414,000 | $ | 0.96 | |||||
Granted | — | |||||||
Forfeited and expired | — | |||||||
Exercised | — | |||||||
Options transferred in merger with Vicor | (10,414,000 | ) | $ | 0.96 | ||||
Outstanding on June 28, 2019 | — | |||||||
2020 | $ | 1,657 | ||
2021 | 995 | |||
2022 | 695 | |||
2023 | 606 | |||
2024 | 587 | |||
Thereafter | 171 | |||
Total lease payments | $ | 4,711 | ||
Less: Imputed interest | 336 | |||
Present value of lease liabilities | $ | 4,375 | ||
2021 | $ | 1,740 | ||
2022 | 1,316 | |||
2023 | 883 | |||
2024 | 663 | |||
2025 | 317 | |||
Total lease payments | $ | 4,919 | ||
Less: Imputed interest | 322 | |||
Present value of lease liabilities | $ | 4,597 | ||
Year | ||||
2019 | $ | 1,962 | ||
2020 | 1,502 | |||
2021 | 688 | |||
2022 | 447 | |||
2023 and thereafter | 830 | |||
$5,429 | ||||
2020 | $ | 874 | ||
2021 | 901 | |||
2022 | 928 | |||
2023 | 955 | |||
2024 | 402 | |||
Total lease payments to be received | $ | 4,060 | ||
2021 | $ | 901 | ||
2022 | 928 | |||
2023 | 955 | |||
2024 | 402 | |||
Total lease payments to be received | $ | 3,186 | ||
2019 | 2018 | 2017 | ||||||||||
Rental income | $ | 792 | $ | 792 | $ | 792 | ||||||
Interest income | 300 | 257 | 124 | |||||||||
Foreign currency losses, net | (108 | ) | (260 | ) | 323 | |||||||
Gain on disposal of equipment | 38 | 57 | 14 | |||||||||
Credit gains on available-for-sale securities | 4 | 7 | 11 | |||||||||
Other | 40 | 21 | (2 | ) | ||||||||
$ | 1,066 | $ | 874 | $ | 1,262 | |||||||
2020 | 2019 | 2018 | ||||||||||
Rental income, net | $ | 792 | $ | 792 | $ | 792 | ||||||
Foreign currency gains (losses), net | 181 | (108 | ) | (260 | ) | |||||||
Interest income | 95 | 300 | 257 | |||||||||
Gain on disposal of equipment | 13 | 38 | 57 | |||||||||
Credit gains on available-for-sale | 4 | 4 | 7 | |||||||||
Other | 8 | 40 | 21 | |||||||||
�� | ||||||||||||
$ | 1,093 | $ | 1,066 | $ | 874 | |||||||
2019 | 2018 | 2017 | ||||||||||
Statutory federal tax rate | 21.0 | % | 21.0 | % | (34.0 | )% | ||||||
State income taxes, net of federal income tax benefit | (8.1 | ) | 3.6 | 97.2 | ||||||||
Increase (decrease) in valuation allowance | 2.2 | (9.1 | ) | (936.1 | ) | |||||||
Permanent items | (3.9 | ) | (5.9 | ) | (861.2 | ) | ||||||
Tax credits | (15.6 | ) | (5.5 | ) | (1,222.3 | ) | ||||||
Provision vs. tax return differences | 9.0 | (1.7 | ) | — | ||||||||
Foreign rate differential and deferred items | 0.6 | 0.7 | (91.8 | ) | ||||||||
Change in tax reserves | — | 0.1 | (5.1 | ) | ||||||||
Rate change due to tax reform | — | — | 3,441.1 | |||||||||
Refundable income taxes—AMT credit | — | — | (751.0 | ) | ||||||||
Other | — | 0.1 | (0.1 | ) | ||||||||
5.2 | % | 3.3 | % | (363.3 | )% | |||||||
2020 | 2019 | 2018 | ||||||||||
Statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
State income taxes, net of federal income tax benefit | (0.5 | ) | (8.1 | ) | 3.6 | |||||||
Increase (decrease) in valuation allowance | 41.2 | 2.2 | (9.1 | ) | ||||||||
Permanent items | (48.7 | ) | (3.9 | ) | (5.9 | ) | ||||||
Tax credits | (11.2 | ) | (15.6 | ) | (5.5 | ) | ||||||
Provision vs. tax return differences | 0.7 | 9.0 | (1.7 | ) | ||||||||
Foreign rate differential and deferred items | 0.1 | 0.6 | 0.7 | |||||||||
Change in tax reserves | — | — | 0.1 | |||||||||
Other | 0.3 | — | 0.1 | |||||||||
2.9% | 5.2% | 3.3% | ||||||||||
2019 | 2018 | 2017 | ||||||||||
Domestic | $ | 13,493 | $ | 31,455 | $ | (1,591 | ) | |||||
Foreign | 1,394 | 1,478 | 1,493 | |||||||||
$ | 14,887 | $ | 32,933 | $ | (98 | ) | ||||||
2020 | 2019 | 2018 | ||||||||||
Domestic | $ | 17,688 | $ | 13,493 | $ | 31,455 | ||||||
Foreign | 773 | 1,394 | 1,478 | |||||||||
$ | 18,461 | $ | 14,887 | $ | 32,933 | |||||||
2019 | 2018 | 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | (736 | ) | |||||
State | 268 | 231 | 156 | |||||||||
Foreign | 450 | 911 | 396 | |||||||||
718 | 1,142 | (184 | ) | |||||||||
Deferred: | ||||||||||||
Foreign | 60 | (55 | ) | (172 | ) | |||||||
60 | (55 | ) | (172 | ) | ||||||||
$ | 778 | $ | 1,087 | $ | (356 | ) | ||||||
2020 | 2019 | 2018 | ||||||||||
Current: | ||||||||||||
Federal | $ | 215 | $ | — | $ | — | ||||||
State | 93 | 268 | 231 | |||||||||
Foreign | 252 | 450 | 911 | |||||||||
560 | 718 | 1,142 | ||||||||||
Deferred: | ||||||||||||
Foreign | (21 | ) | 60 | (55 | ) | |||||||
(21 | ) | 60 | (55 | ) | ||||||||
$ | 539 | $ | 778 | $ | 1,087 | |||||||
2019 | 2018 | |||||||
Deferred tax assets: | ||||||||
Research and development tax credit carryforwards | $ | 27,607 | $ | 23,244 | ||||
Investment tax credit carryforwards | 2,102 | 1,976 | ||||||
Stock-based compensation | 1,587 | 3,133 | ||||||
Inventory reserves | 1,522 | 2,109 | ||||||
Vacation accrual | 1,280 | 1,218 | ||||||
Deferred revenue, net | 796 | 66 | ||||||
Lease liabilities | 679 | — | ||||||
UNICAP | 351 | 275 | ||||||
Net operating loss carryforwards | 328 | 1,091 | ||||||
International deferred tax assets | 205 | 265 | ||||||
Sales allowances | 172 | 128 | ||||||
Unrealized loss on investments | 132 | 132 | ||||||
Contingent consideration liabilities | 98 | 88 | ||||||
Warranty reserves | 66 | 35 | ||||||
Bad debt reserves | 14 | 52 | ||||||
Other | 225 | 233 | ||||||
Total deferred tax assets | 37,164 | 34,045 | ||||||
Less: Valuation allowance for deferred tax assets | (30,363 | ) | (30,031 | ) | ||||
Net deferred tax assets | 6,801 | 4,014 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation | (5,296 | ) | (3,144 | ) | ||||
ROU assets | (653 | ) | — | |||||
Prepaid expenses | (552 | ) | (473 | ) | ||||
Patent amortization | (91 | ) | (107 | ) | ||||
Other | (4 | ) | (25 | ) | ||||
Total deferred tax liabilities | (6,596 | ) | (3,749 | ) | ||||
Net deferred tax assets (liabilities) | $ | 205 | $ | 265 | ||||
2020 | 2019 | |||||||
Deferred tax assets: | ||||||||
Research and development tax credit carryforwards | $ | 29,046 | $ | 27,607 | ||||
Net operating loss carryforwards | 5,923 | 328 | ||||||
Inventory reserves | 2,282 | 1,522 | ||||||
Investment tax credit carryforwards | 1,927 | 2,102 | ||||||
Stock-based compensation | 1,796 | 1,587 | ||||||
Vacation accrual | 1,349 | 1,280 | ||||||
UNICAP | 1,336 | 351 | ||||||
Accrued payroll tax deferral | 764 | — | ||||||
Lease liabilities | 518 | 679 | ||||||
Other | 1,197 | 1,708 | ||||||
Total deferred tax assets | 46,138 | 37,164 | ||||||
Less: Valuation allowance for deferred tax assets | (37,856 | ) | (30,363 | ) | ||||
Net deferred tax assets | 8,282 | 6,801 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation | (6,809 | ) | (5,296 | ) | ||||
Prepaid expenses | (616 | ) | (552 | ) | ||||
ROU assets | (490 | ) | (653 | ) | ||||
Other | (141 | ) | (95 | ) | ||||
Total deferred tax liabilities | (8,056 | ) | (6,596 | ) | ||||
Net deferred tax assets (liabilities) | $ | 226 | $ | 205 | ||||
2019 | 2018 | 2017 | ||||||||||
Balance on January 1 | $ | 1,462 | $ | 1,104 | $ | 946 | ||||||
Additions based on tax positions related to the current year | 571 | 245 | 138 | |||||||||
Additions for tax positions of prior years | 43 | 120 | 29 | |||||||||
Settlements | — | — | (1 | ) | ||||||||
Lapse of statute | (6 | ) | (7 | ) | (8 | ) | ||||||
Balance on December 31 | $ | 2,070 | $ | 1,462 | $ | 1,104 | ||||||
2020 | 2019 | 2018 | ||||||||||
Balance on January 1 | $ | 2,070 | $ | 1,462 | $ | 1,104 | ||||||
Additions based on tax positions related to the current year | 244 | 571 | 245 | |||||||||
(Reductions) additions for tax positions of prior years | (13 | ) | 43 | 120 | ||||||||
Lapse of statute | (4 | ) | (6 | ) | (7 | ) | ||||||
Balance on December 31 | $ | 2,297 | $ | 2,070 | $ | 1,462 | ||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
2019: | ||||||||||||||||||||
Net revenues | $ | 65,725 | $ | 63,355 | $ | 70,772 | $ | 63,125 | $ | 262,977 | ||||||||||
Gross margin | 31,086 | 29,117 | 33,002 | 29,761 | 122,966 | |||||||||||||||
Consolidated net income | 4,306 | 2,556 | 5,932 | 1,315 | 14,109 | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 20 | (7 | ) | (5 | ) | 3 | 11 | |||||||||||||
Net income attributable to Vicor Corporation | 4,286 | 2,563 | 5,937 | 1,312 | 14,098 | |||||||||||||||
Net income per share attributable to Vicor Corporation: | ||||||||||||||||||||
Basic | 0.11 | 0.06 | 0.15 | 0.03 | 0.35 | |||||||||||||||
Diluted | 0.10 | 0.06 | 0.14 | 0.03 | 0.34 |
First | Second | Third | Fourth | Total | ||||||||||||||||
2020: | ||||||||||||||||||||
Net revenues | $ | 63,401 | $ | 70,761 | $ | 78,112 | $ | 84,302 | $ | 296,576 | ||||||||||
Gross margin | 27,331 | 30,318 | 33,347 | 40,451 | 131,447 | |||||||||||||||
Consolidated net (loss) income | (1,731 | ) | 2,672 | 5,786 | 11,195 | 17,922 | ||||||||||||||
Net income attributable to noncontrolling interest | 4 | 5 | 1 | 2 | 12 | |||||||||||||||
Net (loss) income attributable to Vicor Corporation | (1,735 | ) | 2,667 | 5,785 | 11,193 | 17,910 | ||||||||||||||
Net (loss) income per share attributable to Vicor Corporation: | ||||||||||||||||||||
Basic | (0.04 | ) | 0.06 | 0.13 | 0.26 | 0.42 | ||||||||||||||
Diluted | (0.04 | ) | 0.06 | 0.13 | 0.25 | 0.41 | ||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
2019: | ||||||||||||||||||||
Net revenues | $ | 65,725 | $ | 63,355 | $ | 70,772 | $ | 63,125 | $ | 262,977 | ||||||||||
Gross margin | 31,086 | 29,117 | 33,002 | 29,761 | 122,966 | |||||||||||||||
Consolidated net income | 4,306 | 2,556 | 5,932 | 1,315 | 14,109 | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 20 | (7 | ) | (5 | ) | 3 | 11 | |||||||||||||
Net income attributable to Vicor Corporation | 4,286 | 2,563 | 5,937 | 1,312 | 14,098 | |||||||||||||||
Net income per share attributable to Vicor Corporation: | ||||||||||||||||||||
Basic | 0.11 | 0.06 | 0.15 | 0.03 | 0.35 | |||||||||||||||
Diluted | 0.10 | 0.06 | 0.14 | 0.03 | 0.34 |
First | Second | Third | Fourth | Total | ||||||||||||||||
2018: | ||||||||||||||||||||
Net revenues | $ | 65,269 | $ | 74,196 | $ | 78,035 | $ | 73,720 | $ | 291,220 | ||||||||||
Gross margin | 30,211 | 35,883 | 39,004 | 33,873 | 138,971 | |||||||||||||||
Consolidated net income | 3,982 | 7,909 | 13,048 | 6,907 | 31,846 | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 39 | 49 | 36 | (3 | ) | 121 | ||||||||||||||
Net income attributable to Vicor Corporation | 3,943 | 7,860 | 13,012 | 6,910 | 31,725 | |||||||||||||||
Net income per share attributable to Vicor Corporation: | ||||||||||||||||||||
Basic | 0.10 | 0.20 | 0.32 | 0.17 | 0.80 | |||||||||||||||
Diluted | 0.10 | 0.19 | 0.32 | 0.17 | 0.78 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Exhibits | Description of Document | |||
3.1 | ||||
3.2 | ||||
3.3 | ||||
3.4 | ||||
3.5 | ||||
4.1 | Specimen Common Stock Certificate (2) | |||
4.2 | ||||
10.1* | ||||
10.2* | ||||
10.3* | ||||
10.4* | ||||
10.5* | ||||
10.6* | ||||
10.7* | ||||
10.8* | ||||
10.9* | ||||
10.10* | ||||
10.11* | ||||
10.12* | ||||
Summary of Compensation Agreement between Vicor Corporation and Andrew D’Amico (16) | ||||
21.1 | Subsidiaries of the Company (16) | |||
23.1 | ||||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS** | Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH** | Inline XBRL Taxonomy Extension Schema Document. | |||
101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||
101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||
101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||
101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Indicates a management contract or compensatory plan or arrangement required to be filled pursuant to Item 15(b) of Form 10-K. |
** | Filed with this Annual Report on Form 10-K for the year ended December 31, |
Balance Sheets for the years ended December 31, |
(1) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 29, 2001 and incorporated herein by reference. |
(2) | Filed as an exhibit to the Company’s Registration Statement on Form 10, as amended, under the Securities Exchange Act of 1934 (File No. 0-18277), and incorporated herein by reference. (P) |
(3) | Filed as an exhibit to the Company’s Registration Statement on Form S-8, as amended, under the Securities Act of 1933(No. 333-61177), and incorporated herein by reference. |
(4) | Filed as Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on May 1, 2017 (File No. 000-18277), and incorporated herein by reference. |
(5) | Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2004 (FileNo. 0-18277) and incorporated herein by reference. |
(6) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 16, 2005 (FileNo. 0-18277) and incorporated herein by reference. |
(7) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 14, 2006 (FileNo. 0-18277) and incorporated herein by reference. |
(8) |
Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 4, 2020 (FileNo. 0-18277) and incorporated herein by reference. |
(9) | Filed as an exhibit to the Company’s Current Report on Form 8-K, dated June 6, 2007 (FileNo. 0-18277) and incorporated herein by reference. |
(10) | Filed as an exhibit to the Company’s Current Report and Form 8-K, dated March 6, 2008 (FileNo. 0-18277) incorporated herein by reference. |
(11) | Filed as Appendix B to the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on May 1, 2017 (File No. 000-18277), and incorporated herein by reference. |
(12) | Filed as Appendix C to the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on May 1, 2017 (File No. 000-18277), and incorporated herein by reference. |
(13) | Filed as Appendix D to the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on May 1, 2017 (File No. 000-18277), and incorporated herein by reference. |
(14) | Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 5, 2018 (FileNo. 000-18277), and incorporated herein by reference. |
(15) | Filed as Exhibit 10.1 to the Company’s Registration Statement on Form S-8, under the Securities Act of 1933 (No.333-232864), and incorporated herein by reference. |
(16) | Filed herewith. |
Description | Balance at Beginning of Period | Charge (Recovery) to Costs and Expenses | Other Charges, Deductions (1) | Balance at End of Period | ||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
Year ended: | ||||||||||||||||
December 31, 2019 | $ | 224,000 | $ | (144,000 | ) | $ | (21,000 | ) | $ | 59,000 | ||||||
December 31, 2018 | 159,000 | 65,000 | — | 224,000 | ||||||||||||
December 31, 2017 | 153,000 | 6,000 | — | 159,000 |
Description | Balance at Beginning of Period | Charge (Recovery)to Costs and Expenses | Other Charges, Deductions (1) | Balance at End of Period | ||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
Year ended: | ||||||||||||||||
December 31, 2020 | $ | 59,000 | $ | 23,000 | $ | — | $ | 82,000 | ||||||||
December 31, 2019 | 224,000 | (144,000 | ) | (21,000 | ) | 59,000 | ||||||||||
December 31, 2018 | 159,000 | 65,000 | — | 224,000 |
(1) | Reflects uncollectible accounts written off, net of recoveries. |
Vicor Corporation | |||
By: | /s/ James A. Simms | ||
James A. Simms | |||
Vice President, Chief Financial Officer |
Signature | Title | Date | ||||
/s/ Patrizio Vinciarelli Patrizio Vinciarelli | President, Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | |||||
/s/ James A. Simms James A. Simms | Chief Financial Officer and Vice President (Principal Financial Officer and Principal Accounting Officer) | |||||
/s/ Estia J. Eichten Estia J. Eichten | Director | |||||
/s/ Michael S. McNamara Michael S. McNamara | Director | |||||
/s/ Samuel J. Anderson Samuel J. Anderson | Director | |||||
/s/ Claudio Tuozzolo Claudio Tuozzolo | Director | |||||
/s/ Jason L. Carlson Jason L. Carlson | Director | |||||
/s/ Philip D. Davies Philip D. Davies | Director | March 1, 2021 | ||||
/s/ Andrew T. D’Amico Andrew T. D’Amico | March 1, 2021 |