QUARTERLY 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 of Incorporation) | (I.R.S. Employer Identification No.) |
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 | Smaller reporting company | ☐ | ||||
Accelerated filer | ☐ | Emerging growth company | ☐ | |||
☐ | ||||||
Common Stock, $.01 par value | ||||
Class B Common Stock, $.01 par value | 11,758,218 |
Page | ||||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
7 | ||||||
20 | ||||||
34 | ||||||
34 | ||||||
36 | ||||||
36 | ||||||
37 | ||||||
39 | ||||||
SECTION 302 CERTIFICATION OF CEO | ||||||
SECTION 302 CERTIFICATION OF CFO | ||||||
SECTION 906 CERTIFICATION OF CEO | ||||||
SECTION 906 CERTIFICATION OF CFO |
September 30, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 81,229 | $ | 70,557 | ||||
Accounts receivable, less allowance of $65 in 2019 and $224 in 2018 | 39,987 | 43,673 | ||||||
Inventories, net | 49,688 | 47,370 | ||||||
Other current assets | 5,114 | 3,460 | ||||||
Total current assets | 176,018 | 165,060 | ||||||
Long-term deferred tax assets, net | 241 | 265 | ||||||
Long-term investments, net | 2,576 | 2,526 | ||||||
Property, plant and equipment, net | 56,336 | 50,432 | ||||||
Other assets | 2,739 | 2,785 | ||||||
Total assets | $ | 237,910 | $ | 221,068 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,329 | $ | 16,149 | ||||
Accrued compensation and benefits | 9,548 | 10,657 | ||||||
Accrued expenses | 2,335 | 2,631 | ||||||
S hort-term | 1,580 | — | ||||||
Sales allowances | 1,076 | 548 | ||||||
Accrued severance and other charges | — | 234 | ||||||
Income taxes payable | 57 | 710 | ||||||
Short-term de revenueferred | 5,843 | 5,069 | ||||||
Total current liabilities | 30,768 | 35,998 | ||||||
Long-term deferred revenue | 1,134 | 232 | ||||||
Contingent consideration obligations | 210 | 408 | ||||||
Long-term income taxes payable | 237 | 238 | ||||||
Long-term lease liabilities | 2,845 | 102 | ||||||
Total liabilities | 35,194 | 36,978 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Equity: | ||||||||
Vicor Corporation stockholders’ equity: | ||||||||
Class B Common Stock | 118 | 118 | ||||||
Common Stock | 404 | 402 | ||||||
Additional paid-in capital | 199,166 | 193,457 | ||||||
Retained earnings | 141,786 | 129,000 | ||||||
Accumulated other comprehensive loss | (278 | ) | (394 | ) | ||||
Treasury stock, at cost | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 202,269 | 183,656 | ||||||
Noncontrolling interest | 447 | 434 | ||||||
Total equity | 202,716 | 184,090 | ||||||
Total liabilities and equity | $ | 237,910 | $ | 221,068 | ||||
September 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 203,605 | $ | 84,668 | ||||
Accounts receivable, less allowance of $82 in 2020 and $59 in 2019 | 41,136 | 38,115 | ||||||
Inventories, net | 58,169 | 49,187 | ||||||
Other current assets | 6,872 | 7,096 | ||||||
Total current assets | 309,782 | 179,066 | ||||||
Long-term deferred tax assets, net | 189 | 205 | ||||||
Long-term investments, net | 2,591 | 2,510 | ||||||
Property, plant and equipment, net | 65,780 | 56,952 | ||||||
Other assets | 1,777 | 1,994 | ||||||
Total assets | $ | 380,119 | $ | 240,727 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,911 | $ | 9,005 | ||||
Accrued compensation and benefits | 13,248 | 10,410 | ||||||
Accrued expenses | 2,417 | 2,690 | ||||||
Short-term lease liabilities | 1,563 | 1,520 | ||||||
Sales allowances | 736 | 741 | ||||||
Income taxes payable | 62 | 57 | ||||||
Short-term deferred revenue and customer prepayments | 8,061 | 5,507 | ||||||
Total current liabilities | 37,998 | 29,930 | ||||||
Long-term deferred revenue | 813 | 1,054 | ||||||
Contingent consideration obligations | 265 | 451 | ||||||
Long-term income taxes payable | 575 | 567 | ||||||
Long-term lease liabilities | 2,880 | 2,855 | ||||||
Total liabilities | 42,531 | 34,857 | ||||||
Commitments and contingencies (Note 11) | ||||||||
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: 1 vote per share, $.01 par value, 62,000,000 shares authorized 43,146,143 shares issued and 31,511,337 shares outstanding in 2020; 40,403,058 shares issued and 28,768,252 shares outstanding in 2019 | 433 | 405 | ||||||
Additional paid-in capital | 326,026 | 201,251 | ||||||
Retained earnings | 149,815 | 143,098 | ||||||
Accumulated other comprehensive loss | (203 | ) | (383 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2020 and 2019 | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 337,262 | 205,562 | ||||||
Noncontrolling interest | 326 | 308 | ||||||
Total equity | 337,588 | 205,870 | ||||||
Total liabilities and equity | $ | 380,119 | $ | 240,727 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net revenues | $ | 70,772 | $ | 78,035 | $ | 199,852 | $ | 217,500 | ||||||||
Cost of revenues | 37,770 | 39,031 | 106,647 | 112,402 | ||||||||||||
Gross margin | 33,002 | 39,004 | 93,205 | 105,098 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 15,443 | 15,280 | 45,846 | 46,493 | ||||||||||||
Research and development | 11,507 | 10,691 | 34,433 | 33,220 | ||||||||||||
Severance and other charges | — | (10 | ) | — | 340 | |||||||||||
Total operating expenses | 26,950 | 25,961 | 80,279 | 80,053 | ||||||||||||
Income from operations | 6,052 | 13,043 | 12,926 | 25,045 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized gains on available-for-sale securities, net | 11 | 32 | 50 | 88 | ||||||||||||
Less: portion of gains recognized in other comprehensive income | (10 | ) | (30 | ) | (47 | ) | (82 | ) | ||||||||
Net credit gains recognized in earnings | 1 | 2 | 3 | 6 | ||||||||||||
Other income (expense), net | 145 | 230 | 670 | 612 | ||||||||||||
Total other income (expense), net | 146 | 232 | 673 | 618 | ||||||||||||
Income before income taxes | 6,198 | 13,275 | 13,599 | 25,663 | ||||||||||||
Less: Provision for income taxes | 266 | 227 | 805 | 724 | ||||||||||||
Consolidated net income | 5,932 | 13,048 | 12,794 | 24,939 | ||||||||||||
Less: Net (loss) income attributable to noncontrolling interest | (5 | ) | 36 | 8 | 124 | |||||||||||
Net income attributable to Vicor Corporation | $ | 5,937 | $ | 13,012 | $ | 12,786 | $ | 24,815 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.15 | $ | 0.32 | $ | 0.32 | $ | 0.62 | ||||||||
Diluted | $ | 0.14 | $ | 0.32 | $ | 0.31 | $ | 0.61 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 40,332 | 40,120 | 40,279 | 39,769 | ||||||||||||
Diluted | 42,194 | 41,124 | 41,435 | 40,645 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenues | $ | 78,112 | $ | 70,772 | $ | 212,274 | $ | 199,852 | ||||||||
Cost of revenues | 44,765 | 37,770 | 121,278 | 106,647 | ||||||||||||
Gross margin | 33,347 | 33,002 | 90,996 | 93,205 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 15,212 | 15,443 | 47,036 | 45,846 | ||||||||||||
Research and development | 12,032 | 11,507 | 38,197 | 34,433 | ||||||||||||
Total operating expenses | 27,244 | 26,950 | 85,233 | 80,279 | ||||||||||||
Income from operations | 6,103 | 6,052 | 5,763 | 12,926 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized gains on available-for-sale | 36 | 11 | 81 | 50 | ||||||||||||
Less: portion of gains recognized in other comprehensive income | (35 | ) | (10 | ) | (78 | ) | (47 | ) | ||||||||
Net credit gains recognized in earnings | 1 | 1 | 3 | 3 | ||||||||||||
Other income (expense), net | 333 | 145 | 712 | 670 | ||||||||||||
Total other income (expense), net | 334 | 146 | 715 | 673 | ||||||||||||
Income before income taxes | 6,437 | 6,198 | 6,478 | 13,599 | ||||||||||||
Less: Provision (benefit) for income taxes | 651 | 266 | (249 | ) | 805 | |||||||||||
Consolidated net income | 5,786 | 5,932 | 6,727 | 12,794 | ||||||||||||
1 | (5 | ) | 10 | 8 | ||||||||||||
Net income attributable to Vicor Corporation | $ | 5,785 | $ | 5,937 | $ | 6,717 | $ | 12,786 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.13 | $ | 0.15 | $ | 0.16 | $ | 0.32 | ||||||||
Diluted | $ | 0.13 | $ | 0.14 | $ | 0.15 | $ | 0.31 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 43,164 | 40,332 | 41,814 | 40,279 | ||||||||||||
Diluted | 44,743 | 42,194 | 43,567 | 41,435 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Consolidated net income | $ | 5,932 | $ | 13,048 | $ | 12,794 | $ | 24,939 | ||||||||
Foreign currency translation (losses) gains | (11 | ) | (156 | ) | 74 | (129 | ) | |||||||||
Unrealized gains on available-for-sale securities, net of tax (1) | 10 | 30 | 47 | 82 | ||||||||||||
Other comprehensive (loss) income | (1 | ) | (126 | ) | 121 | (47 | ) | |||||||||
Consolidated comprehensive income | 5,931 | 12,922 | 12,915 | 24,892 | ||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (6 | ) | 25 | 13 | 115 | |||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 5,937 | $ | 12,897 | $ | 12,902 | $ | 24,777 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Consolidated net income | $ | 5,786 | $ | 5,932 | $ | 6,727 | $ | 12,794 | ||||||||
Foreign currency translation gains (losses), net of tax (1) | 84 | (11 | ) | 110 | 74 | |||||||||||
Unrealized gains on available-for-sale | 35 | 10 | 78 | 47 | ||||||||||||
Other comprehensive income (loss) | 119 | (1 | ) | 188 | 121 | |||||||||||
Consolidated comprehensive income | 5,905 | 5,931 | 6,915 | 12,915 | ||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interest | 7 | (6 | ) | 18 | 13 | |||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 5,898 | $ | 5,937 | $ | 6,897 | $ | 12,902 | ||||||||
(1) | The deferred tax assets associated with cumulative foreign currency translation gains and cumulative unrealized gains on available-for-sale |
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 12,794 | $ | 24,939 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7,647 | 6,870 | ||||||
Stock-based compensation expense, net | 2,292 | 2,604 | ||||||
(Benefit) provision for doubtful accounts | (138 | ) | 91 | |||||
Decrease in long-term income taxes payable | (1 | ) | — | |||||
Increase in other long-term liabilities | — | 7 | ||||||
Increase (decrease) in long-term deferred revenue | 902 | (54 | ) | |||||
Gain on disposal of equipment | (23 | ) | (45 | ) | ||||
Deferred income taxes | 24 | 26 | ||||||
Credit gain on available-for-sale securities | (3 | ) | (6 | ) | ||||
Change in current assets and liabilities, net | (6,955 | ) | (11,590 | ) | ||||
Net cash provided by operating activities | 16,539 | 22,842 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (9,122 | ) | (6,894 | ) | ||||
Proceeds from sale of equipment | 23 | 45 | ||||||
Decrease in other assets | (37 | ) | (92 | ) | ||||
Net cash used for investing activities | (9,136 | ) | (6,941 | ) | ||||
Financing activities: | ||||||||
Proceeds from issuance of Common Stock | 3,423 | 8,378 | ||||||
Payment of contingent consideration obligations | (198 | ) | (208 | ) | ||||
Net cash provided by financing activities | 3,225 | 8,170 | ||||||
Effect of foreign exchange rates on cash | 44 | (95 | ) | |||||
Net increase in cash and cash equivalents | 10,672 | 23,976 | ||||||
Cash and cash equivalents at beginning of period | 70,557 | 44,230 | ||||||
Cash and cash equivalents at end of period | $ | 81,229 | $ | 68,206 | ||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2020 | 2019 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 6,727 | $ | 12,794 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 8,175 | 7,647 | ||||||
Stock-based compensation expense, net | 4,286 | 2,292 | ||||||
Provision (benefit) for doubtful accounts | 23 | (138 | ) | |||||
Increase (decrease) in long-term income taxes payable | 8 | (1 | ) | |||||
(Decrease) increase in long-term deferred revenue | (241 | ) | 902 | |||||
Gain on disposal of equipment | (9 | ) | (23 | ) | ||||
Deferred income taxes | 16 | 24 | ||||||
Credit gain on available-for-sale | (3 | ) | (3 | ) | ||||
Change in current assets and liabilities, net | (3,742 | ) | (6,955 | ) | ||||
Net cash provided by operating activities | 15,240 | 16,539 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (16,837 | ) | (9,122 | ) | ||||
Proceeds from sale of equipment | 9 | 23 | ||||||
Decrease (increase) in other assets | 135 | (37 | ) | |||||
Net cash used for investing activities | (16,693 | ) | (9,136 | ) | ||||
Financing activities: | ||||||||
Proceeds from employee stock plans | 10,836 | 3,423 | ||||||
Proceeds from public offering of Common Stock | 109,681 | — | ||||||
Payment of contingent consideration obligations | (186 | ) | (198 | ) | ||||
Net cash provided by financing activities | 120,331 | 3,225 | ||||||
Effect of foreign exchange rates on cash | 59 | 44 | ||||||
Net increase in cash and cash equivalents | 118,937 | 10,672 | ||||||
Cash and cash equivalents at beginning of period | 84,668 | 70,557 | ||||||
Cash and cash equivalents at end of period | $ | 203,605 | $ | 81,229 | ||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Three months ended September 30, 2019 | Stock | Stock | Capital | Earnings | Income (Loss) | Stock | Equity | Interest | Equity | |||||||||||||||||||||||||||
Balance on June 30, 2019 | | $ | 118 | $ | 403 | $ | 196,698 | $ | 135,849 | $ | (278 | ) | $ | (138,927 | ) | $ | 193,863 | $ | 453 | $ | 194,316 | |||||||||||||||
Sales of Common Stock | 1 | 689 | 690 | 690 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 753 | 753 | 753 | |||||||||||||||||||||||||||||||||
Issuances of stock through employee stock purchase plan | 1,026 | 1,026 | 1,026 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 5,937 | 5,937 | (5 | ) | 5,932 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Total comprehensive income | 5,937 | (6 | ) | 5,931 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2018 | $ | 118 | $ | 402 | $ | 193,457 | $ | 129,000 | $ | (394 | ) | $ | (138,927 | ) | $ | 183,656 | $ | 434 | $ | 184,090 | ||||||||||||||||
Sales of Common Stock | 1 | 1,117 | 1,118 | 1,118 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,292 | 2,292 | 2,292 | |||||||||||||||||||||||||||||||||
Issuances of stock through employee stock purchase plan | 1 | 2,304 | 2,305 | 2,305 | ||||||||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 12,786 | 12,786 | 8 | 12,794 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 116 | 116 | 5 | 121 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 12,902 | 13 | 12,915 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Three months ended September 30, 201 8 | Stock | Stock | Capital | Earnings | Income (Loss) | Stock | Equity | Interest | Equity | |||||||||||||||||||||||||||
Balance on June 30, 2018 | $ | 118 | $ | 399 | $ | 188,276 | $ | 109,078 | $ | (401 | ) | $ | (138,927 | ) | $ | 158,543 | $ | 395 | $ | 158,938 | ||||||||||||||||
Sales of Common Stock | 3 | 2,462 | 2,465 | 2,465 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 688 | 688 | 688 | |||||||||||||||||||||||||||||||||
Issuances of stock through employee stock purchase plan | 947 | 947 | 947 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 13,012 | 13,012 | 36 | 13,048 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (115 | ) | (115 | ) | (11 | ) | (126 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 12,897 | 25 | 12,922 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2018 | $ | 118 | $ | 402 | $ | 192,373 | $ | 122,090 | $ | (516 | ) | $ | (138,927 | ) | $ | 175,540 | $ | 420 | $ | 175,960 | ||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2017 | $ | 118 | $ | 401 | $ | 181,395 | $ | 93,605 | $ | (478 | ) | $ | (138,927 | ) | $ | 136,114 | $ | 305 | $ | 136,419 | ||||||||||||||||
Sales of Common Stock | 6 | 6,498 | 6,504 | 6,504 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,604 | 2,604 | 2,604 | |||||||||||||||||||||||||||||||||
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 | ) | 3 | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 24,815 | 24,815 | 124 | 24,939 | ||||||||||||||||||||||||||||||||
Other comprehensive income | (38 | ) | (38 | ) | (9 | ) | (47 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 24,777 | 115 | 24,892 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2018 | $ | 118 | $ | 402 | $ | 192,373 | $ | 122,090 | $ | (516 | ) | $ | (138,927 | ) | $ | 175,540 | $ | 420 | $ | 175,960 | ||||||||||||||||
Three months ended September 30, 2020 | 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 June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 2 | 3,449 | 3,451 | 3,451 | ||||||||||||||||||||||||||||||||
Additional expenses associated with issuance of Common Stock in public offering (see Note 5) | (51 | ) | (51 | ) | (51 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,640 | 1,640 | 1,640 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 5,785 | 5,785 | 1 | 5,786 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 113 | 113 | 6 | 119 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 5,898 | 7 | 5,905 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2020 | $ | 118 | $ | 433 | $ | 326,026 | $ | 149,815 | $ | (203 | ) | $ | (138,927 | ) | $ | 337,262 | $ | 326 | $ | 337,588 | ||||||||||||||||
Nine months ended September 30, 2020 | 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, 2019 | $ | 118 | $ | 405 | $ | 201,251 | $ | 143,098 | $ | (383 | ) | $ | (138,927 | ) | $ | 205,562 | $ | 308 | $ | 205,870 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 10 | 10,826 | 10,836 | 10,836 | ||||||||||||||||||||||||||||||||
Issuance of Common Stock in public offering, net (see Note 5) | 18 | 109,663 | 109,681 | 109,681 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 4,286 | 4,286 | 4,286 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 6,717 | 6,717 | 10 | 6,727 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 180 | 180 | 8 | 188 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 6,897 | 18 | 6,915 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2020 | $ | 118 | $ | 433 | $ | 326,026 | $ | 149,815 | $ | (203 | ) | $ | (138,927 | ) | $ | 337,262 | $ | 326 | $ | 337,588 | ||||||||||||||||
Three months ended September 30, 2019 | 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 June 30, 2019 | $ | 118 | $ | 403 | $ | 196,698 | $ | 135,849 | $ | (278 | ) | $ | (138,927 | ) | $ | 193,863 | $ | 453 | $ | 194,316 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 1,715 | 1,716 | 1,716 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 753 | 753 | 753 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 5,937 | 5,937 | (5 | ) | 5,932 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Total comprehensive income | 5,937 | (6 | ) | 5,931 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
Nine months ended September 30, 2019 | 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, 2018 | $ | 118 | $ | 402 | $ | 193,457 | $ | 129,000 | $ | (394 | ) | $ | (138,927 | ) | $ | 183,656 | $ | 434 | $ | 184,090 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 2 | 3,421 | 3,423 | 3,423 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,292 | 2,292 | 2,292 | |||||||||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 12,786 | 12,786 | 8 | 12,794 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 116 | 116 | 5 | 121 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 12,902 | 13 | 12,915 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
1. Basis of Presentation |
September 30, 2019 | | December 31, 2018 | ||||||
Raw materials | $ | 35,907 | $ | 37,696 | ||||
Work-in-process | 4,854 | 4,740 | ||||||
Finished goods | 8,927 | 4,934 | ||||||
Net balance | $ | 49,688 | $ | 47,370 | ||||
September 30, 2020 | December 31, 2019 | |||||||
Raw materials | $ | 43,165 | $ | 35,901 | ||||
Work-in-process | 8,090 | 5,184 | ||||||
Finished goods | 6,914 | 8,102 | ||||||
$ | 58,169 | $ | 49,187 | |||||
September 30, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 424 | $ | 2,576 | ||||||||
September 30, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 409 | $ | 2,591 | ||||||||
December 31, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
December 31, 2018 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 474 | $ | 2,526 | ||||||||
Cost | | Estimated Fair Value | ||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,576 | ||||
Cost | Estimated Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,591 | ||||
2019 | | 2018 | ||||||
Balance at the beginning of the period | $ | 41 | $ | 48 | ||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (3 | ) | (6 | ) | ||||
Balance at the end of the period | $ | 38 | $ | 42 | ||||
2020 | 2019 | |||||||
Balance at the beginning of the period | $ | 37 | $ | 41 | ||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (3 | ) | (3 | ) | ||||
Balance at the end of the period | $ | 34 | $ | 38 | ||||
4. Fair Value Measurements |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of September 30, 2019 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,588 | $ | — | $ | — | $ | 9,588 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,576 | 2,576 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (210 | ) | (210 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of September 30, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,677 | $ | — | $ | — | $ | 9,677 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,591 | 2,591 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (265 | ) | (265 | ) |
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 | $ | 2,576 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.08% | |||||||
Cumulative probability of principal return prior to maturity | 94.78% | |||||||||||
Cumulative probability of default | 5.14% | |||||||||||
Liquidity risk premium | 5.00% | |||||||||||
Recovery rate in default | 40.00% |
Fair Value | Valuation Technique | Unobservable Input | Weighted Average | |||||||||||
Failed Auction Security | $ | 2,591 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.11 | % | ||||||||
Cumulative probability of principal return prior to maturity | 94.75 | % | ||||||||||||
Cumulative probability of default | 5.14 | % | ||||||||||||
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 securities included in Other income (expense), net | 3 | |||
Gain included in Other comprehensive income | 47 | |||
Balance at the end of the period | $ | 2,576 | ||
Balance at the beginning of the period | $ | 2,510 | ||
Credit gain on available-for-sale | 3 | |||
Gain included in Other comprehensive income | 78 | |||
Balance at the end of the period | $ | 2,591 | ||
Balance at the beginning of the period | $ | 408 | ||
Payments | (198 | ) | ||
Balance at the end of the period | $ | 210 | ||
Balance at the beginning of the period | $ | 451 | ||
Payments | (186 | ) | ||
Balance at the end of the period | $ | 265 | ||
5. Stockholders’ Equity In June 2020, the Company completed an underwritten public offering of its Common Stock, resulting in the issuance of a total of 1,769,231 shares of registered Common Stock and net proceeds of approximately $109.7 million, after deduction of underwriting discounts and offering expenses. The Company intends to use the net proceeds from the offering to expand its manufacturing facilities and for other general corporate purposes. 6. Revenues |
Three Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 16,905 | $ | 4,391 | $ | 21,296 | ||||||
Europe | 4,456 | 2,050 | 6,506 | |||||||||
Asia Pacific | 25,878 | 23,926 | 49,804 | |||||||||
All other | 454 | 52 | 506 | |||||||||
$ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||
Three Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 25,265 | $ | 4,290 | $ | 29,555 | ||||||
Europe | 5,577 | 889 | 6,466 | |||||||||
Asia Pacific | 14,510 | 18,875 | 33,385 | |||||||||
All other | 1,130 | 236 | 1,366 | |||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | |||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 73,289 | $ | 16,562 | $ | 89,851 | ||||||
Europe | 17,960 | 3,517 | 21,477 | |||||||||
Asia Pacific | 46,908 | 37,618 | 84,526 | |||||||||
All other | 2,955 | 1,043 | 3,998 | |||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | |||||||
Three Months Ended September 30, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 20,508 | $ | 9,152 | $ | 29,660 | ||||||
Europe | 7,013 | 1,187 | 8,200 | |||||||||
Asia Pacific | 22,136 | 16,578 | 38,714 | |||||||||
All other | 1,369 | 92 | 1,461 | |||||||||
$ | 51,026 | $ | 27,009 | $ | 78,035 | |||||||
Nine Months Ended September 30, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 55,794 | $ | 25,908 | $ | 81,702 | ||||||
Europe | 16,615 | 3,110 | 19,725 | |||||||||
Asia Pacific | 64,223 | 48,110 | 112,333 | |||||||||
All other | 3,380 | 360 | 3,740 | |||||||||
$ | 140,012 | $ | 77,488 | $ | 217,500 | |||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 57,880 | $ | 17,205 | $ | 75,085 | ||||||
Europe | 18,451 | 5,218 | 23,669 | |||||||||
Asia Pacific | 60,917 | 50,076 | 110,993 | |||||||||
All other | 2,390 | 137 | 2,527 | |||||||||
$ | 139,638 | $ | 72,636 | $ | 212,274 | |||||||
Three Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 25,265 | $ | 4,290 | $ | 29,555 | ||||||
Europe | 5,577 | 889 | 6,466 | |||||||||
Asia Pacific | 14,510 | 18,875 | 33,385 | |||||||||
All other | 1,130 | 236 | 1,366 | |||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | |||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 73,289 | $ | 16,562 | $ | 89,851 | ||||||
Europe | 17,960 | 3,517 | 21,477 | |||||||||
Asia Pacific | 46,908 | 37,618 | 84,526 | |||||||||
All other | 2,955 | 1,043 | 3,998 | |||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | |||||||
Three Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 39,705 | $ | 22,574 | | $ | 62,279 | |||||
Stocking distributors, net of sales allowances | 6,522 | 1,734 | 8,256 | |||||||||
Non-recurring engineering | 163 | (36 | ) | 127 | ||||||||
Royalties | 92 | — | 92 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | |||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 120,496 | $ | 49,524 | $ | 170,020 | ||||||
Stocking distributors, net of sales allowances | 19,750 | 7,817 | 27,567 | |||||||||
Non-recurring engineering | 762 | 1,319 | 2,081 | |||||||||
Royalties | 104 | 24 | 128 | |||||||||
Other | — | 56 | 56 | |||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | |||||||
Three Months Ended September 30, 2018 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 44,269 | $ | 23,508 | $ | 67,777 | ||||||
Stocking distributors, net of sales allowances | 6,236 | 1,773 | 8,009 | |||||||||
Non-recurring engineering | 513 | 1,694 | 2,207 | |||||||||
Royalties | 8 | 16 | 24 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 51,026 | $ | 27,009 | $ | 78,035 | |||||||
Three Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 40,916 | $ | 27,422 | $ | 68,338 | ||||||
Stocking distributors, net of sales allowances | 6,661 | 1,463 | 8,124 | |||||||||
Non-recurring engineering | 116 | 1,499 | 1,615 | |||||||||
Royalties | — | 17 | 17 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 116,127 | $ | 62,233 | $ | 178,360 | ||||||
Stocking distributors, net of sales allowances | 23,097 | 6,101 | 29,198 | |||||||||
Non-recurring engineering | 414 | 4,231 | 4,645 | |||||||||
Royalties | — | 17 | 17 | |||||||||
Other | — | 54 | 54 | |||||||||
$ | 139,638 | $ | 72,636 | $ | 212,274 | |||||||
Three Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 39,705 | $ | 22,574 | $ | 62,279 | ||||||
Stocking distributors, net of sales allowances | 6,522 | 1,734 | 8,256 | |||||||||
Non-recurring engineering | 163 | (36 | ) | 127 | ||||||||
Royalties | 92 | — | 92 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | |||||||
Nine Months Ended September 30, 2018 | ||||||||||||
Brick | Advanced | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 123,147 | $ | 67,924 | $ | 191,071 | ||||||
Stocking distributors, net of sales allowances | 15,934 | 6,924 | 22,858 | |||||||||
Non-recurring engineering | 885 | 2,494 | 3,379 | |||||||||
Royalties | 46 | 92 | 138 | |||||||||
Other | — | 54 | 54 | |||||||||
$ | 140,012 | $ | 77,488 | $ | 217,500 | |||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 120,496 | $ | 49,524 | $ | 170,020 | ||||||
Stocking distributors, net of sales allowances | 19,750 | 7,817 | 27,567 | |||||||||
Non-recurring engineering | 762 | 1,319 | 2,081 | |||||||||
Royalties | 104 | 24 | 128 | |||||||||
Other | — | 56 | 56 | |||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | |||||||
September 30, 2019 | December 31, 2018 | Ch ange | ||||||||||
Accounts receivable | $ | 39,987 | $ | 43,673 | $ | (3,686 | ) | |||||
Short-term deferred revenue | (4,239 | ) | (3,820 | ) | (419 | ) | ||||||
Long-term defer red revenue | (1,134 | ) | (232 | ) | (902 | ) | ||||||
Deferred expenses | 1,418 | 501 | 917 | |||||||||
Customer prepayments | (1,604 | ) | (1,250 | ) | (354 | ) | ||||||
Sales allowances | (1,076 | ) | (548 | ) | (528 | ) |
September 30, 2020 | December 31, 2019 | Change | ||||||||||
Accounts receivable | $ | 41,136 | $ | 38,115 | $ | 3,021 | ||||||
Short-term deferred revenue and customer prepayments | (8,061 | ) | (5,507 | ) | (2,554 | ) | ||||||
Long-term deferred revenue | (813 | ) | (1,054 | ) | 241 | |||||||
Deferred expenses | 1,588 | 1,897 | (309 | ) | ||||||||
Sales allowances | (736 | ) | (741 | ) | 5 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Balance at the beginning of the period | $ | 270 | $ | 326 | $ | 268 | $ | 290 | ||||||||
Accruals for warranties for products sold in the period | 29 | 6 | 113 | 139 | ||||||||||||
Fulfillment of warranty obligations | (41 | ) | (17 | ) | (123 | ) | (94 | ) | ||||||||
Revisions of estimated obligations | — | (58 | ) | — | (78 | ) | ||||||||||
Balance at the end of the period | $ | 258 | $ | 257 | $ | 258 | $ | 257 | ||||||||
7. Stock-Based Compensation |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cost of revenues | $ | 86 | $ | 58 | $ | 228 | $ | 173 | ||||||||
Selling, general and administrative | 482 | 474 | 1,507 | 1,973 | ||||||||||||
Research and development | 185 | 156 | 557 | 458 | ||||||||||||
Total stock-based compensation | $ | 753 | $ | 688 | $ | 2,292 | $ | 2,604 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenues | $ | 296 | $ | 86 | $ | 692 | $ | 228 | ||||||||
Selling, general and administrative | 846 | 482 | 2,313 | 1,507 | ||||||||||||
Research and development | 498 | 185 | 1,281 | 557 | ||||||||||||
Total stock-based compensation | $ | 1,640 | $ | 753 | $ | 4,286 | $ | 2,292 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Stock options | $ | 514 | $ | 503 | $ | 1,556 | $ | 2,101 | ||||||||
ESPP | 239 | 185 | 736 | 503 | ||||||||||||
Total stock-based compensation | $ | 753 | $ | 688 | $ | 2,292 | $ | 2,604 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock options | $ | 1,420 | $ | 514 | $ | 3,663 | $ | 1,556 | ||||||||
ESPP | 220 | 239 | 623 | 736 | ||||||||||||
Total stock-based compensation | $ | 1,640 | $ | 753 | $ | 4,286 | $ | 2,292 | ||||||||
2019 | $ | 458 | ||
2020 | 1,576 | |||
2021 | 923 | |||
2022 | 625 | |||
2023 | 536 | |||
Thereafter | 665 | |||
Total lease payments | $ | 4,783 | ||
Less: Imputed interest | 358 | |||
Present value of lease liabilities | $ | 4,425 | ||
2019 | $ | 215 | ||
2020 | 874 | |||
2021 | 901 | |||
2022 | 928 | |||
2023 | 955 | |||
Thereafter | 402 | |||
Total lease payments to be received | $ | 4,275 | ||
9. Income Taxes |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Provision for income taxes | $ | 266 | $ | 227 | $ | 805 | $ | 724 | ||||||||
Effective income tax rate | 4.3 | % | 1.7 | % | 5.9 | % | 2.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Provision (benefit) for income taxes | $ | 651 | $ | 266 | $ | (249 | ) | $ | 805 | |||||||
Effective income tax rate | 10.1 | % | 4.3 | % | (3.8 | )% | 5.9 | % |
10. Net Income per Share |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 5,937 | $ | 13,012 | $ | 12,786 | $ | 24,815 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 40,332 | 40,120 | 40,279 | 39,769 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,862 | 1,004 | 1,156 | 876 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 42,194 | 41,124 | 41,435 | 40,645 | ||||||||||||
Basic net income per share | $ | 0.15 | $ | 0.32 | $ | 0.32 | $ | 0.62 | ||||||||
Diluted net income per share | $ | 0.14 | $ | 0.32 | $ | 0.31 | $ | 0.61 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 5,785 | $ | 5,937 | $ | 6,717 | $ | 12,786 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 43,164 | 40,332 | 41,814 | 40,279 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,579 | 1,862 | 1,753 | 1,156 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 44,743 | 42,194 | 43,567 | 41,435 | ||||||||||||
Basic net income per share | $ | 0.13 | $ | 0.15 | $ | 0.16 | $ | 0.32 | ||||||||
Diluted net income per share | $ | 0.13 | $ | 0.14 | $ | 0.15 | $ | 0.31 | ||||||||
(1) | Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. |
(2) | Options to purchase 265,725 and 130,027 shares of Common Stock for the three and nine months ended September 30, 2020, respectively, and 171,499 and138,251 shares of Common Stock for the three and nine months ended September 30, 2019, respectively, |
Decrease | ||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||
Brick Products | $ | 46,482 | $ | 51,026 | $ | (4,544 | ) | (8.9 | )% | |||||||
Advanced Products | 24,290 | 27,009 | (2,719 | ) | (10.1 | )% | ||||||||||
Total | $ | 70,772 | $ | 78,035 | $ | (7,263 | ) | (9.3 | )% | |||||||
Increase | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 47,693 | $ | 46,482 | $ | 1,211 | 2.6 | % | ||||||||
Advanced Products | 30,419 | 24,290 | 6,129 | 25.2 | % | |||||||||||
Total | $ | 78,112 | $ | 70,772 | $ | 7,340 | 10.4 | % | ||||||||
Increase (decrease) | ||||||||
Compensation | $ | 578 | 7.5 | %(1) | ||||
Project and pre-production materials | 242 | 18.9 | %(2) | |||||
Supplies expense | 91 | 32.3 | % | |||||
Deferred costs | 81 | 28.7 | % | |||||
Outside services | (115 | ) | (54.2 | )%(3) | ||||
Other, net | (61 | ) | (3.9 | )% | ||||
$ | 816 | 7.6 | % | |||||
Increase (decrease) | ||||||||
Travel expense | $ | (690 | ) | (79.4 | )%(1) | |||
Commissions | (191 | ) | (21.6 | )%(2) | ||||
Outside services | (173 | ) | (25.4 | )%(3) | ||||
Compensation | 812 | 8.6 | %(4) | |||||
Other, net | 11 | 0.4 | % | |||||
$ | (231 | ) | (1.5 | )% | ||||
(1) | Decrease primarily attributable to reduced travel by our sales and marketing personnel, due to travel restrictions caused by the COVID-19 pandemic. |
(2) | Decrease primarily attributable to the decline in net revenues subject to commissions. |
(3) | Decrease primarily attributable to a decrease in the use of outside service providers at our Andover, MA facility. |
(4) | Increase primarily attributable to higher stock-based compensation expense associated with June 2020 stock option awards. |
Increase (decrease) | ||||||||
Compensation | $ | 730 | 8.8 | %(1) | ||||
Facilities allocations | 99 | 16.7 | % | |||||
Deferred costs | (144 | ) | (71.6 | )%(2) | ||||
Project and pre-production materials | (144 | ) | (9.5 | )%(3) | ||||
Other, net | (16 | ) | (1.3 | )% | ||||
$ | 525 | 4.6 | % | |||||
(1) | Increase primarily attributable to higher stock-based compensation expense associated with stock options awarded in June 2020. |
(2) | Decrease primarily attributable to an increase in the capitalization of costs for certain non-recurring engineering projects for which the related revenues have been deferred. |
(3) | Decrease primarily attributable to lower prototype development costs for Advanced Products. |
2019 | 2018 | Increase (decrease) | ||||||||||
Rental income | $ | 198 | $ | 198 | $ | — | ||||||
Interest income | 74 | 68 | 6 | |||||||||
Gain on disposals of equipment | 1 | 29 | (28 | ) | ||||||||
Credit gains on available-for-sale securities | 1 | 2 | (1 | ) | ||||||||
Foreign currency losses, net | (142 | ) | (66 | ) | (76 | ) | ||||||
Other, net | 14 | 1 | 13 | |||||||||
$ | 146 | $ | 232 | $ | (86 | ) | ||||||
2020 | 2019 | Increase (decrease) | ||||||||||
Rental income | $ | 198 | $ | 198 | $ | — | ||||||
Foreign currency gains (losses), net | 140 | (142 | ) | 282 | ||||||||
Interest income | 7 | 74 | (67 | ) | ||||||||
Gain on disposals of equipment | 3 | 1 | 2 | |||||||||
Other, net | (14 | ) | 15 | (29 | ) | |||||||
$ | 334 | $ | 146 | $ | 188 | |||||||
2020 | 2019 | |||||||
Provision for income taxes | $ | 651 | $ | 266 | ||||
Effective income tax rate | 10.1 | % | 4.3 | % |
Increase (decrease) | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 139,638 | $ | 141,112 | $ | (1,474 | ) | (1.0 | )% | |||||||
Advanced Products | 72,636 | 58,740 | 13,896 | 23.7 | % | |||||||||||
Total | $ | 212,274 | $ | 199,852 | $ | 12,422 | 6.2 | % | ||||||||
Increase (decrease) | ||||||||
Compensation | $ | 2,349 | 8.2 | %(1) | ||||
Legal fees | 468 | 46.7 | %(2) | |||||
Depreciation and amortization | 241 | 11.7 | %(3) | |||||
Bad debt expense | 161 | 116.7 | % | |||||
Outside services | (146 | ) | (8.9 | )% | ||||
Facilities allocations | (186 | ) | (14.5 | )% | ||||
Advertising expense | (252 | ) | (11.2 | )%(4) | ||||
Travel expense | (1,397 | ) | (61.8 | )%(5) | ||||
Other, net | (48 | ) | (0.7 | )% | ||||
$ | 1,190 | 2.6 | % | |||||
(1) | Increase primarily attributable to merit-based compensation increases for non-exempt hourly employees, increase in headcount and higher stock-based compensation expense associated with stock options awarded in June 2020. |
(2) | 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. |
(3) | Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(4) | Decrease primarily attributed to lower sales support expenses, direct mailings, and advertising in trade publications. |
(5) | Decrease primarily attributable to reduced travel by our sales and marketing personnel, due to travel restrictions caused by the COVID-19 pandemic. |
Increase (decrease) | ||||||||
Compensation | $ | 2,088 | 8.4 | %(1) | ||||
Project and pre-production materials | 1,122 | 23.7 | %(2) | |||||
Deferred costs | 516 | 44.4 | %(3) | |||||
Other, net | 38 | 0.6 | % | |||||
$ | 3,764 | 10.9 | % | |||||
(1) | Increase primarily attributable to merit-based compensation increases for non-exempt hourly employees, increase in headcount, and higher stock-based compensation expense associated with stock options awarded in June 2020. |
(2) | Increase primarily attributable to higher spending for new product development of Advanced Products. |
(3) | Increase primarily attributable to a decrease in the capitalization of costs for certain non-recurring engineering projects for which the related revenues have been deferred. |
2020 | 2019 | Increase (decrease) | ||||||||||
Rental income | $ | 594 | $ | 594 | $ | — | ||||||
Interest income | 77 | 236 | (159 | ) | ||||||||
Foreign currency gains (losses), net | 23 | (202 | ) | 225 | ||||||||
Gain on disposals of equipment | 9 | 23 | (14 | ) | ||||||||
Other, net | 12 | 22 | (10 | ) | ||||||||
$ | 715 | $ | 673 | $ | 42 | |||||||
2019 | 2018 | |||||||
Provision for income taxes | $ | 266 | $ | 227 | ||||
Effective income tax rate | 4.3 | % | 1.7 | % |
2020 | 2019 | |||||||
(Benefit) provision for income taxes | $ | (249 | ) | $ | 805 | |||
Effective income tax rate | (3.8 | )% | 5.9 | % |
Increase (decrease) | ||||
Cash and cash equivalents | $ | 118,937 | ||
Accounts receivable | 3,021 | |||
Inventories, net | 8,982 | |||
Other current assets | (224 | ) | ||
Accounts payable | (2,906 | ) | ||
Accrued compensation and benefits | (2,838 | ) | ||
Accrued expenses | 273 | |||
Short-term lease liabilities | (43 | ) | ||
Sales allowances | 5 | |||
Income taxes payable | (5 | ) | ||
Short-term deferred revenue | (2,554 | ) | ||
$ | 122,648 | |||
Increase (decrease) | ||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||
Brick Products | $ | 141,112 | $ | 140,012 | $ | 1,100 | 0.8 | % | ||||||||
Advanced Products | 58,740 | 77,488 | (18,748 | ) | (24.2 | )% | ||||||||||
Total | $ | 199,852 | $ | 217,500 | $ | (17,648 | ) | (8.1 | )% | |||||||
Increase (decrease) | ||||||||
Compensation | $ | (464 | ) | (1.6 | )%(1) | |||
Legal fees | (373 | ) | (27.1 | )%(2) | ||||
Audit, tax, and accounting fees | (255 | ) | (14.1 | )%(3) | ||||
Bad debt expense | (231 | ) | (248.5 | )%(4) | ||||
Advertising expenses | 137 | 6.5 | % | |||||
Facilities allocations | 176 | 16.0 | % | |||||
Outside services | 236 | 17.0 | %(5) | |||||
Depreciation and amortization | 239 | 13.1 | %(6) | |||||
Other, net | (112 | ) | (1.5 | )% | ||||
$ | (647 | ) | (1.4 | )% | ||||
Increase (decrease) | ||||||||
Compensation | $ | 1,215 | 5.1 | %(1) | ||||
Project and pre-production materials | 482 | 11.3 | %(2) | |||||
Facilities allocations | 179 | 10.3 | %(3) | |||||
Depreciation and amortization | (133 | ) | (9.0 | )% | ||||
Overhead absorption | (208 | ) | (37.2 | )%(4) | ||||
Deferred costs | (326 | ) | (39.0 | )%(5) | ||||
Other, net | 4 | 0.2 | % | |||||
$ | 1,213 | 3.7 | % | |||||
2019 | 2018 | Increase (decrease) | ||||||||||
Rental income | $ | 594 | $ | 594 | $ | — | ||||||
Interest income | 236 | 177 | 59 | |||||||||
Foreign currency losses, net | (202 | ) | (217 | ) | 15 | |||||||
Gain on disposals of equipment | 23 | 45 | (22 | ) | ||||||||
Credit gains on available-for-sale securities | 3 | 6 | (3 | ) | ||||||||
Other, net | 19 | 13 | 6 | |||||||||
$ | 673 | $ | 618 | $ | 55 | |||||||
2019 | 2018 | |||||||
Provision for income taxes | $ | 805 | $ | 724 | ||||
Effective income tax rate | 5.9 | % | 2.8 | % |
(decrease) | ||||
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 |
(1) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 29, 2001 (FileNo. 000-18277) and incorporated herein by reference. |
(2) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 4, 2020 (FileNo. 000-18277) and incorporated herein by reference. |
VICOR CORPORATION | |||||||||
Date: October | By: | /s/ Patrizio Vinciarelli | |||||||
Patrizio Vinciarelli | |||||||||
Chairman of the Board, President and Chief Executive Officer | |||||||||
Date: October 30, 2020 | By: | /s/ James A. Simms | |||||||
(Principal Financial Officer) |