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 | ☐ | |||||||
Non-accelerated filer | ||||||||
☐ |
Common Stock, $.01 par value | ||||
Class B Common Stock, $.01 par value | 11,758,218 |
Page | ||||
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3 | ||||
4 | ||||
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7 | ||||
20 | ||||
37 | ||||
SECTION 302 CERTIFICATION OF CEO | ||||
SECTION 302 CERTIFICATION OF CFO | ||||
SECTION 906 CERTIFICATION OF CEO | ||||
SECTION 906 CERTIFICATION OF CFO |
June 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 196,704 | $ | 84,668 | ||||
Accounts receivable, less allowance of $82 in 2020 and $59 in 2019 | 48,502 | 38,115 | ||||||
Inventories, net | 55,630 | 49,187 | ||||||
Other current assets | 7,842 | 7,096 | ||||||
Total current assets | 308,678 | 179,066 | ||||||
Long-term deferred tax assets, net | 188 | 205 | ||||||
Long-term investments, net | 2,555 | 2,510 | ||||||
Property, plant and equipment, net | 59,475 | 56,952 | ||||||
Other assets | 1,838 | 1,994 | ||||||
Total assets | $ | 372,734 | $ | 240,727 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 15,647 | $ | 9,005 | ||||
Accrued compensation and benefits | 13,687 | 10,410 | ||||||
Accrued expenses | 2,689 | 2,690 | ||||||
Short-term lease liabilities | 1,156 | 1,520 | ||||||
Sales allowances | 867 | 741 | ||||||
Income taxes payable | 56 | 57 | ||||||
Short-term deferred revenue and customer prepayments | 7,817 | 5,507 | ||||||
Total current liabilities | 41,919 | 29,930 | ||||||
Long-term deferred revenue | 894 | 1,054 | ||||||
Contingent consideration obligations | 307 | 451 | ||||||
Long-term income taxes payable | 571 | 567 | ||||||
Long-term lease liabilities | 2,400 | 2,855 | ||||||
Total liabilities | 46,091 | 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 42,918,485 shares issued and 31,283,679 shares outstanding in 2020; 40,403,058 shares issued and 28,768,252 shares outstanding in 2019 | 431 | 405 | ||||||
Additional paid-in capital | 320,988 | 201,251 | ||||||
Retained earnings | 144,030 | 143,098 | ||||||
Accumulated other comprehensive loss | (316 | ) | (383 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2020 and | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 326,324 | 205,562 | ||||||
Noncontrolling interest | 319 | 308 | ||||||
Total equity | 326,643 | 205,870 | ||||||
Total liabilities and equity | $ | 372,734 | $ | 240,727 | ||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenues | $ | 70,761 | $ | 63,355 | $ | 134,162 | $ | 129,080 | ||||||||
Cost of revenues | 40,443 | 34,238 | 76,513 | 68,877 | ||||||||||||
Gross margin | 30,318 | 29,117 | 57,649 | 60,203 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 15,455 | 15,030 | 31,824 | 30,403 | ||||||||||||
Research and development | 12,830 | 11,706 | 26,165 | 22,926 | ||||||||||||
Total operating expenses | 28,285 | 26,736 | 57,989 | 53,329 | ||||||||||||
Income (loss) from operations | 2,033 | 2,381 | (340 | ) | 6,874 | |||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized (losses) gains on available-for-sale | (2 | ) | 19 | 45 | 39 | |||||||||||
Less: portion of losses (gains) recognized in other comprehensive income | 3 | (18 | ) | (43 | ) | (37 | ) | |||||||||
Net credit gains recognized in earnings | 1 | 1 | 2 | 2 | ||||||||||||
Other income (expense), net | 232 | 287 | 379 | 525 | ||||||||||||
Total other income (expense), net | 233 | 288 | 381 | 527 | ||||||||||||
Income before income taxes | 2,266 | 2,669 | 41 | 7,401 | ||||||||||||
Less: (Benefit) provision for income taxes | (406 | ) | 113 | (900 | ) | 539 | ||||||||||
Consolidated net income | 2,672 | 2,556 | 941 | 6,862 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 5 | (7 | ) | 9 | 13 | |||||||||||
Net income attributable to Vicor Corporation | $ | 2,667 | $ | 2,563 | $ | 932 | $ | 6,849 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.17 | ||||||||
Diluted | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.17 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 41,643 | 40,275 | 41,140 | 40,252 | ||||||||||||
Diluted | 43,385 | 41,081 | 42,980 | 41,055 |
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 June 30 | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Consolidated net income | $ | 2,672 | $ | 2,556 | $ | 941 | $ | 6,862 | ||||||||
Foreign currency translation (losses) gains , net of tax (1) | (15 | ) | 151 | 26 | 85 | |||||||||||
Unrealized (losses) gains on available-for-sale | (3 | ) | 18 | 43 | 37 | |||||||||||
Other comprehensive (loss) income | (18 | ) | 169 | 69 | 122 | |||||||||||
Consolidated comprehensive income | 2,654 | 2,725 | 1,010 | 6,984 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | 3 | 4 | 11 | 19 | ||||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 2,651 | $ | 2,721 | $ | 999 | $ | 6,965 | ||||||||
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 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 941 | $ | 6,862 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 5,439 | 4,998 | ||||||
Stock-based compensation expense, net | 2,646 | 1,539 | ||||||
Provision (benefit) for doubtful accounts | 23 | (117 | ) | |||||
Increase (decrease) in long-term income taxes payable | 4 | (2 | ) | |||||
Decrease in long-term deferred revenue | (160 | ) | (36 | ) | ||||
Gain on disposal of equipment | (6 | ) | (22 | ) | ||||
Deferred income taxes | 17 | 24 | ||||||
Credit gain on available-for-sale | (2 | ) | (2 | ) | ||||
Change in current assets and liabilities, net | (5,233 | ) | (8,005 | ) | ||||
Net cash provided by operating activities | 3,669 | 5,239 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (8,724 | ) | (5,864 | ) | ||||
Proceeds from sale of equipment | 6 | 22 | ||||||
Increase (decrease) in other assets | 95 | (137 | ) | |||||
Net cash used for investing activities | (8,623 | ) | (5,979 | ) | ||||
Financing activities: | ||||||||
Proceeds from employee stock plans | 7,385 | 1,707 | ||||||
Proceeds from public offering of Common Stock | 109,732 | — | ||||||
Payment of contingent consideration obligations | (144 | ) | (102 | ) | ||||
Net cash provided by financing activities | 116,973 | 1,605 | ||||||
Effect of foreign exchange rates on cash | 17 | 60 | ||||||
Net increase in cash and cash equivalents | 112,036 | 925 | ||||||
Cash and cash equivalents at beginning of period | 84,668 | 70,557 | ||||||
Cash and cash equivalents at end of period | $ | 196,704 | $ | 71,482 | ||||
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 | ||||
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 | ||||||||||||||||
Three months ended June 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 March 31, 2020 | $ | 118 | $ | 407 | $ | 204,020 | $ | 141,363 | $ | (300 | ) | $ | (138,927 | ) | $ | 206,681 | $ | 316 | $ | 206,997 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 6 | 5,318 | 5,324 | 5,324 | ||||||||||||||||||||||||||||||||
Issuanc e of Common Stock in public offering (see Note 5) | 18 | 109,714 | 109,732 | 109,732 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,936 | 1,936 | 1,936 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 2,667 | 2,667 | 5 | 2,672 | ||||||||||||||||||||||||||||||||
Other comprehensive income | (16 | ) | (16 | ) | (2 | ) | (18 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 2,651 | 3 | 2,654 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Six months ended June 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 | 8 | 7,377 | 7,385 | 7,385 | ||||||||||||||||||||||||||||||||
Issuance of Common Stock in p ublicoffering (see Note 5) | 18 | 109,714 | 109,732 | 109,732 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,646 | 2,646 | 2,646 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 932 | 932 | 9 | 941 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 67 | 67 | 2 | 69 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 999 | 11 | 1,010 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Three months ended June 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 March 31, 2019 | $ | 118 | $ | 403 | $ | 195,799 | $ | 133,286 | $ | (436 | ) | $ | (138,927 | ) | $ | 190,243 | $ | 449 | $ | 190,692 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 137 | 137 | 137 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 766 | 766 | 766 | |||||||||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 2,563 | 2,563 | (7 | ) | 2,556 | |||||||||||||||||||||||||||||||
Other comprehensive loss | 158 | 158 | 11 | 169 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 2,721 | 4 | 2,725 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2019 | $ | 118 | $ | 403 | $ | 196,698 | $ | 135,849 | $ | (278 | ) | $ | (138,927 | ) | $ | 193,863 | $ | 453 | $ | 194,316 | ||||||||||||||||
Six months ended June 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 | 1 | 1,706 | 1,707 | 1,707 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,539 | 1,539 | 1,539 | |||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 6,849 | 6,849 | 13 | 6,862 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 116 | 116 | 6 | 122 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 6,965 | 19 | 6,984 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2019 | $ | 118 | $ | 403 | $ | 196,698 | $ | 135,849 | $ | (278 | ) | $ | (138,927 | ) | $ | 193,863 | $ | 453 | $ | 194,316 | ||||||||||||||||
June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||
Raw materials | $ | 40,745 | $ | 35,901 | $ | 43,165 | $ | 35,901 | ||||||||
Work-in-process | 8,139 | 5,184 | 8,090 | 5,184 | ||||||||||||
Finished goods | 6,746 | 8,102 | 6,914 | 8,102 | ||||||||||||
Net balance | $ | 55,630 | $ | 49,187 | ||||||||||||
$ | 58,169 | $ | 49,187 | |||||||||||||
Gross Unrealized | Gross Unrealized | Estimated Fair | ||||||||||||||
June 30, 2020 | Cost | Gains | Losses | Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 445 | $ | 2,555 | ||||||||
September 30, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 409 | $ | 2,591 | ||||||||
Gross Unrealized | Gross Unrealized | Estimated Fair | ||||||||||||||
December 31, 2019 | Cost | Gains | Losses | Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
December 31, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
Estimated | ||||||||
Cost | Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,555 | ||||
Cost | Estimated Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,591 | ||||
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 | (2 | ) | (2 | ) | ||||
Balance at the end of the period | $ | 35 | $ | 39 | ||||
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 | ||||
Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobservable | Total Fair | |||||||||||||
Markets | Inputs | Inputs | Value as of | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | June 30, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,674 | $ | — | $ | — | $ | 9,674 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,555 | 2,555 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (307 | ) | (307 | ) |
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 | ||||||||||||||||||||||||||||||||
Significant | ||||||||||||||||||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||||||||||||||||||
in Active | Observable | Unobservable | Total Fair | |||||||||||||||||||||||||||||
Markets | Inputs | Inputs | Value as of | Using | ||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | December 31, 2019 | 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 | $ | 9,630 | $ | — | $ | — | $ | 9,630 | ||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Failed Auction Security | — | — | 2,510 | 2,510 | — | — | 2,510 | 2,510 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration obligations | — | — | (451 | ) | (451 | ) | — | — | (451 | ) | (451 | ) |
Fai r Value | Valuation | Unobservable Input | Weighted Average | |||||||||
Failed Auction Security | $ | 2,555 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.11 | % | ||||||
Cumulative probability of principal return prior to maturity | 94.31 | % | ||||||||||
Cumulative probability of default | 5.58 | % | ||||||||||
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 | $ | 2,510 | $ | 2,510 | ||||
Credit gain on available-for-sale | 2 | 3 | ||||||
Gain included in Other comprehensive income | 43 | 78 | ||||||
Balance at the end of the period | $ | 2,555 | $ | 2,591 | ||||
Balance at the beginning of the period | $ | 451 | ||
Payments | (144 | ) | ||
Balance at the end of the period | $ | 307 | ||
Balance at the beginning of the period | $ | 451 | ||
Payments | (186 | ) | ||
Balance at the end of the period | $ | 265 | ||
Three Months Ended June 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Brick Products | Advanced Products | Total | Brick Products | Advanced Products | Total | |||||||||||||||||||
United States | $ | 15,005 | $ | 5,217 | $ | 20,222 | $ | 16,905 | $ | 4,391 | $ | 21,296 | ||||||||||||
Europe | 9,427 | 2,289 | 11,716 | 4,456 | 2,050 | 6,506 | ||||||||||||||||||
Asia Pacific | 21,383 | 16,774 | 38,157 | 25,878 | 23,926 | 49,804 | ||||||||||||||||||
All other | 613 | 53 | 666 | 454 | 52 | 506 | ||||||||||||||||||
$ | 46,428 | $ | 24,333 | $ | 70,761 | $ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 40,975 | $ | 12,814 | $ | 53,789 | ||||||||||||||||||
Europe | 13,995 | 3,168 | 17,163 | |||||||||||||||||||||
Asia Pacific | 35,039 | 26,150 | 61,189 | |||||||||||||||||||||
All other | 1,936 | 85 | 2,021 | |||||||||||||||||||||
$ | 91,945 | $ | 42,217 | $ | 134,162 | |||||||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 25,732 | $ | 5,323 | $ | 31,055 | ||||||||||||||||||
Europe | 6,374 | 1,642 | 8,016 | |||||||||||||||||||||
Asia Pacific | 15,287 | 7,843 | 23,130 | |||||||||||||||||||||
All other | 612 | 542 | 1,154 | |||||||||||||||||||||
$ | 48,005 | $ | 15,350 | $ | 63,355 | |||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 48,024 | $ | 12,272 | $ | 60,296 | ||||||||||||||||||
Europe | 12,383 | 2,628 | 15,011 | |||||||||||||||||||||
Asia Pacific | 32,398 | 18,743 | 51,141 | |||||||||||||||||||||
All other | 1,825 | 807 | 2,632 | |||||||||||||||||||||
$ | 94,630 | $ | 34,450 | $ | 129,080 | |||||||||||||||||||
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 June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 39,472 | $ | 20,044 | $ | 59,516 | ||||||||||||||||||
Stocking distributors, net of sales allowances | 6,814 | 1,576 | 8,390 | |||||||||||||||||||||
Non-recurring engineering | 142 | 2,695 | 2,837 | |||||||||||||||||||||
Other | — | 18 | 18 | |||||||||||||||||||||
$ | 46,428 | $ | 24,333 | $ | 70,761 | |||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 75,211 | $ | 34,811 | $ | 110,022 | ||||||||||||||||||
Stocking distributors, net of sales allowances | 16,436 | 4,638 | 21,074 | |||||||||||||||||||||
Non-recurring engineering | 298 | 2,732 | 3,030 | |||||||||||||||||||||
Other | — | 36 | 36 | |||||||||||||||||||||
$ | 91,945 | $ | 42,217 | $ | 134,162 | |||||||||||||||||||
Three Months Ended June 30, 2019 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Brick Products | Advanced Products | Total | Brick Products | Advanced Products | Total | |||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 40,843 | $ | 12,184 | $ | 53,027 | $ | 40,916 | $ | 27,422 | $ | 68,338 | ||||||||||||
Stocking distributors, net of sales allowances | 7,111 | 2,918 | 10,029 | 6,661 | 1,463 | 8,124 | ||||||||||||||||||
Non-recurring engineering | 51 | 230 | 281 | 116 | 1,499 | 1,615 | ||||||||||||||||||
Royalties | — | — | — | — | 17 | 17 | ||||||||||||||||||
Other | — | 18 | 18 | — | 18 | 18 | ||||||||||||||||||
$ | 48,005 | $ | 15,350 | $ | 63,355 | $ | 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 | |||||||
Six Months Ended June 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 80,791 | $ | 26,950 | $ | 107,741 | ||||||
Stocking distributors, net of sales allowances | 13,228 | 6,083 | 19,311 | |||||||||
Non-recurring engineering | 599 | 1,355 | 1,954 | |||||||||
Royalties | 12 | 24 | 36 | |||||||||
Other | — | 38 | 38 | |||||||||
$ | 94,630 | $ | 34,450 | $ | 129,080 | |||||||
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 | |||||||
June 30, 2020 | December 31, | Change | ||||||||||
Accounts receivable | $ | 48,502 | $ | 38,115 | $ | 10,387 | ||||||
Short-term deferred revenue and customer prepayments | (7,817 | ) | (5,507 | ) | (2,310 | ) | ||||||
Long-term deferred revenue | (894 | ) | (1,054 | ) | 160 | |||||||
Deferred expenses | 1,552 | 1,897 | (345 | ) | ||||||||
Sales allowances | (867 | ) | (741 | ) | (126 | ) |
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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenues | $ | 277 | $ | 73 | $ | 396 | $ | 142 | ||||||||
Selling, general and administrative | 1,030 | 506 | 1,467 | 1,025 | ||||||||||||
Research and development | 629 | 187 | 783 | 372 | ||||||||||||
Total stock-based compensation | $ | 1,936 | $ | 766 | $ | 2,646 | $ | 1,539 | ||||||||
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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock options | $ | 1,737 | $ | 509 | $ | 2,243 | $ | 1,042 | ||||||||
ESPP | 199 | 257 | 403 | 497 | ||||||||||||
Total stock-based compensation | $ | 1,936 | $ | 766 | $ | 2,646 | $ | 1,539 | ||||||||
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 | ||||||||
Three Months Ended | Six Months Ended | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
June 30 , | June 30 , | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
(Benefit) provision for income taxes | $ | (406 | ) | $ | 113 | $ | (900 | ) | $ | 539 | ||||||||||||||||||||||
Provision (benefit) for income taxes | $ | 651 | $ | 266 | $ | (249 | ) | $ | 805 | |||||||||||||||||||||||
Effective income tax rate | (17.9 | )% | 4.2 | % | (2,195.1 | )% | 7.3 | % | 10.1 | % | 4.3 | % | (3.8 | )% | 5.9 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 2,667 | $ | 2,563 | $ | 932 | $ | 6,849 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 41,643 | 40,275 | 41,140 | 40,252 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,742 | 806 | 1,840 | 803 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 43,385 | 41,081 | 42,980 | 41,055 | ||||||||||||
Basic net income per share | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.17 | ||||||||
Diluted net income per share | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.17 | ||||||||
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 |
Increase (decrease) | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 46,428 | $ | 48,005 | $ | (1,577) | (3.3 | )% | ||||||||
Advanced Products | 24,333 | 15,350 | 8,983 | 58.5 | % | |||||||||||
Total | $ | 70,761 | $ | 63,355 | $ | 7,406 | 11.7 | % | ||||||||
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 | $ | 1,080 | 11.4 | % (1) | ||||
Depreciation and amortization | 75 | 10.8 | % | |||||
Legal fees | (107 | ) | (31.0 | )% | ||||
Advertising expense | (133 | ) | (16.0 | )% | ||||
Travel expense | (562 | ) | (77.0 | )% (2) | ||||
Other, net | 72 | 2.5 | % | |||||
$ | 425 | 2.8 | % | |||||
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 | $ | 783 | 9.4 | % (1) | ||||
Project and pre-production materials | 296 | 18.0 | % (2) | |||||
Deferred costs | 296 | 62.3 | % (3) | |||||
Facilities allocations | (81 | ) | (12.1 | )% | ||||
Outside services | (117 | ) | (42.3 | )% | ||||
Other, net | (53 | ) | (4.3 | )% | ||||
$ | 1,124 | 9.6 | % | |||||
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 |
(2) |
non-recurring engineering projects for which the related revenues have been deferred. |
(3) | Decrease primarily attributable to lower prototype development costs for Advanced Products. |
2020 | 2019 | Increase (decrease) | ||||||||||
Rental income | $ | 198 | $ | 198 | $ | — | ||||||
Interest income | 17 | 79 | (62 | ) | ||||||||
Gain on disposals of equipment | 6 | 13 | (7 | ) | ||||||||
Foreign currency gains (losses), net | 3 | (2 | ) | 5 | ||||||||
Other, net | 9 | — | 9 | |||||||||
$ | 233 | $ | 288 | $ | (55 | ) | ||||||
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 | |||||||
(Benefit) provision for income taxes | $ | (406) | $ | 113 | ||||
Effective income tax rate | (17.9 | )% | 4.2 | % |
2020 | 2019 | |||||||
Provision for income taxes | $ | 651 | $ | 266 | ||||
Effective income tax rate | 10.1 | % | 4.3 | % |
Increase (decrease) | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 91,945 | $ | 94,630 | $ | (2,685) | (2.8 | )% | ||||||||
Advanced Products | 42,217 | 34,450 | 7,767 | 22.5 | % | |||||||||||
Total | $ | 134,162 | $ | 129,080 | $ | 5,082 | 3.9 | % | ||||||||
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 | $ | 1,537 | 8.0 | % (1) | ||||
Legal fees | 456 | 65.7 | % (2) | |||||
Depreciation and amortization | 192 | 14.4 | % | |||||
Bad debt expense | 140 | 119.7 | % | |||||
Audit, tax, and accounting fees | 88 | 9.3 | % | |||||
Facilities allocations | (159 | ) | (18.2 | )% | ||||
Business taxes and bank fees | (171 | ) | (33.7 | )% | ||||
Travel expense | (707 | ) | (50.8 | )% (3) | ||||
Other, net | 45 | 0.8 | % | |||||
$ | 1,421 | 4.7 | % |
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 expense associated with stock options awarded in June 2020.non-exempt hourly employees, increase in headcount and higher stock-based compensation |
(2) | Increase primarily attributable to |
(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 COVID-19 pandemic. |
Increase (decrease) | ||||||||
Compensation | $ | 1,358 | 8.2 | % (1) | ||||
Project and pre-production materials | 1,266 | 39.3 | % (2) | |||||
Deferred costs | 660 | 68.7 | % (3) | |||||
Depreciation and amortization | 88 | 9.9 | % | |||||
Facilities allocations | (152 | ) | (11.6 | )% | ||||
Other, net | 19 | 1.0 | % | |||||
$ | 3,239 | 14.1 | % | |||||
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 expense associated with stock options awarded in June 2020.non-exempt hourly employees, increase in headcount, and higher stock-based compensation |
(2) | Increase primarily attributable to |
(3) | Increase primarily attributable to a decrease in non-recurring engineering projects for which the related revenues have been deferred. |
2020 | 2019 | Increase (decrease) | ||||||||||
Rental income | $ | 396 | $ | 396 | $ | — | ||||||
Interest income | 70 | 162 | (92 | ) | ||||||||
Gain on disposals of equipment | 6 | 22 | (16 | ) | ||||||||
Foreign currency losses, net | (117 | ) | (60 | ) | (57 | ) | ||||||
Other, net | 26 | 7 | 19 | |||||||||
$ | 381 | $ | 527 | $ | (146 | ) | ||||||
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 | |||||||
2020 | 2019 | |||||||
(Benefit) provision for income taxes | $ | (900) | $ | 539 | ||||
Effective income tax rate | (2195.1 | )% | 7.3 | % |
2020 | 2019 | |||||||
(Benefit) provision for income taxes | $ | (249 | ) | $ | 805 | |||
Effective income tax rate | (3.8 | )% | 5.9 | % |
(decrease) | ||||
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 | |||
(a) Disclosure regarding controls and procedures. |
(b) Changes in internal control over financial reporting. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
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) |
(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: | By: | /s/ Patrizio Vinciarelli | ||||
Patrizio Vinciarelli | ||||||
Chairman of the Board, President and | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ James A. Simms | ||||
James A. Simms | ||||||
Vice President, Chief Financial Officer | ||||||
(Principal Financial Officer) |