☒ | 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 | 32,010,275 | |||
Class B Common Stock, $.01 par value | 11,758,218 |
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SECTION 302 CERTIFICATION OF CEO | ||||
SECTION 302 CERTIFICATION OF CFO | ||||
SECTION 906 CERTIFICATION OF CEO | ||||
SECTION 906 CERTIFICATION OF CFO |
June 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 159,763 | $ | 161,742 | ||||
Short-term investments | 70,469 | 50,166 | ||||||
Accounts receivable, less allowance of $82 in 2021 and 2020 | 55,012 | 40,999 | ||||||
Inventories, net | 57,129 | 57,269 | ||||||
Other current assets | 6,657 | 6,756 | ||||||
Total current assets | 349,030 | 316,932 | ||||||
Long-term deferred tax assets, net | 221 | 226 | ||||||
Long-term investments, net | 2,561 | 2,517 | ||||||
Property, plant and equipment, net | 92,956 | 74,843 | ||||||
Other assets | 1,608 | 1,721 | ||||||
Total assets | $ | 446,376 | $ | 396,239 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 22,081 | $ | 14,121 | ||||
Accrued compensation and benefits | 15,794 | 14,094 | ||||||
Accrued expenses | 3,618 | 2,624 | ||||||
Short-term lease liabilities | 1,559 | 1,629 | ||||||
Sales allowances | 1,919 | 597 | ||||||
Income taxes payable | 890 | 139 | ||||||
Short-term deferred revenue and customer prepayments | 3,916 | 7,309 | ||||||
Total current liabilities | 49,777 | 40,513 | ||||||
Long-term deferred revenue | 573 | 733 | ||||||
Contingent consideration obligations | 46 | 227 | ||||||
Long-term income taxes payable | 649 | 643 | ||||||
Long-term lease liabilities | 2,439 | 2,968 | ||||||
Total liabilities | 53,484 | 45,084 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Equity: | ||||||||
Vicor Corporation stockholders’ equity: | ||||||||
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,758,218 shares issued and outstanding in 2021 and 2020 | 118 | 118 | ||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized | ||||||||
43,452,740 shares issued and 31,817,934 shares outstanding in 2021; | ||||||||
43,204,671 shares issued and 31,569,865 shares outstanding in 2020 | 436 | 433 | ||||||
Additional paid-in capital | 336,278 | 328,392 | ||||||
Retained earnings | 195,494 | 161,008 | ||||||
Accumulated other comprehensive loss | (813 | ) | (204 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2021 and 2020 | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 392,586 | 350,820 | ||||||
Noncontrolling interest | 306 | 335 | ||||||
Total equity | 392,892 | 351,155 | ||||||
Total liabilities and equity | $ | 446,376 | $ | 396,239 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 95,376 | $ | 70,761 | $ | 184,172 | $ | 134,162 | ||||||||
Cost of revenues | 45,505 | 40,443 | 89,601 | 76,513 | ||||||||||||
Gross margin | 49,871 | 30,318 | 94,571 | 57,649 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 16,589 | 15,455 | 33,543 | 31,824 | ||||||||||||
Research and development | 13,273 | 12,830 | 26,299 | 26,165 | ||||||||||||
Total operating expenses | 29,862 | 28,285 | 59,842 | 57,989 | ||||||||||||
Income (loss) from operations | 20,009 | 2,033 | 34,729 | (340 | ) | |||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized gains (losses) on available-for-sale | 20 | (2 | ) | 44 | 45 | |||||||||||
Less: portion of (gains) losses recognized in other comprehensive income | (19 | ) | 3 | (42 | ) | (43 | ) | |||||||||
Net credit gains recognized in earnings | 1 | 1 | 2 | 2 | ||||||||||||
Other income (expense), net | 372 | 232 | 603 | 379 | ||||||||||||
Total other income (expense), net | 373 | 233 | 605 | 381 | ||||||||||||
Income before income taxes | 20,382 | 2,266 | 35,334 | 41 | ||||||||||||
Provision (benefit) for income taxes | 999 | (406 | ) | 856 | (900 | ) | ||||||||||
Consolidated net income | 19,383 | 2,672 | 34,478 | 941 | ||||||||||||
Less: Net (loss) income attributable to noncontrolling interest | (11 | ) | 5 | (8 | ) | 9 | ||||||||||
Net income attributable to Vicor Corporation | $ | 19,394 | $ | 2,667 | $ | 34,486 | $ | 932 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.45 | $ | 0.06 | $ | 0.79 | $ | 0.02 | ||||||||
Diluted | $ | 0.43 | $ | 0.06 | $ | 0.77 | $ | 0.02 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 43,553 | 41,643 | 43,504 | 41,140 | ||||||||||||
Diluted | 44,841 | 43,385 | 44,841 | 42,980 | ||||||||||||
September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 178,663 | $ | 161,742 | ||||
Short-term investments | 50,217 | 50,166 | ||||||
Accounts receivable, net | 51,080 | 40,999 | ||||||
Inventories, net | 63,409 | 57,269 | ||||||
Other current assets | 6,633 | 6,756 | ||||||
Total current assets | 350,002 | 316,932 | ||||||
Long-term deferred tax assets, net | 221 | 226 | ||||||
Long-term investments, net | 2,598 | 2,517 | ||||||
Property, plant and equipment, net | 104,446 | 74,843 | ||||||
Other assets | 1,563 | 1,721 | ||||||
Total assets | $ | 458,830 | $ | 396,239 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 18,346 | $ | 14,121 | ||||
Accrued compensation and benefits | 13,994 | 14,094 | ||||||
Accrued expenses | 3,589 | 2,624 | ||||||
Short-term lease liabilities | 1,625 | 1,629 | ||||||
Sales allowances | 1,661 | 597 | ||||||
Income taxes payable | 10 | 139 | ||||||
Short-term deferred revenue and customer prepayments | 3,390 | 7,309 | ||||||
Total current liabilities | 42,615 | 40,513 | ||||||
Long-term deferred revenue | 493 | 733 | ||||||
Contingent consideration obligations | — | 227 | ||||||
Long-term income taxes payable | 564 | 643 | ||||||
Long-term lease liabilities | 3,504 | 2,968 | ||||||
Total liabilities | 47,176 | 45,084 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Equity: | ||||||||
Vicor Corporation stockholders’ equity: | ||||||||
Class | 118 | 118 | ||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized 43,635,881 shares issued and 32,001,075 shares outstanding in 2021; 43,204,671 shares issued and 31,569,865 shares outstanding in 2020 | 437 | 433 | ||||||
Additional paid-in capital | 342,014 | 328,392 | ||||||
Retained earnings | 208,753 | 161,008 | ||||||
Accumulated other comprehensive loss | (1,040 | ) | (204 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2021 and 2020 | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 411,355 | 350,820 | ||||||
Noncontrolling interest | 299 | 335 | ||||||
Total equity | 411,654 | 351,155 | ||||||
Total liabilities and equity | $ | 458,830 | $ | 396,239 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 84,911 | $ | 78,112 | $ | 269,083 | $ | 212,274 | ||||||||
Cost of revenues | 42,098 | 44,765 | 131,699 | 121,278 | ||||||||||||
Gross margin | 42,813 | 33,347 | 137,384 | 90,996 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 17,322 | 15,212 | 50,865 | 47,036 | ||||||||||||
Research and development | 13,519 | 12,032 | 39,818 | 38,197 | ||||||||||||
Total operating expenses | 30,841 | 27,244 | 90,683 | 85,233 | ||||||||||||
Income from operations | 11,972 | 6,103 | 46,701 | 5,763 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized gains on available-for-sale securities, net | 37 | 36 | 81 | 81 | ||||||||||||
Less: portion of gains recognized in other comprehensive income | (36 | ) | (35 | ) | (78 | ) | (78 | ) | ||||||||
Net credit gains recognized in earnings | 1 | 1 | 3 | 3 | ||||||||||||
Other income (expense), net | 393 | 333 | 996 | 712 | ||||||||||||
Total other income (expense), net | 394 | 334 | 999 | 715 | ||||||||||||
Income before income taxes | 12,366 | 6,437 | 47,700 | 6,478 | ||||||||||||
(Benefit) provision for income taxes | (886 | ) | 651 | (30 | ) | (249 | ) | |||||||||
Consolidated net income | 13,252 | 5,786 | 47,730 | 6,727 | ||||||||||||
Less: Net (loss) income attributable to noncontrolling interest | (7 | ) | 1 | (15 | ) | 10 | ||||||||||
Net income attributable to Vicor Corporation | $ | 13,259 | $ | 5,785 | $ | 47,745 | $ | 6,717 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.30 | $ | 0.13 | $ | 1.10 | $ | 0.16 | ||||||||
Diluted | $ | 0.29 | $ | 0.13 | $ | 1.06 | $ | 0.15 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 43,710 | 43,164 | 43,573 | 41,814 | ||||||||||||
Diluted | 45,034 | 44,743 | 44,905 | 43,567 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated net income | $ | 19,383 | $ | 2,672 | $ | 34,478 | $ | 941 | ||||||||
Foreign currency translation (losses) gains, net of tax (1) | (10 | ) | (15 | ) | (271 | ) | 26 | |||||||||
Unrealized (losses) gains on available-for-sale | (231 | ) | (3 | ) | (359 | ) | 43 | |||||||||
Other comprehensive (loss) income | (241 | ) | (18 | ) | (630 | ) | 69 | |||||||||
Consolidated comprehensive income | 19,142 | 2,654 | 33,848 | 1,010 | ||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (12 | ) | 3 | (29 | ) | 11 | ||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 19,154 | $ | 2,651 | $ | 33,877 | $ | 999 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated net income | $ | 13,252 | $ | 5,786 | $ | 47,730 | $ | 6,727 | ||||||||
Foreign currency translation (losses) gains, net of tax (1) | (12 | ) | 84 | (283 | ) | 110 | ||||||||||
Unrealized (losses) gains on available-for-sale securities, net of tax (1) | (215 | ) | 35 | (574 | ) | 78 | ||||||||||
Other comprehensive (loss) income | (227 | ) | 119 | (857 | ) | 188 | ||||||||||
Consolidated comprehensive income | 13,025 | 5,905 | 46,873 | 6,915 | ||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (7 | ) | 7 | (36 | ) | 18 | ||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 13,032 | $ | 5,898 | $ | 46,909 | $ | 6,897 | ||||||||
(1) | The deferred tax assets associated with foreign currency translation (losses) gains and unrealized (losses) gains on available-for-sale |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 34,478 | $ | 941 | ||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operating activities: | ||||||||
Depreciation and amortization | 5,618 | 5,439 | ||||||
Stock-based compensation expense, net | 3,138 | 2,646 | ||||||
Decrease in long-term deferred revenue | (160 | ) | (160 | ) | ||||
Loss (gain) on disposal of equipment | 106 | (6 | ) | |||||
Decrease in contingent consideration obligations | (74 | ) | — | |||||
Decrease in other assets | 37 | 95 | ||||||
Increase in long-term income taxes payable | 6 | 4 | ||||||
Deferred income taxes | 5 | 17 | ||||||
Credit gain on available-for-sale | (2 | ) | (2 | ) | ||||
Provision for doubtful accounts | — | 23 | ||||||
Change in current assets and liabilities, net | (13,037 | ) | (5,233 | ) | ||||
Net cash provided by operating activities | 30,115 | 3,764 | ||||||
Investing activities: | ||||||||
Purchases of short-term investments | (50,706 | ) | — | |||||
Sales or maturities of short-term investments | 30,000 | — | ||||||
Additions to property, plant and equipment | (15,782 | ) | (8,724 | ) | ||||
Other | (106 | ) | 6 | |||||
Net cash used for investing activities | (36,594 | ) | (8,718 | ) | ||||
Financing activities: | ||||||||
Proceeds from employee stock plans | 4,751 | 7,385 | ||||||
Payment of contingent consideration obligations | (107 | ) | (144 | ) | ||||
Proceeds from public offering of Common Stock | — | 109,732 | ||||||
Net cash provided by financing activities | 4,644 | 116,973 | ||||||
Effect of foreign exchange rates on cash | (144 | ) | 17 | |||||
Net (decrease) increase in cash and cash equivalents | (1,979 | ) | 112,036 | |||||
Cash and cash equivalents at beginning of period | 161,742 | 84,668 | ||||||
Cash and cash equivalents at end of period | $ | 159,763 | $ | 196,704 | ||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 47,730 | $ | 6,727 | ||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operating activities: | ||||||||
Depreciation and amortization | 8,564 | 8,175 | ||||||
Stock-based compensation expense | 5,005 | 4,286 | ||||||
Decrease in long-term deferred revenue | (240 | ) | (241 | ) | ||||
Decrease in contingent consideration obligations | (74 | ) | — | |||||
Gain on disposal of equipment | — | (9 | ) | |||||
Decrease in other assets | 56 | 135 | ||||||
(Decrease) ncrease in long-term income taxes payablei | (79 | ) | 8 | |||||
Deferred income taxes | 5 | 16 | ||||||
Credit gain on available-for-sale securities | (3 | ) | (3 | ) | ||||
Provision for doubtful accounts | — | 23 | ||||||
Change in current assets and liabilities, net | (20,737 | ) | (3,742 | ) | ||||
Net cash provided by operating activities | 40,227 | 15,375 | ||||||
Investing activities: | ||||||||
Purchases of short-term investments | (50,706 | ) | — | |||||
Sales or maturities of short-term investments | 50,000 | — | ||||||
Additions to property, plant and equipment | (30,942 | ) | (16,837 | ) | ||||
Proceeds from sale of equipment | — | 9 | ||||||
Net cash used for investing activities | (31,648 | ) | (16,828 | ) | ||||
Financing activities: | ||||||||
Proceeds from employee stock plans | 8,621 | 10,836 | ||||||
Payment of contingent consideration obligations | (153 | ) | (186 | ) | ||||
Proceeds from public offering of Common Stock | — | 109,681 | ||||||
Net cash provided by financing activities | 8,468 | 120,331 | ||||||
Effect of foreign exchange rates on cash | (126 | ) | 59 | |||||
Net increase in cash and cash equivalents | 16,921 | 118,937 | ||||||
Cash and cash equivalents at beginning of period | 161,742 | 84,668 | ||||||
Cash and cash equivalents at end of period | $ | 178,663 | $ | 203,605 | ||||
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 | ||||||||||||||||||||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on June 30, 2021 | $ | 118 | $ | 436 | $ | 336,278 | $ | 195,494 | $ | (813 | ) | $ | (138,927 | ) | $ | 392,586 | $ | 306 | $ | 392,892 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 3,869 | 3,870 | 3,870 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,867 | 1,867 | 1,867 | |||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 13,259 | 13,259 | (7 | ) | 13,252 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (227 | ) | (227 | ) | — | (227 | ) | |||||||||||||||||||||||||||||
Total comprehensive income (loss) | 13,032 | (7 | ) | 13,025 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2021 | $ | 118 | $ | 437 | $ | 342,014 | $ | 208,753 | $ | (1,040 | ) | $ | (138,927 | ) | $ | 411,355 | $ | 299 | $ | 411,654 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 | $ | 118 | $ | 433 | $ | 328,392 | $ | 161,008 | $ | (204 | ) | $ | (138,927 | ) | $ | 350,820 | $ | 335 | $ | 351,155 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 4 | 8,617 | 8,621 | 8,621 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 5,005 | 5,005 | 5,005 | |||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 47,745 | 47,745 | (15 | ) | 47,730 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (836 | ) | (836 | ) | (21 | ) | (857 | ) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 46,909 | (36 | ) | 46,873 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2021 | $ | 118 | $ | 437 | $ | 342,014 | $ | 208,753 | $ | (1,040 | ) | $ | (138,927 | ) | $ | 411,355 | $ | 299 | $ | 411,654 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||
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 | (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 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on March 31, 2021 | $ | 118 | $ | 435 | $ | 333,011 | $ | 176,100 | $ | (573 | ) | $ | (138,927 | ) | $ | 370,164 | $ | 318 | $ | 370,482 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 1,700 | 1,701 | 1,701 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,567 | 1,567 | 1,567 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 19,394 | 19,394 | (11 | ) | 19,383 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (240 | ) | (240 | ) | (1 | ) | (241 | ) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 19,154 | (12 | ) | 19,142 | ||||||||||||||||||||||||||||||||
Balance on June 30, 2021 | $ | 118 | $ | 436 | $ | 336,278 | $ | 195,494 | $ | (813 | ) | $ | (138,927 | ) | $ | 392,586 | $ | 306 | $ | 392,892 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 | $ | 118 | $ | 433 | $ | 328,392 | $ | 161,008 | $ | (204 | ) | $ | (138,927 | ) | $ | 350,820 | $ | 335 | $ | 351,155 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 3 | 4,748 | 4,751 | 4,751 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,138 | 3,138 | 3,138 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 34,486 | 34,486 | (8 | ) | 34,478 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (609 | ) | (609 | ) | (21 | ) | (630 | ) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 33,877 | (29 | ) | 33,848 | ||||||||||||||||||||||||||||||||
Balance on June 30, 2021 | $ | 118 | $ | 436 | $ | 336,278 | $ | 195,494 | $ | (813 | ) | $ | (138,927 | ) | $ | 392,586 | $ | 306 | $ | 392,892 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering | 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 loss | (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 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering | 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 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering | 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 | ||||||||||||||||
2. | Inventories |
September 30, 2021 | December 31, 2020 | |||||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
Raw materials | $ | 42,530 | $ | 42,556 | $ | 46,912 | $ | 42,556 | ||||||||
Work-in-process | 10,101 | 7,424 | 11,207 | 7,424 | ||||||||||||
Finished goods | 4,498 | 7,289 | 5,290 | 7,289 | ||||||||||||
$ | 57,129 | $ | 57,269 | $ | 63,409 | $ | 57,269 | |||||||||
June 30, 2021 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 68,978 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | — | 70,469 | — | |||||||||
Failed Auction Security | — | — | 2,561 | |||||||||
Total | 68,978 | 70,469 | 2,561 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 90,785 | — | — | |||||||||
Total | $ | 159,763 | $ | 70,469 | $ | 2,561 | ||||||
December 31, 2020 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | 19,998 | 50,166 | — | |||||||||
Failed Auction Security | — | — | 2,517 | |||||||||
Total | 89,491 | 50,166 | 2,517 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 72,251 | — | — | |||||||||
Total | $ | 161,742 | $ | 50,166 | $ | 2,517 | ||||||
September 30, 2021 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale debt securities: | ||||||||||||
Money market funds | $ | 89,254 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | — | 50,217 | — | |||||||||
Failed Auction Security | — | — | 2,598 | |||||||||
Total | 89,254 | 50,217 | 2,598 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 89,409 | — | — | |||||||||
Total | $ | 178,663 | $ | 50,217 | $ | 2,598 | ||||||
December 31, 2020 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale debt securities: | ||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | 19,998 | 50,166 | — | |||||||||
Failed Auction Security | — | — | 2,517 | |||||||||
Total | 89,491 | 50,166 | 2,517 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 72,251 | — | — | |||||||||
Total | $ | 161,742 | $ | 50,166 | $ | 2,517 | ||||||
June 30, 2021 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
September 30, 2021 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
U.S. Treasury Obligations | $ | 70,470 | $ | 0 | $ | 1 | $ | 70,469 | $ | 50,216 | $ | 1 | $ | — | $ | 50,217 | ||||||||||||||||
Failed Auction Security | 3,000 | — | 439 | 2,561 | 3,000 | — | 402 | 2,598 | ||||||||||||||||||||||||
December 31, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
U.S. Treasury Obligations | $ | 70,172 | $ | — | $ | 8 | $ | 70,164 | ||||||||||||||||||||||||
Failed Auction Security | 3,000 | — | 483 | 2,517 |
December 31, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury Obligations | $ | 70,172 | $ | — | $ | 8 | $ | 70,164 | ||||||||
Failed Auction Security | 3,000 | — | 483 | 2,517 |
Cost | Estimated Fair Value | |||||||||||||||
Cost | Estimated Fair Value | |||||||||||||||
U.S. Treasury Obligations: | ||||||||||||||||
Maturities greater than three months but less than one year | $ | 70,470 | $ | 70,469 | $ | 50,216 | $ | 50,217 | ||||||||
$ | 70,470 | $ | 70,469 | $ | 50,216 | $ | 50,217 | |||||||||
Cost | Estimated Fair Value | |||||||||||||||
Failed Auction Security: | ||||||||||||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,561 | ||||||||||||
Cost | Estimated Fair Value | |||||||
Failed Auction Security: | ||||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,598 | ||||
2021 | 2020 | |||||||||||||||
2021 | 2020 | |||||||||||||||
Balance at the beginning of the period | $ | 33 | $ | 37 | $ | 33 | $ | 37 | ||||||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Balance at the end of the period | $ | 31 | $ | 35 | $ | 30 | $ | 34 | ||||||||
Using | ||||||||||||||||||||||||||||||||
Using | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level | Total Fair Value as of September 30, 2021 | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of June 30, 2021 | |||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 68,978 | $ | — | $ | — | $ | 68,978 | $ | 89,254 | $ | — | $ | — | $ | 89,254 | ||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
U.S. Treasury Obligations | 70,469 | — | — | 70,469 | 50,217 | — | — | 50,217 | ||||||||||||||||||||||||
Long-term investment: | ||||||||||||||||||||||||||||||||
Failed Auction Security | — | — | 2,561 | 2,561 | — | — | 2,598 | 2,598 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration obligations | — | — | (46 | ) | (46 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | $ | 69,493 | ||||||||
U.S. Treasury Obligations | 19,998 | — | — | 19,998 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 50,166 | — | — | 50,166 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,517 | 2,517 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (227 | ) | (227 | ) |
Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | $ | 69,493 | ||||||||
U.S. Treasury Obligations | 19,998 | — | — | 19,998 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 50,166 | — | — | 50,166 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,517 | 2,517 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (227 | ) | (227 | ) |
Fair Value | Valuation Technique | Unobservable Input | Weighted Average | |||||||||
Failed Auction Security | $ | 2,561 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.15 | % | ||||||
Cumulative probability of principal return prior to maturity | 94.27 | % | ||||||||||
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 | $ | 2,598 | Discounted cash flow | | Cumulative probability of earning the maximum rate until maturity | 0.15% | ||||
Cumulative probability of principal return prior to maturity | 94.71% | |||||||||
Cumulative probability of default | 5.14% | |||||||||
Liquidity risk premium | 5.00% | |||||||||
Recovery rate in default | 40.00% |
Balance at the beginning of the period | $ | 2,517 | ||
Credit gain on available-for-sale | 2 | |||
Gain included in Other comprehensive income | 42 | |||
Balance at the end of the period | $ | 2,561 | ||
Balance at the beginning of the period | $ | 227 | $ | 2,517 | |||
Payments | (107 | ) | |||||
Decrease in contingent consideration obligations | (74 | ) | |||||
Credit gain on available-for-sale security included in Other income (expense), net | 3 | ||||||
Gain included in Other comprehensive income | 78 | ||||||
Balance at the end of the period | $ | 46 | $ | 2,598 | |||
5. Revenues |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | Brick Products | Advanced Products | Total | |||||||||||||||||||
United States | $ | 19,708 | $ | 14,356 | $ | 34,064 | $ | 19,741 | $ | 12,178 | $ | 31,919 | ||||||||||||
Europe | 10,224 | 1,285 | 11,509 | 6,185 | 1,324 | 7,509 | ||||||||||||||||||
Asia Pacific | 24,045 | 25,339 | 49,384 | 14,936 | 29,934 | 44,870 | ||||||||||||||||||
All other | 375 | 44 | 419 | 582 | 31 | 613 | ||||||||||||||||||
$ | 54,352 | $ | 41,024 | $ | 95,376 | $ | 41,444 | $ | 43,467 | $ | 84,911 | |||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 38,291 | $ | 22,905 | $ | 61,196 | ||||||||||||||||||
Europe | 18,420 | 2,280 | 20,700 | |||||||||||||||||||||
Asia Pacific | 51,373 | 49,992 | 101,365 | |||||||||||||||||||||
All other | 727 | 184 | 911 | |||||||||||||||||||||
$ | 108,811 | $ | 75,361 | $ | 184,172 | |||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 15,005 | $ | 5,217 | $ | 20,222 | ||||||||||||||||||
Europe | 9,427 | 2,289 | 11,716 | |||||||||||||||||||||
Asia Pacific | 21,383 | 16,774 | 38,157 | |||||||||||||||||||||
All other | 613 | 53 | 666 | |||||||||||||||||||||
$ | 46,428 | $ | 24,333 | $ | 70,761 | |||||||||||||||||||
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 | |||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 58,032 | $ | 35,083 | $ | 93,115 | ||||||
Europe | 24,605 | 3,604 | 28,209 | |||||||||
Asia Pacific | 66,309 | 79,926 | 146,235 | |||||||||
All other | 1,309 | 215 | 1,524 | |||||||||
$ | 150,255 | $ | 118,828 | $ | 269,083 | |||||||
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 | |||||||
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, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 29,801 | $ | 36,066 | $ | 65,867 | ||||||
Stocking distributors, net of sales allowances | 11,405 | 2,075 | 13,480 | |||||||||
Non-recurring engineering | 238 | 3,846 | 4,084 | |||||||||
Royalties | — | 1,462 | 1,462 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 41,444 | $ | 43,467 | $ | 84,911 | |||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | Brick Products | Advanced Products | Total | |||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 37,614 | $ | 32,644 | $ | 70,258 | $ | 111,223 | $ | 97,767 | $ | 208,990 | ||||||||||||
Stocking distributors, net of sales allowances | 16,634 | 4,634 | 21,268 | 38,586 | 10,847 | 49,433 | ||||||||||||||||||
Non-recurring engineering | 104 | 3,726 | 3,830 | 446 | 8,643 | 9,089 | ||||||||||||||||||
Royalties | — | 3 | 3 | — | 1,518 | 1,518 | ||||||||||||||||||
Other | — | 17 | 17 | — | 53 | 53 | ||||||||||||||||||
$ | 54,352 | $ | 41,024 | $ | 95,376 | $ | 150,255 | $ | 118,828 | $ | 269,083 | |||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 81,422 | $ | 61,701 | $ | 143,123 | ||||||||||||||||||
Stocking distributors, net of sales allowances | 27,181 | 8,772 | 35,953 | |||||||||||||||||||||
Non-recurring engineering | 208 | 4,797 | 5,005 | |||||||||||||||||||||
Royalties | — | 56 | 56 | |||||||||||||||||||||
Other | — | 35 | 35 | |||||||||||||||||||||
$ | 108,811 | $ | 75,361 | $ | 184,172 | |||||||||||||||||||
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 | |||||||||||||||||||
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 | |||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | Brick Products | Advanced Products | Total | |||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 75,211 | $ | 34,811 | $ | 110,022 | $ | 116,127 | $ | 62,233 | $ | 178,360 | ||||||||||||
Stocking distributors, net of sales allowances | 16,436 | 4,638 | 21,074 | 23,097 | 6,101 | 29,198 | ||||||||||||||||||
Non-recurring engineering | 298 | 2,732 | 3,030 | 414 | 4,231 | 4,645 | ||||||||||||||||||
Royalties | — | 17 | 17 | |||||||||||||||||||||
Other | — | 36 | 36 | — | 54 | 54 | ||||||||||||||||||
$ | 91,945 | $ | 42,217 | $ | 134,162 | $ | 139,638 | $ | 72,636 | $ | 212,274 | |||||||||||||
June 30, 2021 | December 31, 2020 | Change | ||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | Change | ||||||||||||||||||||||
Accounts receivable | $ | 55,012 | $ | 40,999 | $ | 14,013 | $ | 51,080 | $ | 40,999 | $ | 10,081 | ||||||||||||
Short-term deferred revenue and customer prepayments | (3,916 | ) | (7,309 | ) | 3,393 | (3,390 | ) | (7,309 | ) | 3,919 | ||||||||||||||
Long-term deferred revenue | (573 | ) | (733 | ) | 160 | (493 | ) | (733 | ) | 240 | ||||||||||||||
Deferred expenses | 980 | 1,650 | (670 | ) | 848 | 1,650 | (802 | ) | ||||||||||||||||
Sales allowances | (1,919 | ) | (597 | ) | (1,322 | ) | (1,661 | ) | (597 | ) | (1,064 | ) |
6. | Stock-Based Compensation |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Cost of revenues | $ | 252 | $ | 277 | $ | 480 | $ | 396 | $ | 259 | $ | 296 | $ | 739 | $ | 692 | ||||||||||||||||
Selling, general and administrative | 779 | 1,030 | 1,632 | 1,467 | 1,033 | 846 | 2,665 | 2,313 | ||||||||||||||||||||||||
Research and development | 536 | 629 | 1,026 | 783 | 575 | 498 | 1,601 | 1,281 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 1,567 | $ | 1,936 | $ | 3,138 | $ | 2,646 | $ | 1,867 | $ | 1,640 | $ | 5,005 | $ | 4,286 | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Stock options | $ | 1,336 | $ | 1,737 | $ | 2,667 | $ | 2,243 | $ | 1,661 | $ | 1,420 | $ | 4,328 | $ | 3,663 | ||||||||||||||||
ESPP | 231 | 199 | 471 | 403 | 206 | 220 | 677 | 623 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 1,567 | $ | 1,936 | $ | 3,138 | $ | 2,646 | $ | 1,867 | $ | 1,640 | $ | 5,005 | $ | 4,286 | ||||||||||||||||
7. | Rental Income |
-16- VICOR CORPORATION Notes to Condensed Consolidated Financial Statements September 30, 2021 (unaudited) 8. | Income Taxes |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ende d | Nine Months Ended | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | September 30, | September 30, | |||||||||||||||||||||||||||
Provision (benefit) for income taxes | $ | 999 | $ | (406 | ) | $ | 856 | $ | (900 | ) | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(Benefit) provision for income taxes | $ | (886) | $ | 651 | $ | (30) | $ | (249) | ||||||||||||||||||||||||
Effective income tax rate | 4.9 | % | (17.9 | )% | 2.4 | % | (2,195.1 | )% | (7.2)% | 10.1% | (0.1)% | (3.8)% |
9. Net Income per Share |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 19,394 | $ | 2,667 | $ | 34,486 | $ | 932 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 43,553 | 41,643 | 43,504 | 41,140 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,288 | 1,742 | 1,337 | 1,840 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 44,841 | 43,385 | 44,841 | 42,980 | ||||||||||||
Basic net income per share | $ | 0.45 | $ | 0.06 | $ | 0.79 | $ | 0.02 | ||||||||
Diluted net income per share | $ | 0.43 | $ | 0.06 | $ | 0.77 | $ | 0.02 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 13,259 | $ | 5,785 | $ | 47,745 | $ | 6,717 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 43,710 | 43,164 | 43,573 | 41,814 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,324 | 1,579 | 1,332 | 1,753 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 45,034 | 44,743 | 44,905 | 43,567 | ||||||||||||
Basic net income per share | $ | 0.30 | $ | 0.13 | $ | 1.10 | $ | 0.16 | ||||||||
Diluted net income per share | $ | 0.29 | $ | 0.13 | $ | 1.06 | $ | 0.15 | ||||||||
(1) | Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. |
(2) | Options to purchase |
Increase | ||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | Increase (decrease) | ||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
Brick Products | $ | 54,352 | $ | 46,428 | $ | 7,924 | 17.1 | % | $ | 41,444 | $ | 47,693 | $ | (6,249 | ) | (13.1 | )% | |||||||||||||||
Advanced Products | 41,024 | 24,333 | 16,691 | 68.6 | % | 43,467 | 30,419 | 13,048 | 42.9 | % | ||||||||||||||||||||||
Total | $ | 95,376 | $ | 70,761 | $ | 24,615 | 34.8 | % | $ | 84,911 | $ | 78,112 | $ | 6,799 | 8.7 | % | ||||||||||||||||
Increase (decrease) | Increase | |||||||||||||||||||
Compensation | $ | 725 | 7.0 | % (1) | ||||||||||||||||
Legal fees | $ | 510 | 213.6 | % | (1 | ) | 568 | 178.7 | % (2) | |||||||||||
Commissions | 205 | 29.5 | % (3) | |||||||||||||||||
Travel expense | 169 | 94.7 | % (4) | |||||||||||||||||
Outside services | 152 | 29.9 | % (5) | |||||||||||||||||
Advertising | 307 | 44.2 | % | (2 | ) | 148 | 22.9 | % (6) | ||||||||||||
Compensation | 191 | 1.8 | % | (3 | ) | |||||||||||||||
Travel expense | 89 | 53.0 | % | (4 | ) | |||||||||||||||
Depreciation and amortization | 63 | 8.1 | % | |||||||||||||||||
Commissions | (92 | ) | (10.6 | )% | (5 | ) | ||||||||||||||
Employment recruiting | 131 | 179.1 | % (7) | |||||||||||||||||
Other, net | 66 | 3.0 | % | 12 | 0.5 | % | ||||||||||||||
$ | 1,134 | 7.3 | % | $ | 2,110 | 13.9 | % | |||||||||||||
(1) | Increase primarily attributable to annual compensation adjustments in May 2021 and higher stock-based compensation expense associated with stock options awarded in June 2021. |
(2) | Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note |
(3) | Increase primarily attributable to an increase in net revenues subject to commissions. |
Increase primarily attributable to a resumption of travel by the Company’s sales and marketing personnel, though still at levels significantly lower than prior to the COVID 19 pandemic. |
(5) | Increase primarily attributable to an increase in the use of outside service providers at our Andover, MA facility. |
(6) | Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
Increase primarily attributable to |
Increase (decrease) | ||||||||||||||||
Increase (decrease) | ||||||||||||||||
Compensation | $ | 375 | 4.1 | % (1) | $ | 710 | 7.9 | % (1) | ||||||||
Project and pre-production materials | 321 | | 16.6 | % (2) | 583 | 42.3 | % (2) | |||||||||
Supplies | 79 | 24.7 | % | |||||||||||||
Facilities allocations | 55 | 9.4 | % | |||||||||||||
Freight | 40 | 153.3 | % | |||||||||||||
Deferred costs | 149 | 43.2 | % (3) | |||||||||||||
Employment recruiting | 99 | 464.7 | % | |||||||||||||
Outside services | 42 | 57.1 | % | |||||||||||||
Overhead absorption | (523 | ) | (200.2 | )% (3) | (209 | ) | (69.7) | % (4) | ||||||||
Other, net | 96 | 8.7 | % | 113 | 5.1 | % | ||||||||||
$ | 443 | 3.5 | % | $ | 1,487 | 12.4 | % | |||||||||
(1) | Increase primarily attributable to annual compensation adjustments in May 2021 |
(2) | Increase primarily attributable to increased prototype development costs for Advanced Products. |
(3) | Increase primarily attributable to a decrease in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred. |
(4) | Decrease primarily attributable to an increase in research and development (“R&D”) personnel incurring time on production activities, compared to R&D activities. |
2021 | 2020 | Increase (decrease) | ||||||||||||||||||||||
2021 | 2020 | Increase (decrease) | ||||||||||||||||||||||
Interest income | $ | 276 | $ | 17 | $ | 259 | $ | 267 | $ | 7 | $ | 260 | ||||||||||||
Rental income | 198 | 198 | — | 198 | 198 | — | ||||||||||||||||||
Foreign currency (losses) gains, net | (12 | ) | 3 | (15 | ) | (110 | ) | 140 | (250 | ) | ||||||||||||||
(Losses) gains on disposals of equipment | (106 | ) | 6 | (112 | ) | |||||||||||||||||||
Gains on disposals of equipment | 39 | 3 | 36 | |||||||||||||||||||||
Other, net | 17 | 9 | 8 | — | (14 | ) | 14 | |||||||||||||||||
$ | 373 | $ | 233 | $ | 140 | $ | 394 | $ | 334 | $ | 60 | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Provision (benefit) for income taxes | $ | 999 | $ | (406 | ) | |||||||||||
(Benefit) provision for income taxes | $ | (886 | ) | $ | 651 | |||||||||||
Effective income tax rate | 4.9 | % | (17.9 | )% | (7.2 | )% | 10.1 | % |
Increase | ||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | Increase | ||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
Brick Products | $ | 108,811 | $ | 91,945 | $ | 16,866 | 18.3 | % | $ | 150,255 | $ | 139,638 | $ | 10,617 | 7.6 | % | ||||||||||||||||
Advanced Products | 75,361 | 42,217 | 33,144 | 78.5 | % | 118,828 | 72,636 | 46,192 | 63.6 | % | ||||||||||||||||||||||
Total | $ | 184,172 | $ | 134,162 | $ | 50,010 | 37.3 | % | $ | 269,083 | $ | 212,274 | $ | 56,809 | 26.8 | % | ||||||||||||||||
Increase (decrease) | ||||||||
Compensation | $ | 1,196 | 5.7 | % (1) | ||||
Advertising expense | 251 | | 18.6 | % (2) | ||||
Legal fees | 188 | 16.3 | % (3) | |||||
Depreciation and amortization | 102 | 6.7 | % (4) | |||||
Facilities allocations | 95 | 13.3 | % | |||||
Travel expense | (205 | ) | (30.0 | )% (5) | ||||
Other, net | 92 | 1.6 | % | |||||
$ | 1,719 | 5.4 | % | |||||
Increase (decrease) | ||||||||
Compensation | $ | 968 | 5.4 | % (1) | ||||
Facilities allocations | 198 | 17.0 | % (2) | |||||
Freight | 66 | 115.5 | % | |||||
Computer expense | 60 | 19.0 | % | |||||
Project and pre-production materials | (354 | ) | (7.9 | )% (3) | ||||
Overhead absorption | (830 | ) | (174.2 | )% (4) | ||||
Other, net | 26 | 1.0 | % | |||||
$ | 134 | 0.5 | % | |||||
Increase (decrease) | ||||||||||||
Compensation | $ | 1,920 | 6.2 | % | (1 | ) | ||||||
Legal fees | 756 | 51.5 | % | (2 | ) | |||||||
Advertising expense | 399 | 20.0 | % | (3 | ) | |||||||
Outside services | 224 | 15.1 | % | (4 | ) | |||||||
Employment recruiting | 210 | 112.9 | % | (5 | ) | |||||||
Depreciation and amortization | 155 | 6.7 | % | (6 | ) | |||||||
Commissions | 129 | 5.2 | % | |||||||||
Facilities allocations | 127 | 11.6 | % | |||||||||
Other, net | (91 | ) | (1.9 | )% | ||||||||
$ | 3,829 | 8.1 | % | |||||||||
(1) | Increase primarily attributable to annual compensation adjustments in May 2021 and higher stock-based compensation expense associated with stock options awarded in June 2021. |
(2) | Increase primarily attributable to an increase in |
(3) |
(4) | Increase primarily attributable to an increase in the use of outside service providers at our Andover, MA facility. |
(5) | Increase primarily attributable to an increase in employee recruitment activities at Andover. |
(6) | Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
Increase (decrease) | ||||||||
Compensation | $ | 1,678 | 6.2 | % (1) | ||||
Project and pre-production materials | 229 | 3.9 | % (2) | |||||
Facilities allocations | 206 | 11.1 | % (3) | |||||
Deferred costs | 166 | 25.7 | % (4) | |||||
Supplies | 92 | 9.4 | % | |||||
Employment recruiting | 85 | 169.6 | % | |||||
Freight | 74 | 72.6 | % | |||||
Computer expense | 73 | 15.0 | % | |||||
Overhead absorption | (1,039 | ) | (133.8 | )% (5) | ||||
Other, net | 57 | 1.7 | % | |||||
$ | 1,621 | 4.2 | % | |||||
(1) | Increase primarily attributable to annual compensation adjustments in May 2021 and higher stock-based compensation expense associated with stock options awarded in June 2021. |
(2) | Increase primarily attributable to increased prototype development costs for Advanced Products. |
(3) | Increase primarily attributable to an increase in utilities and building maintenance expenses. |
(4) | Increase primarily attributable to a decrease in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred. |
(5) | Decrease primarily attributable to an increase in R&D personnel incurring time on production activities, compared to R&D activities. |
Increase | ||||||||||||||||||||||||
2021 | 2020 | (decrease) | ||||||||||||||||||||||
2021 | 2020 | Increase (decrease) | ||||||||||||||||||||||
Interest income | $ | 469 | $ | 70 | $ | 399 | $ | 736 | $ | 77 | $ | 659 | ||||||||||||
Rental income | 396 | 396 | — | 594 | 594 | — | ||||||||||||||||||
Foreign currency (losses) gains, net | (285 | ) | 23 | (308 | ) | |||||||||||||||||||
(Losses) gains on disposals of equipment | (106 | ) | 6 | (112 | ) | (67 | ) | 9 | (76 | ) | ||||||||||||||
Foreign currency losses, net | (174 | ) | (117 | ) | (57 | ) | ||||||||||||||||||
Other, net | 20 | 26 | (6 | ) | 21 | 12 | 9 | |||||||||||||||||
$ | 605 | $ | 381 | $ | 224 | $ | 999 | $ | 715 | $ | 284 | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Provision (benefit) for income taxes | $ | 856 | $ | (900 | ) | |||||||||||
Benefit for income taxes | $ | (30 | ) | $ | (249 | ) | ||||||||||
Effective income tax rate | 2.4 | % | (2,195.1 | )% | (0.1 | )% | (3.8 | )% |
Increase (decrease) | ||||||||
Increase (decrease) | ||||||||
Cash and cash equivalents | $ | (1,979 | ) | $ | 16,921 | |||
Short-term investments | 20,303 | 51 | ||||||
Accounts receivable | 14,013 | 10,081 | ||||||
Inventories, net | (140 | ) | 6,140 | |||||
Other current assets | (99 | ) | (123) | |||||
Accounts payable | (7,960 | ) | (4,225) | |||||
Accrued compensation and benefits | (1,700 | ) | 100 | |||||
Accrued expenses | (994 | ) | (965) | |||||
Sales allowances | (1,322 | ) | (1,064) | |||||
Short-term lease liabilities | 70 | 4 | ||||||
Income taxes payable | (751 | ) | 129 | |||||
Short-term deferred revenue | 3,393 | 3,919 | ||||||
$ | 22,834 | $ | 30,968 | |||||
(a) Disclosure regarding controls and procedures. |
-32- Vicor Corporation September 30, 2021 (b) Changes in internal control over financial reporting. |
(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: November 3, 2021 | ||||||
By: | /s/ Patrizio Vinciarelli | |||||
Patrizio Vinciarelli | ||||||
Chairman of the Board, President and | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: November 3, 2021 | ||||||
By: | /s/ James F. Schmidt | |||||
James F. Schmidt | ||||||
Vice President, Chief Financial Officer | ||||||
(Principal Financial Officer) |