☒ | 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 | ☒ | |||||
Accelerated filer | ☐ | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Common Stock, $.01 par value | ||||
Class B Common Stock, $.01 par value |
VICOR CORPORATION
INDEX
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3 | ||||
4 | ||||
5 | ||||
7 | ||||
33 | ||||
33 | ||||
34 | ||||
35 | ||||
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 | ||||
September 30, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 182,098 | $ | 182,418 | ||||
Short-term investments | 19,949 | 45,215 | ||||||
Accounts receivable, net | 56,287 | 55,097 | ||||||
Inventories | 94,336 | 67,322 | ||||||
Other current assets | 5,483 | 6,708 | ||||||
Total current assets | 358,153 | 356,760 | ||||||
Long-term deferred tax assets, net | 260 | 208 | ||||||
Long-term investment, net | 2,552 | 2,639 | ||||||
Property, plant and equipment, net | 163,198 | 115,975 | ||||||
Other assets | 2,939 | 1,623 | ||||||
Total assets | $ | 527,102 | $ | 477,205 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 24,004 | $ | 21,189 | ||||
Accrued compensation and benefits | 13,070 | 12,660 | ||||||
Accrued litigation | 6,500 | — | ||||||
Accrued expenses | 5,754 | 4,158 | ||||||
Short-term lease liabilities | 1,449 | 1,551 | ||||||
Sales allowances | 1,427 | 1,464 | ||||||
Accrued severance and other charges | — | 93 | ||||||
Income taxes payable | 7 | 66 | ||||||
Short-term deferred revenue and customer prepayments | 12,148 | 7,912 | ||||||
Total current liabilities | 64,359 | 49,093 | ||||||
Long-term deferred revenue | 1,833 | 413 | ||||||
Long-term income taxes payable | 529 | 569 | ||||||
Long-term lease liabilities | 7,520 | 3,225 | ||||||
Total liabilities | 74,241 | 53,300 | ||||||
Commitments and contingencies (Note 10) | ||||||||
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 2022 and 2021 | 118 | 118 | ||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized 43,923,786 shares issued and 32,288,980 shares outstanding in 2022; 43,789,528 shares issued and 32,154,722 shares outstanding in 2021 | 440 | 439 | ||||||
Additional paid-in capital | 357,255 | 345,664 | ||||||
Retained earnings | 235,017 | 217,633 | ||||||
Accumulated other comprehensive loss | (1,279 | ) | (1,328 | ) | ||||
Treasury stock at cost: 11,634,806 shares in 2022 and 2021 | (138,927 | ) | (138,927 | ) | ||||
Total Vicor Corporation stockholders’ equity | 452,624 | 423,599 | ||||||
Noncontrolling interest | 237 | 306 | ||||||
Total equity | 452,861 | 423,905 | ||||||
Total liabilities and equity | $ | 527,102 | $ | 477,205 | ||||
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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net revenues | $ | 103,118 | $ | 84,911 | $ | 293,586 | $ | 269,083 | ||||||||
Cost of revenues | 56,148 | 42,098 | 162,166 | 131,699 | ||||||||||||
Gross margin | 46,970 | 42,813 | 131,420 | 137,384 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 22,719 | 17,322 | 61,322 | 50,865 | ||||||||||||
Research and development | 14,747 | 13,519 | 44,516 | 39,818 | ||||||||||||
Litigation-related | 6,500 | — | 6,500 | — | ||||||||||||
Total operating expenses | 43,966 | 30,841 | 112,338 | 90,683 | ||||||||||||
Income from operations | 3,004 | 11,972 | 19,082 | 46,701 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Total unrealized gains (losses) on available-for-sale | — | 37 | (87 | ) | 81 | |||||||||||
Less: portion of losses (gains) recognized in other comprehensive income | 1 | (36 | ) | 90 | (78 | ) | ||||||||||
Net credit gains recognized in earnings | 1 | 1 | 3 | 3 | ||||||||||||
Other income (expense), net | (569 | ) | 393 | (325 | ) | 996 | ||||||||||
Total other income (expense), net | (568 | ) | 394 | (322 | ) | 999 | ||||||||||
Income before income taxes | 2,436 | 12,366 | 18,760 | 47,700 | ||||||||||||
Provision for income (benefit) taxes | 641 | (886 | ) | 1,395 | (30 | ) | ||||||||||
Consolidated net income | 1,795 | 13,252 | 17,365 | 47,730 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3 | (7 | ) | (19 | ) | (15 | ) | |||||||||
Net income attributable to Vicor Corporation | $ | 1,792 | $ | 13,259 | $ | 17,384 | $ | 47,745 | ||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | $ | 0.04 | $ | 0.30 | $ | 0.40 | $ | 1.10 | ||||||||
Diluted | $ | 0.04 | $ | 0.29 | $ | 0.39 | $ | 1.06 | ||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||
Basic | 44,031 | 43,710 | 43,986 | 43,573 | ||||||||||||
Diluted | 44,898 | 45,034 | 44,906 | 44,905 |
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 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Consolidated net income | $ | 1,795 | $ | 13,252 | $ | 17,365 | $ | 47,730 | ||||||||
Foreign currency translation losses, net of tax (1) | (94 | ) | (12 | ) | (672 | ) | (283 | ) | ||||||||
Unrealized income (loss) on available-for-sale | 1,054 | (215 | ) | 671 | (574 | ) | ||||||||||
Other comprehensive income (loss) | 960 | (227 | ) | (1 | ) | (857 | ) | |||||||||
Consolidated comprehensive income | 2,755 | 13,025 | 17,364 | 46,873 | ||||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (4 | ) | (7 | ) | (69 | ) | (36 | ) | ||||||||
Comprehensive income attributable to Vicor Corporation | $ | 2,759 | $ | 13,032 | $ | 17,433 | $ | 46,909 | ||||||||
(1) | The deferred tax assets associated with foreign currency translation 2021.available-for-sale |
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 | ||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2022 | 2021 | |||||||
Operating activities: | ||||||||
Consolidated net income | $ | 17,365 | $ | 47,730 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 10,250 | 8,564 | ||||||
Stock-based compensation expense | 7,445 | 5,005 | ||||||
Litigation-related expense | 6,500 | — | ||||||
Increase (decrease) in long-term deferred revenue | 1,420 | (240 | ) | |||||
Amortization of bond premium | 1,027 | — | ||||||
Decrease in contingent consideration obligations | — | (74 | ) | |||||
(Decrease) increase in other assets | (1,451 | ) | 56 | |||||
Decrease in long-term income taxes payable | (40 | ) | (79 | ) | ||||
Deferred income taxes | (52 | ) | 5 | |||||
Credit gain on available-for-sale | (3 | ) | (3 | ) | ||||
Provision for doubtful accounts | 5 | — | ||||||
Change in current assets and liabilities, net | (20,456 | ) | (20,737 | ) | ||||
Net cash provided by operating activities | 22,010 | 40,227 | ||||||
Investing activities: | ||||||||
Purchases of short-term investments | — | (50,706 | ) | |||||
Sales or maturities of short-term investments | 25,000 | 50,000 | ||||||
Additions to property, plant and equipment | (51,279 | ) | (30,942 | ) | ||||
Net cash used for investing activities | (26,279 | ) | (31,648 | ) | ||||
Financing activities: | ||||||||
Proceeds from employee stock plans | 4,147 | 8,621 | ||||||
Payment of contingent consideration obligations | — | (153 | ) | |||||
Net cash provided by financing activities | 4,147 | 8,468 | ||||||
Effect of foreign exchange rates on cash | (198 | ) | (126 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (320 | ) | 16,921 | |||||
Cash and cash equivalents at beginning of period | 182,418 | 161,742 | ||||||
Cash and cash equivalents at end of period | $ | 182,098 | $ | 178,663 | ||||
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 | ||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | Income (loss) | Stock | Equity | Interest | Equity | ||||||||||||||||||||||||||||
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||
Balance on June 30, 2022 | $ | 118 | $ | 440 | $ | 352,253 | $ | 233,225 | $ | (2,246 | ) | $ | (138,927 | ) | $ | 444,863 | $ | 241 | $ | 445,104 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 2,173 | 2,173 | 2,173 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,829 | 2,829 | 2,829 | |||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 1,792 | 1,792 | 3 | 1,795 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 967 | 967 | (7 | ) | 960 | |||||||||||||||||||||||||||||||
Total comprehensive income (loss) | 2,759 | (4 | ) | 2,755 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2022 | $ | 118 | $ | 440 | $ | 357,255 | $ | 235,017 | $ | (1,279 | ) | $ | (138,927 | ) | $ | 452,624 | $ | 237 | $ | 452,861 | ||||||||||||||||
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 | ||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | Income (loss) | Stock | Equity | Interest | Equity | ||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2021 | $ | 118 | $ | 439 | $ | 345,664 | $ | 217,633 | $ | (1,328 | ) | $ | (138,927 | ) | $ | 423,599 | $ | 306 | $ | 423,905 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 4,146 | 4,147 | 4,147 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 7,445 | 7,445 | 7,445 | |||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||
Net income (loss) | 17,384 | 17,384 | (19 | ) | 17,365 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 49 | 49 | (50 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Total comprehensive income (loss) | 17,433 | (69 | ) | 17,364 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2022 | $ | 118 | $ | 440 | $ | 357,255 | $ | 235,017 | $ | (1,279 | ) | $ | (138,927 | ) | $ | 452,624 | $ | 237 | $ | 452,861 | ||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | Loss | Stock | Equity | Interest | 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 (loss) | 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, 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 | ||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
Accumulated | Vicor | |||||||||||||||||||||||||||||||||||
Class B | Additional | Other | Corporation | |||||||||||||||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Treasury | Stockholders’ | Noncontrolling | Total | ||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | Loss | Stock | Equity | Interest | 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 (loss) | 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 | ||||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||
Raw materials | $ | 46,912 | $ | 42,556 | ||||
Work-in-process | 11,207 | 7,424 | ||||||
Finished goods | 5,290 | 7,289 | ||||||
$ | 63,409 | $ | 57,269 | |||||
September 30, 2022 | December 31, 2021 | |||||||
Raw materials | $ | 73,940 | $ | 51,289 | ||||
Work-in-process | 11,967 | 12,514 | ||||||
Finished goods | 8,429 | 3,519 | ||||||
$ | 94,336 | $ | 67,322 | |||||
September 30, 2021 | ||||||||||||||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | September 30, 2022 | |||||||||||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investment | ||||||||||||||||||||||
Measured at fair value: | ||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||
Money market funds | $ | 89,254 | $ | — | $ | — | $ | 120,217 | $ | — | $ | — | ||||||||||||
U.S. Treasury Obligations | — | 50,217 | — | — | 19,949 | — | ||||||||||||||||||
Failed Auction Security | — | — | 2,598 | — | — | 2,552 | ||||||||||||||||||
Total | 89,254 | 50,217 | 2,598 | 120,217 | 19,949 | 2,552 | ||||||||||||||||||
Other measurement basis: | ||||||||||||||||||||||||
Cash on hand | 89,409 | — | — | 61,881 | — | — | ||||||||||||||||||
Total | $ | 178,663 | $ | 50,217 | $ | 2,598 | $ | 182,098 | $ | 19,949 | $ | 2,552 | ||||||||||||
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 | ||||||
December 31, 2021 | ||||||||||||
Cash and | ||||||||||||
Cash | Short-Term | Long-Term | ||||||||||
Equivalents | Investments | Investment | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 94,282 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | — | 45,215 | — | |||||||||
Failed Auction Security | — | — | 2,639 | |||||||||
Total | 94,282 | 45,215 | 2,639 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 88,136 | — | — | |||||||||
Total | $ | 182,418 | $ | 45,215 | $ | 2,639 | ||||||
September 30, 2021 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury Obligations | $ | 50,216 | $ | 1 | $ | — | $ | 50,217 | ||||||||
Failed Auction Security | 3,000 | — | 402 | 2,598 |
Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
September 30, 2022 | Cost | Gains | Losses | Value | ||||||||||||
U.S. Treasury Obligations | $ | 20,028 | $ | — | $ | 79 | $ | 19,949 | ||||||||
Failed Auction Security | 3,000 | — | 448 | 2,552 |
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 |
Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
December 31, 2021 | Cost | Gains | Losses | Value | ||||||||||||
U.S. Treasury Obligations | $ | 45,238 | $ | — | $ | 23 | $ | 45,215 | ||||||||
Failed Auction Security | 3,000 | — | 361 | 2,639 |
Cost | Estimated Fair Value | |||||||
U.S. Treasury Obligations: | ||||||||
Maturities greater than three months but less than one year | $ | 50,216 | $ | 50,217 | ||||
$ | 50,216 | $ | 50,217 | |||||
Cost | Estimated Fair Value | |||||||
U.S. Treasury Obligations: | ||||||||
Maturities greater than three months but less than one year | $ | 20,028 | $ | 19,949 | ||||
Cost | Estimated Fair Value | |||||||
Failed Auction Security: | ||||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,598 | ||||
2021 | 2020 | |||||||
Balance at the beginning of the period | $ | 33 | $ | 37 | ||||
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 | $ | 30 | $ | 34 | ||||
Estimated | ||||||||
Cost | Fair Value | |||||||
Failed Auction Security: | ||||||||
Due in twenty years | $ | 3,000 | $ | 2,552 | ||||
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 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 89,254 | $ | — | $ | — | $ | 89,254 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 50,217 | — | — | 50,217 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,598 | 2,598 |
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, 2022 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 120,217 | $ | — | $ | — | $ | 120,217 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 19,949 | — | — | 19,949 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,552 | 2,552 |
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 | $ | 2,598 | 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% |
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, 2021 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 94,282 | $ | — | $ | — | $ | 94,282 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 45,215 | — | — | 45,215 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,639 | 2,639 |
Balance at the beginning of the period | $ | 2,517 | |
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 | $ | 2,598 | |
Balance at the beginning of the period | $ | 2,639 | ||
Credit gain on available-for-sale | 3 | |||
Loss included in Other comprehensive income | (90 | ) | ||
Balance at the end of the period | $ | 2,552 | ||
Three Months Ended September 30, 2022 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 21,559 | $ | 9,303 | $ | 30,862 | ||||||
Europe | 7,101 | 1,954 | 9,055 | |||||||||
Asia Pacific | 14,800 | 47,704 | 62,504 | |||||||||
All other | 456 | 241 | 697 | |||||||||
$ | 43,916 | $ | 59,202 | $ | 103,118 | |||||||
Nine Months Ended September 30, 2022 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 54,288 | $ | 32,711 | $ | 86,999 | ||||||
Europe | 19,184 | 6,951 | 26,135 | |||||||||
Asia Pacific | 38,167 | 139,749 | 177,916 | |||||||||
All other | 2,157 | 379 | 2,536 | |||||||||
$ | 113,796 | $ | 179,790 | $ | 293,586 | |||||||
Three Months Ended September 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 19,741 | $ | 12,178 | $ | 31,919 | ||||||
Europe | 6,185 | 1,324 | 7,509 | |||||||||
Asia Pacific | 14,936 | 29,934 | 44,870 | |||||||||
All other | 582 | 31 | 613 | |||||||||
$ | 41,444 | $ | 43,467 | $ | 84,911 | |||||||
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, 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 | |||||||
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 | |||||||
Nine Months Ended September 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 111,223 | $ | 97,767 | $ | 208,990 | ||||||
Stocking distributors, net of sales allowances | 38,586 | 10,847 | 49,433 | |||||||||
Non-recurring engineering | 446 | 8,643 | 9,089 | |||||||||
Royalties | — | 1,518 | 1,518 | |||||||||
Other | — | 53 | 53 | |||||||||
$ | 150,255 | $ | 118,828 | $ | 269,083 | |||||||
Three Months Ended September 30, 2022 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 29,051 | $ | 53,033 | $ | 82,084 | ||||||
Stocking distributors, net of sales allowances | 14,288 | 2,869 | 17,157 | |||||||||
Non-recurring engineering | 577 | 2,249 | 2,826 | |||||||||
Royalties | — | 1,033 | 1,033 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 43,916 | $ | 59,202 | $ | 103,118 | |||||||
Three Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 40,916 | $ | 27,422 | $ | 68,338 | ||||||
Stocking distributors, net of sales allowances | 6,661 | 1,463 | 8,124 | |||||||||
Non-recurring engineering | 116 | 1,499 | 1,615 | |||||||||
Royalties | — | 17 | 17 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||
Nine Months Ended September 30, 2022 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 77,018 | $ | 162,483 | $ | 239,501 | ||||||
Stocking distributors, net of sales allowances | 35,960 | 9,715 | 45,675 | |||||||||
Non-recurring engineering | 818 | 5,543 | 6,361 | |||||||||
Royalties | — | 1,995 | 1,995 | |||||||||
Other | — | 54 | 54 | |||||||||
$ | 113,796 | $ | 179,790 | $ | 293,586 | |||||||
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 | |||||||
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 | |||||||
Nine Months Ended September 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 111,223 | $ | 97,767 | $ | 208,990 | ||||||
Stocking distributors, net of sales allowances | 38,586 | 10,847 | 49,433 | |||||||||
Non-recurring engineering | 446 | 8,643 | 9,089 | |||||||||
Royalties | — | 1,518 | 1,518 | |||||||||
Other | — | 53 | 53 | |||||||||
$ | 150,255 | $ | 118,828 | $ | 269,083 | |||||||
September 30, 2021 | December 31, 2020 | Change | ||||||||||
Accounts receivable | $ | 51,080 | $ | 40,999 | $ | 10,081 | ||||||
Short-term deferred revenue and customer prepayments | (3,390 | ) | (7,309 | ) | 3,919 | |||||||
Long-term deferred revenue | (493 | ) | (733 | ) | 240 | |||||||
Deferred expenses | 848 | 1,650 | (802 | ) | ||||||||
Sales allowances | (1,661 | ) | (597 | ) | (1,064 | ) |
September 30, 2022 | December 31, 2021 | Change | ||||||||||
Short-term deferred revenue and customer prepayments | $ | (12,148 | ) | $ | (7,912 | ) | $ | (4,236 | ) | |||
Long-term deferred revenue | (1,833 | ) | (413 | ) | (1,420 | ) | ||||||
Deferred expenses | 588 | 560 | 28 | |||||||||
Sales allowances | (1,427 | ) | (1,464 | ) | 37 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenues | $ | 259 | $ | 296 | $ | 739 | $ | 692 | ||||||||
Selling, general and administrative | 1,033 | 846 | 2,665 | 2,313 | ||||||||||||
Research and development | 575 | 498 | 1,601 | 1,281 | ||||||||||||
Total stock-based compensation | $ | 1,867 | $ | 1,640 | $ | 5,005 | $ | 4,286 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cost of revenues | $ | 479 | $ | 259 | $ | 1,161 | $ | 739 | ||||||||
Selling, general and administrative | 1,537 | 1,033 | 4,184 | 2,665 | ||||||||||||
Research and development | 813 | 575 | 2,100 | 1,601 | ||||||||||||
Total stock-based compensation | $ | 2,829 | $ | 1,867 | $ | 7,445 | $ | 5,005 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Stock options | $ | 1,661 | $ | 1,420 | $ | 4,328 | $ | 3,663 | ||||||||
ESPP | 206 | 220 | 677 | 623 | ||||||||||||
Total stock-based compensation | $ | 1,867 | $ | 1,640 | $ | 5,005 | $ | 4,286 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Stock options | $ | 2,531 | $ | 1,661 | $ | 6,641 | $ | 4,328 | ||||||||
ESPP | 298 | 206 | 804 | 677 | ||||||||||||
Total stock-based compensation | $ | 2,829 | $ | 1,867 | $ | 7,445 | $ | 5,005 | ||||||||
Three Months Ende d | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(Benefit) provision for income taxes | $ | (886) | $ | 651 | $ | (30) | $ | (249) | ||||||||
Effective income tax rate | (7.2)% | 10.1% | (0.1)% | (3.8)% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Provision (benefit) for income taxes | $ | 641 | $ | (886 | ) | $ | 1,395 | $ | (30 | ) | ||||||
Effective income tax rate | 26.3 | % | (7.2 | )% | 7.4 | % | (0.1 | )% |
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 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 1,792 | $ | 13,259 | $ | 17,384 | $ | 47,745 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 44,031 | 43,710 | 43,986 | 43,573 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 867 | 1,324 | 920 | 1,332 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 44,898 | 45,034 | 44,906 | 44,905 | ||||||||||||
Basic net income per share | $ | 0.04 | $ | 0.30 | $ | 0.40 | $ | 1.10 | ||||||||
Diluted net income per share | $ | 0.04 | $ | 0.29 | $ | 0.39 | $ | 1.06 | ||||||||
(1) | Denominator represents the weighted average number of shares of Common Stock and Class B Common Stock outstanding. |
(2) | Options to purchase 1,037,640 and 772,240 shares of Common Stock for the three and nine months ended September 30, 2022, respectively, and options to purchase 76,114 and 134,822 shares of Common Stock for the three and nine months ended September 30, 2021, respectively, |
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Note Regarding Forward-Looking Statements
The Company’s consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in the Company’s Annual Report on Form
-18-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Overview
We design, develop, manufacture, and market modular power components and power systems for converting electrical power for use in electrically-powered devices. Our competitive position is supported by innovations in product design and achievements in product performance, largely enabled by our focus on the research and development of advanced technologies and processes, often implemented in proprietary semiconductor circuitry, materials, and packaging. Many of our products incorporate patented or proprietary implementations of high-frequency switching topologies enabling power system solutions that are more efficient and much smaller than conventional alternatives. Our strategy emphasizes demonstrable product differentiation and a value proposition based on competitively superior solution performance, advantageous design flexibility, and a compelling total cost of ownership. While we offer a wide range of alternating current (“AC”) and direct current (“DC”) power conversion products, we consider our core competencies to be associated with 48V DC distribution, which offers numerous inherent cost and performance advantages over lower distribution voltages. However, we also offer products addressing other DC voltage standards (e.g., 380V for power distribution in data centers, 110V for rail applications, 28V for military and avionics applications, and 24V for industrial automation).
Based on design, performance, and form factor considerations, as well as the range of evolving applications for which our products are appropriate, we categorize our product portfolios as either “Advanced Products” or “Brick Products.” The Advanced Products category consists of our more recently introduced products, which are largely used to implement our proprietary Factorized Power Architecture
The Brick Products category largely consists of our broad and well-established families of integrated power converters, incorporating multiple conversion stages, used in conventional power systems architectures. Given the growth profiles of the markets we serve with our Advanced Products line and our Brick Products line, our strategy involves a transition in organizational focus, emphasizing investment in our Advanced Products line and targeting high growth market segments with a
The applications in which our Advanced Products and Brick Products are used are typically in the higher-performance, higher-power segments of the market segments we serve. With our Advanced Products, we generally serve large Original Equipment Manufacturers (“OEMs”), Original Design Manufacturers (“ODMs”), and their contract manufacturers, with sales currently concentrated in the data center and hyperscaler segments of enterprise computing, in which our products are used for voltage distribution on server motherboards, in server racks, and across datacenter infrastructure. We have established a leadership position in the emerging market segment for powering high-performance processors used for acceleration of applications associated with artificial intelligence (“AI”). Our customers in the AI market segment include the leading innovators in processor and accelerator design, as well as early adopters in cloud computing and high performance computing. We also target applications in aerospace and aviation, defense electronics, industrial automation, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles (notably in the autonomous driving, electric vehicle, and hybrid vehicle niches of the vehicle segment). With our Brick Products, we generally serve a fragmented base of large and small customers, concentrated in aerospace and defense electronics, industrial automation, industrial equipment, instrumentation and test equipment, and transportation (notably in rail and heavy equipment applications). With our strategic emphasis on larger, high-volume customers, we expect to experience over time a greater concentration of sales among relatively fewer customers.
Our quarterly consolidated operating results can be difficult to forecast and have been subject to significant fluctuations. We plan our production and inventory levels based on management’s estimates of customer demand, customer forecasts, and other information sources. Customer forecasts, particularly those of OEM, ODM, and contract manufacturing customers to which we supply Advanced Products in high volumes, are subject to scheduling changes on short notice, contributing to operating inefficiencies and excess costs. In addition, external factors such as supply chain uncertainties, which are often associated with the cyclicality of the electronics industry, regional macroeconomic and trade-related circumstances, and
-19-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2022
and those relating, for example, to the procurement of raw material, have in the past negatively impacted and may in the future negatively impact our operating results. We have taken steps to mitigate the impact of supply chain disruptions by, among other things and in varying degrees, moving outsourced manufacturing steps in-house to the Company, ordering supplies with extended lead times, paying higher prices for certain supplies or outsourced production, and expediting deliveries at a cost premium. The resulting impact of the steps taken to mitigate supply chain disruptions have, to varying degrees and at different times, reduced our revenue, gross margin, operating profit and cash flow and may continue to do so in the future. While we continue to make progress in moving outsourced manufacturing steps in-house to the Company, we are still experiencing long lead times on certain raw material components, sporadic disruptions related to shutdowns in China as a result of their zero-COVID policy, and uncertainty of output from our outsourced manufacturing supplier. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, average selling prices, average unit costs, the mix of products sold during that quarter, and the level of importation of raw materials subject to tariffs. Our quarterly operating margin as a percentage of net revenues also may vary with changes in revenue and product level profitability, but our operating costs, aside from recent increases in legal expense associated with the intellectual property litigation with SynQor Inc., are largely associated with compensation and related employee costs, which are not subject to sudden or significant changes.
Ongoing / Potential Impacts of the
As of the date of this report, the number of Company employees diagnosed with
We are closely monitoring the operating performance and financial health of our customers, business partners, and suppliers, but an extended period of operational constraints brought about by the pandemic could cause financial hardship within our customer base and supply chain. Such hardship may continue to disrupt customer demand and limit our customers’ ability to meet their obligations to us. Similarly, such hardship within our supply chain could continue to restrict our access to raw materials or services. Additionally, restrictions or disruptions of transportation, such as reduced availability of cargo transport by ship or air, couldhave resulted and may continue to result in higher costs and inbound and outbound delays. We have taken steps to address certain supply chain risks, and we believe our actions have mitigated those risks to date; however, there are no assurances that those steps will continue to mitigate risks for the remainder of 2021 and beyond.
Although there is uncertainty regarding the extent to which the pandemic will continue to impact our operational and financial results in the future, the Company’s high level of liquidity, flexible operational model, existing raw material inventories, and increased use of second sources for critical manufacturing inputs together support management’s belief the Company will be able to effectively conduct business until the pandemic passes.
We are monitoring the rapidly changing circumstances, and may take additional actions to address
Changes from Previously Disclosed Results
As discussed below, we reported net income for the third quarter of 2022 of $1,792,000, or $0.04 per diluted share, compared to $13,259,000, or $0.29 per diluted share, for the third quarter of 2021. Initially, in our earnings release issued on October 25, 2022, we had disclosed net income for the third quarter of 2022 of $8,091,000, or $0.18 per diluted share. On October 26, 2022, after the earnings release and related earnings call, the jury in the patent litigation with SynQor, Inc. (“SynQor”) awarded SynQor damages in the amount of $6,500,000 for infringement of a SynQor patent. The Company anticipates filing a post-trial motion seeking entry of judgment of non-infringement of the SynQor patent as a matter of law. The Company intends to appeal to the United States Court of Appeals for the Federal Circuit the construction of claim limitations of the SynQor patents and the dismissal of the Company’s counterclaims against SynQor. In light of the jury award, the Company has recorded a litigation related accrual of $6,500,000 in the third quarter of 2022, resulting in the decrease in our reported net income and net income per share from the amounts previously disclosed in our earnings release, as well as a corresponding $6,500,000 increase in operating expenses to $43,966,000 from the previously disclosed $37,466,000. See Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation related accrual.
-20-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2022
Summary of Third Quarter 20212022 Financial Performance Compared to Second Quarter 20212022 Financial Performance
The following summarizes our financial performance for the third quarter of 2021,2022, compared to the second quarter of 2021:
Net revenues decreased 11.0%increased 0.9% to $84,911,000$103,118,000 for the third quarter of 2021,2022, from $95,376,000$102,186,000 for the second quarter of 2021.2022. Net revenues for Brick Products decreased 23.7%, primarily due to market conditions in Europe and Asia Pacific. Advanced Products revenue rose 6.0% sequentiallyincreased 27.2% compared to the second quarter of 2021. This growth, though, continued to be constrained by limited component availability2022, primarily due to global semiconductorthe ability to shift manufacturing resources to focus on available backlog, as well as, favorable market conditions in North America and Europe for Brick Products. Advanced Products net revenue decreased 12.5% compared to the second quarter of 2022 primarily due to continued supply allocation issues experienced duringconstraints leading to longer cycle-times and schedule delays, as well as, the impact of issuing a return material authorization in the third quarter along with certain internal processing and testing constraints.for approximately $6,000,000.
Export sales represented approximately 62.4%70.1% of total net revenues in the third quarter of 20212022 as compared to 64.3%69.2% in the second quarter of 2021.2022.
Gross margin decreasedincreased to $42,813,000$46,970,000 for the third quarter of 20212022 from $49,871,000$46,849,000 for the second quarter of 2021, and2022, but gross margin, as a percentage of net revenues, decreased to 50.4%45.5% for the third quarter of 20212022 from 52.3%45.8% for the second quarter of 2021. Both the2022. The decrease in gross margin dollarspercentage was primarily a net result of favorable overhead absorption offset by increased tariff costs and the decreased gross margin percentage were primarily due to the decrease in net revenues and lower absorption of overhead expenses.higher processing costs at outside vendors.
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $295,695,000$371,637,000 at the end of the third quarter of 2021,2022, as compared to $210,565,000$410,015,000 at the end of the second quarter of 2021.
• | Operating expenses for the third quarter of 2022 increased $8,415,000, or 23.7%, to $43,966,000 from $35,551,000 for the second quarter of 2022. Selling, general, and administrative expenses increased approximately $2,684,000, primarily due to an increase in legal fees. Research and development expenses decreased approximately $769,000, primarily due to a decrease in project and pre-production materials. Litigation-related expense related to the SynQor litigation was $6,500,000 for the third quarter of 2022. See Note 10 to the Condensed Consolidated Financial Statements for additional information. |
We reported net income for the third quarter of 20212022 of $13,259,000,$1,792,000, or $0.29$0.04 per diluted share, compared to net income of $19,394,000$10,593,000, or $0.43$0.24 per diluted share, for the second quarter of 2021.2022.
For the third quarter of 2021,2022, depreciation and amortization totaled $2,946,000$3,585,000 and capital additions totaled $15,160,000$14,401,000 as compared to depreciation and amortization of $2,812,000$3,369,000 and $6,518,000capital additions of capital additions$14,195,000 for the second quarter of 2021.2022.
Inventories increased by approximately $6,280,000,$11,281,000, or 11.0%13.6%, to $63,409,000$94,336,000 at September 30, 2021,2022, compared to $57,129,000$83,055,000 at June 30, 2021,2022, primarily withconsisting of raw materials, due to the revenue in the third quartermaterials.
-21-
VICOR CORPORATION
Management’s Discussion and Analysis of 2021 falling below expectations, primarily caused by component
Financial Condition and capacity issues which contributed to production delays.
September 30, 2022
Three Months Ended September 30, 20212022 Compared to Three Months Ended September 30, 2020
Net revenues for the third quarter of 20212022 were $84,911,000,$103,118,000, an increase of $6,799,000,$18,207,000, or 8.7%21.4%, as compared to $78,112,000$84,911,000 for the third quarter of 2020.2021. Net revenues, by product line, for the three months ended September 30, 20212022 and 20202021 were as follows (dollars in thousands):
Increase (decrease) | ||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Brick Products | $ | 41,444 | $ | 47,693 | $ | (6,249 | ) | (13.1 | )% | |||||||
Advanced Products | 43,467 | 30,419 | 13,048 | 42.9 | % | |||||||||||
Total | $ | 84,911 | $ | 78,112 | $ | 6,799 | 8.7 | % | ||||||||
Increase | ||||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
Brick Products | $ | 43,916 | $ | 41,444 | $ | 2,472 | 6.0 | % | ||||||||
Advanced Products | 59,202 | 43,467 | 15,735 | 36.2 | % | |||||||||||
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Total | $ | 103,118 | $ | 84,911 | $ | 18,207 | 21.4 | % | ||||||||
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The increase in net revenues for Advanced Products was primarily the result of growth in the data center and high performance computing business, primarily in the United States and Asia Pacific markets.business. The decreaseincrease in net revenues for Brick Products was primarily due to unfavorablefavorable market conditions in the Asia Pacific markets, offset by increases from customersNorth America and Europe and a rebound in the United States and Europe.
Gross margin for the third quarter of 20212022 increased $9,466,000,$4,157,000, or 28.4%9.7%, to $42,813,000,$46,970,000, from $33,347,000$42,813,000 for the third quarter of 2020.2021. Gross margin, as a percentage of net revenues, increaseddecreased to 45.5% for the third quarter of 2022, compared to 50.4% for the third quarter of 2021, compared to 42.7% for the third quarter of 2020.2021. The increase in gross margin dollars andwas due to the increase in net revenues. The decrease in gross margin percentage was primarily due to the increaseunfavorable changes in net revenuesproduct mix, a negative impact from production inefficiencies associated with initial production volumes of new products, and an improved mix of higher-margin products shipped.certain supply chain cost increases.
-22-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Selling, general, and administrative expenses were $22,719,000 for the third quarter of 2022, an increase of $5,397,000, or 31.2%, from $17,322,000 for the third quarter of 2021, an increase of $2,110,000, or 13.9%, from $15,212,000 for the third quarter of 2020.2021. Selling, general, and administrative expenses as a percentage of net revenues increased to 22.0% for the third quarter of 2022 from 20.4% for the third quarter of 2021 from 19.5% for the third quarter of 2020.2021. The components of the $2,110,000$5,397,000 increase in selling, general and administrative expenses for the third quarter of 20212022 from the third quarter of 20202021 were as follows (dollars in thousands):
Increase | ||||||||
Compensation | $ | 725 | 7.0 | % (1) | ||||
Legal fees | 568 | 178.7 | % (2) | |||||
Commissions | 205 | 29.5 | % (3) | |||||
Travel expense | 169 | 94.7 | % (4) | |||||
Outside services | 152 | 29.9 | % (5) | |||||
Advertising | 148 | 22.9 | % (6) | |||||
Employment recruiting | 131 | 179.1 | % (7) | |||||
Other, net | 12 | 0.5 | % | |||||
$ | 2,110 | 13.9 | % | |||||
Increase (decrease) | ||||||||
Legal fees | $ | 3,538 | 399.4 | %(1) | ||||
Compensation | 694 | 6.3 | %(2) | |||||
Advertising | 546 | 68.7 | %(3) | |||||
Depreciation and amortization | 300 | 36.3 | %(4) | |||||
Audit and accounting fees | 236 | 48.1 | %(5) | |||||
Travel expense | 235 | 67.4 | %(6) | |||||
Other, net | (152) | (5.1) | % | |||||
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$ | 5,397 | 31.2 | % | |||||
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(1) |
Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note 10 to the Condensed Consolidated Financial Statements) and for certain corporate legal matters. |
Increase primarily attributable to an increase in |
Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(5) | Overall increase in audit and tax fees. |
(6) | Increase primarily attributable to an increase in |
-23-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Research and development expenses were $14,747,000 for the third quarter of 2022, an increase of $1,228,000, or 9.1%, compared to $13,519,000 for the third quarter of 2021, an increase of $1,487,000, or 12.4%, compared to $12,032,000 for the third quarter of 2020.2021. As a percentage of net revenues, research and development expenses increaseddecreased to 14.3% for the third quarter of 2022 from 15.9% for the third quarter of 2021 from 15.4% for the third quarter of 2020.2021. The components of the $1,487,000$1,228,000 increase in research and development expenses were as follows (dollars in thousands):
Increase (decrease) | ||||||||
Compensation | $ | 710 | 7.9 | % (1) | ||||
Project and pre-production materials | 583 | 42.3 | % (2) | |||||
Deferred costs | 149 | 43.2 | % (3) | |||||
Employment recruiting | 99 | 464.7 | % | |||||
Outside services | 42 | 57.1 | % | |||||
Overhead absorption | (209 | ) | (69.7) | % (4) | ||||
Other, net | 113 | 5.1 | % | |||||
$ | 1,487 | 12.4 | % | |||||
Increase (decrease) | ||||||||
Compensation | $ | 654 | 6.7 | %(1) | ||||
Supplies | 348 | 91.8 | %(2) | |||||
Facilities allocations | 139 | 19.8 | % | |||||
Computer and software expense | 136 | 74.1 | % | |||||
Depreciation and amortization | 116 | 22.9 | % | |||||
Outside services | 96 | 82.6 | % | |||||
Overhead absorption | (146 | ) | (28.7 | )% | ||||
Project and pre-production materials | (387 | ) | (19.7 | )%(3) | ||||
Other, net | 272 | 56.8 | % | |||||
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$ | 1,228 | 9.1 | % | |||||
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(1) | Increase primarily attributable to an increase in headcount, annual compensation adjustments in May |
(2) | Increase in engineering supplies. |
(3) | Decrease primarily attributable to |
Litigation-related expense was $6,500,000 for the third quarter of 2022 which related to the SynQor litigation, as compared to $0 for the third quarter of 2021. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
The significant components of ‘‘Other“Other income (expense), net’’net” for the three months ended September 30, and the changes between the periods were as follows (in thousands):
2022 | 2021 | Increase (decrease) | ||||||||||
Foreign currency losses, net | $ | (453 | ) | $ | (110 | ) | $ | (343 | ) | |||
Interest income (expense), net | (315 | ) | 267 | (582 | ) | |||||||
Rental income | 198 | 198 | — | |||||||||
Other, net | 2 | 39 | (37 | ) | ||||||||
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$ | (568 | ) | $ | 394 | $ | (962 | ) | |||||
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-24-
2021 | 2020 | Increase (decrease) | ||||||||||
Interest income | $ | 267 | $ | 7 | $ | 260 | ||||||
Rental income | 198 | 198 | — | |||||||||
Foreign currency (losses) gains, net | (110 | ) | 140 | (250 | ) | |||||||
Gains on disposals of equipment | 39 | 3 | 36 | |||||||||
Other, net | — | (14 | ) | 14 | ||||||||
$ | 394 | $ | 334 | $ | 60 | |||||||
VICOR CORPORATION
Management’s Discussion and Analysis of 2021 compared to the third quarter
Financial Condition and Results of 2020, due to the investment of the net proceeds of approximately $109.7 million from our underwritten public offering of our Common Stock completed in June 2020. Operation
September 30, 2022
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of Vicor Japan Company, Ltd. (“VJCL”), for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced more unfavorable foreign currency exchange rate fluctuations in the third quarter of 20212022 compared to the third quarter of 2020.
Income before income taxes was $2,436,000 for the third quarter of 2022, as compared to $12,366,000 for the third quarter of 2021, as compared to $6,437,000 for the third quarter of 2020.
The provision (benefit) provision for income taxes and the effective income tax rates for the three months ended September 30, 20212022 and 20202021 were as follows (dollars in thousands):
2021 | 2020 | |||||||
(Benefit) provision for income taxes | $ | (886 | ) | $ | 651 | |||
Effective income tax rate | (7.2 | )% | 10.1 | % |
2022 | 2021 | |||||||
Provision (benefit) for income taxes | $ | 641 | $ | (886 | ) | |||
Effective income tax rate | 26.3 | % | (7.2 | )% |
The effective tax rates were lower than the statutory tax rates for the three months ended September 30, 20212022 and 20202021 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets and excess tax benefits related to stock based compensation during those periods.assets. The provision (benefit) provision for income taxes for the three months ended September 30, 20212022 and 20202021 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes, offset by excess tax benefits related to fully offset taxable income.
See Note 8 to the Condensed Consolidated Financial Statements for disclosure regarding our current assessment of the valuation allowance against all domestic deferred tax assets, and the possible release (i.e., reduction) of the allowance in the future.
We reported net income for the third quarter of 20212022 of $13,259,000,$1,792,000, or $0.29$0.04 per diluted share, compared to $5,785,000,$13,259,000, or $0.13$0.29 per diluted share, for the third quarter of 2020.
Nine Months Ended September 30, 20212022 Compared to Nine Months Ended September 30, 2020
Net revenues for the nine
Increase | ||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Brick Products | $ | 150,255 | $ | 139,638 | $ | 10,617 | 7.6 | % | ||||||||
Advanced Products | 118,828 | 72,636 | 46,192 | 63.6 | % | |||||||||||
Total | $ | 269,083 | $ | 212,274 | $ | 56,809 | 26.8 | % | ||||||||
(Decrease) increase | ||||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
Brick Products | $ | 113,796 | $ | 150,255 | $ | (36,459 | ) | (24.3 | )% | |||||||
Advanced Products | 179,790 | 118,828 | 60,962 | 51.3 | % | |||||||||||
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Total | $ | 293,586 | $ | 269,083 | $ | 24,503 | 9.1 | % | ||||||||
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The increase in net revenues for Advanced Products was primarily the result of growth in the data center and high performance computing business, in the United States and Asia Pacific markets.business. The increasedecrease in net revenues for Brick Products was primarily due to increases from customersunfavorable market conditions in the United StatesAsia Pacific region and Europe, offset by a decreaseshift in net revenues from customers in the European markets. The increases in net revenues for both Brick Products and Advanced Products were also the result of increases in new orders for Advanced Products and Brick Products for the nine months ended September 30, 2021 comparedresource allocation to the nine months ended September 30, 2020. The increase in bookings largely reflected our customers’ response to the 20% to 30% increase in lead-times for our Brick Products and Advanced Products, respectively, plus growth in our data center business, for Advanced Products.
-25-
VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Gross margin for the nine months ended September 30, 2021 increased $46,388,000,2022 decreased $5,964,000, or 51.0%4.3%, to $137,384,000$131,420,000 from $90,996,000$137,384,000 for the nine months ended September 30, 2020.2021. Gross margin, as a percentage of net revenues, increaseddecreased to 44.8% for the nine month period ended September 30, 2022, as compared to 51.1% for the nine month period ended September 30, 2021, as compared to 42.9% for the nine month period ended September 30, 2020.2021. The increasedecrease in gross margin dollars and gross margin percentage was primarily due to the increasechanges in net revenues, an improvedproduct mix, a negative impact from production inefficiencies associated with initial production volumes of higher-marginnew products, shipped, process yield improvements and lower tariff charges.
Selling, general and administrative expenses were $61,322,000 for the nine months ended September 30, 2022, an increase of $10,457,000, or 20.6%, compared to $50,865,000 for the nine months ended September 30, 2021, an increase of $3,829,000, or 8.1%, compared to $47,036,000 for the nine months ended September 30, 2020.2021. Selling, general and administrative expenses as a percentage of net revenues decreasedincreased to 20.9% for the nine months ended September 30, 2022 from 18.9% for the nine months ended September 30, 2021 from 22.2% for the nine months ended September 30, 2020, primarily due to the overall increase in net revenues.2021. The components of the $3,829,000$10,457,000 increase in selling, general and administrative expenses for the nine months ended September 30, 20212022 compared to the nine months ended September 30, 20202021 were as follows (dollars in thousands):
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 | % | |||||||||
Increase (decrease) | ||||||||
Legal fees | $ | 5,562 | 250.0 | %(1) | ||||
Compensation | 2,645 | 8.0 | %(2) | |||||
Outside services | 804 | 45.0 | %(3) | |||||
Depreciation and amortization | 732 | 29.8 | %(4) | |||||
Travel expense | 621 | 75.1 | %(5) | |||||
Advertising | 522 | 21.8 | %(6) | |||||
Commissions | (365 | ) | (13.9 | )%(7) | ||||
Other, net | (64 | ) | (1.2 | )% | ||||
|
| |||||||
$ | 10,457 | 20.6 | % | |||||
|
|
(1) |
Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note 10 to the Condensed Consolidated Financial Statements) and for certain corporate legal matters. |
Increase primarily attributable to |
Increase primarily attributable to an increase in the use of outside service providers at our Andover, MA facility. |
Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(5) | Increase primarily attributable to an increase in travel by the Company’s sales and marketing personnel. |
(6) | Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
(7) | Decrease primarily attributable to a decrease in net revenues subject to commissions. |
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VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Research and development expenses were $44,516,000 for the nine months ended September 30, 2022, an increase of $4,698,000, or 11.8%, from $39,818,000 for the nine months ended September 30, 2021 an increase of $1,621,000, or 4.2%, from $38,197,000 for the nine months ended September 30, 2020. As a percentage of net revenues, research and development expenses decreasedincreased to 15.2% for the nine month period ended September 30, 2022 from 14.8% for the nine month period ended September 30, 2021 from 18.0% for the nine month period ended September 30, 2020, primarily due to the overall increase in net revenues.2021. The components of the $1,621,000$4,698,000 increase in research and development expenses for the nine months ended September 30, 20212022 compared to the nine months ended September 30, 20202021 were as follows (dollars in thousands):
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 | % | |||||
Increase | ||||||||
Compensation | $ | 1,865 | 6.5 | %(1) | ||||
Supplies | 821 | 76.8 | %(2) | |||||
Overhead absorption | 413 | 22.8 | %(3) | |||||
Depreciation and amortization | 297 | 19.6 | %(4) | |||||
Facilities allocations | 271 | 13.1 | %(5) | |||||
Computer and software expense | 219 | 39.2 | %(6) | |||||
Travel expense | 156 | 143.8 | % | |||||
Deferred costs | 140 | 29.2 | % | |||||
Other, net | 516 | 6.3 | % | |||||
|
| |||||||
$ | 4,698 | 11.8 | % | |||||
|
|
(1) | Increase primarily attributable to an increase in headcount, annual compensation adjustments in May |
(2) | Increase |
(3) |
Increase primarily attributable to a decrease |
(4) | Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(5) | Increase primarily attributable to an increase in utilities and building maintenance expenses. |
(6) | Increase primarily attributable to an increase in computer and software expenses. |
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VICOR CORPORATION
Management’s Discussion and Analysis of ‘‘Other income (expense), net’’
Financial Condition and Results of Operation
September 30, 2022
Litigation-related expense was $6,500,000 for the nine months ended September 30, 20212022 which related to the SynQor litigation, as compared to $0 for the nine months ended September 30, 2021. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
The significant components of “Other income (expense), net” for the nine months ended September 30, 2022 and the nine months ended September 30, 20202021 and the changes from period to period were as follows (in thousands):
2021 | 2020 | Increase (decrease) | ||||||||||
Interest income | $ | 736 | $ | 77 | $ | 659 | ||||||
Rental income | 594 | 594 | — | |||||||||
Foreign currency (losses) gains, net | (285 | ) | 23 | (308 | ) | |||||||
(Losses) gains on disposals of equipment | (67 | ) | 9 | (76 | ) | |||||||
Other, net | 21 | 12 | 9 | |||||||||
$ | 999 | $ | 715 | $ | 284 | |||||||
2022 | 2021 | Increase (decrease) | ||||||||||
Foreign currency losses, net | $ | (1,057 | ) | $ | (285 | ) | $ | (772 | ) | |||
Rental income | 594 | 594 | — | |||||||||
Interest income (expense), net | 107 | 757 | (650 | ) | ||||||||
Other, net | 34 | (67 | ) | 101 | ||||||||
|
|
|
|
|
| |||||||
$ | (322 | ) | $ | 999 | $ | (1,321 | ) | |||||
|
|
|
|
|
|
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of VJCL, for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia have experienced more unfavorable foreign currency exchange rate fluctuations in 20212022 compared to 2020.
Income before income taxes was $18,760,000 for the nine months ended September 30, 2022, as compared to $47,700,000 for the nine months ended September 30, 2021, as compared to $6,478,000 for the nine months ended September 30, 2020.
The benefitprovision (benefit) for income taxes and the effective income tax rates for the nine months ended September 30, 20212022 and 20202021 were as follows (dollars in thousands):
2021 | 2020 | |||||||
Benefit for income taxes | $ | (30 | ) | $ | (249 | ) | ||
Effective income tax rate | (0.1 | )% | (3.8 | )% |
2022 | 2021 | |||||||
Provision (benefit) for income taxes | $ | 1,395 | $ | (30 | ) | |||
Effective income tax rate | 7.4 | % | (0.1 | )% |
The effective tax rates were lower than the statutory tax rates for the nine months ended September 30, 20212022 and 20202021 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets and excess tax benefits related to stock based compensation during those periods.assets. The benefitprovision (benefit) for income taxes for the nine months ended September 30, 20212022 and 20202021 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes, offset by excess tax benefits related to fully offset taxable income.
See Note 8 to the Condensed Consolidated Financial Statements for disclosure regarding our current assessment of the valuation allowance against all domestic deferred tax assets, and the possible release (i.e., reduction) of the allowance in the future.
We reported net income for the nine months ended September 30, 20212022 of $47,745,000,$17,384,000, or $1.06$0.39 per diluted share, as compared to $6,717,000,$47,745,000, or $0.15$1.06 per diluted share, for the nine months ended September 30, 2020.2021.
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VICOR CORPORATION
Management’s Discussion and Analysis of
Financial Condition and Results of Operation
September 30, 2021
Liquidity and Capital Resources
As of September 30, 2021,2022, we had $178,663,000$182,098,000 in cash and cash equivalents and $50,217,000$19,949,000 of highly liquid short-term investments. The ratio of total current assets to total current liabilities was 8.2:5.6:1 as of September 30, 20212022 and 7.8:7.3:1 as of December 31, 2020.2021. Working capital, defined as total current assets less total current liabilities, increased $30,968,000decreased $13,873,000 to $307,387,000$293,794,000 as of September 30, 20212022 from $276,419,000$307,667,000 as of December 31, 2020.
The changes in working capital from December 31, 20202021 to September 30, 20212022 were as follows (in thousands):
Increase (decrease) | ||||
Cash and cash equivalents | $ | 16,921 | ||
Short-term investments | 51 | |||
Accounts receivable | 10,081 | |||
Inventories, net | 6,140 | |||
Other current assets | (123) | |||
Accounts payable | (4,225) | |||
Accrued compensation and benefits | 100 | |||
Accrued expenses | (965) | |||
Sales allowances | (1,064) | |||
Short-term lease liabilities | 4 | |||
Income taxes payable | 129 | |||
Short-term deferred revenue | 3,919 | |||
$ | 30,968 | |||
Increase (decrease) | ||||
Cash and cash equivalents | $ | (320 | ) | |
Short-term investments | (25,266 | ) | ||
Accounts receivable | 1,190 | |||
Inventories | 27,014 | |||
Other current assets | (1,225 | ) | ||
Accounts payable | (2,815 | ) | ||
Accrued compensation and benefits | (410 | ) | ||
Accrued expenses | (1,596 | ) | ||
Accrued litigation | (6,500 | ) | ||
Short-term deferred revenue | (4,236 | ) | ||
Other | 291 | |||
|
| |||
$ | (13,873 | ) | ||
|
|
The primary sources of cash for the nine months ended September 30, 20212022 were $50,000,000$25,000,000 from the sale or maturities of short-term investments, $40,227,000 of cash$22,010,000 generated from operations, and $8,621,000 of cash$4,147,000 received in connection with the exercise of options to purchase our Common Stock awarded under our stock option plans and the issuance of Common Stock under our 2017 Employee Stock Purchase Plan. The primary uses of cash during the nine months ended September 30, 20212022 were $50,706,000 for the purchases of short-term investments and $30,942,000 for the purchase of property and equipment.
In November 2000, our Board of Directors authorized the repurchase of up to $30,000,000 of our Common Stock (the “November 2000 Plan”). The November 2000 Plan authorizes us to make such repurchases from time to time in the open market or through privately negotiated transactions. The timing and amounts of Common Stock repurchases are at the discretion of management based on its view of economic and financial market conditions. We did not repurchase shares of Common Stock under the November 2000 Plan during the nine months ended September 30, 2021.2022. As of September 30, 2021,2022, we had approximately $8,541,000 remaining available for repurchases of our Common Stock under the November 2000 Plan.
As of September 30, 2021,2022, we had a total of approximately $22,046,000$27,804,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $6,607,000$6,637,000 of capital expenditure items which had been received and included in Property, plant and equipment in the accompanying Condensed Consolidated Balance Sheets, but not yet paid for. In addition to these commitments,As of September 30, 2022, we have, in aggregate,had approximately $20,000,000$7,627,000 of remaining budgeted capital expenditures expected to be incurred through the first halfremainder of 2022 associated with the construction of a 90,000 sq. ft. addition to the Company’s existing manufacturing facility and the installation of new manufacturing and production equipment. Our primary needs for liquidity are for making continuing investments in manufacturing and production equipment and for funding the construction of the additional manufacturing space adjoining our existing Andover manufacturing facility noted above,(as described above), including architectural and construction costs. We believe cash generated from operations together with our available cash and cash equivalents and short-term investments will be sufficient to fund planned operational needs, capital equipment purchases, and the planned construction, for the foreseeable future.
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Financial Condition and Results of Operation
September 30, 20212022
We do not consider the impact of inflation or fluctuations in the exchange rates for foreign currency transactions to have been significant during the last three fiscal years.
Critical Accounting Policies and Estimates
There have been no material changes in our judgments and assumptions associated with the development of our critical accounting estimates during the period ended September 30, 2022. Refer to the section entitled “Critical Accounting Policies and Estimates” in Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
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Vicor Corporation
September 30, 2022
Item 3 — Quantitative and Qualitative Disclosures About Market Risk
We are exposed to a variety of market risks, including changes in interest rates affecting the return on our cash and cash equivalents, our short-term investments and fluctuations in foreign currency exchange rates. As our cash and cash equivalents and short-term investments consist principally of cash accounts, money market securities, and U.S. Treasury securities, which are short-term in nature, we believe our exposure to market risk on interest rate fluctuations for these investments is not significant. As of September 30, 2021,2022, our long-term investment portfolio, recorded on our Condensed Consolidated Balance Sheet as “Long-term investments,investment, net”, consisted of a single auction rate security with a par value of $3,000,000, purchased through and held in custody by a broker-dealer affiliate of Bank of America, N.A., that has experienced failed auctions (the “Failed Auction Security”) since February 2008. While the Failed Auction Security is Aaa/AA+ rated by major credit rating agencies, collateralized by student loans and guaranteed by the U.S. Department of Education under the Federal Family Education Loan Program, continued failure to sell at its periodic auction dates (i.e., reset dates) could negatively impact the carrying value of the investment, in turn leading to impairment charges in future periods. Periodic changes in the fair value of the Failed Auction Security attributable to credit loss (i.e., risk of the issuer’s default) are recorded through earnings as a component of “Other income (expense), net”, with the remainder of any periodic change in fair value not related to credit loss (i.e., temporary
Our exposure to market risk for fluctuations in foreign currency exchange rates relates to the operations of VJCL, for which the functional currency is the Japanese Yen, and changes in the relative value of the Yen to the U.S. Dollar. The functional currency of all other subsidiaries in Europe and other subsidiaries in Asia is the U.S. Dollar. While we believe the risk of fluctuations in foreign currency exchange rates for these subsidiaries is generally not significant, they can be subject to substantial currency changes, and therefore foreign exchange exposures.
Item 4 — Controls and Procedures
(a) | Disclosure regarding controls and procedures. |
As required by
A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Accordingly, management, including the CEO and CFO, recognizes our disclosure controls or our internal control over financial reporting may not prevent or detect all errors and all fraud. The design of a control system must reflect the fact there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the
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Vicor Corporation
September 30, 2022
likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any control’s effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
(b) | Changes in internal control over financial reporting. |
There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2021,2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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Vicor Corporation
Part II – Other Information
September 30, 2021
Item 1 — Legal Proceedings
See Note 10.
Item 1A — Risk Factors
There have been no material changes in the risk factors described in Part I, Item 1A – “Risk Factors” of the Company’s Annual Report on
Our operations could be affected by the complex laws, rules and regulations to which our business is subject, and political and other actions may adversely impact our business.
We are subject to laws and regulations domestically and worldwide, affecting our operations in areas including, but not limited to, intellectual property ownership and infringement; taxes; import and export requirements and tariffs; anti-corruption; business acquisitions; foreign exchange controls and cash repatriation restrictions; data privacy requirements; employment; product regulations; cybersecurity; environmental, health, and safety requirements; and climate change. Compliance with such requirements can be onerous and expensive and may impact our business operations negatively. Should any of these laws, rules and regulations be amended or expanded, or new ones enacted, we could incur materially greater compliance costs and/or restrictions on our ability to manufacture our products and operate our business.
Government actions, including trade protection and national security policies of U.S. and foreign government bodies, such as tariffs, import or export regulations, including deemed export restrictions, trade and economic sanctions, decrees, quotas or other trade barriers and restrictions could affect our ability or the ability of our customers and end users to sell products in certain countries and thereby have a material adverse effect on our business, revenue and results of operations. For example, in 2022, the U.S. government imposed additional export controls on certain advanced computing semiconductor chips (chips, advanced computing chips, integrated circuits (“ICs”)), certain semiconductor manufacturing items and transactions for certain IC end use, including supercomputer end uses. Furthermore, the U.S. government has continued to expand, the number of foreign entities on the Entity List (a restricted party list that imposes additional licensing requirements on shipments to listed parties). These recent export controls are, in part, intended to restrict the ability of the People’s Republic of China to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. The implementation, interpretation and impact on our business of these rules and other regulatory actions taken by the U.S. government is uncertain and evolving, and these rules, other regulatory actions or changes, and other actions taken by the governments of either the U.S. or China, or both, that have occurred and may occur in the future could materially and adversely affect our business, revenue and results of operations.
While we have policies and procedures in place to ensure compliance with sanctions and trade restrictions and other applicable laws, our employees, contractors, partners, and agents may take actions in violation of such policies and applicable law, for which we may be ultimately held responsible. Intentional and unintentional violations of these laws can result in fines and penalties; criminal sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to our reputation, any of which could have a material and adverse impact on our business, operating results and financial condition.
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Vicor Corporation
Part II – Other Information
September 30, 2022
Item 6 — Exhibits
Exhibit Number | Description | |
3.1 | Restated Certificate of Incorporation, dated February 28, 1990 (1) | |
3.2 | Certificate of Ownership and Merger Merging Westcor Corporation, a Delaware Corporation, into Vicor Corporation, a Delaware corporation, dated December 3, 1990 (1) | |
3.3 | Certificate of Amendment of Restated Certificate of Incorporation, dated May 10, 1991 (1) | |
3.4 | Certificate of Amendment of Restated Certificate of Incorporation, dated June 23, 1992 (1) | |
3.5 | Bylaws, as amended (2) | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act. | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act. | |
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. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
VICOR CORPORATION | ||||||||
Date: November 3, | 2022 | By: | /s/ Patrizio Vinciarelli | |||||
Patrizio Vinciarelli | ||||||||
Chairman of the Board, President and | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: November 3, | 2022 | By: | /s/ James F. Schmidt | |||||
James F. Schmidt | ||||||||
Vice President, Chief Financial Officer | ||||||||
(Principal Financial Officer) |
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