Vicor Corporation Third Quarter 2005 ResultsANDOVER, MA -- 10/18/2005 -- Vicor Corporation (NASDAQ: VICR) today reported its financial results for the third quarter ended September 30, 2005. Revenues for the quarter were $45,298,000 compared to $43,048,000 for the corresponding period a year ago. Net income for Q3 was $1,708,000, or $.04 per diluted share compared to a net loss of $572,000, or ($.01) per diluted share, in Q3 2004.
For the nine months ended September 30, 2005 revenues increased to $133,057,000 from $130,943,000 for the same period of 2004. The Company reported net income for the period of $1,836,000, or $.04 per diluted share compared to a net loss of $1,701,000 or ($.04) per diluted share in 2004.
The book-to-bill ratio for Q3 was 1.03:1. The backlog at the end of Q3 was $41.1 million compared to $36.3 million at the end of 2004. Gross margin was 42.0%, compared to 37.7% in Q3 2004.
Commenting on the quarter and 2005, Vicor's CEO Patrizio Vinciarelli noted: "Productivity improvements in our Brick business unit yielded improved gross margins in Q3. Further improvements in gross margin and profitability should result from the transition of 2nd Gen. products to the FasTrak platform. Subject to sustained demand, we expect modest revenue growth and increased profit margins in Q4."
Vinciarelli went on to say: "In Q3, the V-I Chip and Picor business units continued to reach milestones in their respective product plans, including initial samples of new V-I Chips providing connectivity from the AC wall plug to the Point Of Load (POL). The PFM (Power Factor Module) V-I Chip will enable AC to DC power systems and AC adapters with unprecedented density. Reduction in the size and weight of AC adapters is a long felt need for mobile electronic devices. Factorized Power Adapters are being designed to power a multiplicity of mobile devices efficiently."
"We are continuing to invest in business units with innovative technology which we believe have the prospect to deliver high growth rates and high profitability. These investments are being financed by the profitability of our 1st and 2nd gen proprietary brick business."
In 2005, tax provisions included estimated income taxes due in various state and international taxing jurisdictions, for federal and state taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns and for the Federal alternative minimum tax. In the third quarter of 2005, the Company reduced its tax reserves by $770,000 due to closing tax periods in certain jurisdictions.
Depreciation and amortization in the quarter was $4.1 million and capital additions were $4.0 million. For the first nine months of 2005 depreciation and amortization was $12.8 million and capital additions were $6.6 million. This compares to $15.9 million and $3.3 million, respectively for the first nine months of 2004. Cash and short-term investments were $120.1 million, an increase of $0.4 million from the end of the second quarter. In Q3 Vicor paid $5.0 million in dividends but did not repurchase any shares of its Common Stock.
For more information on Vicor and its products, please visit the Company's website at www.vicorpower.com.
Earnings Conference Call
Vicor will be holding its investor conference call, today, Tuesday, October 18, 2005 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call, should call 888-419-5570 at approximately 4:50 p.m. and use the Passcode 63150523. Internet users can listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor's website at www.vicorpower.com/irwebcast. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software. For those who cannot participate a replay will be available, shortly after the conclusion of the call, through November 1, 2005. The replay dial-in number is 888-286-8010 and the Passcode is 84174601. In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor's website at www.vicorpower.com/irwebcast beginning shortly after the conclusion of the call.
This press release contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words "may," "will," "would," "should," "plans," "expects," "anticipates," "believes," "continue," "estimate," "prospective," "project," "intend," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include our ability to develop and market new products and technologies cost-effectively, to leverage design wins into increased product sales, to decrease manufacturing costs, to enter into licensing agreements that amplify the market opportunity and accelerate market penetration, to realize significant royalties under license agreements, to achieve a sustainable increased bookings rate over a longer period, to hire key personnel and build our business units, and to successfully leverage the V-I Chips in standard products to promote market acceptance of Factorized Power, factors impacting the company's various end markets, including Consumer Electronics, Communications, Information Technology and Automotive, as well as those risks and uncertainties identified in the Company's Annual Report on Form 10-K. The risk factors contained in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in that Form 10-K should be read together with other reports and documents that the Company files with the SEC from time to time, which may supplement, modify, supersede or update those risk factors.
Vicor Corporation designs, develops, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products primarily to the communications, information technology, industrial control and military electronics markets.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED NINE MONTHS ENDED
(Unaudited) (Unaudited)
------------------- -------------------
SEPT 30, SEPT 30, SEPT 30, SEPT 30,
2005 2004 2005 2004
-------- -------- -------- --------
Net revenues $ 45,298 $ 43,048 $133,057 $130,943
Cost of sales 26,284 26,817 81,419 82,332
-------- -------- -------- --------
Gross margin 19,014 16,231 51,638 48,611
Operating expenses:
Sales & administration 10,144 10,141 30,385 30,926
Research & development 7,590 6,706 22,066 19,154
Gain from litigation-related
settlement, net 0 0 (2,250) 0
-------- -------- -------- --------
Total operating expenses 17,734 16,847 50,201 50,080
Income (loss) from operations 1,280 (616) 1,437 (1,469)
-------- -------- -------- --------
Other income (expense), net 261 544 938 853
-------- -------- -------- --------
Income (loss) before income
taxes 1,541 (72) 2,375 (616)
(Benefit) provision for income
taxes (167) 500 539 1,085
-------- -------- -------- --------
Net income (loss) $ 1,708 $ (572) $ 1,836 $ (1,701)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.04 $ (0.01) $ 0.04 $ (0.04)
Diluted $ 0.04 $ (0.01) $ 0.04 $ (0.04)
Shares outstanding:
Basic 41,912 42,098 41,896 42,021
Diluted 42,093 42,098 42,049 42,021
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
SEPT 30, DEC 31,
2005 2004
(Unaudited) (Unaudited)
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 46,088 $ 36,277
Short-term investments 73,980 77,371
Accounts receivable, net 27,314 23,359
Inventories, net 18,234 26,229
Deferred tax assets 2,497 2,497
Other current assets 2,478 2,245
--------- ---------
Total current assets 170,591 167,978
Property and equipment, net 61,046 67,001
Other assets 10,040 9,903
--------- ---------
$ 241,677 $ 244,882
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 7,438 $ 5,806
Accrued compensation and benefits 3,938 4,265
Other accrued liabilities 9,212 9,488
--------- ---------
Total current liabilities 20,588 19,559
Deferred income taxes 3,111 3,173
Minority interests 2,186 1,527
Stockholders' equity:
Capital stock 150,937 149,302
Retained earnings 173,580 176,769
Treasury stock (108,725) (105,448)
--------- ---------
Total stockholders' equity 215,792 220,623
--------- ---------
$ 241,677 $ 244,882
========= =========
For further information contact:
Mark A. Glazer
Chief Financial Officer
Vicor Corporation
Tel: 978-470-2900
Fax: 978-749-3439