Vicor Corporation Financial Results for the First Quarter Ended March 31, 2007ANDOVER, MA -- 04/25/2007 -- Vicor Corporation (NASDAQ: VICR) today reported its financial results for the first quarter of 2007 ended March 31, 2007.
Revenues for the quarter decreased to $46,981,000 compared to $47,872,000 for the corresponding period a year ago. Net income for Q1 was $2,402,000, or $.06 per diluted share compared to net income of $3,076,000, or $.07 per diluted share, in Q1 2006.
Gross margin decreased to 43.1% in Q1 2007 from 44.1% in Q1 2006 and increased on a sequential basis from 41.0% in Q4 2006. The book-to-bill ratio for Q1 2007 was 1.00:1 as compared to 0.94:1 in Q4 2006. Backlog at the end of Q1 2007 was $36.6 million as compared to $36.4 million at the end of 2006.
In Q1 2007, the Company recorded $194,000 for expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R).
Commenting on the first quarter, Vicor's CEO Patrizio Vinciarelli noted: "Demand for bricks improved from Q4 levels and we achieved record bookings and shipments of V-I Chips. Margins improved due to better capacity utilization."
Vinciarelli went on to say: "We are looking forward to 2008 for V-I Chip sales to become significant, enabling us to break out of the revenue range of recent years. Our Brick Business Unit, V-I Chip and Picor have synergistic plans for profitable growth while being focused on their respective missions. We have unique technology, products and market opportunities to achieve outstanding returns on our longstanding investments."
Depreciation and amortization in Q1 2007 was $3.1 million and capital additions were $2.1 million. In Q1 2006, depreciation and amortization was $4.0 million and capital additions were $1.6 million. Cash and short-term investments decreased by $41.9 million to approximately $76.7 million at the end of Q1 2007 from $118.6 million at the end of 2006. During the quarter the Company paid approximately $37.2 million, net of insurance proceeds, following the settlement earlier reported and paid a dividend of approximately $6.2 million. There were no share repurchases during Q1 2007. At the end of Q1 2007 there was approximately $8.5 million remaining in the authorized stock buy-back plan.
In 2007, the tax provision included estimated federal and state income taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns, for estimated income taxes due in various state and international taxing jurisdictions and for increases in tax reserves for potential liabilities. The expense was offset principally by refunds of interest received and recorded as a benefit during the quarter as final settlement for the audit of its federal tax returns for tax periods 1994 though 2002 by the Internal Revenue Service. The Company's adoption of FIN 48, "Accounting for Uncertainty in Income Taxes" as of January 1, 2007 did not have a material impact on the Company's financial position or results of operations.
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, Wednesday, April 25, 2007 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 888-482-0024 at approximately 4:50 p.m. and use the Passcode 39258062. 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 May 10, 2007. The replay dial-in number is 888-286-8010 and the Passcode is 75803060. 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 continue to make progress with key customers and prospects, 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 to continue to build our three 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, 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
(Unaudited)
-------- ---------
MAR 31, MAR 31,
2007 2006
-------- ---------
Net revenues $ 46,981 $ 47,872
Cost of revenues 26,754 26,770
-------- ---------
Gross margin 20,227 21,102
Operating expenses:
Sales & administration 12,013 10,914
Research & development 7,400 7,542
-------- ---------
Total operating expenses 19,413 18,456
Income from operations 814 2,646
-------- ---------
Other income (expense), net 1,577 1,060
-------- ---------
Income before income taxes 2,391 3,706
(Benefit) provision for income taxes (11) 630
-------- ---------
Net income $ 2,402 $ 3,076
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Net income per share:
Basic $ 0.06 $ 0.07
Diluted $ 0.06 $ 0.07
Shares outstanding:
Basic 41,565 41,948
Diluted 41,614 42,384
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
MAR 31, DEC 31,
2007 2006
(Unaudited) (Unaudited)
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 32,864 $ 36,185
Short-term investments 43,788 82,401
Accounts receivable, net 30,957 30,399
Insurance receivable for litigation 0 12,800
Inventories, net 22,585 22,001
Deferred tax assets 3,648 3,702
Other current assets 2,575 2,181
----------- -----------
Total current assets 136,417 189,669
Property and equipment, net 50,838 51,573
Other assets 6,614 6,865
----------- -----------
$ 193,869 $ 248,107
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 7,505 $ 7,273
Accrued compensation and benefits 4,884 5,192
Other accrued liabilities 5,961 6,314
Accrual for litigation settlement 0 50,000
----------- -----------
Total current liabilities 18,350 68,779
Deferred income taxes 4,346 4,389
Minority interests 3,610 3,593
Stockholders' equity:
Capital stock 158,644 158,594
Retained earnings 130,746 134,579
Treasury stock (121,827) (121,827)
----------- -----------
Total stockholders' equity 167,563 171,346
----------- -----------
$ 193,869 $ 248,107
=========== ===========
For further information contact:
Mark A. Glazer
Chief Financial Officer
Vicor Corporation
Tel: 978-470-2900
Fax: 978-749-3439
