ANDOVER, MA -- (Marketwire - July 22, 2010) - Vicor Corporation (NASDAQ: VICR) (the "Company") today reported its financial results for the second quarter and six months ended June 30, 2010.
Revenues for the second fiscal quarter ended June 30, 2010, increased to $57,377,000, compared to $50,627,000 for the corresponding period a year ago, and increased from $51,709,000 for the first quarter of 2010. Gross margin increased to $25,739,000 for the second quarter of 2010, compared to $22,598,000 for the corresponding period a year ago and $23,324,000 for the first quarter of 2010. Gross margin, as a percentage of revenue, increased to 44.9% for the second quarter of 2010 compared to 44.6% for the second quarter of 2009, but decreased slightly on a sequential basis from 45.1% for the first quarter of 2010. Net income for the second quarter was $4,747,000, or $0.11 per diluted share, compared to a net income of $1,341,000, or $0.03 per diluted share, for the corresponding period a year ago and net income of $1,952,000, or $0.05 per diluted share, for the first quarter of 2010.
Revenues for the six months ended June 30, 2010 increased by 7.9% to $109,086,000 from $101,075,000 for the corresponding period a year ago. Net income for the six month period was $6,699,000, or $0.16 per diluted share, compared to a net loss of $(1,202,000) or $(0.03) per diluted share, for the corresponding period a year ago.
Commenting on the Company's second quarter performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated: "Second quarter shipments and bookings were robust. Consolidated revenue increased 11.0% sequentially while the consolidated book-to-bill ratio was 1.43:1. Total backlog at the end of the second quarter was $103,227,000, compared to $78,407,000, at the end of the first quarter."
"Brick components revenue grew 9.9% sequentially, with growth balanced across product lines. V-I Chip revenue for the second quarter grew 11.3% sequentially. V-I Chip bookings were strong on an absolute basis, but declined 19.5% sequentially, reflecting the sizeable initial orders placed by a large customer during the first quarter. This customer, along with others, continued to place orders through the second quarter. Picor also performed well, with strong second quarter sequential revenue and bookings growth."
Dr. Vinciarelli concluded, "New product releases and design-in activities with Bricks, V-I Chips and Picor products are progressing. An important milestone that was recently reached is the engineering release of the PFM, which is scheduled for general introduction after Labor Day. Significant customer interest in DCMs in VIBrick packages points to growth opportunities for our 'V-I Chip inside' Brick product strategy. Finally, Picor's development of innovative silicon-centric solutions complements our vision of enabling efficient power systems made from standard, yet flexible, building blocks."
Depreciation and amortization for the second quarter of 2010 was approximately $2,524,000, and capital additions totaled $2,385,000. For the first six months of 2010, depreciation and amortization was $4,957,000 and capital additions were $4,814,000, compared to $5,234,000 and $2,749,000, respectively, for the first six months of 2009. Cash, restricted cash equivalents and short-term investments increased by $13,276,000 to approximately $55,701,000 at the end of the second quarter of 2010 from $42,425,000 at the end of the first quarter of 2010. The Company's Board of Directors approved a cash dividend of $0.30 per share of the Company's stock. The total dividend of approximately $12,506,000 is payable on July 30, 2010, to shareholders of record at the close of business on July 16, 2010. There were no share repurchases during the quarter, and approximately $8,500,000 remains authorized for additional purchases under the Company's stock repurchase plan.
As of June 30, 2010, the Company held approximately $19,250,000, at par value, of auction rate securities classified as long-term investments purchased though broker / dealer affiliates of Bank of America NA. As previously disclosed, conditions in the market for auction rate securities and the repeated failure of auctions by which such securities are priced have led the Company to classify its holdings as long-term investments and reduce their carrying value to an estimated market value. The Company's remaining $8,600,000 of auction rate securities held by UBS AG ("UBS") were redeemed at par on June 30, 2010, pursuant to an earlier agreement with UBS, with a trade settlement date of July 1, 2010. Accordingly, the UBS auction rate securities were recorded at par and classified as short-term investments as of June 30, 2010. Based on the Company's ability to access cash and other short-term investments and its expected operating cash flows, management does not anticipate the current lack of liquidity of holdings of auction rate securities will affect the Company's ability to execute its current operating plan.
In 2010, the tax provision is based on the estimated annual effective tax rate for 2010, which includes estimated federal, state and foreign income taxes on the Company's projected annual pre-tax income and estimated federal and state income taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns, offset by the expected utilization of federal and foreign net operating loss carryforwards. The tax provision in 2009 provided for estimated income taxes due in various state and international taxing jurisdictions for which losses incurred by the Company cannot be offset, and for estimated federal and state income taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns. The 2010 and 2009 tax provisions also include discrete items, principally expense for net increases in state taxes and accrued interest for potential liabilities.
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, July 22, 2010, at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 866-543-6411 at approximately 4:50 p.m. and use the Passcode 70649235. 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 in the conference call, a replay will be available, shortly after the conclusion of the call, through August 6, 2010. The replay dial-in number is 888-286-8010 and the Passcode is 73796664. 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words "believes," "expects," "anticipates," "intend," "estimate," "plans," "assumes," "may," "will," "would," "should," "continue," "prospective," "project," and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and the Company's capital resources. These statements are based upon the Company's current expectations and estimates as to the prospective events and circumstances that may or may not be within the Company's control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, under Part I, Item I -- "Business," under Part I, Item 1A -- "Risk Factors," under Part I, Item 3 -- "Legal Proceedings," and under Part II, Item 7 -- "Management's Discussion and Analysis of Financial Condition and Results of Operations." The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents the Company files with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. The Company does not undertake any obligation to update any forward-looking statements as a result of future events or developments.
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 electronic data processing, industrial control, military electronics and telecommunications markets.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED SIX MONTHS ENDED
(Unaudited) (Unaudited)
--------------------- --------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2010 2009 2010 2009
---------- ---------- ---------- --------
Net revenues $ 57,377 $ 50,627 $ 109,086 $101,075
Cost of revenues 31,638 28,029 60,023 56,646
---------- ---------- ---------- --------
Gross margin 25,739 22,598 49,063 44,429
Operating expenses:
Sales & administration 12,061 12,019 23,941 24,842
Research & development 9,037 7,611 17,905 15,362
Severance charges 0 859 0 3,957
---------- ---------- ---------- --------
Total operating
expenses 21,098 20,489 41,846 44,161
---------- ---------- ---------- --------
Income from operations 4,641 2,109 7,217 268
Other income, net 425 193 492 311
---------- ---------- ---------- --------
Income before income taxes 5,066 2,302 7,709 579
Provision for income taxes 319 544 957 972
---------- ---------- ---------- --------
Consolidated net income (loss) 4,747 1,758 6,752 (393)
Less: Net income attributable
to noncontrolling interest 0 417 53 809
---------- ---------- ---------- --------
Net income (loss) attributable
to Vicor Corporation $ 4,747 $ 1,341 $ 6,699 ($ 1,202)
========== ========== ========== ========
Net income (loss) per share
attributable to Vicor
Corporation:
Basic $ 0.11 $ 0.03 $ 0.16 ($ 0.03)
Diluted $ 0.11 $ 0.03 $ 0.16 ($ 0.03)
Shares outstanding:
Basic 41,686 41,665 41,676 41,665
Diluted 41,752 41,665 41,726 41,665
VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
JUNE 30, DEC 31,
2010 2009
(Unaudited) (Unaudited)
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 46,604 $ 40,224
Restricted cash equivalents 0 192
Short-term investments 9,097 2,583
Accounts receivable, net 34,435 26,565
Inventories, net 25,686 21,357
Deferred tax assets 181 181
Other current assets 5,237 4,345
----------- -----------
Total current assets 121,240 95,447
Restricted cash and cash equivalents 0 223
Long-term investments 18,380 30,957
Property and equipment, net 48,775 49,009
Other assets 4,828 4,941
----------- -----------
$ 193,223 $ 180,577
=========== ===========
Liabilities and Equity
Current liabilities:
Accounts payable $ 11,613 $ 9,458
Accrued compensation and benefits 7,128 5,740
Accrued severance charge 0 259
Other accrued liabilities 3,591 2,678
Dividends payable 12,506 0
Deferred revenue 4,076 2,521
----------- -----------
Total current liabilities 38,914 20,656
Long-term deferred revenue 2,064 2,196
Long-term income taxes payable 434 384
Deferred income taxes 1,355 1,275
Equity:
Vicor Corporation stockholders' equity:
Capital stock 162,775 162,248
Retained earnings 107,165 112,972
Accumulated other comprehensive loss (1,711) (1,608)
Treasury stock (121,827) (121,827)
----------- -----------
Total Vicor Corporation
stockholders' equity 146,402 151,785
Noncontrolling interest 4,054 4,281
----------- -----------
Total equity 150,456 156,066
----------- -----------
$ 193,223 $ 180,577
=========== ===========
For further information contact: James A. Simms Chief Financial Officer Tel: 978-470-2900 Fax: 978-749-3439