Vicor (VICR) 10-Q 28 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	VICR
Entity Registrant Name	VICOR CORP
Entity Central Index Key	751,978
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		27,097,656
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,758,218

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 55,066	$ 62,980
Accounts receivable, less allowance of $154 in 2016 and $171 in 2015	28,026	25,982
Inventories, net	26,562	23,442
Other current assets	3,086	3,102
Total current assets	112,740	115,506
Long-term deferred tax assets, net	11	15
Long-term investments, net	2,580	2,866
Property, plant and equipment, net	37,535	37,450
Other assets	2,172	1,708
Total assets	155,038	157,545
Current liabilities:
Accounts payable	7,965	7,470
Accrued compensation and benefits	8,649	8,349
Accrued expenses	2,178	2,568
Accrued severance charges	0	195
Income taxes payable	23	31
Deferred revenue	2,626	1,988
Total current liabilities	21,441	20,601
Long-term deferred revenue	392	468
Contingent consideration obligations	288	144
Long-term income taxes payable	182	192
Deferred income taxes payable		55
Total liabilities	22,303	21,460
Commitments and contingencies (Note 12)
Vicor Corporation stockholders' equity:
Common Stock	396	395
Additional paid-in capital	174,881	174,337
Retained earnings	96,126	99,685
Accumulated other comprehensive loss	(96)	(577)
Treasury stock, at cost	(138,927)	(138,927)
Total Vicor Corporation stockholders' equity	132,498	135,031
Noncontrolling interest	237	1,054
Total equity	132,735	136,085
Total liabilities and equity	155,038	157,545
Class B Common Stock [Member]
Vicor Corporation stockholders' equity:
Common Stock	$ 118	$ 118

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 154	$ 171

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net revenues	$ 53,227	$ 48,664	$ 152,195	$ 168,800
Cost of revenues	27,304	27,378	82,485	92,113
Gross margin	25,923	21,286	69,710	76,687
Operating expenses:
Selling, general and administrative	13,312	13,383	41,643	43,331
Research and development	10,338	10,121	31,824	31,171
Total operating expenses	23,650	23,504	73,467	74,502
Income (loss) from operations	2,273	(2,218)	(3,757)	2,185
Other income (expense), net:
Total unrealized gains on available-for-sale securities, net	1	15	54	54
Portion of losses (gains) recognized in other comprehensive income (loss)	2	(11)	(44)	(42)
Net credit gains recognized in earnings	3	4	10	12
Other income (expense), net	208	(3)	340	(1)
Total other income (expense), net	211	1	350	11
Income (loss) before income taxes	2,484	(2,217)	(3,407)	2,196
Less: Provision for income taxes	133	174	168	374
Gain from sale of equity method investment, net of tax		5,000		5,000
Consolidated net income (loss)	2,351	2,609	(3,575)	6,822
Less: Net income (loss) attributable to noncontrolling interest	15	106	(16)	143
Net income (loss) attributable to Vicor Corporation	$ 2,336	$ 2,503	$ (3,559)	$ 6,679
Net income (loss) per common share attributable to Vicor Corporation:
Basic	$ 0.06	$ 0.06	$ (0.09)	$ 0.17
Diluted	$ 0.06	$ 0.06	$ (0.09)	$ 0.17
Shares used to compute net income (loss) per common share attributable to Vicor Corporation:
Basic	38,837	38,786	38,811	38,742
Diluted	39,184	39,086	38,811	39,176

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)		$ 2,351	$ 2,609	$ (3,575)	$ 6,822
Foreign currency translation gains (losses), net of tax	[1]	56	61	473	(36)
Unrealized (losses) gains on available-for-sale securities, net of tax	[2]	(2)	11	44	45
Other comprehensive income		54	72	517	9
Consolidated comprehensive income (loss)		2,405	2,681	(3,058)	6,831
Less: Comprehensive income (loss) attributable to noncontrolling interest		19	110	20	142
Comprehensive income (loss) attributable to Vicor Corporation		$ 2,386	$ 2,571	$ (3,078)	$ 6,689
[1]	Net of tax provision (benefit) of $0 for the three and nine months ended September 30, 2016 and 2015.
[2]	The deferred tax assets associated with cumulative unrealized losses on available-for-sale securities are completely offset by a tax valuation allowance as of September 30, 2016 and 2015. Therefore, there is no net income tax provision (benefit) recognized for the three and nine months ended September 30, 2016 and 2015.

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation gains (losses), tax provision (benefit)	$ 0	$ 0	$ 0	$ 0
Recognized income tax provision (benefit)	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Consolidated net income (loss)	$ (3,575)	$ 6,822
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	6,384	6,954
Gain from sale of equity method investment		(5,000)
Stock-based compensation expense, net	171	1,392
Increase in other assets	(505)
Decrease in long-term deferred revenue	(76)	(103)
Deferred income taxes	(51)
Benefit for doubtful accounts	(22)	(18)
Loss (gain) on disposal of equipment	4	(54)
Credit gain on available-for-sale securities	(10)	(12)
(Decrease) increase in long-term income taxes payable	(10)	8
Change in current assets and liabilities, net	(3,894)	2,959
Net cash (used for) provided by operating activities	(1,584)	12,948
Investing activities:
Additions to property, plant and equipment	(6,368)	(5,596)
Proceeds from sale of equity method investment		5,000
Sales and maturities of investments		360
Proceeds from sale of equipment	2	54
Increase in other assets	(18)	(156)
Net cash used for investing activities	(6,384)	(338)
Financing activities:
Proceeds from issuance of Common Stock	455	781
Payment of contingent consideration obligations	(64)
Acquisition of noncontrolling interest	(372)
Net cash provided by financing activities	19	781
Effect of foreign exchange rates on cash	35	(7)
Net (decrease) increase in cash and cash equivalents	(7,914)	13,384
Cash and cash equivalents at beginning of period	62,980	55,187
Cash and cash equivalents at end of period	$ 55,066	$ 68,571

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Vicor Corporation and its consolidated subsidiaries (collectively, the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, these interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any other interim period or the year ending December 31, 2016. The balance sheet at December 31, 2015 presented herein has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed by the Company with the Securities and Exchange Commission on March 8, 2016.

Long-Term Investments

Long-Term Investments	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Long-Term Investments	2. Long-Term Investments As of September 30, 2016 and December 31, 2015, the Company held one auction rate security that had experienced failed auctions of $3,000,000 at par value, which was purchased through and is held by a broker-dealer affiliate of Bank of America, N.A. (the “Failed Auction Security”). The Failed Auction Security held by the Company 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. Management is not aware of any reason to believe the issuer of the Failed Auction Security is presently at risk of default. Through September 30, 2016, the Company has continued to receive interest payments on the Failed Auction Security in accordance with the terms of its indenture. Management believes the Company ultimately should be able to liquidate the Failed Auction Security without significant loss primarily due to the overall quality of the issue held and the collateral securing the substantial majority of the underlying obligation. However, current conditions in the auction rate securities market have led management to conclude the recovery period for the Failed Auction Security exceeds 12 months. As a result, the Company continued to classify the Failed Auction Security as long-term as of September 30, 2016. The following is a summary of available-for-sale securities (in thousands): September 30, 2016 Cost Gross Gross Estimated Failed Auction Security $ 3,000 $ — $ 420 $ 2,580 December 31, 2015 Cost Gross Gross Estimated Failed Auction Security $ 3,000 $ — $ 474 $ 2,526 Brokered certificates of deposit 340 — — 340 $ 3,340 $ — $ 474 $ 2,866 As of September 30, 2016, the Failed Auction Security had been in an unrealized loss position for greater than 12 months. The amortized cost and estimated fair value of the Failed Auction Security on September 30, 2016, by contractual maturity, is shown below (in thousands): Cost Estimated Due in twenty-six years $ 3,000 $ 2,580 Based on the fair value measurements described in Note 3, the fair value of the Failed Auction Security on September 30, 2016, with a par value of $3,000,000, was estimated by the Company to be approximately $2,580,000. The gross unrealized loss of $420,000 on the Failed Auction Security consists of two types of estimated loss: an aggregate credit loss of $62,000 and an aggregate temporary impairment of $358,000. In determining the amount of credit loss, the Company compared the present value of cash flows expected to be collected to the amortized cost basis of the security, considering credit default risk probabilities and changes in credit ratings as significant inputs, among other factors (See Note 3). The following table represents a rollforward of the activity related to the credit loss recognized in earnings on the Failed Auction Security for the nine months ended September 30 (in thousands): 2016 2015 Balance at the beginning of the period $ 72 $ 84 Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized (10 ) (12 ) Balance at the end of the period $ 62 $ 72 At this time, the Company has no intent to sell the impaired Failed Auction Security and does not believe it is more likely than not the Company will be required to sell this security. If current market conditions deteriorate further, the Company may be required to record additional unrealized losses. If the credit rating of the security deteriorates, the Company may be required to adjust the carrying value of the investment through impairment charges recorded in the Condensed Consolidated Statements of Operations, and any such impairment adjustments may be material. Based on the Company’s ability to access cash and cash equivalents and its expected operating cash flows, management does not anticipate the current lack of liquidity associated with the Failed Auction Security held will affect the Company’s ability to execute its current operating plan.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements The Company accounts for certain financial assets at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. A three-level hierarchy is used to show the extent and level of judgment used to estimate fair value measurements. Assets measured at fair value on a recurring basis included the following as of September 30, 2016 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,989 $ — $ — $ 9,989 Long-term investments: Failed Auction Security — — 2,580 2,580 Liabilities: Contingent consideration obligations — — (288 ) (288 ) Assets measured at fair value on a recurring basis included the following as of December 31, 2015 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 10,412 $ — $ — $ 10,412 Long-term investments: Failed Auction Security — — 2,526 2,526 Brokered certificates of deposit — 340 — 340 Liabilities: Contingent consideration obligation — — (144 ) (144 ) The Company has classified its contingent consideration obligations as Level 3 because the fair value for these liabilities was determined using unobservable inputs. The liabilities were based on estimated sales of legacy products over the period of royalty payments at the royalty rate (see Note 8), discounted using the Company’s estimated cost of capital. The Company has classified its brokered certificates of deposit as Level 2 because the fair value for these investments was determined utilizing observable inputs from non-active markets. The fair values fluctuate with changes in market interest rates obtained from information available in publicly quoted markets. Management tested the reported fair values by comparing them to net present value calculations utilizing a discount rate based on U.S. Treasury bill and bond yields for similar maturities. As of September 30, 2016, there was insufficient observable auction rate security market information available to determine the fair value of the Failed Auction Security using Level 1 or Level 2 inputs. As such, the Company’s investment in the Failed Auction Security was deemed to require valuation using Level 3 inputs. Management, after consulting with advisors, valued the Failed Auction Security using analyses and pricing models similar to those used by market participants (i.e., buyers, sellers, and the broker-dealers responsible for execution of the Dutch auction pricing mechanism by which each issue’s interest rate was set). Management utilized a probability weighted discounted cash flow (“DCF”) model to determine the estimated fair value of this security as of September 30, 2016. The major assumptions used in preparing the DCF model included: estimates for the amount and timing of future interest and principal payments based on default probability assumptions used to measure the credit loss of 2.1%; the rate of return required by investors to own this type of security in the current environment, which management estimates to be 5.0% above the risk free rate of return; and an estimated timeframe of three to five years for successful auctions for this type of security to occur. In making these assumptions, management considered relevant factors including: the formula applicable to the security defining the interest rate paid to investors in the event of a failed auction (the “Penalty Rate”); forward projections of the interest rate benchmarks specified in such formulas; the likely timing of principal repayments; the probability of full repayment considering the guarantees by the U.S. Department of Education of the underlying student loans, guarantees by other third parties, and additional credit enhancements provided through other means; and publicly available pricing data for recently issued student loan asset-backed securities not subject to auctions. In developing its estimate of the rate of return required by investors to own the security, management compared the Penalty Rate of the Failed Auction Security with yields of actively traded long-term bonds with similar characteristics and, reflecting the limited liquidity for auction rate securities and the discounts to par value seen in recent tender offers by issuers and arm’s length market transactions between informed buyers and sellers, estimated the implied yield (i.e., the discount to par value) necessary to complete a sale of the Failed Auction Security. Management has calculated an increase or decrease in the liquidity risk premium of 5.0% referenced above of 1.0% (i.e., 100 basis points) as used in the model, would decrease or increase, respectively, the fair value of the Failed Auction Security by approximately $100,000. For purposes of the valuation process for the Failed Auction Security, “management” consists of senior members of the Company’s finance department. The fair value measurements for the Failed Auction Security are reviewed and updated on a quarterly basis. The calculations are prepared by the Company’s Corporate Controller, in conjunction with information provided by its valuation advisors, and include the development and substantiation of the unobservable inputs. The methodology, assumptions, and calculations are reviewed and approved by the Company’s Chief Financial Officer and Chief Accounting Officer. The significant unobservable inputs used in the fair value measurement of the Failed Auction Security are the cumulative probability of earning the maximum rate until maturity, the cumulative probability of principal return prior to maturity, the cumulative probability of default, the liquidity risk premium, and the recovery rate in default. Significant increases (decreases) in any of those inputs in isolation would result in changes in fair value measurement. Significant increases (decreases) in the cumulative probability of earning the maximum rate until maturity, the cumulative probability of principal return prior to maturity, and the recovery rate in default would result in a higher (lower) fair value measurement, while increases (decreases) in the cumulative probability of default and the liquidity risk premium would result in a lower (higher) fair value measurement. Generally, the interrelationships are such that a change in the assumption used for the cumulative probability of principal return prior to maturity is accompanied by a directionally similar change in the assumption used for the cumulative probability of earning the maximum rate until maturity and a directionally opposite change in the assumptions used for the cumulative probability of default and the liquidity risk premium. The recovery rate in default is somewhat independent and based upon the security’s specific underlying assets and published recovery rate indices. Quantitative information about Level 3 fair value measurements as of September 30, 2016 is as follows (dollars in thousands): Fair Value Valuation Unobservable Input Weighted Failed Auction Security $ 2,580 Discounted Cumulative probability of earning the maximum rate until maturity 0.03 % Cumulative probability of principal return prior to maturity 94.82 % Cumulative probability of default 5.15 % Liquidity risk premium 5.00 % Recovery rate in default 40.00 % The change in the estimated fair value calculated for the investment valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Security) for the nine months ended September 30, 2016 was as follows (in thousands): Balance at the beginning of the period $ 2,526 Credit gain on available-for-sale securities included in Other income (expense), net 10 Gain included in Other comprehensive income (loss) 44 Balance at the end of the period $ 2,580 The change in the estimated fair value calculated for the liabilities valued on a recurring basis utilizing Level 3 inputs (i.e., the Contingent consideration obligations) for the nine months ended September 30, 2016 was as follows (in thousands): Balance at the beginning of the period $ 144 Obligation incurred upon acquisition of noncontrolling interest (see Note 8) 208 Payments (64 ) Balance at the end of the period $ 288 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2016.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	4. Stock-Based Compensation The Company uses the Black-Scholes option pricing model to calculate the fair value of stock option awards as of their grant date. Stock-based compensation expense, net for the three and nine months ended September 30 was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Cost of revenues $ (47 ) $ 51 $ 59 $ 170 Selling, general and administrative (327 ) 215 148 975 Research and development (124 ) 75 (36 ) 247 Total stock-based compensation $ (498 ) $ 341 $ 171 $ 1,392 On December 31, 2010, the Company granted 2,984,250 non-qualified stock options under the VI Chip 2007 Stock Option and Incentive Plan with performance-based vesting provisions tied to achievement of certain margin targets by VI Chip Corporation. As of December 31, 2010, the Company determined it was probable the margin targets could be achieved and, accordingly, began recording stock-based compensation expense relating to these options beginning January 1, 2011. During the third quarter of 2016, the Company determined the margin targets would not be met prior to the expiration date of the corresponding options, as VI Chip’s revenue growth has been below levels necessary to achieve the targets. As a result, in accordance with the accounting guidance for performance-based stock options, the Company reversed approximately $768,000 of previously recorded stock-based compensation expense in the third quarter of 2016, representing all expense taken for these performance-based options through June 30, 2016. This resulted in decreases in cost of revenues of $86,000, selling, general and administrative expense of $516,000, and research and development expense of $166,000 for the three and nine months ended September 30, 2016.

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Income (Loss) per Share	5. Net Income (Loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Vicor Corporation $ 2,336 $ 2,503 $ (3,559 ) $ 6,679 Denominator: Denominator for basic net income (loss) per share-weighted average shares (1) 38,837 38,786 38,811 38,742 Effect of dilutive securities: Employee stock options (2) 347 300 — 434 Denominator for diluted net income (loss) per share – adjusted weighted-average shares and assumed conversions 39,184 39,086 38,811 39,176 Basic net income (loss) per share $ 0.06 $ 0.06 $ (0.09 ) $ 0.17 Diluted net income (loss) per share $ 0.06 $ 0.06 $ (0.09 ) $ 0.17 (1) Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. (2) Options to purchase 449,464 and 1,845,289 shares of Common Stock for the three and nine months ended September 30, 2016, respectively, were not included in the calculation of net income (loss) per share as the effect would have been antidilutive. Options to purchase 533,689 and 141,971 shares of Common Stock for the three and nine months ended September 30, 2015, respectively, were not included in the calculation of net income per share as the effect would have been antidilutive.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	6. Inventories Inventories are valued at the lower of cost (determined using the first-in, first-out method) or net realizable value. Fixed production overhead is allocated to the inventory cost per unit based on the normal capacity of the production facilities. Abnormal production costs, including fixed cost variances from normal production capacity, if any, are charged to cost of revenues in the period incurred. All shipping and handling costs incurred in connection with the sale of products are included in cost of revenues. The Company provides reserves for inventories estimated to be excess, obsolete or unmarketable. The Company’s estimation process for assessing net realizable value is based upon its known backlog, projected future demand, historical consumption and expected market conditions. If the Company’s estimated demand and/or market expectation were to change or if product sales were to decline, the Company’s estimation process may cause larger inventory reserves to be recorded, resulting in larger charges to cost of revenues. Inventories were as follows (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 19,652 $ 16,257 Work-in-process 2,991 2,879 Finished goods 3,919 4,306 Net balance $ 26,562 $ 23,442

Other Investments

Other Investments	9 Months Ended
	Sep. 30, 2016
Text Block [Abstract]
Other Investments	7. Other Investments In September 2015, Intersil Corporation (“Intersil”) acquired Great Wall Semiconductor Corporation (“GWS”). At that time, the Company’s gross investment in non-voting convertible preferred stock of GWS totaled $4,999,719, giving the Company an approximately 27% ownership interest in GWS. The Company received cash consideration of $4,999,719 for its investment from Intersil, representing full preference value of its shares of non-voting convertible preferred stock of GWS. Since the investment in GWS had previously been written down to zero, the full amount of the consideration was recorded as a gain from sale of equity method investment in the third quarter of 2015.

Noncontrolling Interest Transac

Noncontrolling Interest Transactions	9 Months Ended
	Sep. 30, 2016
Noncontrolling Interest [Abstract]
Noncontrolling Interest Transactions	8. Noncontrolling Interest Transactions On March 30, 2016, the Company acquired 100% ownership of certain operating assets and cash of its consolidated subsidiary, Converpower Corporation (“Converpower”), in which it held a 49% ownership interest. The operating assets and cash were acquired in exchange for the Company’s common shares representing that 49% interest and the aggregate dollar amount of royalty payments to be made by the Company to Converpower. The transaction was executed through a newly-formed, wholly-owned subsidiary, Granite Power Technologies, Inc. (“GPT”), the business operations of which had formerly existed as a division of Vicor Corporation. The shares of Converpower common stock held by the Company were contributed to GPT prior to the transaction. At the same time that it entered into the Asset Purchase Agreement associated with this transaction, the Company and Converpower entered into a license agreement providing the Company the right to continue manufacturing certain Converpower products in exchange for payment of royalties, quarterly through June 30, 2021, equal to a percentage of the revenue generated by the manufacture and sale of these products by GPT. The estimated present value of total future royalties, included in “Contingent consideration obligations” in the accompanying Condensed Consolidated Balance Sheet as of September 30, 2016, is $185,000 (initially $208,000, as of March 31, 2016). Although the Company exchanged its shares representing its 49% equity interest in Converpower, it acquired 100% control of the business operations. Accordingly, this transaction was accounted for as an acquisition of a noncontrolling interest (i.e., an equity transaction). As such, the noncontrolling interest balance in equity associated with Converpower was reduced to zero, and the additional paid-in capital account was reduced by $208,000, the estimated present value of total future royalties as of March 31, 2016. As a result of the transactions associated with the consolidation of the Converpower operation into GPT, the Company’s aggregate balance of cash, short-term interest receivable, and long-term investments on its Condensed Consolidated Balance Sheet as of March 31, 2016, declined by approximately $718,000. No amounts were recorded in the Condensed Consolidated Statement of Operations related to these transactions. The respective noncontrolling interest holders of Converpower served as key employees of Converpower prior to the transactions described above.

Severance and Other Charges

Severance and Other Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Severance and Other Charges	9. Severance and Other Charges A summary of the activity related to the accrued severance charges is as follows (in thousands): Balance as of December 31, 2015 $ 195 Payments (195 ) Balance as of September 30, 2016 $ —

Product Warranties

Product Warranties	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Product Warranties	10. Product Warranties The Company generally offers a two-year warranty for all of its products, though it is party to a limited number of supply agreements with certain customers contractually committing the Company to warranty and indemnification requirements exceeding those to which the Company has been exposed in the past. The Company provides for the estimated cost of product warranties at the time product revenue is recognized. Factors influencing the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty returns, and the cost per return. The Company periodically assesses the adequacy of warranty reserves and adjusts the amounts as necessary. Warranty obligations are included in “Accrued expenses” in the accompanying Condensed Consolidated Balance Sheets. Product warranty activity for the three and nine months ended September 30 was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance at the beginning of the period $ 496 $ 332 $ 584 $ 204 Accruals for warranties for products sold in the period 61 280 291 465 Fulfillment of warranty obligations (106 ) (18 ) (374 ) (75 ) Revisions of estimated obligations (109 ) — (159 ) — Balance at the end of the period $ 342 $ 594 $ 342 $ 594

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The tax provision is based on the estimated annual effective tax rate for the year, which includes estimated federal, state and foreign income taxes on the Company’s projected pre-tax income (loss) and, in 2015, for estimated federal and state income taxes for certain noncontrolling interest subsidiaries that were not part of the Company’s consolidated income tax returns . The provisions for income taxes and the effective income tax rates for the three and nine months ended September 30 were as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Provision for income taxes $ 133 $ 174 $ 168 $ 374 Effective income tax rate 5.4 % 7.8 % 4.9 % 17.0 % The Company’s effective tax rate was lower than the statutory tax rate in each 2016 and 2015 period due to the utilization of net operating losses. The provisions for the three and nine months ended September 30, 2016 were primarily due to estimated state taxes in jurisdictions in which the Company does not have net operating loss carryforwards. No tax benefit could be recognized for the majority of the Company’s losses during the periods due to a full valuation allowance against all net domestic deferred tax assets. In addition, in connection with the Company’s acquisition of 100% ownership of certain operating assets and cash of Converpower, the related deferred tax liability for unremitted earnings of $55,000 was reversed and recorded as a discrete benefit in the first quarter of 2016 (see Note 8). The provisions for the three and nine months ended September 30, 2015 were primarily due to estimated federal and state taxes for one noncontrolling interest subsidiary, and for estimated state taxes in jurisdictions in which the Company does not have net operating loss carryforwards. As of September 30, 2016, the Company continues to maintain a valuation allowance of approximately $25,855,000 against all domestic net deferred tax assets and the majority of foreign net deferred tax assets, for which realization cannot be considered more likely than not at this time.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies At September 30, 2016, the Company had approximately $596,000 of capital expenditure commitments. On January 28, 2011, SynQor, Inc. (“SynQor”) filed a complaint for patent infringement against Ericsson, Inc. (“Ericsson”), Cisco Systems, Inc. (“Cisco”) and the Company in the U.S. District Court for the Eastern District of Texas (the “Texas Action”). Ericsson and Cisco subsequently settled with SynQor and are no longer parties to the Texas Action. With respect to the Company, SynQor’s complaint in the Texas Action alleged that the Company’s products, including but not limited to unregulated bus converters used in intermediate bus architecture power supply systems, infringe SynQor’s U.S. patent numbers 7,072,190, 7,272,021, and 7,564,702 (“the ‘190 patent”, “the ‘021 patent” and “the ‘702 patent”, respectively). SynQor’s complaint sought an injunction against further infringement and an award of unspecified compensatory and enhanced damages, interest, costs and attorney fees. On September 20, 2011, SynQor filed an amended complaint in the Texas Action that further alleged that the Company’s products, including, but not limited to, unregulated bus converters used in intermediate bus architecture power supply systems, infringe SynQor’s U.S. patent number 8,023,290 (“the ‘290 patent”). The Company responded to SynQor’s amended complaint in the Texas Action by denying that it infringes any of the SynQor patents, and asserting that the SynQor patents are invalid. The Company has further alleged that the SynQor ‘290 patent is unenforceable due to inequitable conduct by SynQor or its agents during the examination of the ‘290 patent at the United States Patent and Trademark Office (“USPTO”). The Company has also asserted counterclaims seeking damages against SynQor for deceptive trade practices and tortious interference with prospective economic advantage arising from SynQor’s attempted enforcement of its patents against the Company. The Company has initiated administrative review proceedings at the USPTO challenging the validity of certain claims of the SynQor patents asserted in the Texas Action, including all claims that were asserted against the Company by SynQor. Regarding the ‘190 patent, the Patent Trial and Appeal Board (“PTAB”) of the USPTO issued a decision upholding the validity of the ‘190 patent claims. That decision was appealed by the Company to the United States Court of Appeals for the Federal Circuit (“the Federal Circuit”), which issued a decision on March 13, 2015 reversing the PTAB, determining that certain claims were invalid, and remanding the matter to the PTAB for further proceedings. On May 2, 2016, the PTAB issued a decision determining that all but one of the remaining claims of the ‘190 patent were invalid and remanding the remaining claim to a patent examiner for further examination. In addition, on that date, the PTAB issued decisions finding all challenged claims of SynQor’s ‘021 patent invalid and upholding the validity of all challenged claims of SynQor’s ‘702 and ‘290 patents. The Company has filed an appeal with the Federal Circuit from the PTAB’s decision upholding the validity of the challenged claims of the ‘702 and ‘290 patents. SynQor has filed an appeal with the Federal Circuit from the PTAB’s decision that the challenged claims of the ‘021 patent are invalid. Decisions in these appeals are not expected until 2017. On May 23, 2016, the Texas Court issued an order staying the Texas Action until the completion of all of the administrative review proceedings concerning the asserted SynQor patents, including any appeals from such proceedings to the Federal Circuit. The Company continues to believe none of its products, including its unregulated bus converters, infringe any valid claim of the asserted SynQor patents, either alone or when used in an intermediate bus architecture implementation, including such use by Cisco. The Company believes SynQor’s claims lack merit and, therefore, continues to vigorously defend itself against SynQor’s patent infringement allegations. The Company does not believe a loss is probable for this matter. If a loss were to be incurred, however, the Company cannot estimate the amount of possible loss or range of possible loss at this time. In addition to the SynQor matter, the Company is involved in certain other litigation and claims incidental to the conduct of its business. While the outcome of lawsuits and claims against the Company cannot be predicted with certainty, management does not expect any current litigation or claims to have a material adverse impact on the Company’s financial position or results of operations.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	13. Segment Information The Company has organized its business segments according to its key product lines. The Brick Business Unit segment (“BBU”) designs, develops, manufactures and markets the Company’s modular DC-DC converters and configurable products, and also includes the entities comprising Vicor Custom Power and the BBU operations of Vicor Japan Company, Ltd. (“VJCL”). The VI Chip segment includes VI Chip Corporation, which designs, develops, manufactures and markets many of the Company’s advanced power component products. The VI Chip segment also includes the VI Chip business conducted through VJCL. The Picor segment includes Picor Corporation, which designs, develops, manufactures and markets integrated circuits and related products for use in a variety of power management and power system applications. The Picor segment develops these products for use in the Company’s BBU and VI Chip modules, to be sold as complements to the Company’s BBU and VI Chip products, or for sale to third parties for separate (i.e., stand-alone) applications. The Company’s chief operating decision maker evaluates performance and allocates resources based on segment revenues and segment operating income (loss). The operating income (loss) for each segment includes selling, general and administrative and research and development expenses directly attributable to the segment. Certain of the Company’s indirect overhead costs, which include corporate selling, general and administrative expenses, are allocated among the segments based upon an estimate of costs associated with each segment. Assets allocated to each segment are based upon specific identification of such assets, which include accounts receivable, inventories, fixed assets and certain other assets. The Corporate segment consists of those operations and assets shared by all segments. The costs of certain centralized executive and administrative functions are recorded in this segment, as are certain shared assets, most notably cash and cash equivalents, deferred tax assets, long-term investments, the Company’s facilities in Massachusetts, real estate and other assets. The Company’s accounting policies and method of presentation for segments are consistent with that used throughout the Condensed Consolidated Financial Statements. The following table provides segment financial data for the three months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations Total 2016: Net revenues $ 38,518 $ 11,961 $ 5,320 $ — $ (2,572 ) $ 53,227 Income (loss) from operations 3,734 (1,915 ) 627 (173 ) — 2,273 Total assets 193,115 21,453 6,928 72,521 (138,979 ) 155,038 Depreciation and amortization 1,025 531 142 375 — 2,073 2015: Net revenues $ 41,119 $ 6,023 $ 2,791 $ — $ (1,269 ) $ 48,664 Income (loss) from operations 5,612 (6,564 ) (1,169 ) (97 ) — (2,218 ) Total assets 163,801 15,372 4,796 88,142 (108,836 ) 163,275 Depreciation and amortization 1,119 633 123 356 — 2,231 The following table provides segment financial data for the nine months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations Total 2016: Net revenues $ 115,963 $ 30,126 $ 12,596 $ — $ (6,490 ) $ 152,195 Income (loss) from operations 9,475 (12,131 ) (510 ) (591 ) — (3,757 ) Total assets 193,115 21,453 6,928 72,521 (138,979 ) 155,038 Depreciation and amortization 3,293 1,660 404 1,027 — 6,384 2015: Net revenues $ 131,396 $ 28,939 $ 13,870 $ — $ (5,405 ) $ 168,800 Income (loss) from operations 17,618 (15,336 ) 474 (571 ) — 2,185 Total assets 163,801 15,372 4,796 88,142 (108,836 ) 163,275 Depreciation and amortization 3,424 2,150 318 1,062 — 6,954 (1) The elimination for net revenues is principally related to inter-segment sales by Picor to BBU and VI Chip and for inter-segment sales by VI Chip to BBU. The elimination for total assets is principally related to inter-segment accounts receivable due to BBU for the funding of VI Chip and Picor operations.

Impact of Recently Issued Accou

Impact of Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Impact of Recently Issued Accounting Standards	14. Impact of Recently Issued Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued guidance to clarify how certain cash receipts and cash payments should be presented in the statement of cash flows. These include debt prepayment, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet determined the impact this new guidance will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued new guidance for employee share-based payment accounting, which makes several modifications to existing guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. This new guidance also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company has not yet determined the impact this new guidance will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued new guidance for lease accounting, which will require lessees to recognize all leases with a duration of greater than twelve months on the balance sheet. For lessors, the guidance modifies the classification criteria and accounting for sales-type and direct financing leases. The new standard is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the impact this new guidance will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued new guidance for inventory accounting, which will require companies to measure in scope inventory at the lower of cost or net realizable value. Current guidance requires an entity to measure inventory at the lower of cost or market. The new guidance does not apply to inventory that is measured using last-in, first-out (“LIFO”) or retail inventory methods. The guidance applies to all other inventory, which includes inventory that is measured using first-in, first-out (“FIFO”), which the Company employs, or average cost methods. The new guidance will be effective for the Company on January 1, 2017, and is to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not anticipate the new guidance will have a material impact on its consolidated financial statements and related disclosures. In May 2014, the FASB issued new guidance for revenue recognition, which will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective which, for the Company, will now be on January 1, 2018, as on July 9, 2015, the FASB voted to defer the effective date of the new standard by one year. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect the new guidance will have on its consolidated financial statements and related disclosures. While the Company has begun its assessment of the new standard and plans to utilize the cumulative effect transition method, it has not yet determined the effect the standard will have on its ongoing financial reporting.

Long-Term Investments (Tables)

Long-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Summary of Available-for-Sale Securities	The following is a summary of available-for-sale securities (in thousands): September 30, 2016 Cost Gross Gross Estimated Failed Auction Security $ 3,000 $ — $ 420 $ 2,580 December 31, 2015 Cost Gross Gross Estimated Failed Auction Security $ 3,000 $ — $ 474 $ 2,526 Brokered certificates of deposit 340 — — 340 $ 3,340 $ — $ 474 $ 2,866
Amortized Cost and Estimated Fair Value of Failed Auction Securities by Contractual Maturities	The amortized cost and estimated fair value of the Failed Auction Security on September 30, 2016, by contractual maturity, is shown below (in thousands): Cost Estimated Due in twenty-six years $ 3,000 $ 2,580
Rollforward of Credit (Gain) Loss Recognized in Earnings on Failed Auction Security	The following table represents a rollforward of the activity related to the credit loss recognized in earnings on the Failed Auction Security for the nine months ended September 30 (in thousands): 2016 2015 Balance at the beginning of the period $ 72 $ 84 Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized (10 ) (12 ) Balance at the end of the period $ 62 $ 72

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	Assets measured at fair value on a recurring basis included the following as of September 30, 2016 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,989 $ — $ — $ 9,989 Long-term investments: Failed Auction Security — — 2,580 2,580 Liabilities: Contingent consideration obligations — — (288 ) (288 ) Assets measured at fair value on a recurring basis included the following as of December 31, 2015 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 10,412 $ — $ — $ 10,412 Long-term investments: Failed Auction Security — — 2,526 2,526 Brokered certificates of deposit — 340 — 340 Liabilities: Contingent consideration obligation — — (144 ) (144 )
Quantitative Information about Level 3 Fair Value Measurements	Quantitative information about Level 3 fair value measurements as of September 30, 2016 is as follows (dollars in thousands): Fair Value Valuation Unobservable Input Weighted Failed Auction Security $ 2,580 Discounted Cumulative probability of earning the maximum rate until maturity 0.03 % Cumulative probability of principal return prior to maturity 94.82 % Cumulative probability of default 5.15 % Liquidity risk premium 5.00 % Recovery rate in default 40.00 %
Change in Estimated Fair Values Calculated for Investment Valued on Recurring Basis Utilizing Level 3 Inputs	The change in the estimated fair value calculated for the investment valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Security) for the nine months ended September 30, 2016 was as follows (in thousands): Balance at the beginning of the period $ 2,526 Credit gain on available-for-sale securities included in Other income (expense), net 10 Gain included in Other comprehensive income (loss) 44 Balance at the end of the period $ 2,580
Change in Estimated Fair Value Calculated for Liabilities Valued on Recurring Basis Utilizing Level 3 Inputs	The change in the estimated fair value calculated for the liabilities valued on a recurring basis utilizing Level 3 inputs (i.e., the Contingent consideration obligations) for the nine months ended September 30, 2016 was as follows (in thousands): Balance at the beginning of the period $ 144 Obligation incurred upon acquisition of noncontrolling interest (see Note 8) 208 Payments (64 ) Balance at the end of the period $ 288

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense, net for the three and nine months ended September 30 was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Cost of revenues $ (47 ) $ 51 $ 59 $ 170 Selling, general and administrative (327 ) 215 148 975 Research and development (124 ) 75 (36 ) 247 Total stock-based compensation $ (498 ) $ 341 $ 171 $ 1,392

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation Of Basic And Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Vicor Corporation $ 2,336 $ 2,503 $ (3,559 ) $ 6,679 Denominator: Denominator for basic net income (loss) per share-weighted average shares (1) 38,837 38,786 38,811 38,742 Effect of dilutive securities: Employee stock options (2) 347 300 — 434 Denominator for diluted net income (loss) per share – adjusted weighted-average shares and assumed conversions 39,184 39,086 38,811 39,176 Basic net income (loss) per share $ 0.06 $ 0.06 $ (0.09 ) $ 0.17 Diluted net income (loss) per share $ 0.06 $ 0.06 $ (0.09 ) $ 0.17 (1) Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. (2) Options to purchase 449,464 and 1,845,289 shares of Common Stock for the three and nine months ended September 30, 2016, respectively, were not included in the calculation of net income (loss) per share as the effect would have been antidilutive. Options to purchase 533,689 and 141,971 shares of Common Stock for the three and nine months ended September 30, 2015, respectively, were not included in the calculation of net income per share as the effect would have been antidilutive.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories were as follows (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 19,652 $ 16,257 Work-in-process 2,991 2,879 Finished goods 3,919 4,306 Net balance $ 26,562 $ 23,442

Severance and Other Charges (Ta

Severance and Other Charges (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Summary of Activity Related to Accrued Severance Charges	A summary of the activity related to the accrued severance charges is as follows (in thousands): Balance as of December 31, 2015 $ 195 Payments (195 ) Balance as of September 30, 2016 $ —

Product Warranties (Tables)

Product Warranties (Tables)	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Product Warranty Activity	Product warranty activity for the three and nine months ended September 30 was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance at the beginning of the period $ 496 $ 332 $ 584 $ 204 Accruals for warranties for products sold in the period 61 280 291 465 Fulfillment of warranty obligations (106 ) (18 ) (374 ) (75 ) Revisions of estimated obligations (109 ) — (159 ) — Balance at the end of the period $ 342 $ 594 $ 342 $ 594

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Provisions for Income Taxes and Effective Income Tax Rates	The provisions for income taxes and the effective income tax rates for the three and nine months ended September 30 were as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Provision for income taxes $ 133 $ 174 $ 168 $ 374 Effective income tax rate 5.4 % 7.8 % 4.9 % 17.0 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Significant Segment Financial Data	The following table provides segment financial data for the three months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations Total 2016: Net revenues $ 38,518 $ 11,961 $ 5,320 $ — $ (2,572 ) $ 53,227 Income (loss) from operations 3,734 (1,915 ) 627 (173 ) — 2,273 Total assets 193,115 21,453 6,928 72,521 (138,979 ) 155,038 Depreciation and amortization 1,025 531 142 375 — 2,073 2015: Net revenues $ 41,119 $ 6,023 $ 2,791 $ — $ (1,269 ) $ 48,664 Income (loss) from operations 5,612 (6,564 ) (1,169 ) (97 ) — (2,218 ) Total assets 163,801 15,372 4,796 88,142 (108,836 ) 163,275 Depreciation and amortization 1,119 633 123 356 — 2,231 The following table provides segment financial data for the nine months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations Total 2016: Net revenues $ 115,963 $ 30,126 $ 12,596 $ — $ (6,490 ) $ 152,195 Income (loss) from operations 9,475 (12,131 ) (510 ) (591 ) — (3,757 ) Total assets 193,115 21,453 6,928 72,521 (138,979 ) 155,038 Depreciation and amortization 3,293 1,660 404 1,027 — 6,384 2015: Net revenues $ 131,396 $ 28,939 $ 13,870 $ — $ (5,405 ) $ 168,800 Income (loss) from operations 17,618 (15,336 ) 474 (571 ) — 2,185 Total assets 163,801 15,372 4,796 88,142 (108,836 ) 163,275 Depreciation and amortization 3,424 2,150 318 1,062 — 6,954 (1) The elimination for net revenues is principally related to inter-segment sales by Picor to BBU and VI Chip and for inter-segment sales by VI Chip to BBU. The elimination for total assets is principally related to inter-segment accounts receivable due to BBU for the funding of VI Chip and Picor operations.

Long-Term Investments - Additio

Long-Term Investments - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Unrealized Losses On Short Term And Long Term Investments [Line Items]
Amortized cost of securities		$ 3,340,000
Minimum period for which failed auction securities been in unrealized loss position	12 months
Estimated Fair Value		2,866,000
Gross unrealized losses		474,000
Aggregate credit loss	$ 62,000	72,000	$ 72,000	$ 84,000
Failed Auction Security [Member]
Unrealized Losses On Short Term And Long Term Investments [Line Items]
Amortized cost of securities	$ 3,000,000	3,000,000
Period for which failed auction securities been in unrealized loss position	Exceeds 12 months
Estimated Fair Value	$ 2,580,000	2,526,000
Gross unrealized losses	420,000	$ 474,000
Aggregate credit loss	62,000
Aggregate temporary impairment loss	$ 358,000

Long-Term Investments - Summary

Long-Term Investments - Summary of Available-for-Sale Securities (Detail) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost		$ 3,340,000
Gross Unrealized Gains		0
Gross unrealized losses		474,000
Estimated Fair Value		2,866,000
Failed Auction Security [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 3,000,000	3,000,000
Gross Unrealized Gains	0	0
Gross unrealized losses	420,000	474,000
Estimated Fair Value	$ 2,580,000	2,526,000
Brokered Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		340,000
Gross Unrealized Gains		0
Estimated Fair Value		$ 340,000

Long-Term Investments - Amortiz

Long-Term Investments - Amortized Cost and Estimated Fair Value of Failed Auction Securities by Contractual Maturities (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Available-for-sale Securities, Debt Maturities [Abstract]
Due in twenty-six years, Cost	$ 3,000
Due in twenty-six years, Estimated Fair Value	$ 2,580

Long-Term Investments - Rollfor

Long-Term Investments - Rollforward of Credit (Gain) Loss Recognized in Earnings on Failed Auction Security (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Available-for-sale Securities, Debt Maturities [Abstract]
Balance at the beginning of the period	$ 72	$ 84
Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized	(10)	(12)
Balance at the end of the period	$ 62	$ 72

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value		$ 2,866,000
Failed Auction Security [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value	$ 2,580,000	2,526,000
Recurring [Member] | Contingent Consideration Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liabilities, fair value on recurring basis	(288,000)	(144,000)
Recurring [Member] | Failed Auction Security [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value	2,580,000	2,526,000
Recurring [Member] | Long-Term Brokered Certificates of Deposit [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value		340,000
Recurring [Member] | Money Market Funds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	9,989,000	10,412,000
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	9,989,000	10,412,000
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Long-Term Brokered Certificates of Deposit [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value		340,000
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Contingent Consideration Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liabilities, fair value on recurring basis	(288,000)	(144,000)
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Failed Auction Security [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Estimated Fair Value	$ 2,580,000	$ 2,526,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Percent of credit loss	2.10%
Rate of return required	5.00%
Estimated timeframe for auctions of securities minimum	3 years
Estimated timeframe for auctions of securities maximum	5 years
Percentage of liquidity risk premium	5.00%
Increase or decrease in the liquidity risk premium	1.00%
Increase or decrease, respectively, the fair value of the Failed Auction Securities	$ 100,000
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value		$ 2,866
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	$ 2,580
Valuation Technique	Discounted cash flow
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cumulative Probability of Earning Maximum Rate Until Maturity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Cumulative probability of earning the maximum rate until maturity
Weighted Average Interest Rate	0.03%
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cumulative Probability of Principal Return Prior to Maturity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Cumulative probability of principal return prior to maturity
Weighted Average Interest Rate	94.82%
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cumulative Probability of Default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Cumulative probability of default
Weighted Average Interest Rate	5.15%
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member] | Liquidity Risk Premium [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Liquidity risk premium
Weighted Average Interest Rate	5.00%
Failed Auction Security [Member] | Significant Unobservable Inputs (Level 3) [Member] | Recovery Rate in Default [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Recovery rate in default
Weighted Average Interest Rate	40.00%

Fair Value Measurements - Chang

Fair Value Measurements - Change in Estimated Fair Values Calculated for Investment Valued on Recurring Basis Utilizing Level 3 Inputs (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Balance at the beginning of the period	$ 2,526
Credit gain on available-for-sale securities included in Other income (expense), net	10
Gain included in Other comprehensive income (loss)	44
Balance at the end of the period	$ 2,580

Fair Value Measurements - Cha39

Fair Value Measurements - Change in Estimated Fair Value Calculated for Liabilities Valued on Recurring Basis Utilizing Level 3 Inputs (Detail) - Significant Unobservable Inputs (Level 3) [Member] - Contingent Consideration Obligations [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of the period	$ 144
Obligation incurred upon acquisition of noncontrolling interest	208
Payments	(64)
Balance at the end of the period	$ 288

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ (498)	$ 341	$ 171	$ 1,392
Cost of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	(47)	51	59	170
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	(327)	215	148	975
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ (124)	$ 75	$ (36)	$ 247

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - 2007 VI Chip Plan [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-qualified stock options			2,984,250
Stock-based compensation expense reversed	$ (768,000)
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in costs and expenses due to reversal of share-based compensation expense	86,000	$ 86,000
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in costs and expenses due to reversal of share-based compensation expense	516,000	516,000
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in costs and expenses due to reversal of share-based compensation expense	$ 166,000	$ 166,000

Net Income (Loss) per Share - C

Net Income (Loss) per Share - Computation Of Basic And Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income (loss) attributable to Vicor Corporation	$ 2,336	$ 2,503	$ (3,559)	$ 6,679
Denominator:
Denominator for basic net income (loss) per share-weighted average shares	38,837	38,786	38,811	38,742
Effect of dilutive securities:
Employee stock options	347	300		434
Denominator for diluted net income (loss) per share - adjusted weighted-average shares and assumed conversions	39,184	39,086	38,811	39,176
Basic net income (loss) per share	$ 0.06	$ 0.06	$ (0.09)	$ 0.17
Diluted net income (loss) per share	$ 0.06	$ 0.06	$ (0.09)	$ 0.17

Net Income (Loss) per Share -43

Net Income (Loss) per Share - Computation Of Basic And Diluted Net Income (Loss) Per Share (Parenthetical) (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Options to purchase shares of Common Stock not included in the computation of diluted income (loss) per share	449,464	533,689	1,845,289	141,971

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 19,652	$ 16,257
Work-in-process	2,991	2,879
Finished goods	3,919	4,306
Net balance	$ 26,562	$ 23,442

Other Investments - Additional

Other Investments - Additional Information (Detail) - Great Wall Semiconductor Corporation (GWS) [Member]	1 Months Ended
	Sep. 30, 2015USD ($)
Variable Interest Entity [Line Items]
Gross investment	$ 4,999,719
Ownership interest in investment	27.00%
Cash consideration received	$ 4,999,719

Noncontrolling Interest Trans46

Noncontrolling Interest Transactions - Additional Information (Detail) - USD ($)	Mar. 30, 2016	Mar. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Noncontrolling Interest [Line Items]
Contingent consideration			$ 288,000	$ 144,000
Converpower Corporation [Member]
Noncontrolling Interest [Line Items]
Ownership percentage by parent in certain operating assets and cash	100.00%		100.00%
Minority interest percentage by non controlling interest	49.00%
Percentage of common shares exchanged	49.00%
Contingent consideration		$ 208,000	$ 185,000
Royalty payment description			Through June 30, 2021
Noncontrolling interest		$ 0
Percentage of control of business operations acquired		100.00%
Reduction in cash, short-term interest receivable, and long-term investments		$ 718,000
Deconsolidation effect in statement of operations		0
Converpower Corporation [Member] | Additional Paid-In Capital [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interest		$ (208,000)

Severance and Other Charges - S

Severance and Other Charges - Summary of Activity Related to Accrued Severance Charges by Segment (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Restructuring and Related Activities [Abstract]
Restructuring Reserve, Beginning Balance	$ 195
Payments	(195)
Restructuring Reserve, Ending Balance	$ 0

Product Warranties - Additional

Product Warranties - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Product warranty period	2 years

Product Warranties - Product Wa

Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Guarantees [Abstract]
Balance at the beginning of the period	$ 496	$ 332	$ 584	$ 204
Accruals for warranties for products sold in the period	61	280	291	465
Fulfillment of warranty obligations	(106)	(18)	(374)	(75)
Revisions of estimated obligations	(109)		(159)
Balance at the end of the period	$ 342	$ 594	$ 342	$ 594

Income Taxes - Provisions for I

Income Taxes - Provisions for Income Taxes and Effective Income Tax Rates (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 133	$ 174	$ 168	$ 374
Effective income tax rate	5.40%	7.80%	4.90%	17.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Mar. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Line Items]
Net operating loss carryforwards	$ 0		$ 0
Tax benefit recognized	0
Unremitted earnings reversed	55,000
Valuation allowance, deferred tax assets	$ 25,855,000
Converpower Corporation [Member]
Income Tax Disclosure [Line Items]
Ownership percentage by parent in certain operating assets and cash	100.00%	100.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Capital expenditure commitments	$ 596,000

Segment Information - Significa

Segment Information - Significant Segment Financial Data (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net revenues	$ 53,227	$ 48,664	$ 152,195	$ 168,800
Income (loss) from operations	2,273	(2,218)	(3,757)	2,185
Total assets	155,038	163,275	155,038	163,275	$ 157,545
Depreciation and amortization	2,073	2,231	6,384	6,954
Operating Segments [Member] | BBU [Member]
Segment Reporting Information [Line Items]
Net revenues	38,518	41,119	115,963	131,396
Income (loss) from operations	3,734	5,612	9,475	17,618
Total assets	193,115	163,801	193,115	163,801
Depreciation and amortization	1,025	1,119	3,293	3,424
Operating Segments [Member] | VI Chip [Member]
Segment Reporting Information [Line Items]
Net revenues	11,961	6,023	30,126	28,939
Income (loss) from operations	(1,915)	(6,564)	(12,131)	(15,336)
Total assets	21,453	15,372	21,453	15,372
Depreciation and amortization	531	633	1,660	2,150
Operating Segments [Member] | Picor [Member]
Segment Reporting Information [Line Items]
Net revenues	5,320	2,791	12,596	13,870
Income (loss) from operations	627	(1,169)	(510)	474
Total assets	6,928	4,796	6,928	4,796
Depreciation and amortization	142	123	404	318
Operating Segments [Member] | Corporate [Member]
Segment Reporting Information [Line Items]
Income (loss) from operations	(173)	(97)	(591)	(571)
Total assets	72,521	88,142	72,521	88,142
Depreciation and amortization	375	356	1,027	1,062
Eliminations [Member]
Segment Reporting Information [Line Items]
Net revenues	(2,572)	(1,269)	(6,490)	(5,405)
Total assets	$ (138,979)	$ (108,836)	$ (138,979)	$ (108,836)