Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 28,408,092 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,758,218 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 68,206 | $ 44,230 |
Accounts receivable, less allowance of $252 in 2018 and $159 in 2017 | 45,052 | 34,487 |
Inventories, net | 43,444 | 36,499 |
Other current assets | 3,900 | 3,616 |
Total current assets | 160,602 | 118,832 |
Long-term deferred tax assets, net | 184 | 210 |
Long-term investments, net | 2,613 | 2,525 |
Property, plant and equipment, net | 41,465 | 41,356 |
Other assets | 2,801 | 2,801 |
Total assets | 207,665 | 165,724 |
Current liabilities: | ||
Accounts payable | 13,106 | 9,065 |
Accrued compensation and benefits | 9,159 | 9,891 |
Accrued expenses | 2,384 | 2,989 |
Sales allowances | 567 | |
Accrued severance and other charges | 325 | |
Income taxes payable | 708 | 300 |
Deferred revenue | 4,442 | 5,791 |
Total current liabilities | 30,691 | 28,036 |
Long-term deferred revenue | 249 | 303 |
Contingent consideration obligations | 470 | 678 |
Long-term income taxes payable | 195 | 195 |
Other long-term liabilities | 100 | 93 |
Total liabilities | 31,705 | 29,305 |
Commitments and contingencies (Note 12) | ||
Vicor Corporation stockholders' equity: | ||
Additional paid-in capital | 192,373 | 181,395 |
Retained earnings | 122,090 | 93,605 |
Accumulated other comprehensive loss | (516) | (478) |
Treasury stock, at cost | (138,927) | (138,927) |
Total Vicor Corporation stockholders' equity | 175,540 | 136,114 |
Noncontrolling interest | 420 | 305 |
Total equity | 175,960 | 136,419 |
Total liabilities and equity | 207,665 | 165,724 |
Class B Common Stock [Member] | ||
Vicor Corporation stockholders' equity: | ||
Common Stock | 118 | 118 |
Common Stock [Member] | ||
Vicor Corporation stockholders' equity: | ||
Common Stock | $ 402 | $ 401 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 252 | $ 159 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net revenues | $ 78,035 | $ 56,888 | $ 217,500 | $ 169,059 |
Cost of revenues | 39,031 | 31,745 | 112,402 | 94,334 |
Gross margin | 39,004 | 25,143 | 105,098 | 74,725 |
Operating expenses: | ||||
Selling, general and administrative | 15,280 | 14,500 | 46,493 | 43,059 |
Research and development | 10,691 | 10,543 | 33,220 | 33,482 |
Severance and other charges (credits) | (10) | 340 | ||
Total operating expenses | 25,961 | 25,043 | 80,053 | 76,541 |
Income (loss) from operations | 13,043 | 100 | 25,045 | (1,816) |
Other income (expense), net: | ||||
Total unrealized gains on available-for-sale securities, net | 32 | 34 | 88 | 91 |
Less: portion of gains recognized in other comprehensive income (loss) | (30) | (31) | (82) | (82) |
Net credit gains recognized in earnings | 2 | 3 | 6 | 9 |
Other income (expense), net | 230 | 306 | 612 | 985 |
Total other income (expense), net | 232 | 309 | 618 | 994 |
Income (loss) before income taxes | 13,275 | 409 | 25,663 | (822) |
Less: Provision for income taxes | 227 | 371 | 724 | 539 |
Consolidated net income (loss) | 13,048 | 38 | 24,939 | (1,361) |
Less: Net income attributable to noncontrolling interest | 36 | 49 | 124 | 83 |
Net income (loss) attributable to Vicor Corporation | $ 13,012 | $ (11) | $ 24,815 | $ (1,444) |
Net income (loss) per common share attributable to Vicor Corporation: | ||||
Basic | $ 0.32 | $ 0 | $ 0.62 | $ (0.04) |
Diluted | $ 0.32 | $ 0 | $ 0.61 | $ (0.04) |
Shares used to compute net income (loss) per common share attributable to Vicor Corporation: | ||||
Basic | 40,120 | 39,288 | 39,769 | 39,177 |
Diluted | 41,124 | 39,288 | 40,645 | 39,177 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Consolidated net income (loss) | $ 13,048 | $ 38 | $ 24,939 | $ (1,361) | |
Foreign currency translation (losses) gains, net of tax | [1] | (156) | (16) | (129) | 88 |
Unrealized gains on available-for-sale securities, net of tax | [1] | 30 | 31 | 82 | 82 |
Other comprehensive income (loss) | (126) | 15 | (47) | 170 | |
Consolidated comprehensive income (loss) | 12,922 | 53 | 24,892 | (1,191) | |
Less: Comprehensive income attributable to noncontrolling interest | 25 | 47 | 115 | 89 | |
Comprehensive income (loss) attributable to Vicor Corporation | $ 12,897 | $ 6 | $ 24,777 | $ (1,280) | |
[1] | The deferred tax assets associated with cumulative foreign currency translation gains and cumulative unrealized gains on available-for-sale securities are completely offset by a tax valuation allowance as of September 30, 2018 and 2017. Therefore, there is no income tax benefit (provision) recognized for the three and nine months ended September 30, 2018 and 2017. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Recognized income tax benefit (provision) | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||||
Consolidated net income (loss) | $ 13,048 | $ 38 | $ 24,939 | $ (1,361) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 2,331 | 2,244 | 6,870 | 6,590 |
Stock-based compensation expense, net | 688 | 731 | 2,604 | 1,272 |
Provision for doubtful accounts | 91 | 8 | ||
Decrease in long-term income taxes payable | (5) | |||
Increase in other long-term liabilities | 7 | 90 | ||
Decrease in long-term deferred revenue | (54) | (53) | ||
Gain on disposal of equipment | (45) | (15) | ||
Deferred income taxes | 26 | 17 | ||
Credit gain on available-for-sale securities | (2) | (3) | (6) | (9) |
Change in current assets and liabilities, net | (11,590) | (5,896) | ||
Net cash provided by operating activities | 22,842 | 638 | ||
Investing activities: | ||||
Additions to property, plant and equipment | (6,894) | (10,164) | ||
Proceeds from sale of equipment | 45 | 15 | ||
Increase in other assets | (92) | (17) | ||
Net cash used for investing activities | (6,941) | (10,166) | ||
Financing activities: | ||||
Proceeds from issuance of Common Stock | 8,378 | 2,510 | ||
Payment of contingent consideration obligations | (208) | (175) | ||
Net cash provided by financing activities | 8,170 | 2,335 | ||
Effect of foreign exchange rates on cash | (95) | (41) | ||
Net increase (decrease) in cash and cash equivalents | 23,976 | (7,234) | ||
Cash and cash equivalents at beginning of period | 44,230 | 56,170 | 44,230 | 56,170 |
Cash and cash equivalents at end of period | $ 68,206 | $ 48,936 | $ 68,206 | $ 48,936 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 are not necessarily indicative of the results that may be expected for any other interim period or the year ending December 31, 2018. The balance sheet at December 31, 2017 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 Form 10-K”). |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standard | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Recently Adopted Accounting Standard | 2. Recently Adopted Accounting Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for revenue recognition (“Topic 606”), which requires 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, which includes several amendments, replaces most of the prior revenue recognition guidance under U.S. Generally Accepted Accounting Principles. The Company adopted the new guidance as of January 1, 2018 using the modified retrospective method, as applied to all contracts. As a result, the Company has changed its accounting policy for revenue recognition, as detailed below. The most significant impacts of the adoption were on the timing of recognition of sales to the Company’s stocking distributors and including the additional required disclosures under the new standard. Through December 31, 2017, the Company deferred revenue and the related cost of sales on shipments to stocking distributors until the distributors resold the products to their customers. Upon adoption, the Company is no longer permitted to defer revenue until sale by the stocking distributor to the end customer, but rather, is required to estimate the effects of returns and allowances provided to stocking distributors and record revenue at the time of sale to the stocking distributor. In addition, the Company modified the accounting for a contractual arrangement due to a reassessment of the number of performance obligations in the arrangement, and adjusted for the timing of certain royalty revenue. The cumulative effect of adopting this guidance, recorded as an increase to the balance of retained earnings as of January 1, 2018, was approximately $3,670,000. The comparative information for the three and nine months ended September 30, 2017, including disclosures, has not been restated and continues to be reported under the accounting standards in effect for that period. The following tables summarize the impacts of adopting the new revenue recognition guidance on certain components of the Company’s condensed consolidated financial statements (in thousands): a) Consolidated Balance Sheet Items As of September 30, 2018 As reported Adjustments Balances without Accounts receivable, net $ 45,052 $ (24 ) $ 45,028 Inventories, net 43,444 (128 ) 43,316 Total assets 207,665 (152 ) 207,513 Income taxes payable 708 (25 ) 683 Deferred revenue 4,442 4,911 9,353 Sales allowances 567 (497 ) 70 Total liabilities 31,705 4,389 36,094 Retained earnings 122,090 (4,541 ) 117,549 Total equity 175,960 (4,541 ) 171,419 Total liabilities and equity 207,665 (152 ) 207,513 b) Consolidated Statement of Operations Items Three Months Ended September 30, 2018 As reported Adjustments Balances without Net revenues $ 78,035 $ (1,026 ) $ 77,009 Cost of revenues 39,031 (575 ) 38,456 Gross margin 39,004 (451 ) 38,553 Income before income taxes 13,275 (451 ) 12,824 Provision for income taxes 227 (7 ) 220 Consolidated net income 13,048 (444 ) 12,604 Net income attributable to Vicor Corporation 13,012 (444 ) 12,568 Nine Months Ended September 30, 2018 As reported Adjustments Balances without Net revenues $ 217,500 $ (2,427 ) $ 215,073 Cost of revenues 112,402 (1,531 ) 110,871 Gross margin 105,098 (896 ) 104,202 Income before income taxes 25,663 (896 ) 24,767 Provision for income taxes 724 (25 ) 699 Consolidated net income 24,939 (871 ) 24,068 Net income attributable to Vicor Corporation 24,815 (871 ) 23,944 The impact of the adoption of the new revenue recognition standard on the unaudited consolidated statements of comprehensive income (loss) and cash flows for the three and nine months ended September 30, 2018 was not material. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Prior to January 1, 2018 Product revenue was recognized in the period when persuasive evidence of an arrangement with a customer existed, the products were shipped and title was transferred to the customer, the price was fixed or determinable, and collection was considered probable. The Company deferred revenue and the related cost of sales on shipments to stocking distributors until the distributors resold the products to their customers. The agreements with these stocking distributors allowed them to receive price adjustment credits or to return qualifying products for credit, as determined by the Company, in order to reduce the amounts of slow-moving, discontinued, or obsolete product from their inventory. These stocking distributors were also granted price adjustment credits in the event of a price decrease subsequent to the date the product was shipped and invoiced to the stocking distributor. Given the uncertainties associated with the levels of price adjustment credits to be granted to stocking distributors, the sales price to the stocking distributor was not fixed or determinable until the stocking distributor resold the products to its customers. Therefore, the Company deferred revenue and the related cost of sales on shipments to stocking distributors until the stocking distributors resold the products to their customers. Accordingly, the Company’s revenue fully reflected end-customer end-customers. The Company evaluated revenue arrangements with potential multi-element deliverables to determine if there were more than one unit of accounting. A deliverable constituted a separate unit of accounting when it had standalone value and there were no customer-negotiated refund or return rights for the undelivered elements. The Company entered into arrangements containing multiple elements that could include a combination of non-recurring License fees were recognized as earned. The Company recognized revenue on such arrangements only when the contract was signed, the license term had begun, all obligations had been delivered to the customer, and collection was probable. Subsequent to January 1, 2018 Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales, value add, and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with product warranties continue to be recognized at the time product revenue is recognized. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. The Company’s primary source of net revenue comes from the sale of products, which are modular power components and power systems for converting, regulating and controlling electric current. The principal customers for the Company’s power converters and systems are large original equipment manufacturers and the original design manufacturers and contract manufacturers serving them, and smaller, lower volume users, which are broadly distributed across several major market areas. The Company recognizes revenue for product sales at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery, depending on the terms of the underlying contract. As noted above, the Company previously deferred revenue and the related cost of revenues on shipments to stocking distributors until the distributors resold the products to their customers. The Company now records revenue for such transactions at the time of sale to the stocking distributor. The Company establishes sales allowances for estimated future product returns including distributor returns and price adjustment credits, primarily based upon historical and anticipated rates of product returns and allowances. Certain contracts with customers contain multiple performance obligations, which typically may include a combination of NRE, prototype units, and production units. For these contracts, the individual performance obligations are accounted for separately if they are distinct. Generally, the Company has determined the NRE and prototype units represent one distinct performance obligation and the production units represent a separate distinct performance obligation. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price, based on prices charged to customers or using the expected cost plus a margin approach. The Company defers revenue recognition for NRE and prototype units until the point in time at which the final milestone under the NRE arrangement is completed and control is transferred to the customer, which is generally the delivery of the prototype. Revenue for production units is recognized upon shipment or delivery, consistent with product revenue summarized above. The Company licenses its intellectual property under right to use licenses, in which royalties due to the Company are based upon a percentage of the licensee’s sales. The Company utilizes the exception under the revenue recognition guidance for the recognition of sales- or usage-based royalties, in which the royalties are not recognized until the later of when 1) the customer’s subsequent sales or usages occur, or 2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied or partially satisfied. Accounts receivable includes amounts billed and currently due from customers. The amounts due are stated at their estimated realizable value. The Company’s payment terms vary by the type and location of its customers and the products or services offered, although terms generally include a requirement of payment within 30 to 60 days. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments, based on assessments of customers’ credit-risk profiles and payment histories. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company does not require collateral from its customers, although there have been circumstances when the Company has required cash in advance (i.e., a partial down-payment) to facilitate orders in excess of a customer’s established credit limit. To date, such amounts have not been material. The Company records deferred revenue, which represents a contract liability, when cash payments are received or due in advance of performance under a contract with a customer. During the three and nine months ended September 30, 2018, under Topic 606, the Company recognized revenue of approximately $471,000 and $781,000, respectively, that was included in deferred revenue at the beginning of each respective period. The Company applies the practical expedient allowed under the new guidance for the incremental costs of obtaining a contract for sales commissions, which are expensed when incurred because the amortization period is generally less than one year. These costs are included in selling, general and administrative expenses. The Company also applies another practical expedient allowed under the new guidance and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The following tables present the Company’s net revenues disaggregated by geography based on the location of the customer, by reportable segment, (in thousands): Three Months Ended September 30, 2018 BBU VI Chip Picor Total United States $ 20,508 $ 8,265 $ 887 $ 29,660 Europe 7,013 1,119 68 8,200 Asia Pacific 22,136 11,252 5,326 38,714 All other 1,369 92 — 1,461 $ 51,026 $ 20,728 $ 6,281 $ 78,035 Nine Months Ended September 30, 2018 BBU VI Chip Picor Total United States $ 55,794 $ 24,035 $ 1,873 $ 81,702 Europe 16,615 2,861 249 19,725 Asia Pacific 64,223 33,544 14,566 112,333 All other 3,380 317 43 3,740 $ 140,012 $ 60,757 $ 16,731 $ 217,500 The following tables present the Company’s net revenues disaggregated by the category of revenue, by reportable segment, (in thousands): Three Months Ended September 30, 2018 BBU VI Chip Picor Total Direct customers, contract manufacturers and non-stocking $ 44,269 $ 17,853 $ 5,655 $ 67,777 Stocking distributors, net of sales allowances 6,236 1,254 519 8,009 Non-recurring 513 1,604 90 2,207 Royalties 8 8 8 24 Other — 9 9 18 $ 51,026 $ 20,728 $ 6,281 $ 78,035 Nine Months Ended September 30, 2018 BBU VI Chip Picor Total Direct customers, contract manufacturers and non-stocking $ 123,147 $ 52,787 $ 15,137 $ 191,071 Stocking distributors, net of sales allowances 15,934 5,673 1,251 22,858 Non-recurring 885 2,224 270 3,379 Royalties 46 46 46 138 Other — 27 27 54 $ 140,012 $ 60,757 $ 16,731 $ 217,500 The following table presents the changes in certain contract assets and (liabilities) (in thousands): September 30, December 31, Increase Accounts receivable $ 45,052 $ 34,487 $ 10,565 Deferred revenue (2,735 ) (5,015 ) 2,280 Deferred expenses 315 377 (62 ) Customer prepayments (1,707 ) (776 ) (931 ) Sales allowances (567 ) — (567 ) The increase in accounts receivable was primarily due to an increase in net revenues of approximately $19,264,000 in the third quarter of 2018 compared to the fourth quarter of 2017. The decrease in deferred revenue was primarily due to the adoption of the new revenue recognition guidance, as the balances related to stocking distributors were reversed as part of the transition adjustment recorded as of January 1, 2018 (see Note 2 to the Condensed Consolidated Financial Statements). The increase in sales allowances was due to the establishment of new allowances, in connection with the new revenue recognition guidance, for potential returns and price adjustment credits on sales to stocking distributors. Deferred expenses are included in Other current assets, and customer prepayments are included in Deferred revenue, in the accompanying Condensed Consolidated Balance Sheets, respectively. |
Long-Term Investments
Long-Term Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Long-Term Investments | 4. Long-Term Investments As of September 30, 2018 and December 31, 2017, the Company held one auction rate security with a par value of $3,000,000, purchased through and held in custody by a broker-dealer affiliate of Bank of America, N.A., that has experienced failed auctions (the “Failed Auction Security”) since February 2008. The Failed Auction Security held by the Company is Aaa/AA+ rated by major credit rating agencies, is collateralized by student loans, and is 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, 2018, 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, 2018. The following is a summary of available-for-sale September 30, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Failed Auction Security $ 3,000 $ — $ 387 $ 2,613 December 31, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Failed Auction Security $ 3,000 $ — $ 475 $ 2,525 As of September 30, 2018, the Failed Auction Security had been in an unrealized loss position for greater than 12 months. The cost and estimated fair value of the Failed Auction Security on September 30, 2018, by contractual maturity, is shown below (in thousands): Cost Estimated Due in twenty to forty years $ 3,000 $ 2,613 Based on the fair value measurements described in Note 5, the fair value of the Failed Auction Security on September 30, 2018, with a par value of $3,000,000, was estimated by the Company to be approximately $2,613,000. The gross unrealized loss of $387,000 on the Failed Auction Security consists of two types of estimated loss: an aggregate credit loss of $42,000 and an aggregate temporary impairment of $345,000. 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 5). 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): 2018 2017 Balance at the beginning of the period $ 48 $ 59 Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized (6 ) (9 ) Balance at the end of the period $ 42 $ 50 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, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 and liabilities measured at fair value on a recurring basis included the following as of September 30, 2018 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,542 $ — $ — $ 9,542 Long-term investments: Failed Auction Security — — 2,613 2,613 Liabilities: Contingent consideration obligations — — (470 ) (470 ) Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2017 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,279 $ — $ — $ 9,279 Long-term investments: Failed Auction Security — — 2,525 2,525 Liabilities: Contingent consideration obligations — — (678 ) (678 ) As of September 30, 2018, 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, 2018. The major assumptions used in preparing the DCF model were similar to those described in Note 5 — Fair Value Measurements in the Notes to the Consolidated Financial Statements contained in the Company’s 2017 Form 10-K. Quantitative information about Level 3 fair value measurements as of September 30, 2018 is as follows (dollars in thousands): Fair Value Valuation Unobservable Input Weighted Failed Auction Security $ 2,613 Discounted Cumulative probability of earning the maximum rate until maturity 0.06 % Cumulative probability of principal return prior to maturity 94.80 % 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, 2018 was as follows (in thousands): Balance at the beginning of the period $ 2,525 Credit gain on available-for-sale 6 Gain included in Other comprehensive income 82 Balance at the end of the period $ 2,613 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, discounted using the Company’s estimated cost of capital. 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, 2018 was as follows (in thousands): Balance at the beginning of the period $ 678 Payments (208 ) Balance at the end of the period $ 470 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The Company uses the Black-Scholes option pricing model to calculate the fair value of stock option awards and awards granted under the Vicor Corporation 2017 Employee Stock Purchase Plan (“ESPP”) as of their grant date. Stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Cost of revenues $ 58 $ 53 $ 173 $ 125 Selling, general and administrative 474 466 1,973 861 Research and development 156 212 458 286 Total stock-based compensation $ 688 $ 731 $ 2,604 $ 1,272 The increase in stock-based compensation between the nine-month periods ended September 30, 2018 and 2017 was due to an increase in stock options granted between July 1, 2017 and September 30, 2018. Compensation expense by type of award was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options $ 503 $ 689 $ 2,101 $ 1,230 ESPP 185 42 503 42 Total stock-based compensation $ 688 $ 731 $ 2,604 $ 1,272 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 7. Net Income (Loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Vicor Corporation $ 13,012 $ (11 ) $ 24,815 $ (1,444 ) Denominator: Denominator for basic net income (loss) per share-weighted average shares (1) 40,120 39,288 39,769 39,177 Effect of dilutive securities: Employee stock options (2) 1,004 — 876 — Denominator for diluted net income (loss) per share — adjusted weighted-average shares and assumed conversions 41,124 39,288 40,645 39,177 Basic net income (loss) per share $ 0.32 $ (0.00 ) $ 0.62 $ (0.04 ) Diluted net income (loss) per share $ 0.32 $ (0.00 ) $ 0.61 $ (0.04 ) (1) Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. (2) Options to purchase 54,818 and 47,573 shares of Common Stock for the three and nine months ended September 30, 2018, respectively, and 1,452,808 shares of Common Stock for the three and nine months ended September 30, 2017, respectively, were not included in the calculation of net income (loss) per share as the effect would have been antidilutive. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories Inventories are valued at the lower of cost (determined using the first-in, first-out 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, December 31, Raw materials $ 34,328 $ 27,400 Work-in-process 3,864 3,596 Finished goods 5,252 5,503 Net balance $ 43,444 $ 36,499 |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 9. Product Warranties The Company generally offers a two-year Product warranty activity was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance at the beginning of the period $ 326 $ 244 $ 290 $ 214 Accruals for warranties for products sold in the period 6 126 139 321 Fulfillment of warranty obligations (17 ) (82 ) (94 ) (179 ) Revisions of estimated obligations (58 ) — (78 ) (68 ) Balance at the end of the period $ 257 $ 288 $ 257 $ 288 |
Severance and Other Charges
Severance and Other Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Severance and Other Charges | 10. Severance and Other Charges In May 2018, the Company’s management authorized the closure of its Granite Power Technologies, Inc. (“GPT”) subsidiary, of the Brick Business Unit (“BBU”) segment, by the end of 2018. GPT, located in Manchester, N.H., is one of three Vicor Custom Power (“VCP”) entities. Certain of GPT’s products will continue to be manufactured and sold by the two remaining VCP entities. As a result, the Company recorded a pre-tax |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
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 The provision for income taxes and the effective income tax rates were as follows (dollars in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Provision for income taxes $ 227 $ 371 $ 724 $ 539 Effective income tax rate 1.7 % 90.7 % 2.8 % 65.6 % The effective tax rate was lower than the statutory tax rate in 2018 due to the utilization of net operating carryforwards and tax credits that were previously fully reserved. The provisions for income taxes in each 2017 period were primarily due to estimated foreign income taxes and for 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 2017 periods due to a full valuation allowance against all net domestic deferred tax assets. On December 22, 2017, the U.S. government enacted comprehensive tax legislation, referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) elimination of the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (3) changing rules related to the usage and limitation of net operating loss carryforwards created in tax years beginning after December 31, 2017; and (4) implementing a territorial tax system, which generally eliminates the U.S. federal income tax on dividends from foreign subsidiaries, and imposes a one-time transition Certain impacts of the Tax Act would generally require accounting to be completed in the period of enactment. However, in response to the complexities of the Tax Act, the Securities and Exchange Commission (“SEC”) issued guidance through Staff Accounting Bulletin No. 118 to provide companies with relief. Specifically, when the initial accounting for items under the Tax Act is incomplete, the guidance allows companies to include provisional amounts when reasonable estimates can be made. The SEC has provided up to a one-year measurement the re-measurement of and one-time transition As of September 30, 2018, the Company continues to maintain a valuation allowance of approximately $28,541,000 against all domestic net deferred tax assets. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and past financial performance. Due to improving financial results, the Company may release all or a portion of the valuation allowance in the near-term. The release of the valuation allowance, however, as well as the exact timing and the amount of such release continues to be subject to, among other things, the Company’s level of profitability, revenue growth, and expectations regarding future profitability. Since the Company was in a significant cumulative loss position as of December 31, 2017, and until actual operating results continue to be consistently positive, it will continue to maintain the full valuation allowance on its domestic deferred tax assets. If and when the Company determines the valuation allowance should be released (i.e., reduced), the adjustment would result in a tax benefit reported in that period’s consolidated statements of operations, the effect of which would be an increase in reported net income, and the adjustment could likely be material. In May 2017, the Company received notice from the Internal Revenue Service that its federal corporate tax return for tax year 2015 had been selected for examination. The examination was completed in May 2018 resulting in no tax liability to the Company. In January 2018, the Company received notice from the New York State Department of Taxation that its New York State tax returns for tax years 2014 through 2016 were selected for audit. The audit was completed in the third quarter of 2018, resulting in an immaterial assessment. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies At September 30, 2018, the Company had approximately $9,512,000 of capital expenditure commitments. The Company is the defendant in a patent infringement lawsuit originally filed on January 28, 2011 by SynQor, Inc. (“SynQor”) in the U.S. District Court for the Eastern District of Texas (the “Texas Action”). The complaint, as amended in September 2011, alleges 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, 7,564,702, and 8,023,290 (“the ‘190 patent”, “the ‘021 patent”, “the ‘702 patent”, and “the ‘290 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. The Company has denied that its products infringe any of the SynQor patents, asserted that the SynQor patents are invalid, and asserted that the ‘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 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. On May 23, 2016, after extensive discovery, the Texas Action was stayed by the court pending completion of certain inter partes reexamination proceedings at the USPTO (including any appeals from such proceedings to the Federal Circuit (as defined below)) concerning the SynQor patents, which are described below. In response to the Texas Action, the Company initiated inter partes reexamination 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. The current status of these proceedings is as follows. Regarding the ‘190 patent, the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”) issued a decision on March 13, 2015, determining that certain claims were invalid, and remanding the matter to the Patent Trial and Appeal Board (“PTAB”) of the USPTO 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. On June 22, 2017, the examiner issued a determination under 37 C.F.R. § 41.77(d), finding that the remaining claim of the ‘190 patent was unpatentable. That decision is expected to be further reviewed by the PTAB pursuant to 37 C.F.R. § 41.77(f). On May 2, 2016, the PTAB also 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. On August 30, 2017, the Federal Circuit issued rulings with regard to PTAB’s reexamination decisions for the ‘021, ‘702 and ‘290 patents. With respect to the ‘021 patent, the Federal Circuit affirmed the PTAB’s determination that all of the challenged claims of the ‘021 patent were invalid. The Federal Circuit remanded the case to the PTAB for further consideration of the patentability of certain claims that had been added by amendment during the reexamination. With respect to the ‘702 patent, the Federal Circuit affirmed the PTAB’s determination that all of the challenged claims of the ‘702 patent were patentable. With respect to the ‘290 patent, the Federal Circuit vacated the PTAB’s decision upholding the patentability of the ‘290 patent claims, and remanded the case to the PTAB for further consideration. On October 31, 2017, the Company filed a request with the USPTO for ex parte reexamination of the ‘702 patent, based on different prior art references than had been at issue in the previous inter partes reexamination of the ‘702 patent. On December 6, 2017, the USPTO issued a decision granting the Company’s request and initiating ex parte reexamination of the ‘702 patent. On March 21, 2018, the USPTO issued a non-final On August 6, 2018, the Company filed a request with the USPTO for ex parte reexamination of the ‘190 patent, based on different prior art references than had been at issue in the previous inter partes reexamination of the ‘190 patent. On September 11, 2018, SynQor filed a petition asking the USPTO to reject the Company’s request on the ground that it presented substantially the same prior art or arguments presented to the USPTO in the prior Inter Partes Reexamination of the ‘190 patent. There have been no substantive actions taken in this reexamination proceeding to date. 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. 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 will have a material adverse impact on the Company’s financial position or results of operations. |
Picor Merger
Picor Merger | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Picor Merger | 13. Picor Merger On May 25, 2018, the Company’s Board of Directors unanimously approved the merger of the Company with Picor Corporation (“Picor”), a subsidiary of Vicor, fully consolidated for financial reporting purposes, in which the Company was the majority stockholder. The merger was completed as of May 30, 2018, at which time the separate corporate existence of Picor ceased. To effect the merger, holders of Picor Common Stock and Picor stock options received an equivalent value of Vicor Common Stock and Vicor stock options, respectively, which caused the Picor Corporation Amended and Restated 2001 Stock Option and Incentive Plan, and options outstanding thereunder, to be assumed and restated by Vicor. While Picor’s subsidiary status and corporate form ceased to exist upon the closing of the merger, the operations previously conducted by Picor, which are now conducted by Vicor, continue to be managed and remain categorized as a segment for financial reporting purposes. There was no net impact on the Company’s consolidated financial statements nor any impact on the Company’s segment reporting for the three and nine months ended September 30, 2018 as a result of the merger. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information The Company has organized its business segments according to its key product lines. The BBU segment designs, develops, manufactures, and markets the Company’s legacy lines of DC-DC The Company’s Chief Executive Officer (i.e., the 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 as of and for the three months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations (1) Total 2018: Net revenues $ 51,026 $ 21,525 $ 8,587 $ — $ (3,103 ) $ 78,035 Income (loss) from operations 10,444 1,304 1,579 (284 ) — 13,043 Total assets 268,520 44,262 13,500 83,865 (202,482 ) 207,665 Depreciation and amortization 858 913 200 360 — 2,331 2017: Net revenues $ 38,529 $ 14,745 $ 6,360 $ — $ (2,746 ) $ 56,888 Income (loss) from operations 2,007 (2,952 ) 1,359 (314 ) — 100 Total assets 227,408 33,021 11,934 64,864 (171,151 ) 166,076 Depreciation and amortization 971 712 188 373 — 2,244 The following table provides segment financial data as of and for the nine months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations (1) Total 2018: Net revenues $ 140,012 $ 63,125 $ 25,983 $ — $ (11,620 ) $ 217,500 Income (loss) from operations 16,710 3,669 6,037 (1,371 ) — 25,045 Total assets 268,520 44,262 13,500 83,865 (202,482 ) 207,665 Depreciation and amortization 2,652 2,560 587 1,071 — 6,870 2017: Net revenues $ 115,141 $ 42,835 $ 19,553 $ — $ (8,470 ) $ 169,059 Income (loss) from operations 5,962 (10,761 ) 3,825 (842 ) — (1,816 ) Total assets 227,408 33,021 11,934 64,864 (171,151 ) 166,076 Depreciation and amortization 2,944 2,000 558 1,088 — 6,590 (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, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Recently Issued Accounting Standards | 15. Impact of Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance which modifies the disclosure requirements on fair value measurements under Topic 820, Fair Value Measurements In June 2018, the FASB issued new guidance , Improvements to Nonemployee Share-Based Payment Accounting non-employees In May 2017, the FASB issued guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, Compensation — Stock Compensation In August 2016, the 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 In June 2016, the FASB issued new guidance which will require measurement and recognition of expected credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale Lease Accounting In February 2016, the FASB issued new guidance for lease accounting, which will require lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The new guidance establishes a right-of-use The new standard is effective for the Company as of January 1, 2019, with early adoption permitted. The Company plans to adopt the new guidance on its effective date. The new standard must be adopted using a modified retrospective transition approach, applying the guidance to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of application. The Company plans to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients. The Company expects to elect the ‘package of practical expedients’, which permits companies to not reassess under the new standard lease identification, lease classification and initial direct costs. The Company does not plan to elect the use-of-hindsight The Company has developed an implementation plan and continues to gather information, including compiling an inventory of all leasing arrangements and performing initial calculations, to assess the impact of the new standard on its financial statements. While the Company believes this new standard will have a material impact on the financial statements, particularly the balance sheet and disclosures, a quantification of the potential impact has not yet been completed. Other new pronouncements issued but not effective until after September 30, 2018 are not expected to have a material impact on the Company’s consolidated financial statements. |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standard (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Standard | 2. Recently Adopted Accounting Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for revenue recognition (“Topic 606”), which requires 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, which includes several amendments, replaces most of the prior revenue recognition guidance under U.S. Generally Accepted Accounting Principles. The Company adopted the new guidance as of January 1, 2018 using the modified retrospective method, as applied to all contracts. As a result, the Company has changed its accounting policy for revenue recognition, as detailed below. The most significant impacts of the adoption were on the timing of recognition of sales to the Company’s stocking distributors and including the additional required disclosures under the new standard. Through December 31, 2017, the Company deferred revenue and the related cost of sales on shipments to stocking distributors until the distributors resold the products to their customers. Upon adoption, the Company is no longer permitted to defer revenue until sale by the stocking distributor to the end customer, but rather, is required to estimate the effects of returns and allowances provided to stocking distributors and record revenue at the time of sale to the stocking distributor. In addition, the Company modified the accounting for a contractual arrangement due to a reassessment of the number of performance obligations in the arrangement, and adjusted for the timing of certain royalty revenue. The cumulative effect of adopting this guidance, recorded as an increase to the balance of retained earnings as of January 1, 2018, was approximately $3,670,000. The comparative information for the three and nine months ended September 30, 2017, including disclosures, has not been restated and continues to be reported under the accounting standards in effect for that period. |
Impact of Recently Issued Accounting Standards | In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance which modifies the disclosure requirements on fair value measurements under Topic 820, Fair Value Measurements In June 2018, the FASB issued new guidance , Improvements to Nonemployee Share-Based Payment Accounting non-employees In May 2017, the FASB issued guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, Compensation — Stock Compensation In August 2016, the 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 In June 2016, the FASB issued new guidance which will require measurement and recognition of expected credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale Lease Accounting In February 2016, the FASB issued new guidance for lease accounting, which will require lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The new guidance establishes a right-of-use The new standard is effective for the Company as of January 1, 2019, with early adoption permitted. The Company plans to adopt the new guidance on its effective date. The new standard must be adopted using a modified retrospective transition approach, applying the guidance to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of application. The Company plans to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients. The Company expects to elect the ‘package of practical expedients’, which permits companies to not reassess under the new standard lease identification, lease classification and initial direct costs. The Company does not plan to elect the use-of-hindsight The Company has developed an implementation plan and continues to gather information, including compiling an inventory of all leasing arrangements and performing initial calculations, to assess the impact of the new standard on its financial statements. While the Company believes this new standard will have a material impact on the financial statements, particularly the balance sheet and disclosures, a quantification of the potential impact has not yet been completed. Other new pronouncements issued but not effective until after September 30, 2018 are not expected to have a material impact on the Company’s consolidated financial statements. |
Recently Adopted Accounting S_3
Recently Adopted Accounting Standard (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Standards Update 2014-09 [Member] | |
Summary of Cumulative Effect of Adoption on Consolidated Statement of Operations | The following tables summarize the impacts of adopting the new revenue recognition guidance on certain components of the Company’s condensed consolidated financial statements (in thousands): a) Consolidated Balance Sheet Items As of September 30, 2018 As reported Adjustments Balances without Accounts receivable, net $ 45,052 $ (24 ) $ 45,028 Inventories, net 43,444 (128 ) 43,316 Total assets 207,665 (152 ) 207,513 Income taxes payable 708 (25 ) 683 Deferred revenue 4,442 4,911 9,353 Sales allowances 567 (497 ) 70 Total liabilities 31,705 4,389 36,094 Retained earnings 122,090 (4,541 ) 117,549 Total equity 175,960 (4,541 ) 171,419 Total liabilities and equity 207,665 (152 ) 207,513 b) Consolidated Statement of Operations Items Three Months Ended September 30, 2018 As reported Adjustments Balances without Net revenues $ 78,035 $ (1,026 ) $ 77,009 Cost of revenues 39,031 (575 ) 38,456 Gross margin 39,004 (451 ) 38,553 Income before income taxes 13,275 (451 ) 12,824 Provision for income taxes 227 (7 ) 220 Consolidated net income 13,048 (444 ) 12,604 Net income attributable to Vicor Corporation 13,012 (444 ) 12,568 Nine Months Ended September 30, 2018 As reported Adjustments Balances without Net revenues $ 217,500 $ (2,427 ) $ 215,073 Cost of revenues 112,402 (1,531 ) 110,871 Gross margin 105,098 (896 ) 104,202 Income before income taxes 25,663 (896 ) 24,767 Provision for income taxes 724 (25 ) 699 Consolidated net income 24,939 (871 ) 24,068 Net income attributable to Vicor Corporation 24,815 (871 ) 23,944 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Net Revenues Disaggregated by Geography | The following tables present the Company’s net revenues disaggregated by geography based on the location of the customer, by reportable segment, (in thousands): Three Months Ended September 30, 2018 BBU VI Chip Picor Total United States $ 20,508 $ 8,265 $ 887 $ 29,660 Europe 7,013 1,119 68 8,200 Asia Pacific 22,136 11,252 5,326 38,714 All other 1,369 92 — 1,461 $ 51,026 $ 20,728 $ 6,281 $ 78,035 Nine Months Ended September 30, 2018 BBU VI Chip Picor Total United States $ 55,794 $ 24,035 $ 1,873 $ 81,702 Europe 16,615 2,861 249 19,725 Asia Pacific 64,223 33,544 14,566 112,333 All other 3,380 317 43 3,740 $ 140,012 $ 60,757 $ 16,731 $ 217,500 The following tables present the Company’s net revenues disaggregated by the category of revenue, by reportable segment, (in thousands): Three Months Ended September 30, 2018 BBU VI Chip Picor Total Direct customers, contract manufacturers and non-stocking $ 44,269 $ 17,853 $ 5,655 $ 67,777 Stocking distributors, net of sales allowances 6,236 1,254 519 8,009 Non-recurring 513 1,604 90 2,207 Royalties 8 8 8 24 Other — 9 9 18 $ 51,026 $ 20,728 $ 6,281 $ 78,035 Nine Months Ended September 30, 2018 BBU VI Chip Picor Total Direct customers, contract manufacturers and non-stocking $ 123,147 $ 52,787 $ 15,137 $ 191,071 Stocking distributors, net of sales allowances 15,934 5,673 1,251 22,858 Non-recurring 885 2,224 270 3,379 Royalties 46 46 46 138 Other — 27 27 54 $ 140,012 $ 60,757 $ 16,731 $ 217,500 |
Accounting Standards Update 2014-09 [Member] | |
Summary of Changes in Certain Contract Assets and Liabilities | The following table presents the changes in certain contract assets and (liabilities) (in thousands): September 30, December 31, Increase Accounts receivable $ 45,052 $ 34,487 $ 10,565 Deferred revenue (2,735 ) (5,015 ) 2,280 Deferred expenses 315 377 (62 ) Customer prepayments (1,707 ) (776 ) (931 ) Sales allowances (567 ) — (567 ) |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Securities | The following is a summary of available-for-sale September 30, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Failed Auction Security $ 3,000 $ — $ 387 $ 2,613 December 31, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Failed Auction Security $ 3,000 $ — $ 475 $ 2,525 |
Cost and Estimated Fair Value of Failed Auction Security by Contractual Maturities | The cost and estimated fair value of the Failed Auction Security on September 30, 2018, by contractual maturity, is shown below (in thousands): Cost Estimated Due in twenty to forty years $ 3,000 $ 2,613 |
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): 2018 2017 Balance at the beginning of the period $ 48 $ 59 Reductions in the amount related to credit gain for which other-than-temporary impairment was not previously recognized (6 ) (9 ) Balance at the end of the period $ 42 $ 50 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis included the following as of September 30, 2018 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,542 $ — $ — $ 9,542 Long-term investments: Failed Auction Security — — 2,613 2,613 Liabilities: Contingent consideration obligations — — (470 ) (470 ) Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2017 (in thousands): Using Quoted Prices Significant Significant Total Fair Cash equivalents: Money market funds $ 9,279 $ — $ — $ 9,279 Long-term investments: Failed Auction Security — — 2,525 2,525 Liabilities: Contingent consideration obligations — — (678 ) (678 ) |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative information about Level 3 fair value measurements as of September 30, 2018 is as follows (dollars in thousands): Fair Value Valuation Unobservable Input Weighted Failed Auction Security $ 2,613 Discounted Cumulative probability of earning the maximum rate until maturity 0.06 % Cumulative probability of principal return prior to maturity 94.80 % 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, 2018 was as follows (in thousands): Balance at the beginning of the period $ 2,525 Credit gain on available-for-sale 6 Gain included in Other comprehensive income 82 Balance at the end of the period $ 2,613 |
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, 2018 was as follows (in thousands): Balance at the beginning of the period $ 678 Payments (208 ) Balance at the end of the period $ 470 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Cost of revenues $ 58 $ 53 $ 173 $ 125 Selling, general and administrative 474 466 1,973 861 Research and development 156 212 458 286 Total stock-based compensation $ 688 $ 731 $ 2,604 $ 1,272 |
Summary of Compensation Expense by Type of Award | Compensation expense by type of award was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock options $ 503 $ 689 $ 2,101 $ 1,230 ESPP 185 42 503 42 Total stock-based compensation $ 688 $ 731 $ 2,604 $ 1,272 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Vicor Corporation $ 13,012 $ (11 ) $ 24,815 $ (1,444 ) Denominator: Denominator for basic net income (loss) per share-weighted average shares (1) 40,120 39,288 39,769 39,177 Effect of dilutive securities: Employee stock options (2) 1,004 — 876 — Denominator for diluted net income (loss) per share — adjusted weighted-average shares and assumed conversions 41,124 39,288 40,645 39,177 Basic net income (loss) per share $ 0.32 $ (0.00 ) $ 0.62 $ (0.04 ) Diluted net income (loss) per share $ 0.32 $ (0.00 ) $ 0.61 $ (0.04 ) (1) Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. (2) Options to purchase 54,818 and 47,573 shares of Common Stock for the three and nine months ended September 30, 2018, respectively, and 1,452,808 shares of Common Stock for the three and nine months ended September 30, 2017, respectively, were not included in the calculation of net income (loss) per share as the effect would have been antidilutive. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories were as follows (in thousands): September 30, December 31, Raw materials $ 34,328 $ 27,400 Work-in-process 3,864 3,596 Finished goods 5,252 5,503 Net balance $ 43,444 $ 36,499 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty Activity | Product warranty activity was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance at the beginning of the period $ 326 $ 244 $ 290 $ 214 Accruals for warranties for products sold in the period 6 126 139 321 Fulfillment of warranty obligations (17 ) (82 ) (94 ) (179 ) Revisions of estimated obligations (58 ) — (78 ) (68 ) Balance at the end of the period $ 257 $ 288 $ 257 $ 288 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes and Effective Income Tax Rates | The provision for income taxes and the effective income tax rates were as follows (dollars in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Provision for income taxes $ 227 $ 371 $ 724 $ 539 Effective income tax rate 1.7 % 90.7 % 2.8 % 65.6 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Financial Data | The following table provides segment financial data as of and for the three months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations (1) Total 2018: Net revenues $ 51,026 $ 21,525 $ 8,587 $ — $ (3,103 ) $ 78,035 Income (loss) from operations 10,444 1,304 1,579 (284 ) — 13,043 Total assets 268,520 44,262 13,500 83,865 (202,482 ) 207,665 Depreciation and amortization 858 913 200 360 — 2,331 2017: Net revenues $ 38,529 $ 14,745 $ 6,360 $ — $ (2,746 ) $ 56,888 Income (loss) from operations 2,007 (2,952 ) 1,359 (314 ) — 100 Total assets 227,408 33,021 11,934 64,864 (171,151 ) 166,076 Depreciation and amortization 971 712 188 373 — 2,244 The following table provides segment financial data as of and for the nine months ended September 30 (in thousands): BBU VI Chip Picor Corporate Eliminations (1) Total 2018: Net revenues $ 140,012 $ 63,125 $ 25,983 $ — $ (11,620 ) $ 217,500 Income (loss) from operations 16,710 3,669 6,037 (1,371 ) — 25,045 Total assets 268,520 44,262 13,500 83,865 (202,482 ) 207,665 Depreciation and amortization 2,652 2,560 587 1,071 — 6,870 2017: Net revenues $ 115,141 $ 42,835 $ 19,553 $ — $ (8,470 ) $ 169,059 Income (loss) from operations 5,962 (10,761 ) 3,825 (842 ) — (1,816 ) Total assets 227,408 33,021 11,934 64,864 (171,151 ) 166,076 Depreciation and amortization 2,944 2,000 558 1,088 — 6,590 (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. |
Recently Adopted Accounting S_4
Recently Adopted Accounting Standard - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adopting guidance, increase in retained earnings | $ 122,090 | $ 93,605 | |
Adjustments [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adopting guidance, increase in retained earnings | $ (4,541) | $ 3,670 |
Recently Adopted Accounting S_5
Recently Adopted Accounting Standard - Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Item Effected [Line Items] | ||||
Accounts receivable, net | $ 45,052 | |||
Inventories, net | 43,444 | $ 36,499 | ||
Total assets | 207,665 | 165,724 | $ 166,076 | |
Income taxes payable | 708 | 300 | ||
Deferred revenue | 4,442 | 5,791 | ||
Sales allowances | 567 | |||
Total liabilities | 31,705 | 29,305 | ||
Retained earnings | 122,090 | 93,605 | ||
Total equity | 175,960 | 136,419 | ||
Total liabilities and equity | 207,665 | $ 165,724 | ||
Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Sales allowances | 567 | |||
Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | ||||
Item Effected [Line Items] | ||||
Accounts receivable, net | (24) | |||
Inventories, net | (128) | |||
Total assets | (152) | |||
Income taxes payable | (25) | |||
Deferred revenue | 4,911 | |||
Sales allowances | (497) | |||
Total liabilities | 4,389 | |||
Retained earnings | (4,541) | $ 3,670 | ||
Total equity | (4,541) | |||
Total liabilities and equity | (152) | |||
Accounting Standards Update 2014-09 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Item Effected [Line Items] | ||||
Accounts receivable, net | 45,028 | |||
Inventories, net | 43,316 | |||
Total assets | 207,513 | |||
Income taxes payable | 683 | |||
Deferred revenue | 9,353 | |||
Sales allowances | 70 | |||
Total liabilities | 36,094 | |||
Retained earnings | 117,549 | |||
Total equity | 171,419 | |||
Total liabilities and equity | $ 207,513 |
Recently Adopted Accounting S_6
Recently Adopted Accounting Standard - Summary of Cumulative Effect of Adoption on Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Item Effected [Line Items] | ||||
Net revenues | $ 78,035 | $ 56,888 | $ 217,500 | $ 169,059 |
Cost of revenues | 39,031 | 31,745 | 112,402 | 94,334 |
Gross margin | 39,004 | 25,143 | 105,098 | 74,725 |
Income before income taxes | 13,275 | 409 | 25,663 | (822) |
Provision for income taxes | 227 | 371 | 724 | 539 |
Consolidated net income | 13,048 | 38 | 24,939 | (1,361) |
Net income attributable to Vicor Corporation | 13,012 | $ (11) | 24,815 | $ (1,444) |
Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | ||||
Item Effected [Line Items] | ||||
Net revenues | (1,026) | (2,427) | ||
Cost of revenues | (575) | (1,531) | ||
Gross margin | (451) | (896) | ||
Income before income taxes | (451) | (896) | ||
Provision for income taxes | (7) | (25) | ||
Consolidated net income | (444) | (871) | ||
Net income attributable to Vicor Corporation | (444) | (871) | ||
Accounting Standards Update 2014-09 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Item Effected [Line Items] | ||||
Net revenues | 77,009 | 215,073 | ||
Cost of revenues | 38,456 | 110,871 | ||
Gross margin | 38,553 | 104,202 | ||
Income before income taxes | 12,824 | 24,767 | ||
Provision for income taxes | 220 | 699 | ||
Consolidated net income | 12,604 | 24,068 | ||
Net income attributable to Vicor Corporation | $ 12,568 | $ 23,944 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 2,735 | $ 2,735 | $ 5,015 | |
Customer payment period | 0 years | 0 years | ||
Increase in revenue | $ (54) | $ (53) | ||
Accounting Standards Update 2014-09 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ (2,280) | (2,280) | ||
Deferred revenue current | 471 | $ 781 | ||
Accounting Standards Update 2014-09 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | 4,659 | |||
Gross deferred cost of revenue | $ 2,135 | |||
Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Increase in revenue | $ 19,264 | |||
Minimum [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Recognition period | 6 months | |||
Customer payment period | 30 days | |||
Maximum [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Recognition period | 12 months | |||
Customer payment period | 60 days |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Net Revenues Disaggregated by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 78,035 | $ 56,888 | $ 217,500 | $ 169,059 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,660 | 81,702 | ||
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,200 | 19,725 | ||
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 38,714 | 112,333 | ||
All Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,461 | 3,740 | ||
BBU [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 51,026 | 140,012 | ||
BBU [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,508 | 55,794 | ||
BBU [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,013 | 16,615 | ||
BBU [Member] | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,136 | 64,223 | ||
BBU [Member] | All Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,369 | 3,380 | ||
VI Chip [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,728 | 60,757 | ||
VI Chip [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,265 | 24,035 | ||
VI Chip [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,119 | 2,861 | ||
VI Chip [Member] | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,252 | 33,544 | ||
VI Chip [Member] | All Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92 | 317 | ||
Picor [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,281 | 16,731 | ||
Picor [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 887 | 1,873 | ||
Picor [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 68 | 249 | ||
Picor [Member] | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 5,326 | 14,566 | ||
Picor [Member] | All Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 43 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Net Revenues Disaggregated by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 78,035 | $ 56,888 | $ 217,500 | $ 169,059 |
Direct Customers, Contract Manufacturers and Non-stocking Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 67,777 | 191,071 | ||
Stocking Distributors, Net of Sales Allowances [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,009 | 22,858 | ||
Non-recurring Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,207 | 3,379 | ||
Royalties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24 | 138 | ||
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18 | 54 | ||
BBU [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 51,026 | 140,012 | ||
BBU [Member] | Direct Customers, Contract Manufacturers and Non-stocking Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,269 | 123,147 | ||
BBU [Member] | Stocking Distributors, Net of Sales Allowances [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,236 | 15,934 | ||
BBU [Member] | Non-recurring Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 513 | 885 | ||
BBU [Member] | Royalties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8 | 46 | ||
VI Chip [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,728 | 60,757 | ||
VI Chip [Member] | Direct Customers, Contract Manufacturers and Non-stocking Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17,853 | 52,787 | ||
VI Chip [Member] | Stocking Distributors, Net of Sales Allowances [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,254 | 5,673 | ||
VI Chip [Member] | Non-recurring Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,604 | 2,224 | ||
VI Chip [Member] | Royalties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8 | 46 | ||
VI Chip [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9 | 27 | ||
Picor [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,281 | 16,731 | ||
Picor [Member] | Direct Customers, Contract Manufacturers and Non-stocking Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,655 | 15,137 | ||
Picor [Member] | Stocking Distributors, Net of Sales Allowances [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 519 | 1,251 | ||
Picor [Member] | Non-recurring Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 90 | 270 | ||
Picor [Member] | Royalties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8 | 46 | ||
Picor [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9 | $ 27 |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Changes in Certain Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | $ 45,052 | $ 34,487 |
Deferred revenue | (2,735) | (5,015) |
Deferred expenses | 315 | 377 |
Customer prepayments | (1,707) | $ (776) |
Sales allowances | (567) | |
Accounting Standards Update 2014-09 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | 10,565 | |
Deferred revenue | 2,280 | |
Deferred expenses | (62) | |
Customer prepayments | (931) | |
Sales allowances | $ (567) |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Unrealized Losses On Short Term And Long Term Investments [Line Items] | ||||
Minimum period for which failed auction securities been in unrealized loss position | 12 months | |||
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 | $ 2,613,000 | 2,525,000 | ||
Gross Unrealized Losses | 387,000 | 475,000 | ||
Aggregate credit loss | 42,000 | $ 48,000 | $ 50,000 | $ 59,000 |
Aggregate temporary impairment loss | $ 345,000 |
Long-Term Investments - Summary
Long-Term Investments - Summary of Available-for-Sale Securities (Detail) - Failed Auction Security [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 3,000,000 | $ 3,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 387,000 | 475,000 |
Estimated Fair Value | $ 2,613,000 | $ 2,525,000 |
Long-Term Investments - Cost an
Long-Term Investments - Cost and Estimated Fair Value of Failed Auction Security by Contractual Maturity (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Due in twenty to forty years, Cost | $ 3,000 |
Due in twenty to forty years, Estimated Fair Value | $ 2,613 |
Long-Term Investments - Rollfor
Long-Term Investments - Rollforward of Credit (Gain) Loss Recognized in Earnings on Failed Auction Security (Detail) - Failed Auction Security [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Balance at the beginning of the period | $ 48,000 | $ 59,000 |
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (6,000) | (9,000) |
Balance at the end of the period | $ 42,000 | $ 50,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Contingent Consideration Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities, fair value on recurring basis | $ (470) | $ (678) |
Failed Auction Security [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Estimated Fair Value | 2,613 | 2,525 |
Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash equivalents | 9,542 | 9,279 |
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 | 9,542 | 9,279 |
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 | (470) | (678) |
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 | $ 2,613 | $ 2,525 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) - Failed Auction Security [Member] - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Estimated Fair Value | $ 2,613 |
Valuation Technique | Discounted cash flow |
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 | 0.06% |
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 | 94.80% |
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% |
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% |
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, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance at the beginning of the period | $ 2,525 |
Credit gain on available-for-sale securities included in Other income (expense), net | 6 |
Gain included in Other comprehensive income | 82 |
Balance at the end of the period | $ 2,613 |
Fair Value Measurements - Cha_2
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, 2018USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at the beginning of the period | $ 678 |
Payments | (208) |
Balance at the end of the period | $ 470 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Sep. 30, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 688 | $ 731 | $ 2,604 | $ 1,272 |
Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 58 | 53 | 173 | 125 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 474 | 466 | 1,973 | 861 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 156 | $ 212 | $ 458 | $ 286 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Compensation Expense by Type of Award (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 688 | $ 731 | $ 2,604 | $ 1,272 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 503 | 689 | 2,101 | 1,230 |
ESPP [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 185 | $ 42 | $ 503 | $ 42 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to Vicor Corporation | $ 13,012 | $ (11) | $ 24,815 | $ (1,444) |
Denominator: | ||||
Denominator for basic net income (loss) per share-weighted average shares | 40,120 | 39,288 | 39,769 | 39,177 |
Effect of dilutive securities: | ||||
Employee stock options | 1,004 | 876 | ||
Denominator for diluted net income (loss) per share - adjusted weighted-average shares and assumed conversions | 41,124 | 39,288 | 40,645 | 39,177 |
Basic net income (loss) per share | $ 0.32 | $ 0 | $ 0.62 | $ (0.04) |
Diluted net income (loss) per share | $ 0.32 | $ 0 | $ 0.61 | $ (0.04) |
Net Income (Loss) per Share -_2
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Options to purchase shares of Common Stock not included in the computation of diluted income (loss) per share | 54,818 | 1,452,808 | 47,573 | 1,452,808 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 34,328 | $ 27,400 |
Work-in-process | 3,864 | 3,596 |
Finished goods | 5,252 | 5,503 |
Net balance | $ 43,444 | $ 36,499 |
Product Warranties - Additional
Product Warranties - Additional Information (Detail) | Jan. 01, 2017 | Sep. 30, 2018 |
Product Warranty Liability [Line Items] | ||
Product warranty period | 2 years | |
Military Grade Products [Member] | ||
Product Warranty Liability [Line Items] | ||
Extended warranty period | 3 years |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Guarantees [Abstract] | ||||
Balance at the beginning of the period | $ 326 | $ 244 | $ 290 | $ 214 |
Accruals for warranties for products sold in the period | 6 | 126 | 139 | 321 |
Fulfillment of warranty obligations | (17) | (82) | (94) | (179) |
Revisions of estimated obligations | (58) | (78) | (68) | |
Balance at the end of the period | $ 257 | $ 288 | $ 257 | $ 288 |
Severance and Other Charges - A
Severance and Other Charges - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule Of Sale Of Subsidiary [Abstract] | |
Severance charges | $ 350 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes and Effective Income Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 227 | $ 371 | $ 724 | $ 539 |
Effective income tax rate | 1.70% | 90.70% | 2.80% | 65.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 31, 2018 | Dec. 22, 2017 | Sep. 30, 2018 | May 31, 2017 |
Income Tax Disclosure [Line Items] | ||||
Tax benefit recognized | $ 0 | |||
U.S. federal corporate tax rate | 35.00% | 21.00% | ||
Valuation allowance, deferred tax assets | $ 28,541,000 | |||
Income tax liability | $ 0 | |||
Internal Revenue Service (IRS) [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax year | 2,015 | |||
New York State Department of Taxation [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax year | 2014 2015 2016 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Capital expenditure commitments | $ 9,512,000 |
Segment Information - Segment F
Segment Information - Segment Financial Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 78,035 | $ 56,888 | $ 217,500 | $ 169,059 | |
Income (loss) from operations | 13,043 | 100 | 25,045 | (1,816) | |
Total assets | 207,665 | 166,076 | 207,665 | 166,076 | $ 165,724 |
Depreciation and amortization | 2,331 | 2,244 | 6,870 | 6,590 | |
BBU [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 51,026 | 140,012 | |||
VI Chip [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 20,728 | 60,757 | |||
Picor [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 6,281 | 16,731 | |||
Operating Segments [Member] | BBU [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 51,026 | 38,529 | 140,012 | 115,141 | |
Income (loss) from operations | 10,444 | 2,007 | 16,710 | 5,962 | |
Total assets | 268,520 | 227,408 | 268,520 | 227,408 | |
Depreciation and amortization | 858 | 971 | 2,652 | 2,944 | |
Operating Segments [Member] | VI Chip [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 21,525 | 14,745 | 63,125 | 42,835 | |
Income (loss) from operations | 1,304 | (2,952) | 3,669 | (10,761) | |
Total assets | 44,262 | 33,021 | 44,262 | 33,021 | |
Depreciation and amortization | 913 | 712 | 2,560 | 2,000 | |
Operating Segments [Member] | Picor [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 8,587 | 6,360 | 25,983 | 19,553 | |
Income (loss) from operations | 1,579 | 1,359 | 6,037 | 3,825 | |
Total assets | 13,500 | 11,934 | 13,500 | 11,934 | |
Depreciation and amortization | 200 | 188 | 587 | 558 | |
Operating Segments [Member] | Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (284) | (314) | (1,371) | (842) | |
Total assets | 83,865 | 64,864 | 83,865 | 64,864 | |
Depreciation and amortization | 360 | 373 | 1,071 | 1,088 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | (3,103) | (2,746) | (11,620) | (8,470) | |
Total assets | $ (202,482) | $ (171,151) | $ (202,482) | $ (171,151) |