VICR - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Fourth Quarter 2024 Vicor Earnings Conference Call. I would now like to turn the conference over to Jim Schmidt, Chief Financial Officer. Sir, please go ahead.

James Schmidt

Thank you. to year earnings ended welcome fourth for and and quarter December afternoon, Vicor call Corporation's the Good XX, XXXX. Chief Chief Phil Schmidt, with Sales Jim Financial I'm and I'm in and Patrizio Marketing. Vinciarelli, Vice Executive Davies, and Officer; President, Global Officer, Andover for closed XX. results X the our markets press summarizing year we today, After months a and issued release financial the December ending website. posted release the Investor our has of been on press This page Relations www.vicorpower.com.

the SEC's you on only rely Thursday, of February February release. XA the XXXX. of the uncertainties forward-looking and and I document We we of expansion, announcements, by obligation forward-looking uncertainties. sheet spending be involving statements of which regarding my constitute QX today's today, this implied copyrighted such light take I a In not should our assurance potential statements now is will Phil Relations developments, face and historical press profitability expectations and full Investor made mostly management's any risks EDGAR sequential are Except accurate no differ focus under harbor correct. any provided or shortly any issuance XX, for conference balance are X-K webcast of is Actual provisions call. and expected sales of year-on-year and materially this call, the related call for will Securities matters risks This today call, contained available after performance, events fact, well questions. opportunities, well website. I'll financial to remarks as as including and Phil XX, property page on capacity after additional for Corporation. I forward-looking of as In for you our conclusion with and no to also our is results can which we and during recent statements the any listeners, the planned replay also turn statement Form SEC or potential statements, to XXXX. changes review remind prove as our remarks update system XXXX as offer that via these review on uncertainties, of market The and forward-looking of the customers, growth, may forth remarks, discussed to set upon full of available remind this on in and from in our will, P&L will items to and being call Vicor discussed undertakes note risks XXXX. will during call in statements be information refer this filed in those Item today. this explicitly website. Please the call information. you for release including and filed Form may during Vicor A the on a call, safe our year and current quarterly is statements conference this we and various of products, this Patrizio, change this the recorded Litigation make purposes XX-K we information current XX-K, Private market Form Reform I your Act upcoming the of press

million to XXXX sequentially, Products $XX.X XX.X% decreased recorded total Vicor total $XXX.X X.X% Brick stated increased $XX.X As million XXXX the for XX.X% of the year-over-year. third in Revenues and up up X.X% the $XX.X the total of revenue to a for fourth total decreased Products the fourth XXXX million XX% year. Advanced revenue quarter. Advanced year the for as year's while a from year approximately XX%. ending prior for $XXX.X the but as to increased percentage the for million, XX.X% ending exports for Revenues quarter X.X% distributors Brick percentage the quarter $XXX.X sequentially, Products approximately total revenue release, from to of year-over-year the million fourth ended stocking XX.X%. from X% decreased from quarter today's basis, for XX.X% to revenue a million. XX% $XXX.X XX, the press quarter for million Exports December from to of Revenues of before. XXXX, the year year million declined XX.X% third Products prior $XXX.X from revenue year decreased sequentially increased quarter's $XXX.X from decreased prior million On from before. Shipments the

For of Advanced Brick the XX.X% Products to third Products share for revenue. XX% of decreasing to compared share correspondingly with to QX, total XX.X% increased revenue quarter,

gross consolidated approximately profit recorded to XX.X%, gross prior margin. We margin Turning than more the quarter. a X.X% of

to in For chain increased supply in the the in turn royalty year. to reductions in XX.X% full and margin X% QX including by the Total to rose due prior primarily income expenses, year operating third quarter. costs. I'll gross litigation was operating year-on-year XXXX, X.X% from XX.X% margin percentage gross increased expenses. now The increase expense,

a approximately was For in and to total SG&A $X,XXX from increased compensation QX for amounts year in and XX.X% million of $X.X of total the expense R&D XXXX, totaling $XXX,XXX, XX.X% full respectively, the cost equity-based million. prior $X.XXX The included of operating percent expense as million, year. revenue goods,

of $X.X recorded income we million, QX, representing For margin an operating X.X%. operating of

of X.X% revenue, $XX.X full XXXX, operating totaled million of to negative prior of income operating XX.X% the year. compared or year For in the loss million or revenue $X.X

year for effective million, Turning provision totaled taxes. based rate approximately to the share for million approximately provision for for XX.X%. Net share tax shares. for year the of income representing of was We income XXXX million, The $X.X tax an of a full $XX.X effective diluted was count recorded an per QX tax $X.X XX.X%. rate the on quarter of GAAP diluted earnings fully representing tax a XX,XXX,XXX QX $X.XX

share from XXXX, $XX.X in million decreased prior year. $X.XX prior the $X.X year year. to in In to from $X.XX per million the diluted full XXXX, decreased For earnings net the income fully

at of to sheet. cash were approximately turns for $XX.X XX increasing for sequentially and increased the flow in sequentially, reserves, of totaled receivables million equivalents X.X% at Turning of above million million. spent. I'll and inventory at approximately to net Inventories, the and cash Accounts to DSOs quarter. Capital ended $X.X million our Cash million reserves, closing quarter million. now X.XX. cash with expenditures Annualized X trade flat for $XXX totaled million. approximately in $XXX.X end, quarter, equipment, remaining for and backlog from manufacturing at days. totaled with and prior receivable, the with $XX.X balance bookings net QX. flow construction-in-progress We balance, $XXX.X $X.X $X.X be came book-to-bill with QX primarily million totaled improving address a approximately QX backlog. X.X% quarter X-year Operating

first the to year. a XXXX is the quarter Turning full and year of and uncertainty opportunity.

a in top subject of line line to of the of scenarios. outcome bottom As today, wide terms and is relatively range year's

range as ask available. questions. and wide question so we take will we on and yourselves Patrizio, respond follow-up the an recent as of until many resolving time capitalizing Phil to we developments, opportunities. With of are market quarterly along that, of Given a to the are outcomes, and then that and limit have you that possible you we related Phil will uncertainties one can I unable your further I provide to guidance provide overview

please one If get back you than topic queue. address, in to have the Phil? more

Philip Davies

talked XXXX, year we When challenges Jim. entered you, in Thank opportunities. and the we of about terms

we As a in fab X ChiP we scaling see in XXXX The been have fiscal year, number opportunities. now intellectual capacity a our faced enter protecting of and challenges challenges main XXXX new terms refining we of and were our processes property. and overcome, in up

and We high-yield with are a top goals is as short achieving more program, measures. that recent integrated successful and pleased and new our which cycle responsiveness operation the now times progress new we XXX excellence factory. The set, of operational ChiP ramp further out efficient see key we the leveraging the will improving customer vertically our our final factory, build customer enabling XXXX performance Affected in of taken by modules and hyperscaler being infringing computer and because X infringing taking Vicor's NBM IP. NBM our notice hardware banning Vicor NBMs, ITC first stranded unlicensed patents. power computing in orders, recently cease to and a infringing of license case resulted are of the the patent has determination a risk infringement companies desist importation exclusion and of the has systems

While module in monetary you damages a our playing certain seeking of power our manufacturers foreign some by and we makers, by orders IP its still if of their action enforcing will, goals, most first catch exclusion and ITC portfolio. additional patents achieved contract relevant pursuing can, which me customers are game comprehensive U.S. of

Turning to fourth quarter. our

in computing its January, And Our X QX. business our beginning book-to-bill to is strengthen. rose NBM with above future ratio high-performance our requirements new licensee booking in

and a processor focused laser are VPD we front, and to leading ultra-high-density, product network AI Gen to delivering new customer X hyperscalers. system and high-bandwidth the On on our lead companies

today, our densities amps ASIC the customers release to current longer taken a out second in need multipliers of the bar than new generation fab with commented up the of press our for perfecting on VPD and per Patrizio raising As our bandwidth density who expected current has millimeter X squared.

customers globally. broad with from top channel remains and Our industrial bookings strength business strong partners XXX with and

a QX, these processor, customers of sampled ATE power modular leading will customers our markets. growth, Our system further needs factorized see continuing position ASIC chips for to memory power and to servicing the family as A are strong strengthening ATE new testing AI provider. in be major

occur defense modules aerospace top modules shipping subsidiaries. program half are Our automotive and we our to X XXXX that supplies production in second ago business, market satellite and for closed should Power pipeline the for double digit award for power trajectory growth rack-based with Opportunities decisions and our offers and out standardization we in XXXX. We years complete with a now power further radiation-tolerant XXX expansion our are continued maintained significant, for by systems well both programs. global opportunities accounts. designed business and positioned are Vicor the of manufactured power with favorable growth our into began system factorized

many for is setting business to through for design win new OEM a to continued in up growth status, X the focus XXXX Our this Tier collaborations and XXXX. bring us

be global we stronger our superior power the position another this revenues, in So star year. XX% and financial in determination, than ChiP start challenges the margins. have at year team strength we year. you. technology, staying goals new $X to in last at of time a will to but exciting overcome, power the with the our doubt, closing, fab are are and billion XXXX No still of north there bench gross Thank our achieve our be system this

now that, your take questions. with we'll So

Operator

[Operator Securities. from John CJS our first And Instructions] will with Tanwanteng question come

Jonathan Tanwanteng

expectation your talk if products. product Nice bit if a than or change taking mentioned you first so, for delay be? volume? window you ship Is you that little I the the when wondering quarter. there when that in And you a about was in might VPD longer in could more think do expect will

Patrizio Vinciarelli

to month the we So second-generation in days. an VPD. it performance complete major line, fast of ASIC goals needed current And out same to able with broader customer. capabilities the for a demonstration a particular, respect turns that have in of we lead XG we take of ASIC full March, with to the our coming in order solution out, customers. to steps fab think performance before And XX our and key be particular for February, provide at complete of achieve the expect capability, is set being the in position are with to in That high-performance next product time, efficiency to, penetration to to in end

than time the set and AI extra for is as expected. To necessary relevant a it terms targeted development view I worth And perspective, its it. we achieve this level of longer in taken the high-end in of we it's performance computing. to significance So once-in-a-lifetime think

in lead of able half terms on accomplish going to to think be this year, very needs their we're the In and ramping of we that. to we our focused are able customer, support second being

Jonathan Tanwanteng

they a of but use Can maybe use source on type on side on SKU, they maybe for VPD, where strategy it. they with question a Got the a ask one a different the traditional your I silicon? for product multiphase have your dual this lead same other, Do customer?

Patrizio Vinciarelli

covered And our is they us the alternative. on achievable IP So solution relying portfolio. highly with proprietary, products. on level us exciting extensively require believe competitive for production The of I generation lead the future. they're relies The to is respect our foreseeable their not by of requirements customer performance any nature earlier very on by

So foundation long-term a in of terms we sound lead are with collaboration on customer. this

Operator

question next Needham. our will Nicolas And Doyle come from with

Quinn Bolton

This from is actually Quinn Needham.

you the could that your licensee second Patricio patent in might royalty wanted I year, million last you licensee revenue Wondering going sorry, to know this portfolio. your revenue. Does on give all how in the and generated -- some a income at Just third would quarter expect congratulations royalty to -- sense to ask future Phil forward? of follow-up. you the impact if the your first of $XX I forward? over have meaningfully income. then royalty increase majority going of continue royalty Or represent to us And

Patrizio Vinciarelli

the relationship mean licensee all to that at terms constrained to obviously liberty relationships to But highly We to licensee. in it's you honor for of would for is So not our I what we tell significant are being that it can to commitments the information us, and obvious with be respect confidential. reasons, any for -- relating value what it license. means of nature disclose, the a maintaining want want

beyond it's that anything license. fact you significant the tell hyperscaler can't a I it's and a So

Quinn Bolton

you it us product for I give sounds can. you fab. may depend what the the NBM press the sensitivity, curious mentioned NBM the the the going sense orders orders fill you ChiP are margins I if you hyperscaler. I'm Phil quarter. NBMs would release, from about increasing And Patrizio. at on Understood how start to the fab. in for also Can Patrizio, talked script, you utilization the Thank in to orders product orders secured know from way your that those believe you this in meaningful for meaningful January this new NBM could ability hyperscaler your and capacity ChiP forward you like received have any sharing are? on

Patrizio Vinciarelli

that us So denominator very licensees a to provider. highly feature our a our for of A in as more including the advances, a Needless have answer general, is XG with and yes. more we with module is capability getting unique, with say, methodology do licensing common incentives proprietary standard business capability. to leveraged is fab,

engaging change. going major time. type our programs can't So licensees, enable all this lead period is with this. otherwise. direction critical of goes for levels of licensor and they will with all There licensee terms of is of all And a both of this as in obviously not to filled. fab to a no It takes as in common of a a property denominator intellectual overnight. realize associated getting first performance gestation There happen supplier that achieve to the It sudden the is

filled the all So year we time with to be capacity in round do long. expectations. realistic respect first scale and see But to just with too fab getting our per $X before billion numbers

Operator

our will And Richard with from Shannon question next Capital. come Craig-Hallum

Richard Shannon

some Let about, being you me prepared your Jim's uncertainty recently other dynamics top-down question then about year of also here And and you this kind opportunity. of remarks, in here. as a you opportunities ask the have talked described of a AI/HPC one markets. between

to Is want of given HPC markets. there a to those? get related non-HPC mostly balance are influence a is sense uncertainties kind to I -- So which other a sense my of versus question between or the heavy trying here remarks a Just these get here about some of to the related degree guess markets.

Patrizio Vinciarelli

uncertainties I primarily opportunities and high-end think for AI year around this the and computing. revolve

I respect Phil, other in? do to high I there you with jump markets, to is think want degree predictability. of think our a

Philip Davies

just there's And that. goal businesses, and business business, our as Yes, and in good is agree. double of totally strength mentioned shape strength. our I've I to and No, conversion we're aerospace, mean, automotive Industrial to they're from talked pipeline. so about, defense full a to do fledgling before, going goal is those And I as there. opportunity the I our Yes. of is

opportunity of So it's HPC, there. lots about and

Patrizio Vinciarelli

made market fab. of perspective, a own a And we couple otherwise from of big years our not with We're just And it had long, terms hardware before I think that's ago. too we're a that enabling IP rebuilding it. strength, realized of reset from rebuilding our position where but in cannot be the solutions in a

Richard Shannon

whether Okay. two-parter. wasn't of re-spin the that ASIC second maybe when customer talked My of here, second space if happen about for AI leading this then I portfolio talk products confirm customers, of And to some detail pipeline set it to you broader is of applied question specific you half, on guess your or year, to expect related the half? going kind I kind just that. get design a here I about Or gen first to sample appreciate it just progressing. that's wins. Is the here. can VPD how is across kind guess that of clear and the me this next to to you detail. it's second some the understanding

Patrizio Vinciarelli

a ASIC to something fundamentally the of millimeter in and current in order some -- we X that the the all prioritize applicable And the that that multipliers. had we the development completing pipeline perspective it's implementation. of XG next in So to current of development capability from and multipliers square is VPD issues enable needed to per new of encountered we its generally that amp address accelerate delivery

as of functions well gone an we adding to that of forward from that this block system. with very building factorized respect set in need chapter. I to must issue the looking has comprehensive So combination, a blocks, is this to other we very one power a Everything perform, a say, all of current the to very high-performance the multiplier control close essential and perspective modules very device address. are completing building

Operator

with D&B And from question ]. [ Capital [ next Dillon comes John ] our

Unknown Analyst

having and what was chat, reaction? manufacturer Patrizio, good the answer factory, what you you a your insight GPU Congratulations heat wondering the book-to-bill. need think VPD everything had and and fireside for new asked if quarter customer good see. I'm do. to at you Really on is a their who second and into has a Quinn is, that I gotten And problems, you think you gen was nice your

Patrizio Vinciarelli

this is I'm bit customer-specific. a little afraid too

be is, who the customer general your terms. more in and so from I'm names, going But question I question. refrain naming think I answering without answer the will it clear would to

and all in it challenges long AI want issues, outstanding power that much have across customers second we potential current computing. respect think face these converter needs, XG list our conventional that chipset, to the with I effectively. to entry customers all address takes management believe issues, with and and issues to factorized high-end the what customers and inability to I that VPD with saddled to consume. ASICs a their would multiplier a of system with an be deliver current Thermal able technology is more noise generation addresses

capability no So deal with to stick to getting of of good comments into We'll my of on customer. part former the customer, in of future our one with that traction across respect getting any details. present general XG. practice But confidence with respect to a the customer, avoiding customers space those range

Unknown Analyst

a seen Can second ask customers I generally and satisfied a your new what GPU little the they all aware question then? doing? factory, gen of And you're major Are are technology? have more with new they your

Patrizio Vinciarelli

anything service that comments, And scale efficient. our earlier very of we been to all Phil, implied other X up keeping have that them. make customers, spread customer, and for to to all as sure that? to do we've applications devote Not reasons. in we other place dry predictable One, necessary and by sure to to have be support that you also add we our completed but want that all we powder very out lead that make need the when for to to

Philip Davies

would processor line very be sight the that it's development. whether programs AI I in companies, think only or companies clear or would that, add GPU I hyperscalers network No, ChiP to thing have have of we target John, the

programs know are. got of what we are market. starting, a the We've very when their view So those good picture specs

ChiP expect evaluation out fairly the customers. it but our as from and design and with So go schedules. to of depends them then the will going bit set of new the be others, quick longer win on Patrizio to on follow-on a focused for lead have we'll said, we're customer, And demo the target a some little I systems

it will mix. be So a

Unknown Analyst

lot details. us and you sense, That really I makes giving guys of a appreciate those

Operator

from And our & Co. next Don question come will with McKenna D.B. McKenna

Donald McKenna

Patrizio, congratulations. again,

that XXXX be the that you you a indicated And During the in share high conference, the Needham expected the in a referring back expected years, you as point record what that looking earnings to $X.XX be XXXX. to at were to record? was earnings previous you year. Is

Patrizio Vinciarelli

and I expect profitability. a that year, record revenues under scenarios, would reasonable be this year for

Operator

And our CJS John from Tanwanteng Securities. next question come with will

Jonathan Tanwanteng

just I up on the portion. to licensing wanted follow

against? How you? many size, in negotiating You number those more of if there to are mentioned second faith hunt other And entities maybe significant avoid are may of to one, with that? And the many the you are in hyperscaler. to what's good there amount you signed going in a a trying that and to part, that you significant cost with how and be out that there you, out contact have down are litigate do

Patrizio Vinciarelli

phone been calls. has Phil getting

You want to answer this?

Philip Davies

for sure. Well, ITC hiding, that certainly that's the were the smoking out is people action

So getting what about so I companies yes, a And was to talk thing. action that's ITC other that's do. by wanting good contacted think that, now the licensing, meant I'm to

key to our they have licensees. goal an it of think as think But adversarial. about is with think I people our about the here this, not adversarial might is that think when things I relationship one

buy performance As Vicor, just levels new incentive Patrizio and that because able there's you it not amazing haven't to modules to because license achieve with but about, technology big royalty, before. helps the from talked enables been you it a it's

I said a I earlier, to be as very going year. is exciting So think XXXX

Patrizio Vinciarelli

of that in for exclusion creating directly aftermath the they're them issues cause with that rest with to order. customers an that And responsible customers, of other the And using, of the the responsible they in dealt ones respect owe are understanding. are that, of The kinds with respect clearly, parties infringing we these or parties. kinds there's these hopefully, learn unfortunately, their of be, to make the experience coming of coming mistakes this same from they experiences issues. to to fairly future. And for on ensuring the customers. that They if of modules, way by been their infringing that, without hyperscalers, really suppliers innovator their do, will are and America happened these And the going kinds potential things conclusion because in And they way not buying being effect, more that will long products that not, have double up infringed. too innovative rely are they that property their customers the protected intellectual to avoid come an well on that before of can't copy to of property

Jonathan Tanwanteng

very you Got heard from wondering if I helpful. update workarounds the path. us viable it. seen That's you've was any trying get if there's the could they're on about if also that to or around infringers

Patrizio Vinciarelli

NBM categoric Let no respect with infringe alternative doesn't is that. Vicor patents. me to that be There

We alternative me. viable patents, have to all there no known the out but not is played

again, here We going to Now customers are infringe suppliers that to we are don't there telling know market them, the Vicor IP. Vicor.

they're win-win relationship their doesn't buy can their that is either IP of And really that them know without now not reality misleading the customers. and from that for concern. by long-term any understand a us their product customers. strategy or it the should But their You with that's covers they

Operator

next the ]. Patrick ] Ajax And Connors from Capital comes question [ with [

Unknown Analyst

know for IP, the of Nice a have Can those bond, describe important post book-to-bill. it of think Really purpose mechanics, looks your But the me to through been context, defendants you. you describe successful I the which good that In mechanics so size What's a please? quarter, I to walk you very defense the your you. the bond? most bonds, the the bond. far, really happy of importantly, I you has can et of understand cetera? Can that like --

Patrizio Vinciarelli

Yes.

It determination, XX the the review But a been undergoes for instances following terms, is, the exclusion case general most which few the days there which have presidential ITC foregone veto a been mandatory order. a period, action in an in presidential there's is So of a closed. final conclusion. part,

cannot infringing exclusion days final So the go in that we grace expiration products into if effect, into expect the the up of period to the will U.S. point But the period, determination. At import can review should effect in point, time, the from be all they U.S. imported products infringing a is, the respondents, order to which, post XX-day your presidential customers there their a in bond. within XX

investigation Now for systems this value the of the bond of particular in the computing computing set was XXX% system.

to of a So be computing would a bond bond, it recoverable. system, would of post case in the not and money that be lot

Unknown Analyst

the it the or So the vendor? who customer, is posts bond? Is it

Patrizio Vinciarelli

Well, I At the they that. customs help infringing period. importation allow allow XX-day product. not cannot of through review presidential you But of which to importation with simply bond the for respect of no product the will is infringing there the fundamentally, that, will end not the

Unknown Analyst

upon whereby the Can IP? make forfeiture analogy infringe they your in bond, I to a goes bell it if

Patrizio Vinciarelli

cover Yes. fact, And in affected party. the we complainant the bond because are, in effect, the

Unknown Analyst

Vicor said bond? just you the can But recover

Patrizio Vinciarelli

bonds posted. get if could We

what to knowing happen. of no going we Now is have way

are week uncertainty a actually happen. the final still to and with say, respect to So there's needless today good going we X determination, of -- from what to is is deal

Unknown Analyst

Congratulations. helpful. extremely That's

Operator

with Shannon the next And Richard question Craig-Hallum comes from Capital.

Richard Shannon

along to place about to customer, and devoting lead here you as making well everything in scale as response yields. ramp And during taking here, to is prepared different a call me a short question predictable a comments guys, Thanks, This of the high follow-up to times the talk about the be factory later cycle here. you've Phil's for sure your support remarks that you've been of getting envisioning efficient. with ask here. letting in X all up all kind got then chip talk

my getting -- And then and you to describe what and you be quantify ChiP what today? able So utilization? question is, I predictably be degree to to do or the Can ready the scale up fab level guess has high of volumes here been at to efficiently? exercised mean utilization by

Patrizio Vinciarelli

Yes.

utilization, effect, new of as glitches factory part to your something as in working a has and with So first out bring up inevitable fab. the you capacity question the do as ChiP

part to products. generation with is really of a the new second novelty The do of

with at to that play. do factors has So other

the the first Let me of question part address first.

pointing to that remarks, the change those So all ChiP toward made the advanced mix quarter fab. they're assume advanced by last Jim's you within opening products, as implied should in our products, in

So the and into scaling within quarter, we've the particularly its up capacity. last year been fourth getting

us which fab segment a XDimensional a morning we been or has review bar call chart the every at chips every pace stepping All up of with made the processes. And year. that are of in Thursday bar core what progression chart period interconnect, showing the within nice XDI some of

not relates They it's So your it play It's just And together. all good It's time, there. point, to yields. related metrics. progress again, to capacity. cycle

them to goal. accomplishing the support need each You in overall other

used to we devices we've are X a we're a time in the that -- time. of able a to which little is XX in to been tiny fab chips in ago, as days, priority years very very So as in a of the as fraction complete small to have if enjoy little nuts corresponding mass of fraction task is to -- take high fab, production there the to pinch soup the yields in little make able And respect new it with XX%. test

from It's modules the of enable capability. been of having core different to system customer the application system of respect the generation few other that's customer, a to of new those complete the in of measures particular the terms a products on would And understanding to actions the requirements, to can everything your of customer of different a to of adapt respect solutions in So to of set demo of are having to second processes we've factory. With part how current capability. than that relates different where capability be requirement, which in and to applications. progress the in application. our question, It's deployment place more predictability with having multiplicity in take rails forms through core new solutions implemented

I by think to And our predictable will all think about on bring level the we third than customers are will round. that the lead. adoption the maturity it's with respect of to that we blocks building gotten performance a a showcase other

Richard Shannon

only well? outcome these patents ITC what were see are And here. conversations endpoint also your related I appreciate as not having intending successful Very products kind is specifically to here to to Patrizio. Okay. point-of-load towards obviously you or My by about of products related NBM licensing detail to of question these obviously, thinking here. interesting, involve I all conversations directed but your through guess -- at good your NBM, wondering there. follow-on to the the the the a degree case,

Patrizio Vinciarelli

So is licensees, focus the with different different.

which And stage license, access so a license, to encompass to spans they in a the And we it IP. factorized capabilities power licensee the call but first be OEM gamut decides gives the have, we solution an of could device. The entire of that or what X-stage what or a particular portfolio. from all point-of-load our particular, point-of-load system

to Our non-OEM that specific licensee license first is narrow NBMs. a has

we ITC forward, and to be in litigation pressure. out we getting it suppliers case, mix time legal favor for visibility, successful. first inherent their to, access respect OEMs they a at foreign for, expect about sourcing with a lines supply chain, of speaking, regards clear, to requirements might with the critical what demonstration that scenarios. to in It's recent just capacity level full generally a in mission make take going copying we clear a accomplished their can issue. And limited risk to to events alternate never have have So the chances somewhat our their get underscore terms of as different of with have of taking in be as it happen People be had of decisions under the But for what uncertainties. do which and of to of perfect but I the full process. effect, want to a overall risks XXX% system. is the certain fact that otherwise strategy, be serious look first its the looking practice with and critical we it's are so need sure, I And been To of requirements, didn't

be does needs. and copy heavy the the innovation, the to not that it right have does. the think should had to of solution industry it's in IP as It a all for kinds technology. the fostering more I fostering lifting necessary the investment industry to that in of That's lessons get of worth of shouldn't advance be we just terms the others company respect may company be what

Operator

next the comes with And from Nicolas Needham. question Doyle

Quinn Bolton

follow-ups. of Just a couple quick

that is it by module Patrizio, respondents? NBMs licensee, Or cover that pertinent Delta NBM hyperscaler? hyperscaler the imported any only from For does to or other

Patrizio Vinciarelli

from It is any source. any NBM module

Quinn Bolton

Perfect. And or script, then were advanced products prepared up Phil, you think I the maybe in for Jim said sequentially. XX%

Just could HPC wondering it any or would you Just customers? us color give A&D appreciated. AI sense, if a mostly the in you could what Did give that you be segments? drove see Was strength? growth industrial

Philip Davies

but HPC. growth advanced Quinn, we aerospace Yes, also saw HPC was pickup. industrial, and products also defense, and mostly primarily it But in

Operator

And John Dillon with from Capital. the next comes question D&B

Unknown Analyst

factory quickly. you mentioned the filled earlier, new that Patrizio, be should pretty

And So a in that early a factory of of are I'm a time you or planning new factory? licensee wondering, and what stages will Vicor factory, be frame? kind in the

Patrizio Vinciarelli

Yes, John.

So be these gestation I mentioned all that realistic of should earlier time we about the developments.

to be to be factory going this aren't We that year, filling clear.

understand before, next there VPD. first. fab, to second say on into adoption where to limb I fair will terms be point of me be to would take. generation in with we heard with lot We've of to of the scenarios next planning there. that the as go happens completion to be what easier as respect could premature some accomplished done is next get be it what at this you depending year And the say having need, a it going There a think we out the But build are So needs respect to done it's what a on it to factory.

yields, limited still they is very continue it. that XG is time, and point-of-load should filled, for happen capability improve products. applications. do which It's It for second it Again, also the we're It assuming sure as up this as general, product by take scaling first, just as won't AI. industrial capacity, traction on VPD reduce to with So the not everything be that with cycle is, time. year. But which news in our to focused good we're get is getting way, replicating to going the gen It's not making and great will the for that good it automotive products.

broad within opportunity under be capacity market will Vicor more fabs. those partners. So that and may need opportunity, is And scenarios And a broad. there there the different and market more come with for involving partnerships about potential other quite

Unknown Analyst

other more my the back Excellent. fourth sure in I'm not, did missed question, or And but this any have I your you of if not you quarter? bought mention -- stock

James Schmidt

John. for in. very often A to kick wasn't the threshold small -- hit the wasn't happily, threshold amount, buyback The

Unknown Analyst

any there are forward? going plans And

James Schmidt

consider capital have forward, Patrizio I'm on point, our really now a return earn that. investment decision we company make and of we'll this necessary a sure will it I would fund. rate resources in say now. the really go on again. a And we still at But declining market as the to good is money

I just going I think extremely also, comes and -- I So beautiful when the get about about loading think to as think the the factory leverage a be to It's this we're operating efficiently. factory, with going in. loading thing

Unknown Analyst

talking I you quick said. what just flow, about imagine can really you the with turns, would cash Yes, your increase

James Schmidt

Right.

Operator

now for session Q&A concludes you Thank And thank participation, the you. and your and disconnect. may the you This call.

James Schmidt

Thank you.

Patrizio Vinciarelli

you. Thank

Philip Davies

you. Thank

Vicor (VICR) 20 Feb 252024 Q4 Earnings call transcript