Despite Setback, Vicor still Aiming to “Redefine the Market”
Vicor Corporation today reported financial results for the second quarter and six months ended June 30, 2015. Revenues for the second quarter ended June 30, 2015 increased to $56,119,000, compared to $53,361,000 for the corresponding period a year ago, but decreased from $64,017,000 for the first quarter of 2015. Second quarter bookings decreased to $48,096,000 from $57,579,000 for the corresponding period a year ago, and decreased from $59,541,000 for the first quarter of 2015.
Commenting on recent results, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, "Vicor's second quarter performance reflects the circumstances described during our February and April earnings calls as the pull-in of shipments from Q2 into Q1 of our Gen 3 VTM/PRM solution for data center servers and a delayed transition from the current voltage regulation standard, VR 12.5, to Intel's next generation standard, VR 13.0, have caused a temporary reduction in revenues and bookings. We are prepared to ship our next generation solution meeting VR 13.0 requirements, but await definiteness as to the exact timing of the expected ramp for data center servers due to ship in robust volumes in 2016."
â€œI am pleased Vicor was profitable and generated cash for the second quarter, despite short-term challenges. I also am pleased the organization is focused on our long-term objective of redefining the market for high performance, cost effective modular power solutions,â€ Vinciarelli continued.
Gross margin increased to $26,510,000 for the second quarter of 2015, compared to $22,662,000 for the corresponding period a year ago, but decreased from $28,891,000 for the first quarter of 2015. Gross margin, as a percentage of revenue, increased to 47.2% for the second quarter of 2015, compared to 42.5% for the second quarter of 2014, and increased from 45.1% for the first quarter of 2015.
Net income for the second quarter was $805,000, or $0.02 per diluted share, compared to a net loss of ($4,835,000), or ($0.13) per share, for the corresponding period a year ago and net income of $3,371,000, or $0.09 per diluted share, for the first quarter of 2015.
Revenues for the six months ended June 30, 2015, increased by 12.7% to $120,136,000 from $106,594,000 for the corresponding period a year ago. Net income for the six month period was $4,176,000, or $0.11 per diluted share, compared to a net loss of ($10,213,000), or ($0.26) per share, for the corresponding period a year ago.
Cash provided by operating activities totaled $7,206,000 for the second quarter of 2015 compared to $2,259,000 for the corresponding period a year ago. Cash and cash equivalents increased by $5,826,000 to approximately $65,148,000 at the end of the second quarter of 2015 from $59,322,000 at the end of the first quarter of 2015. Total backlog at the end of the second quarter of 2015 was $41,616,000, compared to $49,838,000 at the end of the first quarter, and $54,249,000 at the end of 2014.
"Despite near-term disappointment in our revenue levels and bottom line, I continue to see escalating interest in Vicor power components and system products. We are achieving design wins in numerous applications across targeted market segments, which I am confident will expand our revenue, while diversifying our customer base. We will be rolling out exciting new products through the second half of the year at a pace similar to that achieved for the first half, with high performance SiP (System in Package), ChiP (Converter housed in Packageâ„¢) solutions for motherboard applications and VIA (Vicor Integrated Adapterâ„¢) front-end systems, concluded Vinciarelli.