News

Sales Up and Losses Gone at Vicor

February 23, 2015 by Jeff Shepard

Vicor Corporation today reported revenues for the fourth quarter ended December 31, 2014, increased to $60,735,000, compared to $55,258,000 for the corresponding period a year ago, and increased from $58,402,000 for the third quarter of 2014. Fourth quarter bookings increased to $62,336,000 from $46,251,000 for the corresponding period a year ago, but decreased from $65,559,000 for the third quarter of 2014.

Gross margin increased to $26,116,000 for the fourth quarter of 2014, compared to $23,431,000 for the corresponding period a year ago, and increased from $25,550,000 for the third quarter of 2014. Gross margin, as a percentage of revenue, increased to 43.0% for the fourth quarter of 2014, compared to 42.4% for the fourth quarter of 2013, but declined from 43.7% for the third quarter of 2014.

Net loss for the fourth quarter was nil, or $0.00 per share, compared to a net loss of ($13,102,000), or ($0.34) per share, for the corresponding period a year ago and a net loss of ($3,674,000), or ($0.10) per share, for the third quarter of 2014. Included in the net loss for the fourth quarter of 2013 was an increase in the valuation allowance for all remaining federal net deferred tax assets on the balance sheet as of December 31, 2013, by approximately $10,200,000, which was recorded in the statement of operations as a corresponding increase in the fourth quarter of 2013 tax provision.

Also included in the net loss for the third quarter of 2014 were a charge of approximately $2,000,000 for the cost of severance and other employee-related costs associated with the consolidation of Sunnyvale, California, manufacturing operations to Andover, Massachusetts, and approximately $3,023,000 of legal fees related to ongoing intellectual property litigation. For the fourth quarter of 2014, such legal fees totaled approximately $1,455,000.

Revenues for the year ended December 31, 2014, increased by 13.3% to $225,731,000 from $199,160,000 for the prior year. Net loss for the current year was ($13,887,000), or ($0.36) per share, compared to a net loss of ($23,640,000), or ($0.60) per share, for the prior year.

Cash flow from operations totaled $740,000 for the fourth quarter and $2,191,000 for the year ended December 31, 2014, compared to cash used for operations of ($2,010,000) for the fourth quarter of 2013 and ($4,690,000) for the year ended December 31, 2013. Cash and cash equivalents increased by $2,001,000 to approximately $55,187,000 at the end of the fourth quarter of 2014 from $53,186,000 at the end of the third quarter of 2014. Total backlog at the end of 2014 was $54,249,000, compared to $52,544,000 at the end of the third quarter, and $44,659,000 at the end of 2013.

Regarding fourth quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, commented, "I am pleased with the progress evidenced by the sequential increase in consolidated revenue, which drove a break-even performance for the period. Increasing contributions from VI Chip and Picor were complemented by steady results from the Brick Business Unit."

"Throughout 2015, the pace of introduction of highly-differentiated Vicor products will accelerate, enabling end-to-end implementation of Factorized Power solutions across a broad range of applications. Families of ChiP BCMs, NBMs, DCMs, VTMs, and PRMs are scheduled for release, as are additional members of our family of SiP point of load regulators. For chassis-mount front-end applications, upstream of the point of load, we will unveil next generation system solutions, which we are calling "VIA" (short for Vicor Integrated Adapter) products. VIAs incorporate ChiPs within mechanically and thermally adept packages. Among the game-changers in the VIA family are PFM-based ac-dc converters, as well as BCM, NBM and DCM dc-dc converters. Architected with ease of use in mind, VIA front ends will provide attractive power system solutions across a multiplicity of markets."

"In December we completed the previously announced consolidation of our Westcor manufacturing operations, based in Sunnyvale, into our Andover facility. I am pleased with the smooth transition, as we began manufacturing Westcor ac systems in Andover in January. Considerable strategic benefits and operational efficiencies are expected from this consolidation."