Sequential Increases in Bookings and Revenue at Vicor
Vicor Corporation reported financial results for the second quarter and six months ended June 30, 2016. Revenues for the second quarter ended June 30, 2016 decreased to $52,941,000, compared to $56,119,000 for the corresponding period a year ago, but increased from $46,027,000 for the first quarter of 2016. Second quarter bookings increased to $52,514,000 from $48,096,000 for the corresponding period a year ago, and increased from $49,000,000 for the first quarter of 2016.
Gross margin decreased to $24,471,000 for the second quarter of 2016, compared to $26,510,000 for the corresponding period a year ago, but increased from $19,316,000 for the first quarter of 2016. Gross margin, as a percentage of revenue, decreased to 46.2% for the second quarter of 2016, compared to 47.2% for the second quarter of 2015, but increased from 42.0% for the first quarter of 2016.
Net loss for the second quarter was ($544,000), or ($0.01) per share, compared to net income of $805,000, or $0.02 per diluted share, for the corresponding period a year ago and a net loss of ($5,351,000), or ($0.14) per share, for the first quarter of 2016.
Revenues for the six months ended June 30, 2016, decreased 17.6% to $98,968,000 from $120,136,000 for the corresponding period a year ago. Net loss for the six month period was ($5,895,000), or ($0.15) per share, compared to net income of $4,176,000, or $0.11 per diluted share, for the corresponding period a year ago.
Cash used for operating activities totaled $3,171,000 for the second quarter of 2016, compared to cash provided by operations of $7,206,000 for the corresponding period a year ago. Cash and cash equivalents sequentially decreased by $5,557,000 to approximately $54,153,000 at the end of the second quarter of 2016 from $59,710,000 at the end of the first quarter of 2016.
Total backlog at the end of the second quarter of 2016 was $41,674,000, compared to $42,096,000 at the end of the first quarter, and $39,073,000 at the end of 2015.
Commenting on the second quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, "Vicor saw incremental improvement with sequential increases in bookings and revenue. Our second quarter consolidated gross margin recovered four points, reflecting higher production volumes. Despite operating expense containment, we recorded a small net loss. Over the next two quarters, we expect slow progress in demand reflecting unpredictable delays in the ramp of certain major new programs and macroeconomic uncertainty. However, our differentiated products continue to gain traction, and we are confident that technological leadership will be the engine of growth for years to come. We are achieving additional design wins and expanding the markets and applications served. Earlier design wins are now yielding purchase orders, contributing to confidence in our 2017 outlook."
Dr. Vinciarelli continued, "Short-term challenges and uncertainty remain in numerous markets. Until we achieve a substantial mix of large programs, quarterly results may be affected by sudden and unexpected changes in shipment schedules. Recent high-profile focus on our 48 Volt to Point of Load solutions is contributing to a broadening of our customer base within enterprise computing. We have also been successful in penetrating wireless telecom and, notably, automotive applications. We are pleased to see strength in the initial uptake of new products in our legacy markets, such as rail and defense electronics. All of this supports my continued confidence in our strategy to redefine the market for high performance, cost effective modular power solutions."