Vicor Corp. reported its financial results for the third quarter of 2008 ended September 30, 2008. Revenues for the third quarter increased by 7.5% to $51,278,000, compared to $47,693,000 for the corresponding period a year ago, and increased 4.0% on a sequential basis from $49,297,000 for the second quarter of 2008.
Gross margin increased to $21,903,000 for the third quarter of 2008, compared to $17,904,000 for the corresponding period a year ago, and increased on a sequential basis from $21,113,000 for the second quarter of 2008. Gross margin, as a percentage of revenue, increased to 42.7% for the third quarter of 2008 compared to 37.5% for the third quarter of 2007, and decreased slightly on a sequential basis from 42.8% for the second quarter of 2008. Net income for the third quarter was $609,000, or $0.01 per diluted share, compared to net income of $543,000, or $0.01 per diluted share, for the corresponding period a year ago and a net loss of $(1,323,000), or $(0.03) per diluted share, for the second quarter of 2008.
For the nine months ended September 30, 2008, revenues increased by 8.6% to $154,044,000 from $141,880,000 for the corresponding period a year ago. Net loss for the nine month period was $(94,000), or $(0.00) per diluted share, compared to net income of $3,838,000 or $0.09 per diluted share, for the corresponding period a year ago.
The book-to-bill ratio for the third quarter of 2008 was 1.20:1, as compared to 1.01:1 for the second quarter of 2008. Backlog at the end of the third quarter of 2008 was $56.4 million, as compared to $46.3 million at the end of the second quarter of 2008.
Commenting on the third quarter, Patrizio Vinciarelli, Chief Executive Officer, noted, "Vicor’s third quarter bookings were firm despite the weakening global economy. Our consolidated gross margin as a percentage of sales reflects our continued commitment to operational efficiency and state of the art manufacturing. Revenue from our brick business unit increased sequentially and relative to the third quarter of 2007."
"We are encouraged by the progress of our V-I Chip business unit, despite previously discussed delays in higher volume shipments. V-I Chip’s third quarter product revenue increased over 38% sequentially and, on a year to date basis, is 157% ahead of the revenue generated through the third quarter of 2007. Picor continued to make progress on the execution of its synergistic strategy. While still in the early stages of its evolution to a merchant model, Picor has recently achieved a significant design win with an early adopter of factorized power."
Dr. Vinciarelli concluded, "Our high expense levels have reflected major investments in the development of our products and markets. Going forward, we intend to make these investments more productive and our operations more efficient. We are concerned by the challenges likely to develop as a result of a weakening global economy. Our ability to return to robust profitability as quickly as we’d like may be constrained by softened demand in many of our markets. However, because Vicor remains well-capitalized, we believe the Company is well-positioned to weather the global downturn. Also, with our efficient brick business model and the momentum we are seeing in disruptive technology products pioneered by V-I Chip and Picor, we believe we are well-positioned for longer term growth and improved profitability."
