Vicor Corp. reported its financial results for the second quarter of 2008 ended June 30, 2008. Revenues for the second quarter increased by 4.4% to $49,297,000, compared to $47,206,000 for the corresponding period a year ago, and decreased 7.8% on a sequential basis from $53,469,000 for the first quarter of 2008.
Gross margin increased to $21,113,000 for the second quarter of 2008, compared to $19,599,000 for corresponding period a year ago, but decreased on a sequential basis from $22,460,000 for the first quarter of 2008. Gross margin, as a percentage of revenue, increased to 42.8% for the second quarter of 2008 compared to 41.5% for the second quarter of 2007, and increased on a sequential basis from 42.0% for the first quarter of 2008. Net loss for the second quarter was $1,323,000, or $0.03 per diluted share, compared to net income of $974,000, or $0.02 per diluted share, for the corresponding period a year ago and net income of $620,000, or $0.01 per diluted share, for the first quarter of 2008.
For the six months ended June 30, 2008 revenues increased by 9.1% to $102,766,000 from $94,187,000 for the corresponding period a year ago, and increased 1.1% on a sequential basis from $101,640,000 for the six months ended December 31, 2007. Net loss for the six month period was $703,000, or $0.02 per diluted share, compared to net income of $3,295,000 or $0.08 per diluted share, for the corresponding period a year ago and net income of $2,040,000, or $0.05 per diluted share, for the six months ended December 31, 2007.
The book-to-bill ratio for the second quarter of 2008 was 1.01:1, as compared to 1.09:1 for the second quarter of 2007 and 0.99:1 for the first quarter of 2008. Backlog at the end of the second quarter of 2008 was $46.3 million, as compared to $46.7 million at the end of the fourth quarter of 2007.
Commenting on the second quarter, Patrizio Vinciarelli, Chief Executive Officer, noted, "Vicor continues to be strategically well-positioned, despite worldwide economic uncertainty. As anticipated due to booking trends in Q1 and early Q2, Vicor’s revenue for the second quarter declined as the global economy softened. Revenue from our brick business unit experienced a roughly six percent decline sequentially. However, bookings in July, including a first $3.2 million order for ’V-I Chip inside’ VIBricks, came in 35% ahead of April levels, pointing to improving demand for our expanding brick product line. Also, despite the decline in Q2 revenue, the brick unit’s gross margin as a percentage of revenue actually increased from the Q1 level."
"As previously discussed, anticipated volume shipments of a major V-I Chip program were pushed out early this year. As such, revenue for V-I Chip declined roughly 27% from the prior quarter. We had planned higher levels of V-I Chips shipments in Q2, but now forecast ramping in Q3 and Q4. Because we had put infrastructure in place to meet greater demand, V-I Chip continues to absorb the costs of underutilized production capacity. Accordingly, V-I Chip generated a higher operating loss for the quarter. We remain confident V-I Chip will essentially double its top line in 2008, experience robust growth in 2009 and improve its gross margin with economies of scale. Our confidence is based on progress being made with early adopters and the ongoing expansion of relationships with licensees and partners bringing about a global presence and facilitating adoption of V-I Chips and Factorized Power."
