Vicor Corp. Announces Quarter and Yearly Financial Results for End of 2009
Vicor Corp. reported its financial results for the quarter and year ended December 31, 2009. Revenues for the fourth fiscal quarter ended December 31, 2009, decreased to $49,138,000, compared to $51,324,000 for the corresponding period a year ago, but increased from $47,746,000 for the third quarter of 2009. Gross margin increased to $22,497,000 for the fourth quarter of 2009, compared to $20,809,000 for the corresponding period a year ago and $20,668,000 for the third quarter of 2009. Gross margin, as a percentage of revenue, increased to 45.8% for the fourth quarter of 2009 compared to 40.5% for the fourth quarter of 2008, and increased on a sequential basis from 43.3% for the third quarter of 2009. Net income for the fourth quarter was $2,309,000, or $0.06 per diluted share, compared to a net loss of $(3,501,000), or $(0.08) per diluted share, for the corresponding period a year ago and net income of $1,691,000, or $0.04 per diluted share, for the third quarter of 2009.
Revenues for the year ended December 31, 2009, decreased to $197,959,000 from $205,368,000 for the corresponding period a year ago. Net income for the twelve month period was $2,798,000, or $0.07 per diluted share, compared to a net loss of $(3,595,000) or $(0.09) per diluted share, for the corresponding period a year ago. The operating results were negatively impacted by aggregate pre-tax charges of $4,099,000 for the cost of severance and other employee-related costs in connection with workforce reductions implemented during the year. These charges were partially offset by a payment of $750,000 received from a vendor pursuant to a settlement with respect to alleged performance issues with certain of the vendor’s products. This payment was recorded in "Gain from litigation-related and other settlements, net" in the company’s consolidated statement of operations in the third quarter of 2009.
As of January 1, 2009, the company changed its accounting and reporting for minority interests, which are now characterized as noncontrolling interests. As a result, the presentation and disclosure requirements were retroactively applied to minority interest amounts existing as of and for the quarter and year ended December 31, 2008 in the accompanying Consolidated Financial Statements.
The book-to-bill ratio for the fourth quarter of 2009 was 1.16:1, as compared to 1.19:1 for the third quarter of 2009. Backlog at the end of the fourth quarter of 2009 was $58,489,000, as compared to $52,724,000 at the end of 2008.
Commenting on the company’s performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated, "We are cautiously optimistic that our targeted markets are seeing a recovery, as reflected in our booking and revenue trends. Our brick and configurable products businesses avoid volatility through a diversified global customer base while innovative products from our V-I Chip and Picor subsidiaries enable leading OEMs to achieve competitive advantages in their respective markets."
Dr. Vinciarelli continued, "V-I Chip has completed the installation of additional manufacturing equipment in support of a threefold increase in manufacturing capacity expected to be progressively utilized over the next several quarters. V-I Chip and Picor are also gearing up to introduce families of ac input and dc input power components that are intended to advance industry benchmarks for power conversion density and efficiency."
