News

Vicor Corporation Reports Results for Q3

October 23, 2012 by Jeff Shepard

Vicor Corporation reported financial results for the third quarter and nine months ended September 30, 2012. Revenues for the third quarter ended September 30, 2012, decreased to $52,948,000, compared to$58,560,000 for the corresponding period a year ago, and decreased from $55,467,000 for the second quarter of 2012. Gross margin decreased to$22,953,000 for the third quarter of 2012, compared to $24,440,000 for the corresponding period a year ago, and decreased from$24,106,000 for the second quarter of 2012. Gross margin, as a percentage of revenue, increased to 43.4% for the third quarter of 2012, compared to 41.7% for the third quarter of 2011, but decreased on a sequential basis from 43.5% for the second quarter of 2012.

Net income for the third quarter was $191,000, or$0.00 per diluted share, compared to net income of $1,082,000, or$0.03 per diluted share, for the corresponding period a year ago and net income of $220,000, or$0.01 per diluted share, for the second quarter of 2012.

Revenues for the nine months ended September 30, 2012, decreased by 13.5% to $168,083,000 from$194,417,000 for the corresponding period a year ago. Net income for the nine month period was $737,000, or$0.02 per diluted share, compared to net income of $8,166,000 or$0.20 per diluted share, for the corresponding period a year ago. Total backlog at the end of the third quarter was $42,880,000 and$42,219,000 at the end of the second quarter of 2012.

Commenting on the third quarter, Patrizio Vinciarelli, Chief Executive Officer, stated, "Vicor's consolidated performance continues to reflect trends we have addressed in recent investor communications. The markets and applications on which we have traditionally focused remain soft, and our new product and market initiatives have yet to build momentum. We remain focused on these initiatives, with the goal of expanding and diversifying our customer base in 2013." Dr. Vinciarelli concluded, "I, again, affirm my commitment to our strategy and determination to stay the course."

Depreciation and amortization for the third quarter of 2012 was approximately $2,626,000, and capital additions totaled$2,053,000. For the first nine months of 2012, depreciation and amortization was $7,870,000 and capital additions totaled$4,838,000, compared to $8,214,000 and$6,251,000, respectively, for the first nine months of 2011. Cash and cash equivalents increased by $2,508,000 to approximately$84,752,000 at the end of the third quarter of 2012 from $82,244,000 at the end of second quarter of 2012. There were no share repurchases during the quarter, and approximately$8,500,000 remains authorized for additional purchases.

In October 2012, Vicor settled its lawsuit against its insurance carriers, receiving a cash payment of \$1,975,000 in exchange for Vicor's release of the carriers from future claims. This amount will be recorded as a gain from litigation-related settlement in the fourth quarter of 2012.