Vicor Corp. reported its financial results for the first quarter of 2007 ended March 31, 2007. Revenues for the quarter decreased to $46,981,000 compared to $47,872,000 for the corresponding period a year ago. Net income for Q1 was $2,402,000, or $.06 per diluted share compared to net income of $3,076,000, or $.07 per diluted share, in Q1 2006.
Gross margin decreased to 43.1% in Q1 2007 from 44.1% in Q1 2006 and increased on a sequential basis from 41.0% in Q4 2006. The book-to-bill ratio for Q1 2007 was 1.00:1 as compared to 0.94:1 in Q4 2006. Backlog at the end of Q1 2007 was $36.6 million as compared to $36.4 million at the end of 2006. In Q1 2007, the company recorded $194,000 for expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R).
Commenting on the first quarter, Vicor’s CEO Patrizio Vinciarelli noted: "Demand for bricks improved from Q4 levels and we achieved record bookings and shipments of V-I Chips. Margins improved due to better capacity utilization. We are looking forward to 2008 for V-I Chip sales to become significant, enabling us to break out of the revenue range of recent years. Our Brick Business Unit, V-I Chip and Picor have synergistic plans for profitable growth while being focused on their respective missions. We have unique technology, products and market opportunities to achieve outstanding returns on our longstanding investments."
Depreciation and amortization in Q1 2007 was $3.1 million and capital additions were $2.1 million. In Q1 2006, depreciation and amortization was $4.0 million and capital additions were $1.6 million. Cash and short-term investments decreased by $41.9 million to approximately $76.7 million at the end of Q1 2007 from $118.6 million at the end of 2006.
During the quarter the company paid approximately $37.2 million, net of insurance proceeds, following the settlement earlier reported and paid a dividend of approximately $6.2 million. There were no share repurchases during Q1 2007. At the end of Q1 2007 there was approximately $8.5 million remaining in the authorized stock buy-back plan.
