Vicor Corp. reported its financial results for the third quarter ended September 30, 2006. Revenues for the quarter increased to $46,932,000 compared to $45,298,000 for the corresponding period a year ago. Net income for Q3 was $2,462,000, or $.06 per diluted share compared to net income of $1,708,000, or $.04 per diluted share, in Q3 2005. For the nine months ended September 30, 2006 revenues increased to $144,014,000 from $133,057,000 for the same period of 2005. The company reported net income for the period of $8,412,000, or $.20 per diluted share compared to net income of $1,836,000 or $.04 per diluted share in 2005.
Gross margin improved to 42.5% in Q3 2006 from 42.0% in Q3 2005 and decreased on a sequential basis from 42.9% in Q2 2006. The book-to-bill ratio for Q3 2006 was 1.00:1 as compared to 0.86:1 in Q2 2006. Backlog at the end of Q3 2006 was $39.3 million as compared to $38.6 million at the end of 2005. In Q3 2006, the company recorded $173,000 for expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R).
Commenting on the third quarter, Vicor's CEO Patrizio Vinciarelli noted: "Demand improved in Q3 from the lackluster level in Q2 as orders increased by approximately 11%. In Q3 we continued to experience delays in certain significant orders projected to be booked in that quarter. As in Q2, these delays caused the book-to-bill and revenue levels to be short of expectations."
Vinciarelli went on to say: "The slowdown that Vicor experienced beginning in Q2 has now been seen by other component manufacturers selling to the electronics industry at large. Customers continue to say that their orders have slipped by only a few months. However, the slowdown may reflect more than an inventory correction. Aside from soft demand for Vicor bricks, a significant V-I Chip program has, for a second time, been delayed by 6 months."
