Vicor Corp. announced revenues for the first quarter ended March 31, 2006 increased 10.9% to $47,872,000 compared to $43,180,000 for the corresponding period a year ago. Net income for current quarter was $3,076,000, or $.07 per diluted share compared to net income of $39,000, or $.00 per diluted share, in same quarter of 2005.
Gross margin improved to 44.1% in the first quarter of 2006 from 39.5% in the first quarter of 2005 and 42.7% in the fourth quarter of 2005. The book-to-bill ratio for the first quarter of 2006 was 1.17:1 as compared to 0.95:1 in the last quarter of 2005. Backlog at the end of the first quarter of 2006 was $46.5 million as compared to $38.6 million at the end of 2005.
In the first quarter of 2006, Vicor accrued $207,000 for incentives to be paid after the end of 2006 and recorded $178,000 for expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R). The Company plans to increase cash and stock option incentives upon achieving higher profits.
Commenting on the first quarter, Vicor's CEO Patrizio Vinciarelli noted: "Continuing productivity improvements delivered better margins in Q1 2006. Additionally, demand has strengthened. Subject to continuing demand and productivity improvements, revenue growth and incremental quarterly expansion in margins should enable substantial profits in 2006."
Vinciarelli went on to say: "While revenues and profitability in our brick business are improving, V-I Chip and Picor are gearing up to support their respective product roadmaps and business strategies. V-I Chip's headcount has recently reached 130 people, combining a significant force of Vicor veterans with select talent hired from industries with complementary core competencies."
"In Vicor, Picor and V-I Chip we see independent prospects for an exciting future. We have strengthened the ranks of these organizations to make the most of business opportunities enabled by a shared, proprietary technological foundation. And, to achieve operational excellence, we have empowered leadership teams capable of tackling their respective tasks."
Depreciation and amortization in the current quarter was $4.0 million and capital additions were $1.6 million. This compares to depreciation and amortization in first quarter of 2005 of $4.5 million and capital additions of $1.4 million. Cash and short and long-term investments decreased by $3.8 million in first quarter of 2006, to $122.3 million from $126.1 million at the end of 2005. During the quarter the company paid a dividend of approximately $5.0 million and repurchased 119,500 shares, for approximately $2.0 million. At the end of the first quarter of 2006 there was approximately $17.4 million remaining in the authorized stock buy-back plan.
