Vicor Reports Booking up in Q2 but Return of Robust Profitability Uncertain
Vicor Corporation today reported revenues for the second fiscal quarter ended June 30, 2013, decreased to $46,865,000, compared to $55,467,000 for the corresponding period a year ago, but increased from $41,946,000 for the first quarter of 2013. Gross margin decreased to $18,461,000 for the second quarter of 2013, compared to $24,106,000 for the corresponding period a year ago, but increased from $16,607,000 for the first quarter of 2013. Gross margin, as a percentage of revenue, decreased to 39.4% for the second quarter of 2013, compared to 43.5% for the second quarter of 2012, and decreased on a sequential basis from 39.6% for the first quarter of 2013.
Net loss for the second quarter was ($4,616,000), or ($0.12) per share, compared to net income of $220,000, or $0.01 per diluted share, for the corresponding period a year ago and a net loss of ($4,990,00), or ($0.12) per share, for the first quarter of 2013. Revenues for the six months ended June 30, 2013, decreased by 22.9% to $88,811,000 from $115,135,000 for the corresponding period a year ago. Net loss for the six month period was ($9,606,000), or ($0.24) per share, compared to net income of $546,000, or $0.01 per diluted share, for the corresponding period a year ago. Contributing to the net loss was a pre-tax charge of $1,361,000 recorded in the first quarter for severance and other employee-related costs associated with a reduction in force implemented in February 2013.
Commenting on current performance, Patrizio Vinciarelli, Chief Executive Officer, stated, "Bookings increased in the second quarter and we are hopeful the customer momentum we've long sought is being established. Our design activity in the communications and computing segments continues at a very high level reflecting increased interest in our innovative, highly-differentiated solutions."
"We are also pleased with the reception our recently-introduced ChiP packaging technology has received. We have developed an initial product line of ChiPs for introduction during the second half of 2013. We expect that highly-differentiated PFM, DCM, PRM, VTM, and BCM ChiPs will begin to make meaningful contributions to our revenue by the second half of 2014."
"We continue to experience softness in many areas, with ongoing uncertainty in Europe and uneven conditions across North America. The extent of our loss this quarter reflects this softness. As VI Chip manufacturing volumes increase, we should experience improved absorption of our overhead costs. However, without evidence of a sustained recovery of the markets served by the Brick Business Unit, we cannot yet predict when we will achieve robust profitability."
For the first six months of 2013, a net income tax benefit was recorded, driven in part by a potential net operating loss carryback for federal income tax purposes and the recognition of the full federal research and development tax credit for 2012 during the first quarter. On January 2, 2013, Congress passed the American Taxpayer Relief Act of 2012, extending the research and development tax credit for both 2012 and 2013. Total backlog at the end of the second quarter was $51,958,000, compared to $37,934,000 at the end of the first quarter, and $31,405,000 at the end of 2012.
Depreciation and amortization for the second quarter of 2013 was approximately $2,534,000, and capital additions totaled $1,372,000. For the first six months of 2013, depreciation and amortization was $5,028,000 and capital additions totaled $2,543,000, compared to $5,244,000 and $2,785,000, respectively, for the first six months of 2012. Cash and cash equivalents decreased by $10,625,000 to approximately $60,778,000 at the end of the second quarter of 2013, from $71,403,000 at the end of first quarter of 2013. During the quarter, the Company purchased, via a tender offer that expired on April 22, 2013, 1,341,575 shares of its common stock for a cost, excluding related fees and expenses, of approximately $6,710,000.
