Vicor Corp. reported its financial results for the first quarter ended March 31, 2009. Revenues for the first quarter decreased to $50,448,000, compared to $53,469,000 for the corresponding period a year ago and $51,324,000 for the fourth quarter of 2008. Gross margin decreased to $21,831,000 for the first quarter of 2009, compared to $22,460,000 for the corresponding period a year ago and $20,809,000 for the fourth quarter of 2008.
Gross margin, as a percentage of revenue, increased to 43.3% for the first quarter of 2009 compared to 42.0% for the first quarter of 2008, and increased on a sequential basis from 40.5% for the fourth quarter of 2008. Net loss for the first quarter was $(2,543,000), or $(0.06) per diluted share, compared to net income of $620,000, or $0.01 per diluted share, for the corresponding period a year ago and a net loss of $(3,501,000), or $(0.08) per diluted share, for the fourth quarter of 2008. The net loss for the quarter was primarily due to a pre-tax charge of $3,098,000 for the cost of severance and other employee-related costs in connection with the Company’s previously announced plan to reduce its workforce, which was completed in January 2009.
The book-to-bill ratio for the first quarter of 2009 was 0.99:1, as compared to 0.93:1 for the fourth quarter of 2008. Backlog at the end of the first quarter of 2009 was $52,068,000, as compared to $52,724,000 at the end of 2008.
Commenting on the first quarter performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated, "Despite a double digit contraction in global shipments of electronic products, Vicor’s first quarter revenue declined less than two% sequentially, evidence of the strength of our business model and broad product portfolio. Nevertheless, we remain cautious about the near term outlook."
Dr. Vinciarelli added, "As disclosed, Vicor took the difficult step of reducing its workforce by approximately eight% during the first quarter. We also undertook other initiatives to reduce our overall cost structure. These steps have had a negative impact on our first quarter costs which included a one-time severance charge of $3.1 million. We are determined to achieve a more favorable, long term cost structure and robust profitability while pursuing a high level of investment in product development and future growth."
