Vicor Reports Financial Results For Fourth Quarter & 2008 Year End
Vicor Corp. reported its financial results for the fourth quarter and year ended December 31, 2008. Revenues for the fourth quarter decreased to $51,324,000, compared to $53,947,000 for the corresponding period a year ago and $51,278,000 for the third quarter of 2008.
Gross margin decreased to $20,809,000 for the fourth quarter of 2008, compared to $21,279,000 for the corresponding period a year ago and $21,903,000 for the third quarter of 2008. Gross margin, as a percentage of revenue, increased to 40.5% for the fourth quarter of 2008 compared to 39.4% for the fourth quarter of 2007, and decreased on a sequential basis from 42.7% for the third quarter of 2008. Net loss for the fourth quarter was $(3,501,000), or $(0.08) per diluted share, compared to net income of $1,497,000, or $0.04 per diluted share, for the corresponding period a year ago and net income of $609,000, or $0.01 per diluted share, for the third quarter of 2008.
For the twelve months ended December 31, 2008, revenues increased by 4.9% to $205,368,000 from $195,827,000 for the corresponding period a year ago. Net loss for the twelve month period was $(3,595,000), or $(0.09) per diluted share, compared to net income of $5,335,000 or $0.13 per diluted share, for the corresponding period a year ago.
The book-to-bill ratio for the fourth quarter of 2008 was 0.93:1, as compared to 1.20:1 for the third quarter of 2008. Backlog at the end of 2008 was $52,700,000, as compared to $46,500,000 at the end of 2007.
Commenting on the fourth quarter, Patrizio Vinciarelli, Chief Executive Officer, noted, "Vicor’s fourth quarter bookings reflected slowing demand within a deteriorating global economy. Our consolidated gross margin in the fourth quarter vs. the third quarter was substantially lower due to product mix and inventory reserves. Furthermore, operating expenses, particularly marketing and legal expenses, increased significantly in the fourth quarter vs. the third quarter. In addition, in the fourth quarter, we incurred higher tax expense relating to an unconsolidated subsidiary and wrote off the balance of an investment in a related entity. In summary, we incurred a significant loss for the quarter and the year."
Dr. Vinciarelli concluded, "Our high expense levels have reflected major investments in the development of our products and markets. We are taking additional steps to make these investments more productive and our operations more efficient in an effort to return to robust profitability as quickly as possible in the face of softened demand in many of our markets. We believe that we are well-capitalized and that V-I Chip and Picor are well-positioned to emerge from the global downturn as strong competitors."
