Vicor Reports Financial Results For Second Quarter Ended June 30, 2009
Vicor Corp. reported its financial results for the second quarter and six months ended June 30, 2009. Revenues for the second quarter increased to $50,627,000, compared to $49,297,000 for the corresponding period a year ago and $50,448,000 for the first quarter of 2009.
Gross margin increased to $22,598,000 for the second quarter of 2009, compared to $21,113,000 for the corresponding period a year ago and $21,831,000 for the first quarter of 2009. Gross margin, as a percentage of revenue, increased to 44.6% for the second quarter of 2009 compared to 42.8% for the second quarter of 2008, and increased on a sequential basis from 43.3% for the first quarter of 2009.
Net income for the second quarter was $1,341,000, or $0.03 per diluted share, compared to a net loss of $(1,323,000), or $(0.03) per diluted share, for the corresponding period a year ago and a net loss of $(2,543,000), or $(0.06) per diluted share, for the first quarter of 2009. During the second quarter, the company recorded a pre-tax charge of $859,000 for the cost of severance and other employee-related costs in connection with reductions to its workforce, which were completed in June 2009.
Revenues for the six months ended June 30, 2009 decreased by 1.6% to $101,075,000 from $102,766,000 for the corresponding period a year ago. Net loss for the six month period was $(1,202,000), or $(0.03) per diluted share, compared to a net loss of $(703,000) or $(0.02) per diluted share, for the corresponding period a year ago. The net loss for the six month period was primarily due to an aggregate pre-tax charge of $3,957,000 for the cost of severance and other employee-related costs in connection with the company’s workforce reductions implemented in the first and second quarters of 2009.
The book-to-bill ratio for the second quarter of 2009 was 0.79:1, as compared to 0.99:1 for the first quarter of 2009. Backlog at the end of the second quarter of 2009 was $41,515,000, as compared to $52,068,000 at the end of the first quarter of 2009.
Commenting on the company’s second quarter performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated: "During the second quarter, Vicor’s gross margin and profitability improved reflecting, in part, recent expense reductions. While encouraged by improvements in operational efficiency, we continue to pursue performance improvements throughout the organization."
Vinciarelli continued, "Consolidated revenue for the second quarter was essentially unchanged from the corresponding quarter of 2008. This relative stability in the midst of a double digit slump in the global market for electronic products may be comforting. However, our book-to-bill ratio for the second quarter was disappointing and we remain cautious about the company’s near-term outlook, in light of continued weakness in the global economy. Our quarterly book-to-bill ratio has been volatile, and we have cautioned that the ratio is not always an accurate indicator of future revenue. However, given the magnitude of the ratio’s decline for the second quarter, and our quarter-end backlog, we anticipate that the company is likely to experience a sequential decline in revenue for the third quarter."
