Vicor Corp. reported its financial results for the third quarter and nine months ended September 30, 2010. Revenues for the third fiscal quarter ended September 30, 2010, increased to $68,672,000, compared to $47,746,000 for the corresponding period a year ago, and increased from $57,377,000 for the second quarter of 2010. Gross margin increased to $32,473,000 for the third quarter of 2010, compared to $20,668,000 for the corresponding period a year ago and $25,739,000 for the second quarter of 2010. Gross margin, as a%age of revenue, increased to 47.3% for the third quarter of 2010 compared to 43.3% for the third quarter of 2009 and 44.9% for the second quarter of 2010.
Net income for the third quarter was $15,819,000, or $0.38 per diluted share, compared to net income of $1,691,000, or $0.04 per diluted share, for the corresponding period a year ago and net income of $4,747,000, or $0.11 per diluted share, for the second quarter of 2010. During the third quarter of 2010, the company recorded a non-recurring, non-cash tax benefit of $5,158,000, or approximately $0.12 per diluted share, due to the release of a portion of its deferred tax valuation allowance.
Revenues for the nine months ended September 30, 2010 increased by 19.4% to $177,758,000 from $148,821,000 for the corresponding period a year ago. Net income for the nine month period was $22,518,000, or $0.54 per diluted share, compared to net income of $489,000 or $0.01 per diluted share, for the corresponding period a year ago. The consolidated book-to-bill ratio for the quarter was 1.02. Total backlog at the end of the third quarter was $104,706,000, compared to $103,227,000, at the end of the second quarter.
Commenting on the Company’s third quarter performance, Patrizio Vinciarelli, Chief Executive Officer, stated: "Vicor experienced a strong third quarter, with improved performance across each of its business units. Consolidated revenue increased 19.7% sequentially. Revenue from the Brick business unit grew 16.6% sequentially, while V-I Chip and Picor revenue for the third quarter grew 57.0% and 19.4%, respectively."
Dr. Vinciarelli went on to say, "Both Brick and V-I Chip are benefiting from economies of scale leading to improved profitability. Our investment in R&D is beginning to pay off with top line growth. Novel Bricks, V-I Chips and silicon-centric Picor products enable our customers to realize competitive advantages arising, in part, from unique power system density and efficiency attributes."
Dr. Vinciarelli concluded, "Advanced power system solutions leveraging common denominator V-I Chip technology and building blocks are gaining traction across new vertical markets, supporting greater diversification and long term growth opportunities."
Depreciation and amortization for the third quarter of 2010 was approximately $2,595,000, and capital additions totaled $2,927,000. For the first nine months of 2010, depreciation and amortization was $7,552,000 and capital additions were $7,741,000, compared to $7,741,000 and $4,282,000, respectively, for the first nine months of 2009. Cash, restricted cash equivalents and short-term investments increased by $145,000 to approximately $46,749,000 at the end of the third quarter of 2010 from $46,604,000 at the end of the second quarter of 2010. There were no share repurchases during the quarter, and approximately $8,500,000 remains authorized for additional purchases under the company’s stock repurchase plan.
