Vicor Corp. reported its financial results for the first quarter ended March 31, 2011. Revenues for the first fiscal quarter ended March 31, 2011, increased to $70,455,000, compared to $51,709,000 for the corresponding period a year ago, but decreased from $72,975,000 for the fourth quarter of 2010.
Gross margin increased to $30,454,000 for the first quarter of 2011, compared to $23,324,000 for the corresponding period a year ago, but decreased from $32,984,000 for the fourth quarter of 2010. Gross margin, as a%age of revenue, decreased to 43.2% for the first quarter of 2011 compared to 45.1% for the first quarter of 2010, and decreased on a sequential basis from 45.2% for the fourth quarter of 2010.
Net income for the first quarter was $4,018,000, or $0.10 per diluted share, compared to net income of $1,952,000, or $0.05 per diluted share, for the corresponding period a year ago and net income of $10,807,000, or $0.26 per diluted share, for the fourth quarter of 2010.
The 2011 provision for income taxes, which is based on an estimated annual effective tax rate for 2011, approximates a full statutory tax rate, as compared with the lower effective tax rate for 2010, due to the utilization by the end of 2010 of all Federal operating loss carryforwards.
The consolidated book-to-bill ratio for the first quarter was 0.94, as compared to 0.66 for the fourth quarter of 2010. Total backlog at the end of the first quarter was $74,757,000, compared to $78,876,000, at the end of 2010.
Patrizio Vinciarelli, Chief Executive Officer, commented on the period’s performance, stating, "Vicor performed to expectations for the first quarter, highlighted by a continuing ramp in production of our V.I Chip products. The Brick Business Unit performed well, with strength in exports offsetting a decline in U.S. defense programs, and Picor got closer to bringing to fruition its silicon-centric product strategy.
"As anticipated, Vicor is in a transition period with V.I Chips and VI Bricks becoming a higher%age of our total sales. While early in the ramp of V.I Chips, the gross profit margin realized on these products is still far short of targets, and, as a result, our consolidated gross profit margin has declined in recent quarters. However, there is continued quarter over quarter progress being made at reducing average unit cost in V.I Chip."
Dr. Vinciarelli continued, "The last several months have seen an acceleration in the introduction of new products evidencing superior power technology. We are excited about the potential of our new VI Brick IBC050 line of intermediate bus converters, which are pin-compatible with industry standard bus converters, while providing much higher power throughput and efficiency. The performance of these products has caught the attention of OEMs seeking to gain competitive advantages."
