Vicor Reports Improving Financial Performance in Third Quarter
Vicor Corporation reported revenues for the third fiscal quarter ended September 30, 2013 increased to $55,091,000, compared to $52,948,000 for the corresponding period a year ago, and increased from $46,865,000 for the second quarter of 2013. Gross margin increased to $22,980,000 for the third quarter of 2013, compared to $22,953,000 for the corresponding period a year ago, and increased from $18,461,000 for the second quarter of 2013. Gross margin, as a percentage of revenue, decreased to 41.7% for the third quarter of 2013, compared to 43.4% for the third quarter of 2012, but increased on a sequential basis from 39.4% for the second quarter of 2013.
Net loss for the third quarter of 2013 was ($932,000), or ($0.02) per share, compared to net income of $191,000, or $0.00 per diluted share, for the corresponding period a year ago and a net loss of ($4,616,000), or ($0.12) per share, for the second quarter of 2013. Total backlog at the end of the third quarter was $53,888,000, compared to $51,958,000 at the end of the second quarter, and $31,405,000 at the end of 2012.
Revenues for the nine months ended September 30, 2013, decreased by 14.4% to $143,902,000 from $168,083,000 for the corresponding period a year ago. Net loss for the nine month period ended September 30, 2013 was ($10,538,000), or ($0.27) per share, compared to net income of $737,000, or $0.02 per diluted share, for the corresponding period a year ago. Contributing to the net loss was a pre-tax charge of $1,361,000 recorded in the first quarter for severance and other employee-related costs associated with a reduction in force implemented in February 2013.
Commenting on current performance, Patrizio Vinciarelli, Chief Executive Officer, stated, "On balance, consolidated results came in better than forecast. Revenue for the third quarter was ahead of our expectations, improving sequentially by 17.5%. While all of our businesses expanded for the quarter, VI Chip nearly doubled sequentially, reflecting substantial shipments of VR 12.0 solutions for Intel-based servers. We also experienced improved gross margins, reflecting higher capacity utilization, as VI Chip produced a record number of units. Gross margin for the third quarter increased to 41.7% from 39.4% for the second quarter."
Dr. Vinciarelli continued, "I am pleased the assumptions supporting our strategic, organizational, and operational choices are being confirmed. The response to our new products based on ChiP technology from high volume customers is very encouraging. As I've stated before, based on current design-in activity, I expect our highly differentiated ChiPs and SiPs to make meaningful contributions to our revenue by the second half of 2014. In the interim, Vicor's consolidated results likely will reflect uncertainty affecting important markets and geographies for the Brick Business Unit, notably, defense electronics and Europe. Market recovery and/or accelerating penetration with our innovative products are the keys to achieving robust profitability."
