Vicor Reports Results for Second Quarter 2010July 25, 2010 by Jeff Shepard
Vicor Corp. reported its financial results for the second quarter and six months ended June 30, 2010. Revenues for the second fiscal quarter ended June 30, 2010, increased to $57,377,000, compared to $50,627,000 for the corresponding period a year ago, and increased from $51,709,000 for the first quarter of 2010. Gross margin increased to $25,739,000 for the second quarter of 2010, compared to $22,598,000 for the corresponding period a year ago and $23,324,000 for the first quarter of 2010. Gross margin, as a percentage of revenue, increased to 44.9% for the second quarter of 2010 compared to 44.6% for the second quarter of 2009, but decreased slightly on a sequential basis from 45.1% for the first quarter of 2010. Net income for the second quarter was $4,747,000, or $0.11 per diluted share, compared to a net income of $1,341,000, or $0.03 per diluted share, for the corresponding period a year ago and net income of $1,952,000, or $0.05 per diluted share, for the first quarter of 2010.
Revenues for the six months ended June 30, 2010 increased by 7.9% to $109,086,000 from $101,075,000 for the corresponding period a year ago. Net income for the six month period was $6,699,000, or $0.16 per diluted share, compared to a net loss of $(1,202,000) or $(0.03) per diluted share, for the corresponding period a year ago.
Commenting on the company’s second quarter performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated: "Second quarter shipments and bookings were robust. Consolidated revenue increased 11.0% sequentially while the consolidated book-to-bill ratio was 1.43:1. Total backlog at the end of the second quarter was $103,227,000, compared to $78,407,000, at the end of the first quarter."
"Brick components revenue grew 9.9% sequentially, with growth balanced across product lines. V-I Chip revenue for the second quarter grew 11.3% sequentially. V-I Chip bookings were strong on an absolute basis, but declined 19.5% sequentially, reflecting the sizeable initial orders placed by a large customer during the first quarter. This customer, along with others, continued to place orders through the second quarter. Picor also performed well, with strong second quarter sequential revenue and bookings growth."
Dr. Vinciarelli concluded, "New product releases and design-in activities with Bricks, V-I Chips and Picor products are progressing. An important milestone that was recently reached is the engineering release of the PFM, which is scheduled for general introduction after Labor Day. Significant customer interest in DCMs in VIBrick packages points to growth opportunities for our ’V-I Chip inside’ Brick product strategy. Finally, Picor’s development of innovative silicon-centric solutions complements our vision of enabling efficient power systems made from standard, yet flexible, building blocks."
Depreciation and amortization for the second quarter of 2010 was approximately $2,524,000, and capital additions totaled $2,385,000. For the first six months of 2010, depreciation and amortization was $4,957,000 and capital additions were $4,814,000, compared to $5,234,000 and $2,749,000, respectively, for the first six months of 2009. Cash, restricted cash equivalents and short-term investments increased by $13,276,000 to approximately $55,701,000 at the end of the second quarter of 2010 from $42,425,000 at the end of the first quarter of 2010. The company’s Board of Directors approved a cash dividend of $0.30 per share of the company’s stock. The total dividend of approximately $12,506,000 is payable on July 30, 2010, to shareholders of record at the close of business on July 16, 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.