Vicor Corp. reported its financial results for the fourth quarter and year ended December 31, 2011. Revenues for the fourth fiscal quarter ended December 31, 2011, decreased to $58,551,000, compared to $72,975,000 for the corresponding period a year ago, and decreased from $58,560,000 for the third quarter of 2011.
Gross margin decreased to $24,491,000 for the fourth quarter of 2011, compared to $32,984,000 for the corresponding period a year ago, but increased from $24,440,000 for the third quarter of 2011. Gross margin, as a percentage of revenue, decreased to 41.8% for the fourth quarter of 2011, compared to 45.2% for the fourth quarter of 2010, but increased on a sequential basis from 41.7% for the third quarter of 2011.
Net income for the fourth quarter was $677,000, or $0.02 per diluted share, compared to a net income of $10,807,000, or $0.26 per diluted share, for the corresponding period a year ago and net income of $1,082,000, or $0.03 per diluted share, for the third quarter of 2011.
Revenues for the year ended December 31, 2011, increased by 0.9% to $252,968,000 from $250,733,000 for the corresponding period a year ago. Net income for the year was $8,843,000, or $0.21 per diluted share, compared to net income of $33,325,000 or $0.80 per diluted share, for the corresponding period a year ago.
The 2011 provision for income taxes 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 carry-forwards. During the third and fourth quarters of 2010, the Company recorded non-recurring, non-cash tax benefits of $5,158,000, or approximately $0.12 per diluted share, and $1,159,000, or approximately $0.03 per diluted share, respectively, due to the release of portions of its deferred tax valuation allowance. These tax benefits were partially offset by estimated federal, state and foreign income taxes on the Company’s 2010 pre-tax income and estimated federal and state income taxes for certain non-controlling interests that are not part of the Company’s consolidated income tax returns.
Total backlog at the end of the fourth quarter was $54,234,000, compared to $78,876,000, at the end of 2010.
Commenting on fourth quarter performance, Patrizio Vinciarelli, Chief Executive Officer, stated, "Fourth quarter results reflect ongoing weakness in some of the markets we serve, as well as higher expenses associated with our expanded sales and marketing activities. Given recent booking trends, we expect continued softness for the first half of this year. Through the fourth quarter we actually saw an increase in design and product qualification activity, leading us to be optimistic that we may experience improved order flow for the second half of 2012. With an expanded go-to-market strategy and lines of highly differentiated products, we believe Vicor is well-positioned for future growth."
Dr. Vinciarelli continued, "Consolidated fourth quarter revenue was essentially unchanged sequentially, as an increase in the Brick Business Unit’s revenue was offset by lower VI Chip revenue. The decline in VI Chip revenue and reduction in quarterly bookings was the result of the large program termination reported last quarter. Consolidated bookings declined over 11% sequentially. Product level profitability was essentially unchanged at 41.8% for the fourth quarter, while Operating Income, as a percentage of revenue, declined slightly from 2.9% last quarter to 2.1% this quarter, reflecting the higher headcount and increased spending in the front end of our business."
Concluding his remarks, Dr. Vinciarelli stated, "Vicor continued to make progress with new product and market initiatives during the quarter. Despite current conditions, we remain committed to our vision for growth based on next generation power components from Picor, VI Chip and the BBU."
