Vicor Corporation reported financial results for the third quarter and nine months ended September 30, 2019, including revenues for the quarter totaling $70.8 million, a 9.3% decrease from $78.0 million for the corresponding period a year ago, and an 11.7% sequential increase from $63.4 million in the second quarter of 2019.
Gross margin decreased to $33.0 million for the third quarter of 2019, compared to $39.0 million for the corresponding period a year ago, but increased sequentially from $29.1 million for the second quarter of 2019. Gross margin, as a percentage of revenue, decreased to 46.6% for the third quarter of 2019, compared to 50.0% for the corresponding period a year ago, but increased from 46.0% for the second quarter of 2019.
Net income for the third quarter was $5.9 million, or $0.14 per diluted share, compared to net income of $13.0 million or $0.32 per diluted share, for the corresponding period a year ago and net income of $2.6 million, or $0.06 per diluted share, for the second quarter of 2019.
Revenues for the nine months ended September 30, 2019, decreased 8.1% to $199.9 million from $217.5 million for the corresponding period a year ago. Net income for the nine month period was $12.8 million, or $0.31 per diluted share, compared to net income of $24.8 million, or $0.61 per diluted share, for the corresponding period a year ago.
Cash and cash equivalents sequentially increased by $9.7 million to approximately $81.2 million at the end of the third quarter of 2019, from $71.5 million at the end of the second quarter of 2019. Capital expenditures for the third quarter of 2019 totaled $3.3 million, up from $2.5 million for the second quarter of 2019.
Third quarter bookings of $60.5 million compare with $91.1 million for the corresponding period a year ago and $60.2 million for the second quarter of 2019. Total backlog at the end of the third quarter of 2019 was $90.1 million, down 10.5 % from $100.7 million at the end of the second quarter of 2019, and down 12.5% from $103.0 million at the end of 2018.
Dr. Patrizio Vinciarelli, Chairman and Chief Executive Officer, commented on third quarter performance: "For the third quarter, consolidated revenue grew sequentially, largely reflecting the resumption of Advanced Products shipments for an existing hyperscaler application. In contrast, Brick Products revenue was unchanged sequentially, as domestic growth was offset by tariff-related declines in China and economic weakness in Europe."
Dr. Vinciarelli continued, "I am pleased with the pace of design wins and breadth of customer engagements. Our Advanced Products have positioned Vicor to lead the transition to 48V in high growth segments of the datacenter and automotive markets. Bookings leading to volume production of solutions for AI acceleration, hyperscale computing, and supercomputing are expected to step up from recent levels, beginning in the fourth quarter. Longer term design wins in automotive systems and AI for Autonomous vehicles are queuing up, with initial projects scheduled for 2022 production for the 2023 model year."
