Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2020

Rhea-AI Summary

Vicor Corporation (NASDAQ: VICR) reported strong financial results for Q4 2020, with revenues of $84.3 million, up 33.5% year-over-year. Gross margin improved to 48.0%, and net income rose to $11.2 million or $0.25 per diluted share. For the full year, revenues increased 12.8% to $296.6 million, and net income totaled $17.9 million. Bookings also surged, reaching $91.5 million for the quarter, a 19.1% increase. The company reported a cash and short-term investment balance of approximately $211.9 million. CEO Dr. Vinciarelli noted improved margins despite outsourcing challenges.

Positive

• Q4 2020 revenues increased by 33.5% to $84.3 million.
• Gross margin rose to 48.0% compared to 47.1% a year ago.
• Net income for Q4 was $11.2 million, compared to $1.3 million the previous year.
• Cash flow from operations totaled $19.3 million for the fourth quarter, a 66.9% increase sequentially.
• Fourth quarter bookings increased 19.1% to $91.5 million.

Negative

• Manufacturing inefficiencies occurred due to outsourcing critical process steps.
• A decline in Brick Products orders was noted.

ANDOVER, Mass., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter ended December 31, 2020.  

Fourth quarter and full year financial results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are presented below.  

Revenues for the fourth quarter ended December 31, 2020 totaled $84.3 million, a 33.5% increase from $63.1 million for the corresponding period a year ago, and a 7.9% sequential increase from $78.1 million for the third quarter of 2020.

Gross margin increased to $40.5 million for the fourth quarter of 2020, compared to $29.8 million for the corresponding period a year ago, and increased sequentially from $33.3 million for the third quarter of 2020. Gross margin, as a percentage of revenue, increased to 48.0% for the fourth quarter of 2020, compared to 47.1% for the corresponding period a year ago, and increased from 42.7% for the third quarter of 2020.  

Net income for the fourth quarter was $11.2 million, or $0.25 per diluted share, compared to net income of $1.3 million or $0.03 per diluted share, for the corresponding period a year ago and net income of $5.8 million, or $0.13 per diluted share, for the third quarter of 2020.  

Revenues for the year ended December 31, 2020, increased 12.8% to $296.6 million from $263.0 million for the corresponding period a year ago. Net income for 2020 was $17.9 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.34 per diluted share, for the corresponding period a year ago.

Cash flow from operations totaled $19.3 million for the fourth quarter, a sequential increase of 66.9%, and totaled $34.5 million for the year, an increase of 55.6% over the total for 2019. Capital expenditures for the fourth quarter totaled $11.8 million, compared to $8.1 million for the prior quarter and $3.4 million for the fourth quarter of 2019. The sum of cash, cash equivalents, and short-term investments sequentially rose 4.1% to approximately $211.9 million. During the fourth quarter, the company transferred approximately $130.2 million from cash accounts to short-term investment accounts.

Fourth quarter bookings increased 19.1% to $91.5 million, from $76.8 million for the corresponding period a year ago, and increased 1.2% sequentially from $90.5 million for the third quarter of 2020. Total bookings for the year totaled $339.7 million, an increase of 28.6% over the 2019 total. Total backlog at the end of the fourth quarter of 2020 was $147.6 million, representing an increase of 5.4% from $140.0 million at the end of the third quarter of 2020 and 41.7 % from $104.2 million at the end of 2019.

Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Fourth quarter results reflect improved margins in spite of manufacturing inefficiencies caused by outsourcing of critical process steps. Advanced Products bookings increased approximately 30%, offsetting a reduction in Brick Products orders. Our capacity expansion is on schedule and vertical integration of all of the process steps required by Advanced Products in our new facility should soon lead to shorter cycle times, greater efficiencies, and further improvements in gross and net margins.”

Vicor also announced that James A. Simms, Corporate Vice President, Chief Financial Officer, Treasurer, and Secretary, will be resigning, effective June 30, 2021. The Company has initiated a search for a new Chief Financial Officer, a process with which Mr. Simms will be assisting. Mr. Simms’ resignation is not related to Vicor's operations, policies, or practices, including its internal controls or other matters related to financial reporting.

Commenting on Mr. Simms’ pending resignation, Dr. Vinciarelli stated, “I wish Jamie success in all his future endeavors. Over his 13 year tenure as CFO, Jamie has made significant contributions to Vicor’s success.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Thursday, February 25, 2021 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call who have not pre-registered should call 877-299-4502 at approximately 4:30 p.m. and use the Passcode 14095952. Internet users may listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicor’s website at www.vicorpower.com. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software. For those who cannot participate in the conference call, a replay will be available, shortly after the conclusion of the call, through March 12, 2021. The replay dial-in number is 888-286-8010 and the Passcode is 33109701. In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor’s website at www.vicorpower.com beginning shortly after the conclusion of the call.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2019, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products primarily to customers in the higher-performance, higher-power segments of the power systems market, including aerospace and defense electronics, enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, and vehicles and transportation markets.

For further information contact:
        
James A. Simms, Chief Financial Officer
Voice: 978-470-2900
Facsimile: 978-749-3439
invrel@vicorpower.com 

VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
	QUARTER ENDED							YEAR ENDED
	(Unaudited)							(Unaudited)
	DEC 31,			DEC 31,				DEC 31,			DEC 31,
	2020			2019				2020			2019
Net revenues	$	84,302		$	63,125			$	296,576		$	262,977
Cost of revenues		43,851			33,364				165,129			140,011
Gross margin		40,451			29,761				131,447			122,966
Operating expenses:
Selling, general and administrative		16,127			16,711				63,163			62,557
Research and development		12,719			12,155				50,916			46,588
Total operating expenses		28,846			28,866				114,079			109,145
Income from operations		11,605			895				17,368			13,821
Other income (expense), net		378			393				1,093			1,066
Income before income taxes		11,983			1,288				18,461			14,887
Less: Provision (benefit) for income taxes		788			(27	)			539			778
Consolidated net income		11,195			1,315				17,922			14,109
Less: Net income attributable to
noncontrolling interest		2			3				12			11
Net income attributable to
Vicor Corporation	$	11,193		$	1,312			$	17,910		$	14,098
Net income per share attributable
to Vicor Corporation:
Basic	$	0.26		$	0.03			$	0.42		$	0.35
Diluted	$	0.25		$	0.03			$	0.41		$	0.34
Shares outstanding:
Basic		43,301			40,482				42,186			40,330
Diluted		44,772			42,404				43,869			41,677

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	DEC 31,				DEC 31,
		2020				2019
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	161,742			$	84,668
Short-term investments		50,166				-
Accounts receivable, net		40,999				38,115
Inventories, net		57,269				49,187
Other current assets		6,756				7,096
Total current assets		316,932				179,066
Long-term deferred tax assets		226				205
Long-term investment, net		2,517				2,510
Property, plant and equipment, net		74,843				56,952
Other assets		1,721				1,994
Total assets	$	396,239			$	240,727
Liabilities and Equity
Current liabilities:
Accounts payable	$	14,121			$	9,005
Accrued compensation and benefits		14,094				10,410
Accrued expenses		2,624				2,690
Sales allowances		597				741
Short-term lease liabilities		1,629				1,520
Income taxes payable		139				57
Short-term deferred revenue and customer prepayments		7,309				5,507
Total current liabilities		40,513				29,930
Long-term deferred revenue		733				1,054
Contingent consideration obligations		227				451
Long-term income taxes payable		643				567
Long-term lease liabilities		2,968				2,855
Total liabilities		45,084				34,857
Equity:
Vicor Corporation stockholders' equity:
Capital stock		328,943				201,774
Retained earnings		161,008				143,098
Accumulated other comprehensive loss		(204	)			(383	)
Treasury stock		(138,927	)			(138,927	)
Total Vicor Corporation stockholders' equity		350,820				205,562
Noncontrolling interest		335				308
Total equity		351,155				205,870
Total liabilities and equity	$	396,239			$	240,727

FAQ

What were Vicor's Q4 2020 financial results?

Vicor's Q4 2020 revenues were $84.3 million, a 33.5% increase year-over-year, with net income of $11.2 million or $0.25 per diluted share.

How did Vicor perform financially in 2020?

Vicor's total revenues for 2020 increased by 12.8% to $296.6 million, with net income of $17.9 million.

What were the key metrics for Vicor's Q4 bookings?

Vicor reported Q4 bookings of $91.5 million, a 19.1% increase from the prior year.

What challenges did Vicor face in Q4 2020?

Vicor experienced manufacturing inefficiencies due to the outsourcing of critical process steps.

What is Vicor's cash position as of Q4 2020?

Vicor's cash, cash equivalents, and short-term investments totaled approximately $211.9 million.