GlobeNewswire Inc | Oct 22, 2020 04:05PM EDT

October 22, 2020

ANDOVER, Mass., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2020. These results will be discussed later today at 5:00 p.m. Eastern Time, during managements quarterly investor conference call. The details for the call are presented below.

Revenues for the third quarter ended September 30, 2020 totaled $78.1 million, a 10.4% increase from $70.8 million for the corresponding period a year ago, and also a 10.4% sequential increase from $70.8 million for the second quarter of 2020.

Gross margin increased to $33.3 million for the third quarter of 2020, compared to $33.0 million for the corresponding period a year ago, and increased sequentially from $30.3 million for the second quarter of 2020. Gross margin, as a percentage of revenue, decreased to 42.7% for the third quarter of 2020, compared to 46.6% for the corresponding period a year ago, and decreased from 42.8% for the second quarter of 2020.

Net income for the third quarter was $5.8 million, or $0.13 per diluted share, compared to net income of $5.9 million or $0.14 per diluted share, for the corresponding period a year ago and net income of $2.7 million, or $0.06 per diluted share, for the second quarter of 2020.

Cash and cash equivalents sequentially increased by $6.9 million to approximately $203.6 million at the end of the third quarter of 2020, from $196.7 million at the end of the second quarter of 2020. Incremental capital expenditures for the third quarter of 2020 totaled $8.1 million, as compared with $3.3 million for the corresponding period a year ago and $5.7 million for the second quarter of 2020.

Third quarter bookings increased 49.5% to $90.5 million, from $60.5 million for the corresponding period a year ago, and increased sequentially from $87.5 million for the second quarter of 2020. Total backlog at the end of the third quarter of 2020 was $140.0 million, representing an increase of 9.8% from $127.5 million at the end of the second quarter of 2020 and 34.4 % from $104.2 million at the end of 2019.

Commenting on the third quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, Despite supply-chain and product mix challenges, higher shipments of Advanced Products led to an increase in third quarter revenue. Bookings for Advanced Products grew across a multiplicity of applications and end markets. Our outlook for the fourth quarter is for a sequential increase in revenue and earnings per share. Capacity expansion is on schedule and vertical integration in our new manufacturing facility of all of the process steps required by Advanced Products should soon lead to shorter cycle times, greater efficiencies, and improved gross and net margins.

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

Earnings Conference Call

Vicor will be holding its investor conference call today, Thursday, October 22, 2020 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 12469708. Internet users may listen to a real-time audio broadcast of the conference call on the Investor Relations section of Vicors 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 November 6, 2020. The replay dial-in number is 888-286-8010 and the Passcode is 78499292. In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicors 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 managements current expectations and estimates as to the prospective events and circumstances that may or may not be within the companys 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 Vicors 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 PartI, Item3 Legal Proceedings, and under PartII, Item7 Managements 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 transportationmarkets. For further information contact:

James A. Simms, Chief Financial OfficerVoice: 978-470-2900Facsimile: 978-749-3439invrel@vicorpower.com

VICOR CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Thousands except for per share amounts) QUARTER ENDED NINE MONTHS ENDED (Unaudited) (Unaudited) SEPT 30, SEPT 30, SEPT 30, SEPT 30, 2020 2019 2020 2019 Net revenues $ $ 70,772 $ 212,274 $ 78,112 199,852Cost of revenues 44,765 37,770 121,278 106,647 Gross margin 33,347 33,002 90,996 93,205 Operating expenses: Selling, 15,212 15,443 47,036 45,846 general and administrativeResearch 12,032 11,507 38,197 34,433 and developmentTotal 27,244 26,950 85,233 80,279 operating expenses Income from operations 6,103 6,052 5,763 12,926 Other income (expense), net 334 146 715 673 Income before income taxes 6,437 6,198 6,478 13,599 Less: Provision (benefit) for 651 266 (249 ) 805 income taxes Consolidated net income 5,786 5,932 6,727 12,794 Less: Net income (loss) attributable tononcontrolling interest 1 (5 ) 10 8 Net income attributable to Vicor Corporation $5,785 $5,937 $6,717 $12,786 Net income per share attributableto Vicor Corporation: Basic $0.13 $0.15 $0.16 $0.32 Diluted $0.13 $0.14 $0.15 $0.31 Shares outstanding: Basic 43,164 40,332 41,814 40,279 Diluted 44,743 42,194 43,567 41,435

VICOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Thousands) SEPT 30, DEC 31, 2020 2019 (Unaudited) (Unaudited)Assets Current assets: Cash and cash equivalents $ 203,605 $ 84,668 Accounts receivable, net 41,136 38,115 Inventories, net 58,169 49,187 Other current assets 6,872 7,096 Total 309,782 179,066 current assets Long-term deferred tax assets 189 205 Long-term investment, net 2,591 2,510 Property, plant and equipment, net 65,780 56,952 Other assets 1,777 1,994 Total $ 380,119 $ 240,727 assets Liabilities and Equity Current liabilities: Accounts payable $ 11,911 $ 9,005 Accrued compensation and 13,248 10,410 benefitsAccrued expenses 2,417 2,690 Sales allowances 736 741 Short-term lease liabilities 1,563 1,520 Income taxes payable 62 57 Short-term deferred revenue 8,061 5,507 and customer prepayments Total 37,998 29,930 current liabilities Long-term deferred revenue 813 1,054 Contingent consideration obligations 265 451 Long-term income taxes payable 575 567 Long-term lease liabilities 2,880 2,855 Total 42,531 34,857 liabilities Equity: Vicor Corporation stockholders' equity: Capital stock 326,577 201,774 Retained earnings 149,815 143,098 Accumulated other (203 ) (383 )comprehensive lossTreasury stock (138,927 ) (138,927 )Total Vicor 337,262 205,562 Corporation stockholders' equityNoncontrolling interest 326 308 Total equity 337,588 205,870 Total $ 380,119 $ 240,727 liabilities and equity