Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2020

Vicor Corporation (VICR) today reported financial results for the second quarter ended June 30, 2020.  These 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 second quarter ended June 30, 2020 totaled $70.7 million, an 11.7% increase from $63.4 million for the corresponding period a year ago, and an 11.6% sequential increase from $63.4 million for the first quarter of 2020.

 

Gross margin increased to $30.3 million for the second quarter of 2020, compared to $29.1 million for the corresponding period a year ago, and increased sequentially from $27.3 million for the first quarter of 2020.  Gross margin, as a percentage of revenue, decreased to 42.8% for the second quarter of 2020, compared to 46.0% for the corresponding period a year ago, and decreased from 43.1% for the first quarter of 2020.

 

Net income for the second quarter was $2.7 million, or $0.06 per diluted share, compared to net income of $2.6 million or $0.06 per diluted share, for the corresponding period a year ago and a net loss of ($1.7) million, or ($0.04) per basic share, for the first quarter of 2020.

 

Results for the second quarter of 2020 included a non-cash charge of $1.2 million associated with the accelerated recognition of equity-based compensation expenses resulting from stock option awards made during the period.

 

Cash and cash equivalents sequentially increased by $114.0 million to approximately $196.7 million at the end of the second quarter of 2020, from $82.7 million at the end of the first quarter of 2020.  The Company completed an underwritten public offering of its common stock in June, resulting in net proceeds of approximately $109.7 million.  Incremental capital expenditures for the second quarter of 2020 totaled $5.7 million, as compared with $2.5 million for the corresponding period a year ago and $3.0 million for the first quarter of 2020.

 

Second quarter bookings increased 45.4% to $87.5 million, from $60.2 million for the corresponding period a year ago, and increased sequentially 24.9% from $70.1 million for the first quarter of 2020.  Total backlog at the end of the second quarter of 2020 was $127.5 million, representing an increase of 15.1% from  backlog of $110.8 million at the end of the first quarter of 2020 and 22.4 % from $104.2 million at the end of 2019.

 

Commenting on the second quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Second quarter bookings reflected accelerating demand for Advanced Products. Second quarter revenue recovered sequentially reflecting ramping shipments of lateral power system solutions for AI accelerators and recovery of Asian demand, which had been impacted during the first quarter by COVID-19.  For the second quarter, the impact of the pandemic shifted from Asia to other regions, notably the United States, which experienced a 16% sequential decline in shipments, as non-essential manufacturing slowed considerably. COVID-19 continued to have an influence on our supply chain during the second quarter, causing production inefficiencies.”

 

Dr. Vinciarelli concluded, “Despite the continuing effects of COVID-19 on the global economy, Vicor’s outlook remains positive, and our confidence in our long-term opportunity is high.  Expansion of our manufacturing facilities is underway, and we have placed substantial orders for additional equipment to expand manufacturing capacity and enable us to manufacture high volume products with high efficiency. Our outlook for the third quarter is for a sequential increase in revenue and earnings per share.”

 

https://seekingalpha.com/pr/17943781-vicor-corporation-reports-results-for-second-quarter-ended-june-30-2020

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