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Vicor Corporation Reports Results for the First Quarter Ended March 31, 2025

1. Vicor's Q1 2025 revenue rose 12%, despite a 2.3% sequential decline. 2. Gross margin decreased to 47.2%, down from 53.8% in Q1 2024. 3. Operating expenses fell to $44.5 million, showing cost control measures. 4. Net income of $2.5 million contrasts sharply with last year's loss. 5. Backlog increased by 14.2% year-over-year, indicating solid future demand.

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Why Bullish?

Despite a sequential decline in revenue, Vicor's year-over-year growth and positive net income suggest improving fundamentals. Historical examples show similar patterns led to recovery phases following initial declines.

How important is it?

The article provides significant updates on VICR's performance and outlook, directly influencing investor decisions.

Why Short Term?

The immediate visibility of revenue growth and backlog improvement can affect market sentiment quickly, as past earnings surprises have influenced stock price movements typically within one-to-two reporting cycles.

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April 29, 2025 16:05 ET  | Source: Vicor Corporation ANDOVER, Mass., April 29, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2025. 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 below. Revenues for the first quarter ended March 31, 2025 totaled $94.0 million, a 12.0% increase from $83.9 million for the corresponding period a year ago, and a 2.3% sequential decrease from $96.2 million in the fourth quarter of 2024. Gross margin decreased to $44.4 million for the first quarter of 2025, compared to $45.1 million for the corresponding period a year ago, and decreased sequentially from $50.4 million for the fourth quarter of 2024. Gross margin, as a percentage of revenue, decreased to 47.2% for the first quarter of 2025, compared to 53.8% for the corresponding period a year ago, and decreased from 52.4% for the fourth quarter of 2024. Operating expenses decreased to $44.5 million for the first quarter of 2025, compared to $61.2 million for the corresponding period a year ago, and increased sequentially from $41.2 million for the fourth quarter of 2024. Net income for the first quarter was $2.5 million, or $0.06 per diluted share, compared to a net loss of ($14.5) million or ($0.33) per diluted share, for the corresponding period a year ago and net income of $10.2 million, or $0.23 per diluted share, for the fourth quarter of 2024. Cash flow from operations totaled $20.1 million for the first quarter, compared to cash flow from operations of $2.6 million for the corresponding period a year ago, and cash flow from operations of $10.1 million in the fourth quarter of 2024. Capital expenditures for the first quarter totaled $4.6 million, compared to $7.3 million for the corresponding period a year ago and $1.7 million for the fourth quarter of 2024. Cash and cash equivalents as of March 31, 2025 increased 6.8% sequentially to approximately $296.1 million compared to approximately $277.3 million as of December 31, 2024. Backlog for the first quarter ended March 31, 2025 totaled $171.7 million, a 14.2% increase from $150.3 million for the corresponding period a year ago, and 10.4% sequential increase from $155.5 million at the end of the fourth quarter of 2024. Commenting on first quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Revenues and gross margins declined sequentially, with reduced income from a licensee transitioning to a new generation of unlicensed products. Margin improvements await higher utilization of our ChiP fab and increased income from existing and future licensees. Licensing has been gaining traction with OEMs and hyper-scalers wishing to avoid infringing hardware being excluded from importation into the US.” “Our 2nd generation VPD for leading AI applications is coming to fruition with the arrival of an ASIC raising the density and bandwidth of our current multipliers. Second generation VPD will enable AI processors setting new standards for performance. We are still focused on completing initial delivery of a very high density VPD system to a lead customer before providing demo systems to processor chip companies and hyper-scalers.” 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, Tuesday, April 29, 2025 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on April 29, 2025. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website. 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, 2024, 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 to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.   For further information contact:         James F. Schmidt, Chief Financial OfficerOffice: (978) 470-2900Email: invrel@vicorpower.com VICOR CORPORATION         CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(Thousands except for per share amounts)          QUARTER ENDED  (Unaudited)       MAR 31, MAR 31,   2025   2024            Product revenue$ 83,206  $ 75,692  Royalty revenue 10,762   8,180  Net revenues 93,968   83,872  Cost of product revenues 49,603   38,749           Gross margin 44,365   45,123       Operating expenses:              Selling, general and administrative 25,137   25,999            Research and development 19,377   18,039            Litigation-contingency expense                     -   17,200               Total operating expenses 44,514   61,238       Loss from operations (149)  (16,115)      Other income (expense), net 3,134   2,724       Income (loss) before income taxes 2,985   (13,391)      Less: Provision for income taxes 424   1,071       Consolidated net income (loss) 2,561   (14,462)      Less: Net income attributable to       noncontrolling interest 22   11       Net income (loss) attributable to      Vicor Corporation$2,539  ($14,473)           Net income (loss) per share attributable      to Vicor Corporation:               Basic$0.06  ($0.33)            Diluted$0.06  ($0.33)      Shares outstanding:               Basic 45,217   44,516             Diluted 45,495   44,516        VICOR CORPORATION         CONDENSED CONSOLIDATED BALANCE SHEET    (Thousands)               MAR 31, DEC 31,   2025   2024   (Unaudited) (Unaudited) Assets         Current assets:            Cash and cash equivalents$ 296,099  $ 277,273          Accounts receivable, net 65,864   52,948          Inventories 98,515   106,032          Other current assets 26,486   26,781                    Total current assets 486,964   463,034       Long-term deferred tax assets 273   261  Long-term investment, net 2,664   2,641  Property, plant and equipment, net  153,117   152,705  Other assets 22,020   22,477                         Total assets$ 665,038  $ 641,118       Liabilities and Equity         Current liabilities:            Accounts payable$ 16,866  $ 8,737          Accrued compensation and benefits 12,548   10,852          Accrued expenses 8,558   6,589          Accrued litigation 27,219   26,888          Sales allowances 2,114   1,667          Short-term lease liabilities 1,675   1,716          Income taxes payable 57   59          Short-term deferred revenue and customer prepayments  6,624   5,312                        Total current liabilities 75,661   61,820       Long-term income taxes payable 3,461   3,387  Long-term lease liabilities  5,353   5,620                   Total liabilities 84,475   70,827       Equity:      Vicor Corporation stockholders' equity:            Capital stock 415,702   408,187          Retained earnings 305,342   302,803          Accumulated other comprehensive loss (1,312)  (1,495)         Treasury stock (139,424)  (139,424)              Total Vicor Corporation stockholders' equity 580,308   570,071    Noncontrolling interest 255   220          Total equity 580,563   570,291                         Total liabilities and equity$ 665,038  $ 641,118       

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