Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

October 16, 2018

For Immediate Release

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2018

Andover, MA, October 16, 2018 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter and nine months ended September 30, 2018. These results will be discussed on October 18, 2018 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 third quarter ended September 30, 2018 increased 37.2% to $78,035,000, from $56,888,000 for the corresponding period a year ago, and increased 5.2% sequentially from $74,196,000 for the second quarter of 2018. Third quarter bookings increased 41.6% to $91,051,000, from $64,280,000 for the corresponding period a year ago, and increased 4.1% sequentially from $87,448,000 for the second quarter of 2018.

Gross margin increased to $39,004,000 for the third quarter of 2018, compared to $25,143,000 for the corresponding period a year ago, and increased from $35,883,000 for the second quarter of 2018. Gross margin, as a percentage of revenue, increased to 50.0% for the third quarter of 2018, compared to 44.2% for the corresponding period a year ago, and increased from 48.4% for the second quarter of 2018.

Net income for the third quarter was $13,012,000, or $0.32 per diluted share, compared to a net loss of $(11,000), or $(0.00) per share, for the corresponding period a year ago, and net income of $7,860,000, or $0.19 per diluted share, for the second quarter of 2018.

Revenues for the nine months ended September 30, 2018, increased 28.7% to $217,500,000 from $169,059,000 for the corresponding period a year ago. Net income for the nine month period was $24,815,000, or $0.61 per diluted share, compared to a net loss of $(1,444,000), or $(0.04) per share, for the corresponding period a year ago.

Cash provided by operating activities totaled $14,314,000 for the third quarter of 2018, compared to cash provided by operating activities of $1,341,000 for the corresponding period a year ago and cash provided by operating activities of $9,340,000 for the preceding second quarter of 2018. Cash and cash equivalents sequentially increased by $14,286,000 to approximately $68,206,000 at the end of the third quarter of 2018, from $53,920,000 at the end of the second quarter of 2018.

Total backlog at the end of the third quarter of 2018 was $116,123,000, compared to $103,100,000 at the end of the second quarter of 2018 and $73,054,000 at the end of 2017.

Commenting on third quarter performance, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated: “With increased production rates and improved productivity, Q3 gross margins reached 50% and, with reduced operating expenses, led to appreciably higher profitability. Increasing profit margins reflect the leverage of our business model, while the broadening adoption of our highly differentiated solutions is beginning to reflect the substantial investments we have made in advanced technologies over the last fifteen years. We believe that our Intellectual Property will drive substantial long term returns as Vicor continues to expand its leadership in high performance power systems.”

Dr. Vinciarelli went on to state, “Confronted with customer adoption of 48V power systems, competitors with past accomplishments at 12V have recently made claims of better performance and cost at 48V predicated on the “intermediate bus” power distribution architecture (i.e., two-step conversion) getting a new lease on life using new components, such as GaN FETs. These initiatives cannot circumvent the multiplicity of fundamental obstacles to delivering hundreds of amperes at less than 1V. Advanced power conversion topologies, power distribution architectures and Power-on-Package technology are the necessary keys to high performance AI applications powered “directly” from 48V. With increasing peak current requirements, global competitors driving to win the AI race are adopting Vicor Power-on-Package solutions.”


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 as scheduled, on Thursday, October 18, 2018 at 5:00 p.m. Eastern Time. Shareholders interested in participating in the call should call 888-339-2688 at approximately 4:50 p.m. and use the Passcode 90653087. 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 November 2, 2018. The replay dial-in number is 888-286-8010 and the Passcode is 77605130. 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, 2017, 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, aerospace and defense.

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     NINE MONTHS ENDED  
     (Unaudited)     (Unaudited)  
     SEPT 30,     SEPT 30,     SEPT 30,      SEPT 30,  
     2018     2017     2018      2017  

Net revenues

   $ 78,035     $ 56,888     $ 217,500      $ 169,059  

Cost of revenues

     39,031       31,745       112,402        94,334  
  

 

 

   

 

 

   

 

 

    

 

 

 

Gross margin

     39,004       25,143       105,098        74,725  

Operating expenses:

         

Selling, general and administrative

     15,280       14,500       46,493        43,059  

Research and development

     10,691       10,543       33,220        33,482  

Severance and other charges

     (10     —         340        —    
  

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     25,961       25,043       80,053        76,541  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations

     13,043       100       25,045        (1,816

Other income (expense), net

     232       309       618        994  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) before income taxes

     13,275       409       25,663        (822

Less: Provision for income taxes

     227       371       724        539  
  

 

 

   

 

 

   

 

 

    

 

 

 

Consolidated net income (loss)

     13,048       38       24,939        (1,361

Less: Net income attributable to noncontrolling interest

     36       49       124        83  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss) attributable to Vicor Corporation

   $ 13,012     $ (11   $ 24,815      $ (1,444
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss) per share attributable to Vicor Corporation:

         

Basic

   $ 0.32     $ (0.00   $ 0.62      $ (0.04

Diluted

   $ 0.32     $ (0.00   $ 0.61      $ (0.04

Shares outstanding:

         

Basic

     40,120       39,288       39,769        39,177  

Diluted

     41,124       39,288       40,645        39,177  


VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

 

     SEPT 30,     DEC 31,  
     2018     2017  
     (Unaudited)     (Unaudited)  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 68,206     $ 44,230  

Accounts receivable, net

     45,052       34,487  

Inventories, net

     43,444       36,499  

Other current assets

     3,900       3,616  
  

 

 

   

 

 

 

Total current assets

     160,602       118,832  

Long-term deferred tax assets

     184       210  

Long-term investments, net

     2,613       2,525  

Property, plant and equipment, net

     41,465       41,356  

Other assets

     2,801       2,801  
  

 

 

   

 

 

 

Total assets

   $ 207,665     $ 165,724  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 13,106     $ 9,065  

Accrued compensation and benefits

     9,159       9,891  

Accrued expenses

     2,384       2,989  

Sales allowances

     567       —    

Accrued severance and other charges

     325       —    

Income taxes payable

     708       300  

Deferred revenue

     4,442       5,791  
  

 

 

   

 

 

 

Total current liabilities

     30,691       28,036  

Long-term deferred revenue

     249       303  

Contingent consideration obligations

     470       678  

Long-term income taxes payable

     195       195  

Other long-term liabilities

     100       93  
  

 

 

   

 

 

 

Total liabilities

     31,705       29,305  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     192,893       181,914  

Retained earnings

     122,090       93,605  

Accumulated other comprehensive loss

     (516     (478

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     175,540       136,114  

Noncontrolling interest

     420       305  
  

 

 

   

 

 

 

Total equity

     175,960       136,419  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 207,665     $ 165,724  
  

 

 

   

 

 

 

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