Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

October 22, 2020

For Immediate Release

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2020

Andover, MA, October 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 management’s 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 Company’s 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 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 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 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     NINE MONTHS ENDED  
     (Unaudited)     (Unaudited)  
     SEPT 30,      SEPT 30,     SEPT 30,     SEPT 30,  
     2020      2019     2020     2019  

Net revenues

   $ 78,112      $ 70,772     $ 212,274     $ 199,852  

Cost of revenues

     44,765        37,770       121,278       106,647  
  

 

 

    

 

 

   

 

 

   

 

 

 

Gross margin

     33,347        33,002       90,996       93,205  

Operating expenses:

         

Selling, general and administrative

     15,212        15,443       47,036       45,846  

Research and development

     12,032        11,507       38,197       34,433  
  

 

 

    

 

 

   

 

 

   

 

 

 

Total operating expenses

     27,244        26,950       85,233       80,279  
  

 

 

    

 

 

   

 

 

   

 

 

 

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 income taxes

     651        266       (249     805  
  

 

 

    

 

 

   

 

 

   

 

 

 

Consolidated net income

     5,786        5,932       6,727       12,794  

Less: Net income (loss) attributable to noncontrolling interest

     1        (5     10       8  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income attributable to Vicor Corporation

   $ 5,785      $ 5,937     $ 6,717     $ 12,786  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income per share attributable to 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 current assets

     309,782       179,066  

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 assets

   $ 380,119     $ 240,727  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Accounts payable

   $ 11,911     $ 9,005  

Accrued compensation and benefits

     13,248       10,410  

Accrued 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 and customer prepayments

     8,061       5,507  
  

 

 

   

 

 

 

Total current liabilities

     37,998       29,930  

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 liabilities

     42,531       34,857  

Equity:

    

Vicor Corporation stockholders’ equity:

    

Capital stock

     326,577       201,774  

Retained earnings

     149,815       143,098  

Accumulated other comprehensive loss

     (203     (383

Treasury stock

     (138,927     (138,927
  

 

 

   

 

 

 

Total Vicor Corporation stockholders’ equity

     337,262       205,562  

Noncontrolling interest

     326       308  
  

 

 

   

 

 

 

Total equity

     337,588       205,870  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 380,119     $ 240,727  
  

 

 

   

 

 

 

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