QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
$0.01 per share |
☒ |
Accelerated filer |
|||||
Non-accelerated filer |
☐ |
Smaller reporting company |
||||
Emerging growth company |
☐ |
Common Stock, $.01 par value | ||||
Class B Common Stock, $.01 par value |
VICOR CORPORATION
INDEX
September 30, 2022 |
December 31, 2021 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
||||||||
Accounts receivable, net |
||||||||
Inventories |
||||||||
Other current assets |
||||||||
Total current assets |
||||||||
Long-term deferred tax assets, net |
||||||||
Long-term investment, net |
||||||||
Property, plant and equipment, net |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued compensation and benefits |
||||||||
Accrued litigation |
— | |||||||
Accrued expenses |
||||||||
Short-term lease liabilities |
||||||||
Sales allowances |
||||||||
Accrued severance and other charges |
||||||||
Income taxes payable |
||||||||
Short-term deferred revenue and customer prepayments |
||||||||
Total current liabilities |
||||||||
Long-term deferred revenue |
||||||||
Long-term income taxes payable |
||||||||
Long-term lease liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 10) |
||||||||
Equity: |
||||||||
Vicor Corporation stockholders’ equity: |
||||||||
Class B Common Stock: |
||||||||
Common Stock: |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury stock at cost: |
( |
) | ( |
) | ||||
Total Vicor Corporation stockholders’ equity |
||||||||
Noncontrolling interest |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ | $ | ||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net revenues |
$ | $ | $ | $ | ||||||||||||
Cost of revenues |
||||||||||||||||
Gross margin |
||||||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
||||||||||||||||
Research and development |
||||||||||||||||
Litigation-related |
— | — | ||||||||||||||
Total operating expenses |
||||||||||||||||
Income from operations |
||||||||||||||||
Other income (expense), net: |
||||||||||||||||
Total unrealized gains (losses) on available-for-sale |
( |
) | ||||||||||||||
Less: portion of losses (gains) recognized in other comprehensive income |
( |
) | ( |
) | ||||||||||||
Net credit gains recognized in earnings |
||||||||||||||||
Other income (expense), net |
( |
) | ( |
) | ||||||||||||
Total other income (expense), net |
( |
) | ( |
) | ||||||||||||
Income before income taxes |
||||||||||||||||
Provision for income (benefit) taxes |
( |
) | ( |
) | ||||||||||||
Consolidated net income |
||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
( |
) | ( |
) | ( |
) | ||||||||||
Net income attributable to Vicor Corporation |
$ | $ | $ | $ | ||||||||||||
Net income per common share attributable to Vicor Corporation: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Consolidated net income |
$ | $ | $ | $ | ||||||||||||
Foreign currency translation losses, net of tax (1) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Unrealized income (loss) on available-for-sale |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated comprehensive income |
||||||||||||||||
Less: Comprehensive loss attributable to noncontrolling interest |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income attributable to Vicor Corporation |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The deferred tax assets associated with foreign currency translation losses and unrealized losses on available-for-sale |
Nine Months Ended |
||||||||
September 30, |
||||||||
2022 |
2021 |
|||||||
Operating activities: |
||||||||
Consolidated net income |
$ | $ | ||||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Stock-based compensation expense |
||||||||
Litigation-related expense |
— | |||||||
Increase (decrease) in long-term deferred revenue |
( |
) | ||||||
Amortization of bond premium |
— | |||||||
Decrease in contingent consideration obligations |
( |
) | ||||||
(Decrease) increase in other assets |
( |
) | ||||||
Decrease in long-term income taxes payable |
( |
) | ( |
) | ||||
Deferred income taxes |
( |
) | ||||||
Credit gain on available-for-sale |
( |
) | ( |
) | ||||
Provision for doubtful accounts |
||||||||
Change in current assets and liabilities, net |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
||||||||
Investing activities: |
||||||||
Purchases of short-term investments |
( |
) | ||||||
Sales or maturities of short-term investments |
||||||||
Additions to property, plant and equipment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used for investing activities |
( |
) | ( |
) | ||||
Financing activities: |
||||||||
Proceeds from employee stock plans |
||||||||
Payment of contingent consideration obligations |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
Effect of foreign exchange rates on cash |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net (decrease) increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
||||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
|
|
|
Total |
||||||||||||||||||||||||||||||||||||
Accumulated |
Vicor |
|||||||||||||||||||||||||||||||||||
Class B |
Additional |
Other |
Corporation |
|||||||||||||||||||||||||||||||||
Common |
Common |
Paid-In |
Retained |
Comprehensive |
Treasury |
Stockholders’ |
Noncontrolling |
Total |
||||||||||||||||||||||||||||
Stock |
Stock |
Capital |
Earnings |
Income (loss) |
Stock |
Equity |
Interest |
Equity |
||||||||||||||||||||||||||||
Three months ended September 30, 2022 |
||||||||||||||||||||||||||||||||||||
Balance on June 30, 2022 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Balance on September 30, 2022 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||||||
Accumulated |
Vicor |
|||||||||||||||||||||||||||||||||||
Class B |
Additional |
Other |
Corporation |
|||||||||||||||||||||||||||||||||
Common |
Common |
Paid-In |
Retained |
Comprehensive |
Treasury |
Stockholders’ |
Noncontrolling |
Total |
||||||||||||||||||||||||||||
Stock |
Stock |
Capital |
Earnings |
Income (loss) |
Stock |
Equity |
Interest |
Equity |
||||||||||||||||||||||||||||
Nine months ended September 30, 2022 |
||||||||||||||||||||||||||||||||||||
Balance on December 31, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||||||||||
Net income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Balance on September 30, 2022 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||||||
Accumulated |
Vicor |
|||||||||||||||||||||||||||||||||||
Class B |
Additional |
Other |
Corporation |
|||||||||||||||||||||||||||||||||
Common |
Common |
Paid-In |
Retained |
Comprehensive |
Treasury |
Stockholders’ |
Noncontrolling |
Total |
||||||||||||||||||||||||||||
Stock |
Stock |
Capital |
Earnings |
Loss |
Stock |
Equity |
Interest |
Equity |
||||||||||||||||||||||||||||
Three months ended September 30, 2021 |
||||||||||||||||||||||||||||||||||||
Balance on June 30, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||||||||||
Net income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Balance on September 30, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||||||
Accumulated |
Vicor |
|||||||||||||||||||||||||||||||||||
Class B |
Additional |
Other |
Corporation |
|||||||||||||||||||||||||||||||||
Common |
Common |
Paid-In |
Retained |
Comprehensive |
Treasury |
Stockholders’ |
Noncontrolling |
Total |
||||||||||||||||||||||||||||
Stock |
Stock |
Capital |
Earnings |
Loss |
Stock |
Equity |
Interest |
Equity |
||||||||||||||||||||||||||||
Nine months ended September 30, 2021 |
||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||||||||||
Net income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance on September 30, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
December 31, 2021 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods |
||||||||
$ | $ | |||||||
September 30, 2022 |
||||||||||||
Cash and Cash Equivalents |
Short-Term Investments |
Long-Term Investment |
||||||||||
Measured at fair value: |
||||||||||||
Available-for-sale |
||||||||||||
Money market funds |
$ | $ | — | $ | — | |||||||
U.S. Treasury Obligations |
— | — | ||||||||||
Failed Auction Security |
— | — | ||||||||||
Total |
||||||||||||
Other measurement basis: |
||||||||||||
Cash on hand |
— | — | ||||||||||
Total |
$ | $ | $ | |||||||||
December 31, 2021 |
||||||||||||
Cash and |
||||||||||||
Cash |
Short-Term |
Long-Term |
||||||||||
Equivalents |
Investments |
Investment |
||||||||||
Measured at fair value: |
||||||||||||
Available-for-sale |
||||||||||||
Money market funds |
$ | $ | — | $ | — | |||||||
U.S. Treasury Obligations |
— | — | ||||||||||
Failed Auction Security |
— | — | ||||||||||
Total |
||||||||||||
Other measurement basis: |
||||||||||||
Cash on hand |
— | — | ||||||||||
Total |
$ | $ | $ | |||||||||
Gross |
Gross |
Estimated |
||||||||||||||
Unrealized |
Unrealized |
Fair |
||||||||||||||
September 30, 2022 |
Cost |
Gains |
Losses |
Value |
||||||||||||
U.S. Treasury Obligations |
$ | $ | $ | $ | ||||||||||||
Failed Auction Security |
— |
Gross |
Gross |
Estimated |
||||||||||||||
Unrealized |
Unrealized |
Fair |
||||||||||||||
December 31, 2021 |
Cost |
Gains |
Losses |
Value |
||||||||||||
U.S. Treasury Obligations |
$ | $ | $ | $ | ||||||||||||
Failed Auction Security |
— |
Cost |
Estimated Fair Value |
|||||||
U.S. Treasury Obligations: |
||||||||
Maturities greater than three months but less than one year |
$ | $ | ||||||
|
|
|
|
Estimated |
||||||||
Cost |
Fair Value |
|||||||
Failed Auction Security: |
||||||||
Due in twenty years |
$ | $ | ||||||
|
|
|
|
Using |
||||||||||||||||
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Fair Value as of September 30, 2022 |
|||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | — | $ | — | $ | ||||||||||
Short-term investments: |
||||||||||||||||
U.S. Treasury Obligations |
— | — | ||||||||||||||
Long-term investment: |
||||||||||||||||
Failed Auction Security |
— | — |
Using |
||||||||||||||||
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Fair Value as of December 31, 2021 |
|||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | — | $ | — | $ | ||||||||||
Short-term investments: |
||||||||||||||||
U.S. Treasury Obligations |
— | — | ||||||||||||||
Long-term investment: |
||||||||||||||||
Failed Auction Security |
— | — |
Balance at the beginning of the period |
$ | |||
Credit gain on available-for-sale |
||||
Loss included in Other comprehensive income |
( |
) | ||
|
|
|||
Balance at the end of the period |
$ | |||
|
|
Three Months Ended September 30, 2022 |
||||||||||||
Brick Products |
Advanced Products |
Total |
||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
||||||||||||
Brick Products |
Advanced Products |
Total |
||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
Three Months Ended September 30, 2021 |
||||||||||||
Brick Products |
Advanced Products |
Total |
||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
Nine Months Ended September 30, 2021 |
||||||||||||
Brick Products |
Advanced Products |
Total |
||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||