VICOR CORP [VICR] Filings

10-Q 1 vicr-20240630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________________

Commission File Number 0-18277

VICOR CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	04-2742817
(State of Incorporation)	(I.R.S. Employer Identification No.)

25 Frontage Road, Andover, Massachusetts 01810

(Address of Principal Executive Office)

(978) 470-2900

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class 

    Trading Symbol(s)

    Name of each exchange on which registered

    Common Stock, par value 
$0.01 per share

     VICR

    The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares outstanding of each of the issuer’s classes of Common Stock as of July 23, 2024 was:


Common Stock, $.01 par value	33,332,695
Class B Common Stock, $.01 par value	11,738,718

VICOR CORPORATION

INDEX


	Page
Part I — Financial Information:
Item 1 - Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023	1
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023	2
Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended June 30, 2024 and 2023	3
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	4
Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023	5
Notes to Condensed Consolidated Financial Statements	7
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3 — Quantitative and Qualitative Disclosures About Market Risk	25
Item 4 — Controls and Procedures	26
Part II — Other Information:	27
Item 1 — Legal Proceedings	27
Item 1A — Risk Factors	27
Item 5 — Other Information	27
Item 6 — Exhibits	27
Signatures	29
EX-31.1 SECTION 302 CERTIFICATION OF CEO
EX-31.2 SECTION 302 CERTIFICATION OF CFO
EX-32.1 SECTION 906 CERTIFICATION OF CEO
EX-32.2 SECTION 906 CERTIFICATION OF CFO

VICOR CORPORATION

Part I – Financial Information

Item 1 – Financial Statements

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)


	June 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	251,884		$	242,219
Accounts receivable, net		54,857			52,631
Inventories		109,084			106,579
Other current assets		19,510			18,937
Total current assets		435,335			420,366
Long-term deferred tax assets, net		258			296
Long-term investment, net		2,600			2,530
Property, plant and equipment, net		156,689			157,689
Other assets		18,352			14,006
Total assets	$	613,234		$	594,887
Liabilities and Equity
Current liabilities:
Accounts payable	$	12,269		$	12,100
Accrued compensation and benefits		12,109			11,227
Accrued litigation		26,212			6,500
Accrued expenses		6,170			5,093
Short-term lease liabilities		1,757			1,864
Sales allowances		2,989			3,482
Income taxes payable		3,674			746
Short-term deferred revenue and customer prepayments		2,656			3,157
Total current liabilities		67,836			44,169
Long-term deferred revenue		300			1,020
Long-term income taxes payable		1,917			2,228
Long-term lease liabilities		5,724			6,364
Total liabilities		75,777			53,781
Commitments and contingencies (Note 10)
Equity:
Vicor Corporation stockholders’ equity:
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,738,718 shares issued and outstanding in 2024; 11,743,218 shares issued and outstanding in 2023		118			118
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized 44,924,229 shares issued and 33,289,423 shares outstanding in 2024; 44,142,595 shares issued and 32,507,789 shares outstanding in 2023		451			445
Additional paid-in capital		396,175			383,832
Retained earnings		281,005			296,674
Accumulated other comprehensive loss		(1,583	)		(1,273	)
Treasury stock at cost: 11,634,806 shares in 2024 and 2023		(138,927	)		(138,927	)
Total Vicor Corporation stockholders’ equity		537,239			540,869
Noncontrolling interest		218			237
Total equity		537,457			541,106
Total liabilities and equity	$	613,234		$	594,887

See accompanying notes.

-1-

VICOR CORPORATION

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net revenues	$	85,854		$	106,747		$	169,726		$	204,563
Cost of revenues		43,083			51,574			81,832			102,856
Gross margin		42,771			55,173			87,894			101,707
Operating expenses:
Selling, general and administrative		23,318			20,375			49,317			40,598
Research and development		16,939			16,935			34,978			32,804
Litigation-contingency expense		2,300			—			19,500			—
Total operating expenses		42,557			37,310			103,795			73,402
Income (loss) from operations		214			17,863			(15,901	)		28,305
Other income (expense), net:
Total unrealized (losses) gains on available-for-sale securities, net		(22	)		(40	)		70			(31	)
Less: portion of losses (gains) recognized in other comprehensive income		22			40			(70	)		31
Net credit gains recognized in earnings		—			—			—			—
Other income (expense), net		2,807			1,776			5,531			3,726
Total other income (expense), net		2,807			1,776			5,531			3,726
Income (loss) before income taxes		3,021			19,639			(10,370	)		32,031
Provision for income taxes		4,216			2,537			5,287			3,678
Consolidated net (loss) income		(1,195	)		17,102			(15,657	)		28,353
Less: Net income attributable to noncontrolling interest		1			1			12			8
Net (loss) income attributable to Vicor Corporation	$	(1,196	)	$	17,101		$	(15,669	)	$	28,345

Net (loss) income per common share attributable to Vicor Corporation:
Basic	$	(0.03	)	$	0.39		$	(0.35	)	$	0.64
Diluted	$	(0.03	)	$	0.38		$	(0.35	)	$	0.63
Shares used to compute net (loss) income per common share attributable to Vicor Corporation:
Basic		44,855			44,230			44,686			44,196
Diluted		44,855			44,906			44,686			44,907

See accompanying notes.

-2-

VICOR CORPORATION

Condensed Consolidated Statements of Comprehensive (Loss) Income

(In thousands)

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Consolidated net (loss) income	$	(1,195	)	$	17,102		$	(15,657	)	$	28,353
Foreign currency translation losses, net of tax (1)		(185	)		(175	)		(411	)		(190	)
Unrealized (losses) gains on available-for-sale securities, net of tax (1)		(22	)		(40	)		70			(31	)
Other comprehensive loss		(207	)		(215	)		(341	)		(221	)
Consolidated comprehensive (loss) income		(1,402	)		16,887			(15,998	)		28,132
Less: Comprehensive loss attributable to noncontrolling interest		(13	)		(12	)		(19	)		(6	)
Comprehensive (loss) income attributable to
Vicor Corporation	$	(1,389	)	$	16,899		$	(15,979	)	$	28,138

(1)

The deferred tax assets associated with foreign currency translation losses and unrealized (losses) gains on available-for-sale securities are completely offset by a tax valuation allowance as of June 30, 2024 and 2023. Therefore, there is no income tax benefit (provision) recognized for the three and six months ended June 30, 2024 and 2023.

See accompanying notes.

-3-

VICOR CORPORATION

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Six Months Ended
	June 30,
	2024			2023

Operating activities:
Consolidated net (loss) income	$	(15,657	)	$	28,353
Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities:
Depreciation and amortization		9,275			8,648
Stock-based compensation expense		7,211			5,829
Provision for doubtful accounts		—			43
Litigation-contingency expense		19,500			—
(Decrease) increase in long-term deferred revenue		(720	)		1,616
Increase (decrease) in other assets		227			(103	)
Deferred income taxes		11			(63	)
(Decrease) increase in long-term income taxes payable		(311	)		13
Change in current assets and liabilities, net		(1,388	)		(15,183	)
Net cash provided by operating activities		18,148			29,153
Investing activities:
Additions to property, plant and equipment and internal-use software		(13,411	)		(18,627	)
Net cash used for investing activities		(13,411	)		(18,627	)
Financing activities:
Proceeds from employee stock plans		5,138			2,722
Net cash provided by financing activities		5,138			2,722
Effect of foreign exchange rates on cash		(210	)		(30	)
Net increase in cash and cash equivalents		9,665			13,218
Cash and cash equivalents at beginning of period		242,219			190,611
Cash and cash equivalents at end of period	$	251,884		$	203,829
Supplemental disclosure:
Purchases of property, plant and equipment and internal-use software incurred but not yet paid	$	2,133		$	1,883

See accompanying notes.

-4-

VICOR CORPORATION

Condensed Consolidated Statements of Equity

(In thousands)

(Unaudited)


																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 June 30, 2024
Balance on March 31, 2024	$	118	$	446	$	389,367	$	282,201		$	(1,390	)	$	(138,927	)	$	531,815		$	231		$	532,046
Issuance of Common Stock under employee stock plans				5		3,377											3,382						3,382
Stock-based compensation expense						3,431											3,431						3,431
Components of comprehensive (loss) income, net of tax:
Net (loss) income								(1,196	)								(1,196	)		1			(1,195	)
Other comprehensive loss											(193	)					(193	)		(14	)		(207	)
Total comprehensive loss																	(1,389	)		(13	)		(1,402	)
Balance on June 30, 2024	$	118	$	451	$	396,175	$	281,005		$	(1,583	)	$	(138,927	)	$	537,239		$	218		$	537,457


																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
Six Months Ended June 30, 2024
Balance on December 31, 2023	$	118	$	445	$	383,832	$	296,674		$	(1,273	)	$	(138,927	)	$	540,869		$	237		$	541,106
Issuance of Common Stock under employee stock plans				6		5,132											5,138						5,138
Stock-based compensation expense						7,211											7,211						7,211
Components of comprehensive (loss) income, net of tax:
Net (loss) income								(15,669	)								(15,669	)		12			(15,657	)
Other comprehensive loss											(310	)					(310	)		(31	)		(341	)
Total comprehensive loss																	(15,979	)		(19	)		(15,998	)
Balance on June 30, 2024	$	118	$	451	$	396,175	$	281,005		$	(1,583	)	$	(138,927	)	$	537,239		$	218		$	537,457


															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 June 30, 2023
Balance on March 31, 2023	$	118	$	442	$	365,442	$	254,323	$	(993	)	$	(138,927	)	$	480,405		$	254		$	480,659
Issuance of Common Stock under employee stock plans				1		460										461						461
Stock-based compensation expense						3,012										3,012						3,012
Components of comprehensive income (loss), net of tax:
Net income								17,101								17,101			1			17,102
Other comprehensive loss										(202	)					(202	)		(13	)		(215	)
Total comprehensive income (loss)																16,899			(12	)		16,887
Balance on June 30, 2023	$	118	$	443	$	368,914	$	271,424	$	(1,195	)	$	(138,927	)	$	500,777		$	242		$	501,019

-5-


															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
Six Months Ended June 30, 2023
Balance on December 31, 2022	$	118	$	441	$	360,365	$	243,079	$	(988	)	$	(138,927	)	$	464,088	$	248	$	464,336
Issuance of Common Stock under employee stock plans				2		2,720										2,722				2,722
Stock-based compensation expense

VICOR CORP [VICR] Filings
10-Q	[2024-07-31]
10-Q	[2024-05-01]
10-K	[2024-02-28]
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-03]
10-K	[2023-02-28]
10-Q	[2022-11-03]
10-Q	[2022-08-03]
10-Q	[2022-05-05]
10-K	[2022-03-01]
10-Q	[2021-11-03]
10-Q	[2021-07-30]
10-Q	[2021-05-03]
10-K	[2021-03-01]
10-Q	[2020-10-30]
10-Q	[2020-07-31]
10-Q	[2020-05-04]
10-K	[2020-02-28]
10-Q	[2019-10-29]
10-Q	[2019-07-31]
10-Q	[2019-04-30]
10-K	[2019-02-28]
10-Q	[2018-10-26]
10-Q	[2018-07-31]
10-Q	[2018-05-01]
10-K	[2018-03-09]
10-Q	[2017-10-31]
10-Q	[2017-07-31]
10-Q	[2017-04-28]
10-K	[2017-03-07]
10-Q	[2016-10-28]
10-Q	[2016-07-29]
10-Q	[2016-04-29]
10-K	[2016-03-08]
10-Q	[2015-10-29]
10-Q	[2015-07-30]
10-Q	[2015-04-30]
10-K	[2015-03-06]
10-Q	[2014-10-29]
10-Q	[2014-07-25]
10-Q	[2014-04-30]
10-K	[2014-03-14]
10-Q	[2013-10-30]
10-Q	[2013-07-30]
10-Q	[2013-05-01]
10-K	[2013-03-07]
10-Q	[2012-10-30]
10-Q	[2012-07-30]
10-Q	[2012-04-30]
10-K	[2012-03-02]

VICOR CORP [VICR] Filings

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