Vicor Corp. (VICR, Financial) filed Quarterly Report for the period ended 2009-09-30.
Vicor Corporation designs develops manufactures and markets modular power components and complete power systems using an innovative patented high frequency electronic power conversion technology. Power systems a central element in any electronic system convert power from a primary power source (e.g. a wall outlet) into the stable DC voltages that are required by most contemporary electronic circuits. Vicor Corp. has a market cap of $282.4 million; its shares were traded at around $6.78 with and P/S ratio of 1.4.
Revenues for the nine months ended September 30, 2009 decreased by 3.4% to $148,821,000, compared to $154,044,000 for the corresponding period a year ago. Net income (loss) attributable to Vicor Corporation for the nine months ended September 30, 2009 was $489,000, or $0.01 per diluted share, compared to net income (loss) attributable to Vicor Corporation of $(94,000), or $(0.00) per diluted share, for the corresponding period a year ago. The operating results were negatively impacted by aggregate pre-tax charges of $4,083,000 for the cost of severance and other employee-related costs in connection with the Companys workforce reductions implemented during the nine months ended September 30, 2009, partially offset by a settlement payment discussed below.
Operating expenses for the three months ended September 30, 2009 decreased $2,768,000, or 12.9%, to $18,736,000 from $21,504,000 in 2008, principally due to decreases in selling, general and administrative expenses of $2,078,000 and a gain from litigation-related and other settlements, net of $846,000, discussed below, partially offset by a pre-tax severance charge of $126,000 in connection with a workforce reduction completed in the third quarter of 2009. The key decreases in selling, general and administrative expenses were compensation expenses of $799,000, advertising expenses of $285,000, audit and legal fees of $249,000, travel expenses of $152,000 and commission expense of $132,000.
Operating expenses for the nine months ended September 30, 2009 decreased $2,048,000, or 3.2%, to $62,897,000 from $64,945,000 in 2008, principally due to decreases in selling, general and administrative expenses of $5,263,000, an increase in gain from litigation-related and other settlements, net of $669,000 and research and development expenses of $199,000, offset by an aggregate pre-tax severance charge of $4,083,000 in connection with workforce reductions implemented during the nine months ended September 30, 2009. The key decreases in selling, general and administrative expenses were compensation expenses of $1,853,000, legal fees of $1,038,000, audit and tax fees of $673,000, advertising expenses of $575,000, travel expenses of $528,000 and commissions expense of $377,000.
Other income (expense), net for the three months ended September 30, 2009 decreased $20,000 to $251,000 from $271,000 in 2008. The primary reasons for the decrease were a decrease in interest income of $224,000, offset by an increase in foreign currency gains of $213,000.
Inventories decreased by approximately $4,491,000 or 16.8% to $22,190,000 as compared with $26,681,000 at December 31, 2008. The decrease was primarily attributed to decreases in BBU and V*I Chip inventories of approximately $3,390,000 and $1,213,000, respectively, partially offset by an increase in Picors inventories of $112,000.
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Vicor Corporation designs develops manufactures and markets modular power components and complete power systems using an innovative patented high frequency electronic power conversion technology. Power systems a central element in any electronic system convert power from a primary power source (e.g. a wall outlet) into the stable DC voltages that are required by most contemporary electronic circuits. Vicor Corp. has a market cap of $282.4 million; its shares were traded at around $6.78 with and P/S ratio of 1.4.
Highlight of Business Operations:
Revenues for the third quarter decreased by 6.9% to $47,746,000, compared to $51,278,000 for the corresponding period a year ago, and decreased 5.7% on a sequential basis from $50,627,000 for the second quarter of 2009. Gross margin decreased to $20,668,000 for the third quarter of 2009, compared to $21,903,000 for the corresponding period a year ago, and decreased on a sequential basis from $22,598,000 for the second quarter of 2009. Gross margin, as a percentage of revenue, increased to 43.3% for the third quarter of 2009 compared to 42.7% for the third quarter of 2008, but decreased on a sequential basis from 44.6% for the second quarter of 2009. Net income (loss) attributable to Vicor Corporation for the third quarter was $1,691,000, or $0.04 per diluted share, compared to net income (loss) attributable to Vicor Corporation of $609,000, or $0.01 per diluted share, for the corresponding period a year ago and net income (loss) attributable to Vicor Corporation of $1,341,000, or $0.03 per diluted share, for the second quarter of 2009.Revenues for the nine months ended September 30, 2009 decreased by 3.4% to $148,821,000, compared to $154,044,000 for the corresponding period a year ago. Net income (loss) attributable to Vicor Corporation for the nine months ended September 30, 2009 was $489,000, or $0.01 per diluted share, compared to net income (loss) attributable to Vicor Corporation of $(94,000), or $(0.00) per diluted share, for the corresponding period a year ago. The operating results were negatively impacted by aggregate pre-tax charges of $4,083,000 for the cost of severance and other employee-related costs in connection with the Companys workforce reductions implemented during the nine months ended September 30, 2009, partially offset by a settlement payment discussed below.
Operating expenses for the three months ended September 30, 2009 decreased $2,768,000, or 12.9%, to $18,736,000 from $21,504,000 in 2008, principally due to decreases in selling, general and administrative expenses of $2,078,000 and a gain from litigation-related and other settlements, net of $846,000, discussed below, partially offset by a pre-tax severance charge of $126,000 in connection with a workforce reduction completed in the third quarter of 2009. The key decreases in selling, general and administrative expenses were compensation expenses of $799,000, advertising expenses of $285,000, audit and legal fees of $249,000, travel expenses of $152,000 and commission expense of $132,000.
Operating expenses for the nine months ended September 30, 2009 decreased $2,048,000, or 3.2%, to $62,897,000 from $64,945,000 in 2008, principally due to decreases in selling, general and administrative expenses of $5,263,000, an increase in gain from litigation-related and other settlements, net of $669,000 and research and development expenses of $199,000, offset by an aggregate pre-tax severance charge of $4,083,000 in connection with workforce reductions implemented during the nine months ended September 30, 2009. The key decreases in selling, general and administrative expenses were compensation expenses of $1,853,000, legal fees of $1,038,000, audit and tax fees of $673,000, advertising expenses of $575,000, travel expenses of $528,000 and commissions expense of $377,000.
Other income (expense), net for the three months ended September 30, 2009 decreased $20,000 to $251,000 from $271,000 in 2008. The primary reasons for the decrease were a decrease in interest income of $224,000, offset by an increase in foreign currency gains of $213,000.
Inventories decreased by approximately $4,491,000 or 16.8% to $22,190,000 as compared with $26,681,000 at December 31, 2008. The decrease was primarily attributed to decreases in BBU and V*I Chip inventories of approximately $3,390,000 and $1,213,000, respectively, partially offset by an increase in Picors inventories of $112,000.
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