Exhibit 99.1 NEWS RELEASE FINANCIAL NEWS BRIEF February 22, 2024 For Immediate Release Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023 Andover, Mass., February 22, 2024 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2023. 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 bel ...

[Part I — Financial Information](index=4&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) [Item 1 - Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements present Vicor Corporation's financial position as of September 30, 2023, and its results of operations and cash flows for the three and nine months then ended Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $227,784 | $190,611 | | Inventories | $104,570 | $101,410 | | Total current assets | $398,967 | $362,604 | | Total assets | $584,135 | $536,901 | | **Liabilities & Equity** | | | | Total current liabilities | $46,533 | $64,549 | | Total liabilities | $55,351 | $72,565 | | Total equity | $528,784 | $464,336 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $107,844 | $103,118 | $312,407 | $293,586 | | Gross margin | $55,878 | $46,970 | $157,585 | $131,420 | | Income from operations | $15,704 | $3,004 | $44,009 | $19,082 | | Net income | $16,582 | $1,792 | $44,927 | $17,384 | | Diluted EPS | $0.37 | $0.04 | $1.00 | $0.39 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $52,994 | $22,010 | | Net cash used for investing activities | ($26,289) | ($26,279) | | Net cash provided by financing activities | $10,503 | $4,147 | | Net increase (decrease) in cash | $37,173 | ($320) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes to the financial statements detail revenue disaggregation, litigation, and income tax positions Net Revenues by Product Line and Geography (Nine Months Ended Sep 30, 2023, in thousands) | Geography | Brick Products | Advanced Products | Total | | :--- | :--- | :--- | :--- | | United States | $60,764 | $48,426 | $109,190 | | Europe | $24,893 | $15,869 | $40,762 | | Asia Pacific | $46,998 | $112,686 | $159,684 | | All other | $2,536 | $235 | $2,771 | | **Total** | **$135,191** | **$177,216** | **$312,407** | - The company is a defendant in a patent infringement lawsuit by SynQor, Inc., with a jury awarding SynQor **$6.5 million** in damages in October 2022, which the company has accrued[56](index=56&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - A full valuation allowance of approximately **$47.4 million** is maintained against net domestic deferred tax assets due to forecasting uncertainties, resulting in a low effective tax rate of **9.5%** for the nine months ended September 30, 2023, with potential for release if profitability continues[47](index=47&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk) - As of September 30, 2023, capital expenditure commitments totaled approximately **$14.4 million**, primarily for manufacturing equipment[55](index=55&type=chunk) [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%20%E2%80%94%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting a **4.6%** year-over-year revenue increase for Q3 2023 to **$107.8 million** and a **6.4%** increase for the nine-month period to **$312.4 million** - The company's strategy involves transitioning focus to its Advanced Products line for high-growth markets like AI and data centers, while maintaining its established Brick Products business[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - Backlog at the end of Q3 2023 was approximately **$174.7 million**, a decrease from **$217.3 million** at the end of Q2 2023[76](index=76&type=chunk) - The company's liquidity is strong, with **$227.8 million** in cash and cash equivalents and working capital of **$352.4 million** as of September 30, 2023, deemed sufficient to fund planned operational needs and capital expenditures[101](index=101&type=chunk)[106](index=106&type=chunk) [Results of Operations - Q3 2023 vs Q3 2022](index=26&type=section&id=Results%20of%20Operations%20-%20Q3%202023%20vs%20Q3%202022) In Q3 2023, net revenues increased **4.6%** year-over-year to **$107.8 million**, driven by a **12.6%** increase in Brick Products revenue, while Advanced Products revenue saw a slight **1.3%** decline Net Revenues by Product Line (Q3 2023 vs Q3 2022, in thousands) | Product Line | Q3 2023 | Q3 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Advanced Products | $58,412 | $59,202 | ($790) | (1.3)% | | Brick Products | $49,432 | $43,916 | $5,516 | 12.6% | | **Total** | **$107,844** | **$103,118** | **$4,726** | **4.6%** | - Gross margin increased to **51.8%** in Q3 2023 from **45.5%** in Q3 2022, primarily due to higher sales volume, improved sales mix, and a **$2.3 million** decrease in outsourced manufacturing costs[79](index=79&type=chunk) - R&D expenses increased by **20.4%** to **$17.8 million**, mainly due to a **$1.6 million** increase in project and pre-production materials for Advanced Products[84](index=84&type=chunk) - SG&A expenses decreased by **1.3%** to **$22.4 million**, largely due to a **$1.4 million** reduction in legal fees related to the SynQor litigation[80](index=80&type=chunk)[82](index=82&type=chunk) [Results of Operations - Nine Months 2023 vs 2022](index=29&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%202023%20vs%202022) For the nine months ended September 30, 2023, net revenues rose **6.4%** to **$312.4 million**, with Brick Products revenue growing by a strong **18.8%** Net Revenues by Product Line (Nine Months 2023 vs 2022, in thousands) | Product Line | 9M 2023 | 9M 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Advanced Products | $177,216 | $179,790 | ($2,574) | (1.4)% | | Brick Products | $135,191 | $113,796 | $21,395 | 18.8% | | **Total** | **$312,407** | **$293,586** | **$18,821** | **6.4%** | - Gross margin for the nine-month period increased to **50.4%** from **44.8%** year-over-year, driven by higher sales volume, better mix, a **$7.8 million** reduction in outsourced manufacturing costs, and a **$10.2 million** net reduction in freight-in and tariff spending, including a **$5.7 million** duty drawback recovery[91](index=91&type=chunk) - SG&A expenses increased by **2.8%** to **$63.0 million**, with increases in compensation, outside services, and advertising partially offset by a **$2.6 million** decrease in legal fees[92](index=92&type=chunk) - R&D expenses rose **13.6%** to **$50.6 million**, primarily due to higher compensation (**$2.5 million**) and increased spending on project and pre-production materials (**$2.9 million**)[94](index=94&type=chunk) [Item 3 — Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are related to interest rate changes on its investments and foreign currency fluctuations - The company holds one Failed Auction Security with a par value of **$3.0 million** and an estimated fair value of approximately **$2.611 million** as of September 30, 2023, whose carrying value could be negatively impacted by continued failed auctions[110](index=110&type=chunk) - Exposure to foreign currency exchange rate risk is mainly related to the operations of its Japanese subsidiary, Vicor Japan Company, Ltd. (VJCL), for which the Japanese Yen is the functional currency[111](index=111&type=chunk) [Item 4 — Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) Based on an evaluation as of September 30, 2023, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level - Management, including the CEO and CFO, evaluated disclosure controls and procedures as of September 30, 2023, and concluded they were effective at the reasonable assurance level[114](index=114&type=chunk) - No changes occurred in internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, these controls[116](index=116&type=chunk) [Part II — Other Information](index=36&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Item 1 — Legal Proceedings](index=36&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) The company refers to Note 10 of the financial statements for information on legal proceedings, which details the ongoing patent infringement lawsuit with SynQor, Inc - For details on legal proceedings, the report refers to Note 10, which discusses the SynQor patent litigation[118](index=118&type=chunk) [Item 1A — Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes in risk factors were reported since the company's 2022 Annual Report on Form 10-K[118](index=118&type=chunk) [Item 5 — Other Information](index=36&type=section&id=Item%205%20%E2%80%94%20Other%20Information) During the third quarter of 2023, no director or Section 16 officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during Q3 2023[119](index=119&type=chunk) [Item 6 — Exhibits](index=36&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists the exhibits filed with the 10-Q report, including the CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and the Inline XBRL documents - Exhibits filed include CEO and CFO certifications pursuant to Rule 13a-14(a) (Exhibits 31.1, 31.2) and Section 906 of the Sarbanes-Oxley Act (Exhibits 32.1, 32.2)[120](index=120&type=chunk)

Vicor Corporation (NASDAQ:VICR) Q3 2023 Earnings Conference Call October 24, 2023 5:00 PM ET Company Participants Jim Schmidt - Chief Financial Officer Phil Davies - Vice President, Global Sales & Marketing Patrizio Vinciarelli - Chief Executive Officer Conference Call Participants Jon Tanwanteng - CJS Securities John Dillon - D&B Capital Quinn Bolton - Needham & Company Operator Welcome, everyone to today's webinar entitled Vicor Earnings Results for the Third Quarter Ended September 30, 2023. My name is [ ...

Part I [Part I — Financial Information](index=4&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) This section covers unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1 - Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income, cash flows, equity, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20at%20June%2030%2C%202023%20and%20December%2031%2C%202022) This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022 | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | Change (%) | | :-------------------------------- | :--------------------------- | :------------------------------- | :--------- | | Total Assets | $560,661 | $536,901 | 4.4% | | Total Liabilities | $59,642 | $72,565 | (17.8%) | | Total Equity | $501,019 | $464,336 | 7.9% | | Cash and cash equivalents | $203,829 | $190,611 | 6.9% | | Inventories | $106,606 | $101,410 | 5.1% | | Short-term deferred revenue and customer prepayments | $6,620 | $13,197 | (49.9%) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202023%20and%202022) This statement details the company's revenues, expenses, and net income over specific reporting periods Three Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net revenues | $106,747 | $102,186 | 4.5% | | Gross margin | $55,173 | $46,849 | 17.8% | | Income from operations | $17,863 | $11,298 | 58.1% | | Consolidated net income | $17,102 | $10,580 | 61.6% | | Net income attributable to Vicor Corporation | $17,101 | $10,593 | 61.4% | | Diluted EPS | $0.38 | $0.24 | 58.3% | Six Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net revenues | $204,563 | $190,468 | 7.4% | | Gross margin | $101,707 | $84,450 | 20.4% | | Income from operations | $28,305 | $16,078 | 76.0% | | Consolidated net income | $28,353 | $15,570 | 82.1% | | Net income attributable to Vicor Corporation | $28,345 | $15,592 | 81.8% | | Diluted EPS | $0.63 | $0.35 | 80.0% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202023%20and%202022) This statement presents consolidated net income and other comprehensive income components for the periods Three Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Consolidated net income | $17,102 | $10,580 | 61.6% | | Other comprehensive loss | $(215) | $(451) | (52.3%) | | Consolidated comprehensive income | $16,887 | $10,129 | 66.7% | Six Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Consolidated net income | $28,353 | $15,570 | 82.1% | | Other comprehensive loss | $(221) | $(961) | (77.0%) | | Consolidated comprehensive income | $28,132 | $14,609 | 92.6% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202023%20and%202022) This statement summarizes cash inflows and outflows from operating, investing, and financing activities Six Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net cash provided by operating activities | $29,153 | $15,408 | 89.2% | | Net cash used for investing activities | $(18,627) | $(11,878) | 57.0% | | Additions to property, plant and equipment | $(18,627) | $(36,878) | (49.5%) | | Net increase in cash and cash equivalents | $13,218 | $5,259 | 150.4% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202023%20and%202022) This statement outlines changes in shareholders' equity, including net income and stock-based compensation Equity Changes (Six Months Ended June 30, 2023) | Metric | Amount (in thousands) | | :-------------------------------- | :-------------------- | | Balance on December 31, 2022 | $464,336 | | Net income attributable to Vicor Corporation | $28,345 | | Stock-based compensation expense | $5,829 | | Other comprehensive loss | $(207) | | Balance on June 30, 2023 | $501,019 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) This note describes the accounting principles and rules used for preparing the interim financial statements - The accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with **GAAP** for interim financial information and **SEC rules**, including normal recurring adjustments[24](index=24&type=chunk) - Operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for any other interim period or the full year ending December 31, 2023[25](index=25&type=chunk) [2. Inventories](index=10&type=section&id=2.%20Inventories) This note details the composition of inventories, including raw materials, work-in-process, and finished goods Inventories (in thousands) | Category | June 30, 2023 | December 31, 2022 | Change (%) | | :--------------- | :------------ | :---------------- | :--------- | | Raw materials | $85,404 | $82,181 | 3.9% | | Work-in-process | $11,257 | $10,456 | 7.7% | | Finished goods | $9,945 | $8,773 | 13.4% | | **Total** | **$106,606** | **$101,410** | **5.1%** | [3. Long-Term Investments](index=10&type=section&id=3.%20Long-Term%20Investments) This note describes the company's long-term investments, including a 'Failed Auction Security' and its fair value - The Company holds one 'Failed Auction Security' with a par value of **$3,000,000**, which has experienced failed auctions since February 2008[27](index=27&type=chunk) Failed Auction Security Fair Value (in thousands) | Date | Estimated Fair Value | | :--------------- | :------------------- | | June 30, 2023 | $2,591 | | December 31, 2022 | $2,622 | - The security is **Aaa/AA+ rated**, collateralized by student loans, and guaranteed by the U.S. Department of Education. Management believes it can be liquidated without significant loss, but the recovery period exceeds **12 months**[27](index=27&type=chunk) [4. Fair Value Measurements](index=13&type=section&id=4.%20Fair%20Value%20Measurements) This note explains the methodology and hierarchy used for fair value measurements of financial assets - The Company uses a **three-level hierarchy** to estimate fair value measurements for financial assets[34](index=34&type=chunk) Fair Value Measurements (June 30, 2023, in thousands) | Asset | Level 1 | Level 2 | Level 3 | Total Fair Value | | :---------------------- | :------ | :------ | :------ | :--------------- | | Money market funds | $— | $146,425 | $— | $146,425 | | Failed Auction Security | $— | $— | $2,591 | $2,591 | - The estimated fair value of the **Level 3 Failed Auction Security** is determined using a **probability-weighted discounted cash flow model**[36](index=36&type=chunk) [5. Revenues](index=14&type=section&id=5.%20Revenues) This note provides a breakdown of net revenues by product line and geographical region Net Revenues by Product Line (Three Months Ended June 30, in thousands) | Product Line | 2023 | 2022 | Change (%) | | :--------------- | :--- | :--- | :--------- | | Advanced Products | $67,513 | $67,663 | (0.2%) | | Brick Products | $39,234 | $34,523 | 13.6% | | **Total** | **$106,747** | **$102,186** | **4.5%** | Net Revenues by Product Line (Six Months Ended June 30, in thousands) | Product Line | 2023 | 2022 | Change (%) | | :--------------- | :--- | :--- | :--------- | | Advanced Products | $118,804 | $120,588 | (1.5%) | | Brick Products | $85,759 | $69,880 | 22.7% | | **Total** | **$204,563** | **$190,468** | **7.4%** | Net Revenues by Geography (Six Months Ended June 30, 2023, in thousands) | Geography | Brick Products | Advanced Products | Total | | :---------- | :------------- | :---------------- | :---- | | United States | $39,485 | $29,537 | $69,022 | | Europe | $14,501 | $10,061 | $24,562 | | Asia Pacific | $29,974 | $79,063 | $109,037 | | All other | $1,799 | $143 | $1,942 | | **Total** | **$85,759** | **$118,804** | **$204,563** | - Revenue recognized from deferred revenue at the beginning of the period was approximately **$3,845,000** for the six months ended June 30, 2023, compared to **$931,000** for the same period in 2022[42](index=42&type=chunk) [6. Stock-Based Compensation](index=17&type=section&id=6.%20Stock-Based%20Compensation) This note details the stock-based compensation expense recognized for stock options and ESPP Stock-Based Compensation Expense (Three Months Ended June 30, in thousands) | Type | 2023 | 2022 | Change (%) | | :----------- | :--- | :--- | :--------- | | Stock options | $2,701 | $2,351 | 14.9% | | ESPP | $311 | $271 | 14.8% | | **Total** | **$3,012** | **$2,622** | **14.9%** | Stock-Based Compensation Expense (Six Months Ended June 30, in thousands) | Type | 2023 | 2022 | Change (%) | | :----------- | :--- | :--- | :--------- | | Stock options | $5,197 | $4,110 | 26.4% | | ESPP | $632 | $506 | 24.9% | | **Total** | **$5,829** | **$4,616** | **26.3%** | [7. Rental Income](index=17&type=section&id=7.%20Rental%20Income) This note reports rental income generated from an operating lease agreement for a California facility - Rental income from an operating lease agreement for a California facility was **$198,000** for each of the three-month periods and **$396,000** for each of the six-month periods ended June 30, 2023 and 2022[45](index=45&type=chunk) [8. Income Taxes](index=17&type=section&id=8.%20Income%20Taxes) This note outlines the provision for income taxes, effective tax rates, and deferred tax asset valuation allowance Provision for Income Taxes and Effective Tax Rates (Three Months Ended June 30) | Metric | 2023 | 2022 | Change (pp) | | :------------------------ | :--- | :--- | :---------- | | Provision for income taxes | $2,537 | $802 | 216.3% | | Effective income tax rate | 12.9% | 7.0% | 5.9 pp | Provision for Income Taxes and Effective Tax Rates (Six Months Ended June 30) | Metric | 2023 | 2022 | Change (pp) | | :------------------------ | :--- | :--- | :---------- | | Provision for income taxes | $3,678 | $754 | 387.8% | | Effective income tax rate | 11.5% | 4.6% | 6.9 pp | - The Company maintains a **full valuation allowance** of approximately **$47,413,000** against all net domestic deferred tax assets as of June 30, 2023, due to uncertainties in forecasting operating results, supply/factory capacity constraints, and Advanced Products production issues[48](index=48&type=chunk)[51](index=51&type=chunk) - The IRS examination of the Company's **2019 Federal income tax return** is closing with **no material adjustments**[52](index=52&type=chunk) [9. Net Income per Share](index=19&type=section&id=9.%20Net%20Income%20per%20Share) This note presents basic and diluted net income per share calculations for the reporting periods Net Income per Share (Three Months Ended June 30) | Metric | 2023 | 2022 | Change (%) | | :------------ | :--- | :--- | :--------- | | Basic EPS | $0.39 | $0.24 | 62.5% | | Diluted EPS | $0.38 | $0.24 | 58.3% | Net Income per Share (Six Months Ended June 30) | Metric | 2023 | 2022 | Change (%) | | :------------ | :--- | :--- | :--------- | | Basic EPS | $0.64 | $0.35 | 82.9% | | Diluted EPS | $0.63 | $0.35 | 80.0% | - Options to purchase **1,574,000 shares** (Q2 2023) and **1,307,000 shares** (H1 2023) were not included in diluted EPS calculations as their effect would have been antidilutive[54](index=54&type=chunk) [10. Commitments and Contingencies](index=19&type=section&id=10.%20Commitments%20and%20Contingencies) This note discloses capital expenditure commitments and details of ongoing legal proceedings - As of June 30, 2023, the Company had approximately **$16,768,000** in cancelable and non-cancelable capital expenditure commitments, primarily for manufacturing equipment[55](index=55&type=chunk) - In a patent infringement lawsuit by SynQor, Inc., a jury found the Company willfully infringed the **'702 patent** and awarded SynQor **$6,500,000** in damages[60](index=60&type=chunk) - A litigation-related accrual of **$6,500,000** was recorded in the third quarter of 2022 based on the jury award. The Company anticipates appealing adverse rulings and the dismissal of its counterclaims[61](index=61&type=chunk)[62](index=62&type=chunk) [11. Impact of Recently Issued Accounting Standards](index=21&type=section&id=11.%20Impact%20of%20Recently%20Issued%20Accounting%20Standards) This note assesses the potential impact of new accounting pronouncements on the financial statements - New accounting pronouncements issued but not yet effective are not expected to have a **material impact** on the Company's consolidated financial statements[64](index=64&type=chunk) [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition, operational results, business strategy, and liquidity [Cautionary Note Regarding Forward-Looking Statements](index=22&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This note advises that the report contains forward-looking statements subject to risks and uncertainties - The report contains forward-looking statements subject to various **risks and uncertainties**, and actual results may differ materially[66](index=66&type=chunk) - The Company does not undertake any obligation to update forward-looking statements, except as required by law[66](index=66&type=chunk) [Overview](index=23&type=section&id=Overview) This section describes Vicor's business, product categories, and factors influencing operating results - Vicor designs, develops, manufactures, and markets modular power components, with a core competency in **48V DC distribution**[67](index=67&type=chunk) - Products are categorized into '**Advanced Products**' (e.g., Factorized Power Architecture, targeting high-growth markets like AI and data centers with a low-mix, high-volume model) and '**Brick Products**' (integrated power converters for mature markets with a high-mix, low-volume model)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - Operating results are subject to **significant fluctuations** due to customer demand, supply chain uncertainties, and macroeconomic factors[71](index=71&type=chunk) - The Company has taken steps to mitigate supply chain disruptions, including moving outsourced manufacturing steps in-house and expediting deliveries[71](index=71&type=chunk) - The impact of COVID-19 on Company employees and factory productivity is currently **negligible**, supported by **high liquidity** and a **flexible operational model**[75](index=75&type=chunk)[76](index=76&type=chunk) [Summary of Second Quarter 2023 Financial Performance Compared to First Quarter 2023 Financial Performance](index=25&type=section&id=Summary%20of%20Second%20Quarter%202023%20Financial%20Performance%20Compared%20to%20First%20Quarter%202023%20Financial%20Performance) This section compares key financial metrics for Q2 2023 against Q1 2023, highlighting revenue and margin changes Q2 2023 vs Q1 2023 Financial Performance (in thousands) | Metric | Q2 2023 | Q1 2023 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Net revenues | $106,747 | $97,816 | 9.1% | | Advanced Products net revenues | N/A | N/A | 31.6% (increase) | | Brick Products net revenues | N/A | N/A | (15.7%) (decrease) | | Gross margin | $55,173 | $46,534 | 18.6% | | Gross margin as % of net revenues | 51.7% | 47.6% | 4.1 pp | | Backlog | $217,275 | $271,283 | (19.9%) | | Net income | $17,101 | $11,244 | 52.1% | | Diluted EPS | $0.38 | $0.25 | 52.0% | - The increase in gross margin was primarily due to higher sales volume, improved sales mix, and reductions in supply chain costs, including **$851,000** in outsourced manufacturing costs and **$529,000** in freight-in and tariff spending (net of duty drawback recovery)[77](index=77&type=chunk) [Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022](index=26&type=section&id=Three%20Months%20Ended%20June%2030%2C%202023%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202022) This section compares the company's financial performance for the second quarter of 2023 versus 2022 Q2 2023 vs Q2 2022 Financial Performance (in thousands) | Metric | 2023 | 2022 | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | | Net revenues | $106,747 | $102,186 | 4.5% | | Advanced Products net revenues | $67,513 | $67,663 | (0.2%) | | Brick Products net revenues | $39,234 | $34,523 | 13.6% | | Gross margin | $55,173 | $46,849 | 17.8% | | Gross margin as % of net revenues | 51.7% | 45.8% | 5.9 pp | | Selling, general and administrative expenses | $20,375 | $20,035 | 1.7% | | Research and development expenses | $16,935 | $15,516 | 9.1% | | Income before income taxes | $19,639 | $11,382 | 72.5% | | Net income attributable to Vicor Corporation | $17,101 | $10,593 | 61.4% | - Gross margin increase was primarily due to higher sales volume and reductions in supply chain costs, including **$3,904,000** in outsourced manufacturing costs and **$4,142,000** in freight-in and tariff spending (net of duty drawback recovery)[79](index=79&type=chunk) - Research and development expenses increased primarily due to **higher compensation** and increased **prototype development costs** for Advanced Products[83](index=83&type=chunk)[86](index=86&type=chunk) [Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022](index=29&type=section&id=Six%20Months%20Ended%20June%2030%2C%202023%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202022) This section compares the company's financial performance for the first six months of 2023 versus 2022 H1 2023 vs H1 2022 Financial Performance (in thousands) | Metric | 2023 | 2022 | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | | Net revenues | $204,563 | $190,468 | 7.4% | | Advanced Products net revenues | $118,804 | $120,588 | (1.5%) | | Brick Products net revenues | $85,759 | $69,880 | 22.7% | | Gross margin | $101,707 | $84,450 | 20.4% | | Gross margin as % of net revenues | 49.7% | 44.3% | 5.4 pp | | Selling, general and administrative expenses | $40,598 | $38,603 | 5.2% | | Research and development expenses | $32,804 | $29,769 | 10.2% | | Income before income taxes | $32,031 | $16,324 | 96.2% | | Net income attributable to Vicor Corporation | $28,345 | $15,592 | 81.8% | - Advanced Products revenue decreased due to **manufacturing constraints** and **schedule delays**, while Brick Products revenue increased due to **favorable market conditions** and **available capacity**[90](index=90&type=chunk) - Gross margin increase was driven by higher sales volume and reductions in supply chain costs, including **$5,444,000** in outsourced manufacturing costs and **$7,934,000** in freight-in and tariff spending (net of duty drawback recovery)[91](index=91&type=chunk) - Research and development expenses increased primarily due to **higher compensation** and increased **prototype development costs** for Advanced Products[94](index=94&type=chunk)[96](index=96&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, working capital, and capital expenditure commitments - Cash and cash equivalents increased to **$203,829,000** as of June 30, 2023[102](index=102&type=chunk) Liquidity Metrics | Metric | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Ratio of total current assets to total current liabilities | 7.6:1 | 5.6:1 | | Working capital | $328,810,000 | $298,055,000 | - Net cash provided by operating activities for the six months ended June 30, 2023, was **$29,153,000**[105](index=105&type=chunk) - The Company had approximately **$16,768,000** in capital expenditure commitments as of June 30, 2023, which it intends to fund with existing cash and cash equivalents and cash generated from operations[107](index=107&type=chunk) - No shares were repurchased under the November 2000 Plan during the six months ended June 30, 2023, with approximately **$8,541,000** remaining available for repurchases[106](index=106&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to critical accounting judgments and assumptions during the period - There have been **no material changes** in critical accounting judgments and assumptions during the period ended June 30, 2023[109](index=109&type=chunk) [Item 3 — Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details market risks from interest rate fluctuations, foreign currency exchange rates, and investment impairment - The Company is exposed to market risks from changes in interest rates and fluctuations in foreign currency exchange rates[110](index=110&type=chunk) - Exposure to market risk on interest rate fluctuations for cash, cash equivalents, and short-term investments is **not significant**[110](index=110&type=chunk) - The long-term '**Failed Auction Security**' (Level 3 investment) could lead to impairment charges if a decline in fair value is deemed '**other than temporary**'[110](index=110&type=chunk) - Foreign currency exchange rate risk primarily relates to the operations of Vicor Japan Company, Ltd. (VJCL), for which the functional currency is the **Japanese Yen**[111](index=111&type=chunk) [Item 4 — Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures with no material changes in internal control - The Company's disclosure controls and procedures were **effective** at the **reasonable assurance level** as of June 30, 2023[114](index=114&type=chunk) - **No material changes** in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2023[116](index=116&type=chunk) - Management acknowledges that control systems provide only **reasonable**, not absolute, assurance of achieving their objectives[115](index=115&type=chunk) Part II [Part II — Other Information](index=36&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) This section includes information on legal proceedings, risk factors, other disclosures, and exhibits [Item 1 — Legal Proceedings](index=36&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) This section refers to Note 10 for details on legal proceedings, including the SynQor patent lawsuit - Refer to **Note 10. Commitments and Contingencies** in Part I, Item 1 for details on legal proceedings[119](index=119&type=chunk) [Item 1A — Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the annual report - **No material changes** in the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[119](index=119&type=chunk) [Item 5 — Other Information](index=36&type=section&id=Item%205%20%E2%80%94%20Other%20Information) This section reports no new or terminated Rule 10b5-1 trading arrangements by directors or officers - **No director or Section 16 officer** adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2023[120](index=120&type=chunk) [Item 6 — Exhibits](index=36&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents and certifications - The exhibits include corporate documents (Restated Certificate of Incorporation, Bylaws), **CEO and CFO certifications** (Sections 302 and 906), and Inline XBRL data files[121](index=121&type=chunk) [Signature(s)](index=38&type=section&id=Signature(s)) This section confirms the report was signed by the CEO and CFO of Vicor Corporation on August 4, 2023 - The report was signed by **Patrizio Vinciarelli (CEO)** and **James F. Schmidt (CFO)** on **August 4, 2023**[126](index=126&type=chunk)

Vicor Corporation (NASDAQ:VICR) Q2 2023 Earnings Conference Call July 25, 2023 12:00 PM ET Company Participants Jim Schmidt - CFO Phil Davies - VP, Global Sales and Marketing Patrizio Vinciarelli - CEO Conference Call Participants Quinn Bolton - Needham & Company Jon Tanwanteng - CJS Securities John Dillon - D&B Capital Don McKenna - John Dillon - Operator Welcome, everyone to today's webinar entitled Vicor Corporation Earnings Results for the Second Quarter Ended June 30, 2023. My name is Robin and I'll ...

Part I — Financial Information This section covers Vicor Corporation's unaudited financial statements and management's analysis [Item 1 - Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(Unaudited)) This section presents Vicor Corporation's unaudited consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates **Condensed Consolidated Balance Sheet Highlights (in thousands):** | Metric | March 31, 2023 | December 31, 2022 | Change | | :----------------------------- | :------------- | :---------------- | :----- | | Total Assets | $544,255 | $536,901 | $7,354 | | Total Liabilities | $63,596 | $72,565 | $(8,969) | | Total Equity | $480,659 | $464,336 | $16,323 | | Cash and cash equivalents | $192,897 | $190,611 | $2,286 | | Inventories | $107,382 | $101,410 | $5,972 | | Accounts payable | $16,790 | $22,207 | $(5,417) | | Short-term deferred revenue | $9,765 | $13,197 | $(3,432) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific periods **Condensed Consolidated Statements of Operations Highlights (Three Months Ended March 31, in thousands, except per share amounts):** | Metric | 2023 | 2022 | Change | YoY Change | | :----------------------------------- | :--- | :--- | :----- | :--------- | | Net revenues | $97,816 | $88,282 | $9,534 | 10.8% | | Cost of revenues | $51,282 | $50,681 | $601 | 1.2% | | Gross margin | $46,534 | $37,601 | $8,933 | 23.8% | | Total operating expenses | $36,092 | $32,821 | $3,271 | 10.0% | | Income from operations | $10,442 | $4,780 | $5,662 | 118.4% | | Total other income, net | $1,950 | $162 | $1,788 | 1103.7% | | Income before income taxes | $12,392 | $4,942 | $7,450 | 150.7% | | Provision (benefit) for income taxes | $1,141 | $(48) | $1,189 | -2477.1% | | Consolidated net income | $11,251 | $4,990 | $6,261 | 125.5% | | Net income attributable to Vicor Corporation | $11,244 | $4,999 | $6,245 | 124.9% | | Basic EPS | $0.25 | $0.11 | $0.14 | 127.3% | | Diluted EPS | $0.25 | $0.11 | $0.14 | 127.3% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's net income and other comprehensive income components **Condensed Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, in thousands):** | Metric | 2023 | 2022 | Change | YoY Change | | :----------------------------------- | :--- | :--- | :----- | :--------- | | Consolidated net income | $11,251 | $4,990 | $6,261 | 125.5% | | Foreign currency translation losses, net of tax | $(15) | $(194) | $179 | -92.3% | | Unrealized income (loss) on available-for-sale securities, net of tax | $9 | $(316) | $325 | -102.8% | | Other comprehensive loss | $(6) | $(510) | $504 | -98.8% | | Consolidated comprehensive income | $11,245 | $4,480 | $6,765 | 151.0% | | Comprehensive income attributable to Vicor Corporation | $11,239 | $4,503 | $6,736 | 149.6% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities **Condensed Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, in thousands):** | Metric | 2023 | 2022 | Change | YoY Change | | :----------------------------------- | :--- | :--- | :----- | :--------- | | Net cash provided by operating activities | $10,113 | $4,585 | $5,528 | 120.6% | | Net cash (used for) provided by investing activities | $(10,089) | $2,317 | $(12,406) | -535.4% | | Net cash provided by financing activities | $2,261 | $1,810 | $451 | 24.9% | | Net increase in cash and cash equivalents | $2,286 | $8,632 | $(6,346) | -73.5% | | Cash and cash equivalents at end of period | $192,897 | $191,050 | $1,847 | 1.0% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section details changes in the company's equity, including net income and stock-based compensation **Condensed Consolidated Statements of Equity Highlights (in thousands):** | Metric | December 31, 2022 | March 31, 2023 | Change | | :----------------------------------- | :---------------- | :------------- | :----- | | Total Vicor Corporation Stockholders' Equity | $464,088 | $480,405 | $16,317 | | Noncontrolling interest | $248 | $254 | $6 | | Total Equity | $464,336 | $480,659 | $16,323 | | Net income | N/A | $11,244 | N/A | | Stock-based compensation expense | N/A | $2,817 | N/A | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [Note 1. Basis of Presentation](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation) This note describes the accounting principles and presentation methods used for the interim financial statements - The unaudited interim financial statements are prepared in accordance with GAAP for interim financial information and SEC rules, including normal recurring adjustments[22](index=22&type=chunk) - Operating results for the three months ended March 31, 2023, are not necessarily indicative of the results expected for any other interim period or the full year[23](index=23&type=chunk) - The balance sheet at December 31, 2022, is derived from audited financial statements but does not include all information required for complete financial statements[23](index=23&type=chunk) [Note 2. Inventories](index=9&type=section&id=Note%202.%20Inventories) This note details the composition and valuation of the company's inventory balances **Inventories (in thousands):** | Category | March 31, 2023 | December 31, 2022 | Change | | :--------------- | :------------- | :---------------- | :----- | | Raw materials | $85,833 | $82,181 | $3,652 | | Work-in-process | $12,101 | $10,456 | $1,645 | | Finished goods | $9,448 | $8,773 | $675 | | Total Inventories | $107,382 | $101,410 | $5,972 | [Note 3. Long-Term Investments](index=9&type=section&id=Note%203.%20Long-Term%20Investments) This note describes the company's long-term investments, including a 'Failed Auction Security' - The Company holds one 'Failed Auction Security' with a **par value of $3,000,000**, which has experienced failed auctions since February 2008[25](index=25&type=chunk) - The security is Aaa/AA+ rated, collateralized by student loans, and guaranteed by the U.S. Department of Education[25](index=25&type=chunk) - Management believes the security can be liquidated without significant loss, but the recovery period exceeds 12 months, leading to its classification as long-term[25](index=25&type=chunk) **Long-Term Investment Details (in thousands):** | Metric | March 31, 2023 | December 31, 2022 | | :---------------------- | :------------- | :---------------- | | Estimated Fair Value | $2,631 | $2,622 | | Unrealized Losses (Cost $3,000) | $369 | $378 | [Note 4. Fair Value Measurements](index=11&type=section&id=Note%204.%20Fair%20Value%20Measurements) This note explains the methodology and hierarchy used for fair value measurements of financial instruments - Fair value is measured using a three-level hierarchy based on the observability of inputs[31](index=31&type=chunk) - The 'Failed Auction Security' is valued using Level 3 inputs (significant unobservable inputs)[32](index=32&type=chunk)[34](index=34&type=chunk) - The **estimated fair value of the Failed Auction Security increased by $9,000 in Q1 2023** due to a credit gain[34](index=34&type=chunk) [Note 5. Revenues](index=13&type=section&id=Note%205.%20Revenues) This note disaggregates the company's net revenues by product line, geography, and customer category **Net Revenues by Product Line (Three Months Ended March 31, in thousands):** | Product Line | 2023 | 2022 | Change | YoY Change | | :------------------ | :--- | :--- | :----- | :--------- | | Brick Products | $46,525 | $35,357 | $11,168 | 31.6% | | Advanced Products | $51,291 | $52,925 | $(1,634) | -3.1% | | Total Net Revenues | $97,816 | $88,282 | $9,534 | 10.8% | **Net Revenues by Geography (Three Months Ended March 31, in thousands):** | Geography | 2023 | 2022 | | :---------------- | :--- | :--- | | United States | $34,966 | $24,687 | | Europe | $11,573 | $9,810 | | Asia Pacific | $50,291 | $53,016 | | All other | $986 | $769 | **Net Revenues by Category (Three Months Ended March 31, in thousands):** | Revenue Category | 2023 | 2022 | | :------------------------------------------------------- | :--- | :--- | | Direct customers, contract manufacturers and non-stocking distributors | $72,499 | $71,872 | | Stocking distributors, net of sales allowances | $20,789 | $14,508 | | Non-recurring engineering | $2,430 | $1,578 | | Royalties | $2,020 | $306 | | Other | $78 | $18 | - The company recognized **approximately $1,609,000 in revenue in Q1 2023** from deferred revenue at the beginning of the period, compared to **$155,000 in Q1 2022**[40](index=40&type=chunk) [Note 6. Stock-Based Compensation](index=15&type=section&id=Note%206.%20Stock-Based%20Compensation) This note details the company's stock-based compensation expense by category and award type **Stock-Based Compensation Expense (Three Months Ended March 31, in thousands):** | Expense Category | 2023 | 2022 | Change | YoY Change | | :----------------------------------- | :--- | :--- | :----- | :--------- | | Cost of revenues | $486 | $251 | $235 | 93.6% | | Selling, general and administrative | $1,520 | $1,207 | $313 | 25.9% | | Research and development | $811 | $536 | $275 | 51.3% | | Total stock-based compensation | $2,817 | $1,994 | $823 | 41.3% | **Compensation Expense by Award Type (Three Months Ended March 31, in thousands):** | Award Type | 2023 | 2022 | Change | YoY Change | | :--------------------------------------- | :--- | :--- | :----- | :--------- | | Stock options | $2,496 | $1,759 | $737 | 41.9% | | ESPP | $321 | $235 | $86 | 36.6% | [Note 7. Rental Income](index=15&type=section&id=Note%207.%20Rental%20Income) This note provides information on the company's rental income **Rental Income (Three Months Ended March 31, in thousands):** | Metric | 2023 | 2022 | | :------------- | :--- | :--- | | Rental income | $198 | $198 | [Note 8. Income Taxes](index=15&type=section&id=Note%208.%20Income%20Taxes) This note outlines the company's income tax provision, effective tax rate, and valuation allowances **Income Tax Provision (Benefit) and Effective Rate (Three Months Ended March 31, in thousands):** | Metric | 2023 | 2022 | | :----------------------------------- | :--- | :--- | | Provision (benefit) for income taxes | $1,141 | $(48) | | Effective income tax rate | 9.2% | (1.0)% | - Effective tax rates were lower than statutory rates primarily due to a full valuation allowance against domestic deferred tax assets[47](index=47&type=chunk)[89](index=89&type=chunk) - As of March 31, 2023, the Company has **approximately $47,413,000 against all net domestic deferred tax assets**[48](index=48&type=chunk) - The valuation allowance is maintained due to uncertainties in forecasting operating results, supply/factory capacity constraints, Advanced Products production issues, and market unpredictability[48](index=48&type=chunk) [Note 9. Net Income per Share](index=17&type=section&id=Note%209.%20Net%20Income%20per%20Share) This note presents the basic and diluted net income per share calculations **Net Income Per Share (Three Months Ended March 31):** | Metric | 2023 | 2022 | Change | YoY Change | | :----------------------------------- | :--- | :--- | :----- | :--------- | | Basic net income per share | $0.25 | $0.11 | $0.14 | 127.3% | | Diluted net income per share | $0.25 | $0.11 | $0.14 | 127.3% | - Options to purchase **1,035,618 shares in 2023** and **291,880 shares in 2022** were excluded from diluted EPS calculations as they were antidilutive[52](index=52&type=chunk) [Note 10. Commitments and Contingencies](index=17&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note discloses the company's capital expenditure commitments and ongoing legal proceedings - As of March 31, 2023, the Company had **approximately $19,325,000 of cancelable and non-cancelable capital expenditure commitments**[53](index=53&type=chunk) - The Company is a defendant in a patent infringement lawsuit filed by SynQor, Inc[54](index=54&type=chunk) - A jury found the Company willfully infringed the '702 patent and **awarded SynQor $6,500,000 in damages**[57](index=57&type=chunk) - The Company **recorded a litigation-related accrual of $6,500,000** in the third quarter of 2022 based on the jury award[59](index=59&type=chunk) - Both parties have filed post-trial motions, and the Company anticipates appealing any adverse rulings and the dismissal of its counterclaims[58](index=58&type=chunk) [Note 11. Impact of Recently Issued Accounting Standards](index=18&type=section&id=Note%2011.%20Impact%20of%20Recently%20Issued%20Accounting%20Standards) This note discusses the potential impact of new accounting pronouncements on the financial statements - New accounting pronouncements issued but not yet effective are not expected to have a material impact on the Company's consolidated financial statements[61](index=61&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Vicor Corporation's Q1 2023 financial condition and results of operations [Overview](index=20&type=section&id=Overview) This section provides an overview of Vicor's business, products, and market position in modular power components - Vicor designs, develops, manufactures, and markets modular power components and systems, leveraging advanced technologies and proprietary solutions[64](index=64&type=chunk) - The company's core competencies are associated with 48V DC distribution, offering cost and performance advantages[64](index=64&type=chunk) - Products are categorized as 'Advanced Products' (newer, high-growth, low-mix, high-volume, targeting data centers, hyperscalers, AI) and 'Brick Products' (established, mature, high-mix, low-volume, serving aerospace, defense, industrial)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Vicor has established a leadership position in the emerging market segment for powering high-performance processors used for AI applications[67](index=67&type=chunk) - Quarterly operating results are difficult to forecast due to customer demand fluctuations, supply chain uncertainties, and external factors[68](index=68&type=chunk) [Ongoing / Potential Impacts of the COVID-19 Pandemic on the Company](index=21&type=section&id=Ongoing%20%2F%20Potential%20Impacts%20of%20the%20COVID-19%20Pandemic%20on%20the%20Company) This section discusses the minimal impact of COVID-19 on operations and the company's resilience strategies - The number of Company employees diagnosed with COVID-19 and corresponding absenteeism are negligible, with no current impact on factory productivity[71](index=71&type=chunk) - The Company is closely monitoring the operating performance and financial health of its customers, business partners, and suppliers due to potential pandemic-related hardships[72](index=72&type=chunk) - Management believes the Company's high liquidity, flexible operational model, existing raw material inventories, and increased use of second sources for critical manufacturing inputs will enable effective business conduct during the pandemic[73](index=73&type=chunk) [Summary of First Quarter 2023 Financial Performance Compared to Fourth Quarter 2022 Financial Performance](index=21&type=section&id=Summary%20of%20First%20Quarter%202023%20Financial%20Performance%20Compared%20to%20Fourth%20Quarter%202022%20Financial%20Performance) This section compares Vicor's Q1 2023 financial performance against Q4 2022, highlighting key revenue and expense changes **Q1 2023 vs. Q4 2022 Financial Performance Highlights (in thousands, except per share amounts):** | Metric | Q1 2023 | Q4 2022 | Change | QoQ Change | | :----------------------------------- | :------ | :------ | :----- | :--------- | | Net revenues | $97,816 | $105,493 | $(7,677) | -7.3% | | Brick Products net revenues | N/A | N/A | N/A | 10.9% | | Advanced Products net revenues | N/A | N/A | N/A | -19.3% | | Gross margin | $46,534 | $49,139 | $(2,605) | -5.3% | | Gross margin as % of net revenues | 47.6% | 46.6% | 1.0 pp | N/A | | Operating expenses | $36,092 | $41,020 | $(4,928) | -12.0% | | Net income | $11,244 | $8,062 | $3,182 | 39.5% | | Diluted EPS | $0.25 | $0.18 | $0.07 | 38.9% | | Backlog | $271,283 | $304,392 | $(33,109) | -10.9% | | Inventories | $107,382 | $101,410 | $5,972 | 5.9% | - Export sales represented **approximately 64.3% of total net revenues in Q1 2023**, up from **59.8% in Q4 2022**[75](index=75&type=chunk) - The increase in gross margin percentage was primarily due to **reduced freight-in and tariff spending of $3,927,000 (net of approximately $3,000,000 in duty drawback recovery)**[77](index=77&type=chunk) - Operating expenses decreased primarily due to a **$4,719,000 decrease in legal fees** and a **$209,000 decrease in research and development engineering supplies**[81](index=81&type=chunk) [Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022](index=22&type=section&id=Three%20Months%20Ended%20March%2031%2C%202023%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202022) This section compares Vicor's Q1 2023 financial performance against Q1 2022, detailing revenue, expense, and income changes **Net Revenues by Product Line (Three Months Ended March 31, in thousands):** | Product Line | 2023 | 2022 | Change | YoY Change | | :------------------ | :--- | :--- | :----- | :--------- | | Advanced Products | $51,291 | $52,925 | $(1,634) | -3.1% | | Brick Products | $46,525 | $35,357 | $11,168 | 31.6% | | Total Net Revenues | $97,816 | $88,282 | $9,534 | 10.8% | - **Gross margin as a percentage of net revenues increased to 47.6% in Q1 2023 from 42.6% in Q1 2022**, driven by higher sales volume, improved production efficiencies, and **reduced freight-in and tariff spending of $3,791,000 (net of $3,000,000 duty drawback recovery)**[79](index=79&type=chunk) - Selling, general, and administrative expenses **increased by $1,655,000 (8.9%)** due to higher compensation, advertising, commissions, and legal fees (SynQor litigation)[83](index=83&type=chunk)[84](index=84&type=chunk) - Research and development expenses **increased by $1,616,000 (11.3%)** due to higher compensation and project/pre-production materials for Advanced Products[86](index=86&type=chunk)[87](index=87&type=chunk) - Total other income, net, **increased by $1,788,000**, primarily due to a **$1,590,000 increase in net interest income** and favorable foreign currency gains[87](index=87&type=chunk) - Income before income taxes **increased to $12,392,000 in Q1 2023 from $4,942,000 in Q1 2022**[88](index=88&type=chunk) - Net income attributable to Vicor Corporation **increased to $11,244,000 ($0.25 diluted EPS) in Q1 2023 from $4,999,000 ($0.11 diluted EPS) in Q1 2022**[90](index=90&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash position, working capital, and capital expenditure commitments **Liquidity Metrics (in thousands):** | Metric | March 31, 2023 | December 31, 2022 | | :----------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $192,897 | $190,611 | | Current ratio | 6.8:1 | 5.6:1 | | Working capital | $312,698 | $298,055 | - **Primary cash sources in Q1 2023 were $10,113,000 from operations and $2,261,000 from employee stock plans**[92](index=92&type=chunk) - **Primary cash use in Q1 2023 was $10,089,000 for property and equipment purchases**[92](index=92&type=chunk) - The Company has **approximately $19,325,000 in capital expenditure commitments**, primarily for manufacturing equipment, which it intends to fund with existing cash and operations[96](index=96&type=chunk) - **Approximately $8,541,000 remains available for common stock repurchases** under the November 2000 Plan; no repurchases were made in Q1 2023[95](index=95&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes in critical accounting judgments and assumptions during the period - There were no material changes in critical accounting judgments and assumptions during the period ended March 31, 2023[98](index=98&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, including interest rate and foreign currency fluctuations - The Company's exposure to market risk on interest rate fluctuations for cash and short-term investments is not significant due to their short-term nature[101](index=101&type=chunk) - The long-term 'Failed Auction Security' (**par value $3,000,000**) could lead to impairment charges in future periods if its fair value decline is deemed other than temporary[101](index=101&type=chunk) - Foreign currency exchange rate risk primarily relates to the operations of Vicor Japan Company, Ltd., for which the functional currency is the Japanese Yen[102](index=102&type=chunk) [Item 4 - Controls and Procedures](index=27&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and reports no material changes in internal control - Management, with the participation of the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2023[103](index=103&type=chunk) - A control system provides only reasonable, not absolute, assurance and is subject to inherent limitations such as faulty judgments, errors, collusion, or management override[104](index=104&type=chunk) - There was no change in internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting during the fiscal quarter ended March 31, 2023[107](index=107&type=chunk) Part II — Other Information This section includes legal proceedings, risk factors, exhibits, and corporate signatures [Item 1 - Legal Proceedings](index=29&type=section&id=Item%201%20-%20Legal%20Proceedings) This section refers to Note 10 for details on the company's legal proceedings, such as the SynQor patent infringement lawsuit - Refer to Note 10, 'Commitments and Contingencies,' in the Notes to Condensed Consolidated Financial Statements for information on legal proceedings[109](index=109&type=chunk) [Item 1A - Risk Factors](index=29&type=section&id=Item%201A%20-%20Risk%20Factors) This section states no material changes to the risk factors disclosed in the company's 2022 Annual Report on Form 10-K - There have been no material changes in the risk factors described in Part I, Item 1A – 'Risk Factors' of the Company's Annual Report on Form 10-K for the year ended December 31, 2022[109](index=109&type=chunk) [Item 6 — Exhibits](index=29&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, certifications, and XBRL files - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[110](index=110&type=chunk) - Various Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are included as exhibits[110](index=110&type=chunk) [Signature(s)](index=30&type=section&id=Signature(s)) This section contains the signatures of the company's principal executive and financial officers, certifying the report filing - The report was signed by Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, and James F. Schmidt, Vice President, Chief Financial Officer, on May 3, 2023[115](index=115&type=chunk)

Vicor Corporation (NASDAQ:VICR) Q1 2023 Earnings Conference Call April 25, 2023 5:00 PM ET Company Participants Jim Schmidt - CFO Phil Davies - VP, Global Sales and Marketing Patrizio Vinciarelli - CEO Conference Call Participants Quinn Bolton - Needham & Company Jon Tanwanteng - CJS Securities John Dillon - D&B Capital Richard Shannon - Craig-Hallum Doug Campbell - Hotchkis & Wiley Capital Operator Welcome, everyone to today's webinar entitled Vicor Corporation Earnings Results for the First Quarter Ended ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-18277 VICOR CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 25 Fron ...

Financial Data and Key Metrics Changes - Vicor recorded total revenue for Q4 2022 of $105.5 million, up 2.3% from Q3 2022 and up 16.8% from Q4 2021 [7] - Revenues for the year ended December 31, 2022, increased 11.1% to $399.1 million from $359.4 million in the prior year [7] - Gross margin for Q4 was 46.6%, a 100 basis point increase from the prior quarter, while the full year gross margin declined to 45.2% from 49.6% in the prior year [9] - Operating income for Q4 was $8.1 million, representing an operating margin of 7.7%, while for the full year 2022, operating income totaled $27.2 million or 6.8% of revenue, down from $55.6 million or 15.5% in the prior year [10][11] - Net income for Q4 was $8.1 million, with GAAP diluted earnings per share of $0.18, while full year net income decreased to $25.5 million from $56.6 million in the prior year [11] Business Line Data and Key Metrics Changes - Advanced Product revenue rose 7.3% sequentially, while Brick Products revenue declined 4.4% from the third quarter [7] - Advanced Products accounted for 60.2% of total revenue in Q4, up from 57.4% in Q3, while Brick Products' share decreased to 39.8% [8] Market Data and Key Metrics Changes - Shipments to stocking distributors increased 16.4% sequentially and 3.4% year-over-year [8] - Exports as a percentage of total revenue decreased sequentially to approximately 59.8% from 70.1% in the prior quarter, but increased year-over-year to approximately 67.6% from 67% [8] Company Strategy and Development Direction - The company is focused on bringing its in-house vertically integrated advanced products factory fully online to improve manufacturing efficiency and reduce cycle times [14] - Vicor is targeting high growth markets driven by electrification, automation, and autonomy, with expectations for revenue growth in industrial and defense sectors [18] - The company anticipates significant opportunities in the battery ecosystem, including forming, testing, and recycling, with early revenues expected in 2023 [19] - Vicor aims to achieve $1 billion in revenues and 65% gross margins as part of its long-term strategic goals [20] Management's Comments on Operating Environment and Future Outlook - Management noted that low order rates in Q4 were influenced by customers digesting long lead time orders and concerns about supply ramp-up [22][23] - The company expressed confidence in its competitive position in high-performance computing (HPC) and automotive markets, with expectations for revenue growth driven by design wins [18][20] - Management indicated that the first quarter of 2023 is expected to be approximately flat compared to Q4 2022, with modest declines in operating expenses [15] Other Important Information - The company reported a significant decline in backlog, with Q4 book-to-bill coming in below 1 and a backlog decrease of 18.1% from the prior quarter [13] - Cash and cash equivalents totaled $190.6 million at the end of Q4, with accounts receivable at $65.4 million and inventories increasing by 7.5% sequentially [12] Q&A Session Summary Question: Can you provide more color on the low orders and cancellations in Q4? - Management indicated that long lead times and customer concerns about product availability contributed to low orders and cancellations [22][23] Question: What is Vicor's market share in the 5-nanometer AI GPU compute space? - Management stated that several companies are ramping with 5-nanometer nodes in 2023, and Vicor is engaged with customers to optimize their architectures for better performance [24][25] Question: When will the new manufacturing facility be fully operational? - Management expects the last major piece of equipment to be installed by April 2023, with the facility becoming largely independent of outsourced providers by mid-2023 [36][62] Question: What is the outlook for automotive opportunities? - Management anticipates that the ramp for automotive orders will occur towards the end of 2023, with significant growth expected in 2024 and beyond [59] Question: How is the company addressing legal issues? - Management reported no significant updates on legal matters, stating they are going through post-trial briefings [49] Question: What is the expected impact of the new 5G technology? - Management expressed optimism about the 5G technology's potential to significantly expand the market, with expectations for product launches and customer engagement in 2023 [73][78]

Vicor Corporation (NASDAQ:VICR) Q3 2022 Earnings Conference Call October 25, 2022 17:00 PM ET Company Participants James Schmidt - CFO Philip Davies - VP of Global Sales and Marketing Conference Call Participants Jon Tanwanteng - CJS Securities Quinn Bolton - Needham & Company Alan Hicks - Ainsley Capital Management John Dillon - D&B Capital Richard Shannon - Craig-Hallum Doug Combat - Promus Capital Don McKenna - D.B. McKenna Presentation Operator Good day, everyone, and welcome to Vicor Earnings Results f ...