Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q 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: ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURIT ...

Financial Performance - Net revenues for Q1 2022 decreased by 2.2% to $88,282,000 from $90,281,000 in Q4 2021, with Brick Products down 9.1% and Advanced Products up 3.0%[86] - Gross margin for Q1 2022 decreased to $37,601,000, a decline of 15.9% from $44,700,000 in Q1 2021, with gross margin percentage dropping to 42.6% from 50.3%[89] - Net income for Q1 2022 was $4.99 million, or $0.11 per diluted share, compared to $15.09 million, or $0.34 per diluted share, for Q1 2021[100] - Operating expenses increased by $906,000, or 2.8%, to $32.82 million in Q1 2022 from $31.92 million in Q4 2021[90] - Research and development expenses rose to $14.25 million in Q1 2022, an increase of $1.23 million, or 9.4%, compared to Q1 2021[95] - Selling, general, and administrative expenses were $18.57 million for Q1 2022, an increase of $1.61 million, or 9.5%, from Q1 2021[92] Revenue Breakdown - Export sales accounted for approximately 72.0% of total net revenues in Q1 2022, compared to 71.7% in Q4 2021[86] - Advanced Products revenue increased by 54.1% year-over-year, driven by growth in the data center and high-performance computing sectors[88] - Brick Products revenue fell by 35.1% year-over-year, primarily due to unfavorable market conditions in the U.S. and Asia Pacific regions[88] Operational Focus - The company is focusing on transitioning to a high-volume operational model for Advanced Products while maintaining profitability in Brick Products[77] - The ongoing semiconductor supply allocation issues have constrained growth in Advanced Products despite increased demand[86] - The company plans to invest in expanded manufacturing capacity and new processes to mitigate supply chain risks[86] Supply Chain and Inventory - The company expects to continue monitoring supply chain risks and customer financial health amid ongoing pandemic uncertainties[84] - Backlog at the end of Q1 2022 was approximately $423.74 million, up from $345.59 million at the end of Q4 2021, primarily due to increased bookings[90] - Inventories increased by approximately $6.54 million, or 9.7%, to $73.86 million at March 31, 2022, compared to $67.32 million at December 31, 2021[90] Capital and Cash Position - Capital additions totaled $22.68 million in Q1 2022, compared to $16.82 million in Q4 2021[90] - As of March 31, 2022, cash and cash equivalents were $191.05 million, with a current ratio of 7.0:1[101] - The company had approximately $32.33 million in capital expenditure commitments as of March 31, 2022, primarily for manufacturing and production equipment[106] Tax and Compliance - The effective income tax rate for Q1 2022 was (1.0)%, consistent with Q1 2021, primarily due to the company's full valuation allowance position against domestic deferred tax assets[99] - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2022, concluding they were effective at a reasonable assurance level[113] - There were no changes in internal control over financial reporting during the fiscal quarter ended March 31, 2022, that materially affected internal control[117] - The company acknowledges that no control system can provide absolute assurance against errors or fraud, highlighting inherent limitations in all control systems[114]

[PART I](index=2&type=section&id=PART%20I) [ITEM 1. BUSINESS](index=3&type=section&id=ITEM%201.%20BUSINESS) Vicor Corporation designs, develops, manufactures, and markets modular power components and systems, specializing in electrical power conversion, with a strategy focused on product differentiation [Overview](index=3&type=section&id=Overview) - Vicor designs, develops, manufactures, and markets modular power components and power systems for electrical power conversion[9](index=9&type=chunk) - Products are categorized as **'Advanced Products'** (proprietary Factorized Power Architecture, FPA) and **'Brick Products'** (conventional power systems architectures)[11](index=11&type=chunk) - Competition varies by market segment; Advanced Products compete with integrated circuits/semiconductor-based modules, while Brick Products compete with integrated power supply manufacturers[12](index=12&type=chunk) [Our Strategy](index=4&type=section&id=Our%20Strategy) The company's strategy emphasizes product differentiation, superior performance, design flexibility, and compelling total cost of ownership - Strategy focuses on **product differentiation**, **superior performance**, **design flexibility**, and **compelling total cost of ownership (TCO)**[20](index=20&type=chunk) - Core competencies are associated with **48V DC distribution**, offering cost and performance advantages[24](index=24&type=chunk) - Strategic shift towards investing in **Advanced Products** for high-growth, low-mix, high-volume markets, while maintaining **Brick Products** in mature, high-mix, low-volume markets[27](index=27&type=chunk) [Our Products](index=5&type=section&id=Our%20Products) Vicor's product portfolio includes Advanced Products for high-performance computing and Brick Products for conventional power architectures [Advanced Products](index=5&type=section&id=Advanced%20Products) - Advanced Products target **high-performance computing**, especially **AI (GPUs, ASICs)**, focusing on high conversion efficiency, density, and power delivery[29](index=29&type=chunk)[33](index=33&type=chunk) - Proprietary **Factorized Power Architecture (FPA)** improves efficiency and density by factorizing power conversion, particularly for **48V DC distribution**[30](index=30&type=chunk)[31](index=31&type=chunk) | Year | Percentage | | :--- | :--- | | 2021 | 47.4% | | 2020 | 35.8% | | 2019 | 28.6% | [Brick Products](index=7&type=section&id=Brick%20Products) - Brick Products are integrated power converters for conventional power architectures, emphasizing **'mass customization'** for specialized applications[39](index=39&type=chunk)[41](index=41&type=chunk) | Year | Percentage | | :--- | :--- | | 2021 | 52.6% | | 2020 | 64.2% | | 2019 | 71.4% | [Customers and Backlog](index=8&type=section&id=Customers%20and%20Backlog) Advanced Products customers are concentrated in data center and hyperscaler segments, with a significant increase in backlog - Advanced Products customers are concentrated in **data center** and **hyperscaler segments**, particularly for AI applications[44](index=44&type=chunk) - Strategic emphasis on larger, high-volume customers is expected to lead to greater sales concentration among relatively fewer customers[44](index=44&type=chunk) | Year | Backlog (in thousands) | | :--- | :--- | | Dec 31, 2021 | $345,594 | | Dec 31, 2020 | $147,550 | [Competition and Market Characteristics](index=9&type=section&id=Competition%20and%20Market%20Characteristics) Vicor competes with large IDMs in Advanced Products and in a fragmented market for Brick Products, holding a significant share in 48V power distribution - Advanced Products compete with large integrated device manufacturers (IDMs) on performance differentiation, while Brick Products compete in a fragmented market on **mass customization**[49](index=49&type=chunk) - Exports to China and Hong Kong were approximately **$98.7 million (27.5% of total revenue)** in 2021, an increase of **6.1% over 2020**, partly due to Chinese government stimulus[51](index=51&type=chunk) - Vicor believes it holds the largest share of **48V power distribution opportunities** within the computing market segments it serves[52](index=52&type=chunk) [Marketing and Sales](index=10&type=section&id=Marketing%20and%20Sales) Sales channels include direct sales, independent representatives, and distributors, with direct sales focusing on high-volume Advanced Products opportunities - Sales channels include a direct sales force, independent sales representative organizations, and authorized distributors, supported by regional Technical Support Centers (TSCs)[54](index=54&type=chunk) - Direct sales focus on higher-volume opportunities involving Advanced Products with global OEMs, often experiencing extended design cycles[57](index=57&type=chunk) | Year | Amount (in thousands) | % of Revenues | | :--- | :--- | :--- | | 2021 | $46,602 | 13.0% | | 2020 | $43,396 | 14.6% | | 2019 | $43,387 | 16.5% | [Manufacturing, Quality Assurance, and Supply Chain Management](index=11&type=section&id=Manufacturing%2C%20Quality%20Assurance%2C%20and%20Supply%20Chain%20Management) Manufacturing is primarily at the Andover, Massachusetts facility, which is expanding for Advanced Products, while the global supply chain faced COVID-19 impacts - Manufacturing primarily occurs at the Andover, Massachusetts facility, which is undergoing a **90,000 square foot expansion** for Advanced Products production, including vertical integration of proprietary electroplating processes[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The global electronics supply chain was impacted by the COVID-19 pandemic in 2021, leading to extended lead times and increased component pricing, which prompted the company to increase its own prices[46](index=46&type=chunk)[68](index=68&type=chunk) | Year | Amount (in thousands) | Change YoY | | :--- | :--- | :--- | | 2021 | $6,678 | -8% | | 2020 | $7,259 | - | [Intellectual Property](index=12&type=section&id=Intellectual%20Property) Intellectual property is protected by patents covering fundamental technologies, converter architectures, product packaging, and manufacturing processes - Intellectual property is protected by patents covering fundamental switching topologies, converter architectures, product packaging, and manufacturing processes[72](index=72&type=chunk) - As of December 31, 2021, the company held **121 issued U.S. patents** with expirations scheduled between 2022 and 2038[73](index=73&type=chunk) | Year | Amount (in thousands) | % of Revenues | | :--- | :--- | :--- | | 2021 | $53,114 | 14.8% | | 2020 | $50,916 | 17.2% | | 2019 | $46,588 | 17.7% | [Human Capital Management](index=13&type=section&id=Human%20Capital%20Management) Vicor employs over 1,000 full-time employees globally, offering competitive compensation, benefits, and development programs - Employs **1,027 full-time employees globally** as of December 31, 2021, with **924 in the U.S.** and **103 internationally**[77](index=77&type=chunk) - Compensation program includes competitive base salary, benefits (life and health insurance, paid time off, 401(k) with company match), and non-qualified stock options to align employee and stockholder interests[79](index=79&type=chunk) - Supports employee development through in-house training and tuition reimbursement, and engages in community initiatives[80](index=80&type=chunk)[81](index=81&type=chunk) [Available Information](index=14&type=section&id=Available%20Information) The company's website serves as a comprehensive resource for SEC filings, corporate governance documents, and product information - Company's website (www.vicorpower.com) serves as a resource for SEC filings (10-K, 10-Q, 8-K), corporate governance documents, and product information[83](index=83&type=chunk) [ITEM 1A. RISK FACTORS](index=15&type=section&id=ITEM%201A.%20RISK%20FACTORS) Vicor faces operational, competitive, intellectual property, regulatory, and share value risks, including supply chain disruptions, intense competition, infringement claims, compliance costs, and stock price volatility [Operational Risks](index=15&type=section&id=Operational%20Risks) Operating results are subject to fluctuations from demand changes, supply chain issues, product mix transitions, and competition, with COVID-19 exacerbating these challenges - Operating results are difficult to predict and subject to fluctuations due to factors like changes in demand, supply chain management, product mix transition, and competition[87](index=87&type=chunk)[88](index=88&type=chunk) - The COVID-19 pandemic negatively influenced financial and operational performance, causing widespread delays in production and delivery, and impacting customer demand[91](index=91&type=chunk)[98](index=98&type=chunk) | Year | Amount (in thousands) | % of Annual Revenue | | :--- | :--- | :--- | | 2021 | $6,678 | 1.9% | | 2020 | $7,259 | 2.4% | | 2019 | - | 2.0% | [Competitive Risks](index=22&type=section&id=Competitive%20Risks) Vicor competes with larger companies possessing greater resources and faces risks from new technologies, aggressive pricing, and customer acceptance of its innovative products - Competes with many companies possessing far greater

Table of Contents Table of Contents 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 September 30, 2021 ☐ 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) Del ...

Financial Performance - Net revenues for Q2 2021 increased by 34.8% to $95,376,000 compared to $70,761,000 in Q2 2020, driven by a 68.6% increase in Advanced Products revenue[100] - Net revenues for the six months ended June 30, 2021 were $184,172,000, an increase of $50,010,000, or 37.3%, from $134,162,000 for the same period in 2020[113] - The increase in net revenues for Advanced Products was 78.5%, driven by a 126.9% increase in new orders[113] Profitability - Gross margin for Q2 2021 increased to $49,871,000, a 64.5% rise from $30,318,000 in Q2 2020, with gross margin percentage improving to 52.3% from 42.8%[101] - Gross margin for the six months ended June 30, 2021 increased by $36,922,000, or 64.0%, to $94,571,000, with a gross margin percentage of 51.3% compared to 43.0% in 2020[114] - Net income for Q2 2021 was $19,394,000, or $0.43 per diluted share, up from $15,092,000, or $0.34 per diluted share in Q1 2021[102] - For the six months ended June 30, 2021, the company reported net income of $34,486,000, or $0.77 per diluted share, compared to $932,000, or $0.02 per diluted share for the same period in 2020[126] Expenses - Operating expenses for Q2 2021 decreased by $118,000, or 0.4%, to $29,862,000 compared to Q1 2021[102] - Research and development expenses for Q2 2021 increased by $443,000, or 3.5%, totaling $13,273,000, while as a percentage of net revenues, it decreased to 13.9% from 18.1% in Q2 2020[108] - Selling, general and administrative expenses for the six months ended June 30, 2021 were $33,543,000, an increase of $1,719,000, or 5.4%, compared to the same period in 2020[117] Bookings and Backlog - Advanced Products bookings rose by 99.3% in Q2 2021 compared to Q1 2021, contributing to a total bookings increase of 51.0% in the same period[98] - Backlog at the end of Q2 2021 was approximately $210,565,000, up from $157,134,000 at the end of Q1 2021, reflecting increased bookings[98] Cash and Liquidity - As of June 30, 2021, the company had $159,763,000 in cash and cash equivalents and $70,469,000 in highly liquid short-term investments, with a current assets to current liabilities ratio of 7.0:1[127] - Working capital increased by $22,834,000 to $299,253,000 as of June 30, 2021, from $276,419,000 as of December 31, 2020[127] - The primary sources of cash for the six months ended June 30, 2021 included $30,115,000 from operating activities and $30,000,000 from the sale or maturities of short-term investments[130] - The company believes cash generated from operations, along with available cash and short-term investments, will be sufficient to fund planned operational needs and capital equipment purchases for the foreseeable future[132] Capital Expenditures - The company had approximately $21,524,000 in capital expenditure commitments for manufacturing equipment as of June 30, 2021[132] - Approximately $28,000,000 of remaining budgeted capital expenditures in 2021 are associated with the construction of a 90,000 sq. ft. addition to the existing manufacturing facility[132] Market Strategy - The company plans to focus on high-volume customers, expecting a greater concentration of sales among fewer customers over time[91] - The ongoing transition to serving larger volume customers is part of the company's strategy to target high growth market segments[90] Inventory and Sales - Export sales accounted for approximately 64.3% of total net revenues in Q2 2021, down from 69.4% in Q1 2021[98] - Advanced Products revenue rose 19.7% sequentially from Q1 2021, despite constraints from limited component availability due to global semiconductor supply issues[98] - Brick Products revenue increased by 17.1% to $54,352,000 in Q2 2021 compared to $46,428,000 in Q2 2020, benefiting from favorable market conditions[100] Taxation - The provision for income taxes for the six months ended June 30, 2021 was $856,000, with an effective income tax rate of 2.4%[125] Share Repurchase - The company did not repurchase shares under the November 2000 Plan during the six months ended June 30, 2021, with approximately $8,541,000 remaining available for repurchases[131] Investment Portfolio - The long-term investment portfolio included a single auction rate security with a par value of $3,000,000, which has experienced failed auctions since February 2008[134]

Table of Contents 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 March 31, 2021 ☐ 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. ...

Table of Contents Table of Contents 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, 2020 ☐ 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) Delaware 04-2742817 (State or othe ...

Table of Contents 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 September 30, 2020 ☐ 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) (State of Incorporati ...

Table of Contents 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, 2020 ☐ 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 ...

Table of Contents 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 March 31, 2020 ☐ 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. ...