Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an over-weight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income, reflecting the author's background in the oil and gas industry [1] Portfolio Management Approach - A top-down capital allocation approach is recommended, tailored to each investor's personal situation, including factors such as age, retirement status, risk tolerance, income, net worth, and goals [1] - Suggested investment categories include S&P 500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash [1]

Core Viewpoint - Vicor's shares plummeted over 23% following a disappointing quarterly earnings report, despite a generally positive day for the stock market overall [1] Financial Performance - Vicor reported first-quarter revenue of nearly $94 million, which is a 12% increase compared to the same period in 2024, but fell short of the average analyst estimate of over $97 million [2] - The company's GAAP net income was $2.5 million ($0.06 per share), a significant improvement from a $14.5 million loss in the same quarter last year, yet it missed the consensus estimate of $0.29 per share profit [3] Operational Challenges - CEO Patrizio Vinciarelli noted that revenue and gross margins declined sequentially, attributed to reduced income from a licensee transitioning to new unlicensed products [4] - The ongoing trade war raises concerns for device makers like Vicor, who may face increased component costs, adding to investor anxiety [4]

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, 2025 ☐ 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 (Stat ...

Financial Data and Key Metrics Changes - Vicor recorded total revenue of $90.4 million for Q1 2025, down 2.3% sequentially from Q4 2024's $96.2 million, but up 12% from Q1 2024's $83.9 million [6] - Advanced products revenue increased 2.7% sequentially to $59.9 million, while product revenue decreased 10% sequentially to $34.1 million [6] - Gross profit margin for Q1 was 47.2%, a decrease of 520 basis points from the prior quarter [7] - Net income for Q1 totaled $2.5 million, with GAAP diluted earnings per share at $0.06 based on a fully diluted share count of 45.5 million shares [11] Business Line Data and Key Metrics Changes - Shipments to stocking distributors decreased 16.9% sequentially and 33.8% year over year [7] - Advanced product share of total revenue increased to 63.7% compared to 60.6% in Q4 2024, while Brick product share decreased to 36.3% [7] - Total operating expenses increased 8.2% sequentially to $44.5 million, primarily due to increased research and development expenses [10] Market Data and Key Metrics Changes - Exports as a percentage of total revenue increased to approximately 60.8% from 56.9% in the prior quarter [7] - The one-year backlog increased 10.4% from the prior quarter, closing at $171.7 million [12] Company Strategy and Development Direction - Vicor is focusing on developing complete front-end to point-of-load solutions centered on a 48-volt hub, which is proving effective as evidenced by strong engagements across top customers [20] - The company is navigating a changing tariff landscape and has informed customers of a 10% tariff surcharge for shipments after July [18] - Vicor is positioned to offer high-efficiency, high-density power delivery networks, with a market expected to exceed $5 billion by 2028 [17] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a year of uncertainty and opportunity, unable to provide quarterly guidance until uncertainties are resolved [13] - The company remains confident in its licensing business as a growth area, despite short-term impacts from a licensee transitioning to unlicensed products [25] - Management expects continued growth in product revenues and licensing income, with a focus on new product introductions [52] Other Important Information - The transition to a new ERP system (SAP) contributed to the decline in gross margin due to increased production and consulting expenses [9] - Capital expenditures for Q1 totaled $4.6 million, with a construction and progress balance of approximately $9.9 million for manufacturing equipment [12] Q&A Session Summary Question: Can you elaborate on the impact of Vicor's licensing business? - Management acknowledged a short-term impact from a licensee transitioning to unlicensed products but remains confident in the growth potential of the licensing business [25] Question: What are the expected impacts of tariffs on supply and demand? - Management assessed the impact of tariffs on the bill of materials and instituted a 10% tariff surcharge, not expecting significant negative impacts on demand [29] Question: What is the timeline for ramping second-generation VPD products? - Management expects to bring development to fruition for lead customers soon, targeting power production in the second half of the year [34] Question: How does the company view the NBM business going forward? - Management expects the NBM business to grow, driven by demand following the ITC win and concerns from OEMs and hyperscalers [67] Question: What is the status of the ITC case? - The ITC case concluded with a final determination, and management is confident in overcoming the commission's position regarding licensing [54] Question: What is the expected pricing after implementing tariff surcharges? - A 10% tariff surcharge will be applied across the board, with expectations to maintain margins despite varying impacts on different products [61]

Financial Data and Key Metrics Changes - Vicor recorded total revenue of $90.4 million for Q1 2025, down 2.3% sequentially from Q4 2024's $96.2 million, but up 12% from Q1 2024's $83.9 million [7] - Advanced products revenue increased 2.7% sequentially to $59.9 million, while product revenue decreased 10% sequentially to $34.1 million [8] - Gross profit margin for Q1 was 47.2%, a decrease of 520 basis points from the prior quarter [9] - Net income for Q1 totaled $2.5 million, with GAAP diluted earnings per share at $0.06 based on a fully diluted share count of 45.5 million shares [12] Business Line Data and Key Metrics Changes - Shipments to stocking distributors decreased 16.9% sequentially and 33.8% year over year [9] - Advanced product share of total revenue increased to 63.7% compared to 60.6% in Q4 2024, while Brick product share decreased to 36.3% [9] Market Data and Key Metrics Changes - Exports as a percentage of total revenue increased to approximately 60.8% from 56.9% in the prior quarter [9] - The one-year backlog increased 10.4% from the prior quarter, closing at $171.7 million [14] Company Strategy and Development Direction - Vicor is focusing on high-density power delivery solutions, particularly in the AI and HPC markets, with expectations for significant growth in these areas [17][20] - The company is navigating a changing tariff landscape and has implemented a 10% tariff surcharge on shipments after July [18] - Vicor's strategy includes developing complete front-end to point-of-load solutions centered on a 48-volt hub, which is proving effective across its target business segments [20] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a year of uncertainty and opportunity, with a wide range of possible outcomes for revenue and profitability [14] - The company remains confident in its licensing business as a growth driver, despite short-term impacts from a licensee transitioning to unlicensed products [26] - Management expects continued growth in product revenues and licensing income, with a focus on strengthening relationships with top customers [54] Other Important Information - Operating expenses increased 8.2% sequentially to $44.5 million, primarily due to increased R&D expenses [11] - Capital expenditures for Q1 totaled $4.6 million, with a construction and progress balance of approximately $9.9 million for manufacturing equipment [13] Q&A Session Summary Question: Can you elaborate on the impact of Vicor regarding the transition to unlicensed products? - Management acknowledged a short-term impact on Q1 results but remains confident in the growth potential of the licensing business [26] Question: What are the indirect and direct impacts of tariffs? - Management assessed the impact on the bill of materials and instituted a 10% tariff surcharge, expecting minimal negative impact on demand [30] Question: What is the timeline for ramping second-generation VPD products? - Management is focused on delivering to lead customers first, with expectations for production in the second half of the year [32] Question: How do you expect licensing income to grow? - Management anticipates growth from both existing licensees and potential new agreements, though specifics are difficult to predict [72] Question: What is the status of the ITC case? - The ITC case concluded with an exclusion order, and management is appealing aspects of the determination [58] Question: What is the expected impact of the new fab on margins? - Management expects improvements in product margins as capacity utilization increases later in the year [79] Question: How is customer interest in 800 volts to 48 volts technology? - There is significant interest from hyperscalers, with expectations for orders to ramp up in the coming months [113]

[Financial Highlights](index=1&type=section&id=Financial_Highlights) Vicor reported increased Q1 2025 revenues and returned to profitability, despite declining gross margins, while significantly growing operating cash flow and order backlog Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Q4 2024 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $94.0M | $83.9M | $96.2M | +12.0% | -2.3% | | Gross Margin | $44.4M | $45.1M | $50.4M | -1.5% | -11.9% | | Gross Margin % | 47.2% | 53.8% | 52.4% | -6.6pp | -5.2pp | | Net Income (Loss) | $2.5M | ($14.5M) | $10.2M | N/A | -75.5% | | Diluted EPS | $0.06 | ($0.33) | $0.23 | N/A | -73.9% | Cash Flow and Capital Expenditures (Q1 2025) | Metric | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | Cash Flow from Operations | $20.1M | $2.6M | $10.1M | | Capital Expenditures | $4.6M | $7.3M | $1.7M | - Order backlog increased to **$171.7 million**, up **14.2%** year-over-year from **$150.3 million** and up **10.4%** sequentially from **$155.5 million**[6](index=6&type=chunk) - Cash and cash equivalents grew **6.8%** sequentially to **$296.1 million** as of March 31, 2025, from **$277.3 million** at the end of 2024[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management_Commentary) Management attributed revenue and margin declines to licensee transitions, with future improvements tied to fab utilization and new licensing, while advancing 2nd generation VPD for AI - Sequential declines in revenue and gross margins were attributed to reduced income from a licensee transitioning to a new generation of unlicensed products[7](index=7&type=chunk) - Future margin improvements depend on higher utilization of the company's ChiP fab and increased income from both existing and future licensing deals[7](index=7&type=chunk) - The company is advancing its 2nd generation VPD for AI, which will feature a new ASIC to increase density and bandwidth, aiming to set new performance standards for AI processors[7](index=7&type=chunk) [Financial Statements](index=3&type=section&id=Financial_Statements) Detailed financial statements reveal a return to net income, primarily due to the absence of prior-year litigation expenses, and an improved balance sheet with stronger cash and increased total assets [Condensed Consolidated Statement of Operations](index=3&type=section&id=Condensed_Consolidated_Statement_of_Operations) Q1 2025 net revenues reached $94.0 million with a net income of $2.5 million, a significant improvement over Q1 2024, largely due to the absence of a $17.2 million litigation expense Statement of Operations Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenues | $93,968 | $83,872 | | Gross margin | $44,365 | $45,123 | | Total operating expenses | $44,514 | $61,238 | | *Litigation-contingency expense* | *$ -* | *$17,200* | | Income (loss) from operations | ($149) | ($16,115) | | Net income (loss) attributable to Vicor | $2,539 | ($14,473) | | Diluted EPS | $0.06 | ($0.33) | [Condensed Consolidated Balance Sheet](index=4&type=section&id=Condensed_Consolidated_Balance_Sheet) As of March 31, 2025, Vicor's total assets increased to $665.0 million, driven by higher cash, with total liabilities rising to $84.5 million and total equity growing to $580.6 million Balance Sheet Summary (in thousands) | Account | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $296,099 | $277,273 | | Inventories | $98,515 | $106,032 | | **Total Assets** | **$665,038** | **$641,118** | | Total current liabilities | $75,661 | $61,820 | | **Total Liabilities** | **$84,475** | **$70,827** | | **Total Equity** | **$580,563** | **$570,291** | [Additional Information](index=2&type=section&id=Additional_Information) This section includes investor call details, a forward-looking statement disclaimer, and an overview of Vicor's modular power components business - An investor conference call was scheduled for 5:00 p.m. Eastern Time on April 29, 2025, with webcast details available on the company's website[8](index=8&type=chunk) - The release contains forward-looking statements and directs readers to the company's SEC filings (Form 10-K) for a full understanding of associated risks[9](index=9&type=chunk) - Vicor designs, manufactures, and markets modular power components and systems for various high-performance markets, including computing, industrial, and aerospace[10](index=10&type=chunk)

Core Viewpoint - Vicor Corporation reported a mixed financial performance for the first quarter of 2025, with revenue growth year-over-year but declines in gross margin and net income compared to the previous quarter [2][3][4]. Financial Performance - Revenues for Q1 2025 were $94.0 million, reflecting a 12.0% increase from $83.9 million in Q1 2024, but a 2.3% decrease from $96.2 million in Q4 2024 [2]. - Gross margin decreased to $44.4 million in Q1 2025 from $45.1 million in Q1 2024 and from $50.4 million in Q4 2024, with gross margin percentage dropping to 47.2% from 53.8% year-over-year and from 52.4% sequentially [3]. - Operating expenses were $44.5 million in Q1 2025, down from $61.2 million in Q1 2024 but up from $41.2 million in Q4 2024 [3]. Profitability - The net income for Q1 2025 was $2.5 million, or $0.06 per diluted share, compared to a net loss of $14.5 million or ($0.33) per diluted share in Q1 2024, and net income of $10.2 million or $0.23 per diluted share in Q4 2024 [4]. - Cash flow from operations was $20.1 million in Q1 2025, significantly up from $2.6 million in Q1 2024 and $10.1 million in Q4 2024 [5]. Backlog and Future Outlook - The backlog for Q1 2025 was $171.7 million, a 14.2% increase from $150.3 million in Q1 2024 and a 10.4% increase from $155.5 million at the end of Q4 2024 [6]. - CEO Dr. Patrizio Vinciarelli highlighted challenges in revenue and gross margin due to a licensee transitioning to new products, but noted potential for margin improvements with higher utilization of manufacturing capabilities and increased licensing income [7]. Capital Structure - As of March 31, 2025, cash and cash equivalents increased by 6.8% sequentially to approximately $296.1 million from approximately $277.3 million as of December 31, 2024 [5]. - Total assets as of March 31, 2025, were $665.0 million, up from $641.1 million at the end of 2024 [14][15].

Core Viewpoint - Vicor Corporation will hold its first quarter 2025 earnings conference call on April 29, 2025, at 5:00 p.m. Eastern Time, to discuss financial and operational results for the three months ended March 31, 2025 [1]. Group 1: Earnings Call Details - The earnings results will be released via GlobeNewswire at the close of the NASDAQ Market Session on April 29, 2025, with a press release and financial statement summary available shortly thereafter on the Investor Relations page of Vicor's website [2]. - Investors and analysts wishing to ask questions during the conference call must register with Notified, the service provider hosting the call, to receive dial-in information and a unique PIN [3]. - A listen-only mode will be available via a webcast link posted on Vicor's Investor Relations page prior to the conference call, with a recommendation to access the website at least 15 minutes before the call [4]. Group 2: Post-Call Information - For those unable to participate in the live conference call, a replay of the webcast will be available on Vicor's Investor Relations page [5]. Group 3: Company Overview - Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based on patented technologies, serving various markets including enterprise computing, industrial automation, telecommunications, and aerospace [6].

Core Insights - The automotive industry is transitioning to 800V batteries and 48V zonal architecture, creating a demand for efficient power conversion solutions [1][2] - Vicor's new automotive-grade power modules are designed to address the challenges of high voltage to 48V and 12V conversion, focusing on performance optimization, size reduction, and cost efficiency [1][2] Company Overview - Vicor Corporation specializes in designing, developing, manufacturing, and marketing modular power components and complete power systems, leveraging patented technologies [5] - The company serves various markets, including enterprise computing, industrial automation, telecommunications, and transportation [5][6] Industry Event - Vicor will present at the World Congress Experience (WCX) 2025 in Detroit from April 8-10, showcasing high power density DC-DC converter modules [2][4] - The presentation will focus on optimizing high voltage to point of load conversion in electrified vehicles, addressing current automotive electrification challenges [2][4]

Core Insights - Vicor has launched a new family of DCMs (DCM3717 and DCM3735) designed for 48V-centric power delivery networks, enhancing system efficiency and performance [1][3] - The DCMs offer power levels ranging from 750W to 2kW, achieving an industry-leading power density of 5kW/in3, which allows for scalable solutions through parallel device configurations [1][3] Company Overview - Vicor Corporation specializes in designing, developing, manufacturing, and marketing modular power components and complete power systems, leveraging a portfolio of patented technologies [4] - The company is headquartered in Andover, Massachusetts, and serves various markets including enterprise computing, industrial automation, telecommunications, and aerospace [4]