Vicor(VICR) - 2025 Q1 - Quarterly Results

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] - 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] 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] - Future margin improvements depend on higher utilization of the company's ChiP fab and increased income from both existing and future licensing deals[7] - 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] 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 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 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 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] - 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] - Vicor designs, manufactures, and markets modular power components and systems for various high-performance markets, including computing, industrial, and aerospace[10]