Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2024

Core Insights - Vicor Corporation reported financial results for Q4 and the year ended December 31, 2024, highlighting improvements in revenues and gross margins despite a decline in annual revenues [1][7]. Financial Performance - Q4 revenues reached $96.2 million, marking a 3.8% increase year-over-year from $92.7 million and a 3.2% sequential increase from $93.2 million in Q3 2024 [2]. - Gross margin for Q4 was $50.4 million, up from $47.3 million year-over-year and $45.7 million sequentially, with gross margin percentage increasing to 52.4% from 51.1% year-over-year and 49.1% sequentially [3]. - Net income for Q4 was $10.2 million, or $0.23 per diluted share, compared to $8.7 million or $0.19 per diluted share in the same period last year, but down from $11.6 million or $0.26 per diluted share in Q3 2024 [4]. - Cash flow from operations for Q4 totaled $10.1 million, a decrease from $21.5 million year-over-year and $22.6 million in Q3 2024 [5]. - The backlog for Q4 was $155.5 million, a 3.3% decrease from $160.8 million year-over-year but a 3.3% sequential increase from $150.6 million at the end of Q3 2024 [6]. Annual Overview - For the year ended December 31, 2024, revenues decreased by 11.4% to $359.1 million from $405.1 million in the prior year [7]. - The gross margin percentage for the year improved to 51.2% from 50.6% in the prior year [7]. - Annual net income was $6.1 million, or $0.14 per diluted share, significantly down from $53.6 million or $1.19 per diluted share in the previous year [7]. - Cash flows from operations for the year totaled $50.8 million, a 31.8% decrease from $74.5 million in the prior year [7]. Strategic Insights - CEO Dr. Patrizio Vinciarelli noted that revenue and gross margins improved, with further margin enhancements expected from higher utilization of the ChiP fab and increased licensing income [8]. - The company is focused on completing the development of a high-density VPD system for AI applications, which is anticipated to set new standards for performance and efficiency [8].