Vicor(US:VICR)2025-04-29 21:00Financial 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]