Vicor Corp (VICR) Q3 2024 Earnings Call Highlights: Navigating Revenue Growth Amidst Market ...

GuruFocus News
3 min read

In This Article:

  • Total Revenue: $93.2 million, up 8.5% sequentially, down 13.6% year-over-year.

  • Advanced Products Revenue: $49.4 million, up 6.5% sequentially.

  • BRICK Products Revenue: $43.8 million, up 10.8% sequentially.

  • Gross Margin: 49.1%, a 70-basis point decrease from the prior quarter.

  • Operating Expenses: $40.4 million, decreased 5.2% sequentially.

  • Net Income: $11.6 million.

  • GAAP Diluted EPS: $0.26 based on 45,174,000 shares.

  • Cash and Cash Equivalents: $267.6 million.

  • Operating Cash Flow: $22.6 million for the quarter.

  • Capital Expenditures: $8.4 million.

  • Book-to-Bill Ratio: Below one.

  • Backlog: $150.6 million, decreased 2.1% from the prior quarter.

Release Date: October 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Vicor Corp (NASDAQ:VICR) reported a sequential revenue increase of 8.5% in Q3 2024, reaching $93.2 million.

  • The company saw a significant increase in BRICK Products revenue, which rose by 10.8% sequentially.

  • Vicor Corp (NASDAQ:VICR) introduced five new DC-to-DC converter power module families, enhancing their product offerings.

  • The company achieved a critical milestone by meeting the requirements of the IATF 16949 standard, advancing its automotive capabilities.

  • Vicor Corp (NASDAQ:VICR) is seeing high interest in its Gen 5 VPD solutions, particularly in the AI and network processor markets.

Negative Points

  • Total revenue for Q3 2024 was down 13.6% compared to the same quarter in 2023.

  • Shipments to stocking distributors decreased 12.5% sequentially and 22.7% year-over-year.

  • The consolidated gross profit margin decreased by 70 basis points from the prior quarter, primarily due to a change in product mix.

  • The book-to-bill ratio came in below one, indicating potential future revenue challenges.

  • Vicor Corp (NASDAQ:VICR) is facing ongoing legal challenges related to intellectual property, which could impact future operations.

Q & A Highlights

Q: Can you provide an update on the ITC case against Delta and its impact on OEM customers? A: Patrizio Vinciarelli, CEO, explained that Delta is attempting to reassure customers with promises of a workaround. However, customers are skeptical due to technical and legal challenges. Vicor's extensive IP portfolio makes it difficult for competitors to circumvent, and customers relying on Delta may face redesign and requalification challenges.

Q: What is the timeline for Gen 5 VPD products to be adopted and shipped in volume in the HPC market? A: Patrizio Vinciarelli, CEO, stated that all ASICs and semiconductors are ready, with initial shipments to a lead customer expected in the next few months. Full production is anticipated in the first half of 2025.

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