ANDOVER, MA, Nov. 3, 2009 (Marketwire) --
ANDOVER, MA -- (Marketwire) -- 11/03/09 -- Vicor Corporation (NASDAQ: VICR) (the "Company") today reported its financial results for the three month and nine month periods ended September 30, 2009.
Revenues for the third fiscal quarter ended September 30, 2009, decreased to $47,746,000, compared to $51,278,000 for the corresponding period a year ago and $50,627,000 for the second quarter of 2009. Gross margin decreased to $20,668,000 for the third quarter of 2009, compared to $21,903,000 for the corresponding period a year ago and $22,598,000 for the second quarter of 2009. Gross margin, as a percentage of revenue, increased to 43.3% for the third quarter of 2009 compared to 42.7% for the third quarter of 2008, but decreased on a sequential basis from 44.6% for the second quarter of 2009. Net income for the third quarter was $1,691,000, or $0.04 per diluted share, compared to net income of $609,000, or $0.01 per diluted share, for the corresponding period a year ago and net income of $1,341,000, or $0.03 per diluted share, for the second quarter of 2009.
Results for the third quarter of 2009 included a payment of $750,000 received from a vendor with which the Company had entered into a release and settlement agreement resolving alleged product performance issues with certain of the vendor's products. The payment was recorded in "Gain from litigation-related and other settlements, net" in the Company's consolidated statement of operations.
Revenues for the nine months ended September 30, 2009, decreased to $148,821,000 from $154,044,000 for the corresponding period a year ago. Net income for the nine month period was $489,000, or $0.01 per diluted share, compared to a net loss of $(94,000) or $(0.00) per diluted share, for the corresponding period a year ago. The operating results were negatively impacted by aggregate pre-tax charges of $4,083,000 for the cost of severance and other employee-related costs in connection with workforce reductions implemented during the nine months ended September 30, 2009, partially offset by the settlement payment discussed above.
The book-to-bill ratio for the third quarter of 2009 was 1.19:1, as compared to 0.79:1 for the second quarter of 2009. Backlog at the end of the third quarter of 2009 was $50,502,000, as compared to $41,515,000 at the end of the second quarter of 2009.
Commenting on the Company's third quarter performance, Patrizio Vinciarelli, Chairman of the Board, President and Chief Executive Officer, stated, "Vicor continues to benefit during these uncertain economic times from the relative stability of our power components and systems business. While revenue declined sequentially for the quarter, we were profitable and generated cash for the period."
Dr. Vinciarelli continued, "During the third quarter, we accelerated our capital expenditures to expand V·I Chip manufacturing capacity by a factor of three. We are focused on having this capacity on line in Q1, 2010 in anticipation of stepped up demand later in the year."
Depreciation and amortization for the third quarter of 2009 was approximately $2,507,000, and capital additions totaled $1,539,000. For the first nine months of 2009, depreciation and amortization was $7,741,000 and capital additions were $4,282,000, compared to $7,824,000 and $6,557,000, respectively, for the first nine months of 2008. Cash, restricted cash equivalents and short-term investments increased by $5,528,000 to approximately $36,978,000 at the end of the third quarter of 2009 from $31,450,000 at the end of the second quarter of 2009. There were no share repurchases during the quarter, and approximately $8,500,000 remains authorized for additional purchases. Vicor previously announced an indefinite suspension of its semi-annual dividend.
As of September 30, 2009, the Company held approximately $35,900,000, at par value, of auction rate securities. As previously disclosed, conditions in the market for auction rate securities and the repeated failure of auctions by which such securities are priced have led the Company to continue to classify its holdings as long-term investments. Based on the Company's ability to access cash and other short-term investments and its expected operating cash flows, management does not anticipate the current lack of liquidity of holdings of auction rate securities will affect the Company's ability to execute its current operating plan.
The tax provision in 2009 provides for estimated income taxes due in various state and international taxing jurisdictions for which losses incurred by the Company cannot be offset, and for estimated federal and state income taxes for certain minority-owned subsidiaries that are not part of the Company's consolidated income tax returns. The 2009 tax provision also includes discrete items, including benefits for the receipt of a refund for a net operating loss carryback claim and for an expected refund due to certain monetized credits, and expense for increases in accrued interest for potential liabilities.
