Vicor Corp (VICR, Financial), a company specializing in modular power components and complete power systems, reported its financial results for the second quarter of 2024. The company, which derives a significant portion of its revenue from the Asia Pacific region, faced notable challenges this quarter.
Performance Overview
For the second quarter ended June 30, 2024, Vicor Corp (VICR, Financial) reported revenues of $85.9 million, a 19.6% decrease from $106.7 million in the same period last year. However, this represents a 2.4% sequential increase from $83.9 million in the first quarter of 2024. The company reported a net loss of $(1.2) million, or $(0.03) per diluted share, compared to net income of $17.1 million, or $0.38 per diluted share, in the same period last year.
Key Financial Metrics
Vicor Corp (VICR, Financial) faced a decline in gross margin, which decreased to $42.8 million for the second quarter of 2024, compared to $55.2 million for the corresponding period a year ago. Gross margin as a percentage of revenue also decreased to 49.8%, down from 51.7% a year ago and 53.8% in the first quarter of 2024. Operating expenses increased to $42.6 million, up from $37.3 million a year ago, but decreased sequentially from $61.2 million in the first quarter of 2024.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Revenues | $85.9 million | $106.7 million |
| Gross Margin | $42.8 million | $55.2 million |
| Net Income (Loss) | $(1.2) million | $17.1 million |
| EPS (Diluted) | $(0.03) | $0.38 |
Balance Sheet and Cash Flow
Vicor Corp (VICR, Financial) reported cash and cash equivalents of approximately $251.9 million as of June 30, 2024, a 5.3% increase from $239.2 million as of March 31, 2024. Cash flow from operations totaled $15.6 million for the second quarter, compared to $19.0 million for the same period last year and $2.6 million in the first quarter of 2024. Capital expenditures for the second quarter were $6.1 million, down from $8.5 million a year ago.
Challenges and Achievements
Vicor Corp (VICR, Financial) faced several challenges this quarter, including a decrease in gross margin and profitability due to changes in product mix and taxes. The backlog for the second quarter ended June 30, 2024, totaled $153.8 million, a 29.2% decrease from $217.3 million a year ago. However, the backlog saw a 2.3% sequential increase from $150.3 million at the end of the first quarter of 2024.
"Backlog, revenues and cash flow improved in Q2 while gross margins and profitability were impacted by changes in product mix and taxes," commented Chief Executive Officer Dr. Patrizio Vinciarelli.
Analysis
Despite the challenges, Vicor Corp (VICR, Financial) managed to beat revenue expectations for the quarter, reporting $85.9 million against an estimated $81.77 million. However, the company missed the earnings per share estimate of $0.05, reporting a loss of $(0.03) per diluted share. The company's focus on high current and power density technology positions it well in the market, but the impact of product mix changes and increased operating expenses remains a concern.
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Explore the complete 8-K earnings release (here) from Vicor Corp for further details.
