Vicor Corporation Reports 13.6% Revenue Decline, Net Loss in Q3 2024

Vicor Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Vicor's net revenues totaled $93.2 million, a decrease of 13.6% from $107.8 million in the same period of 2023. The decline was attributed to reduced market demand for Brick Products and continued softness in Advanced Products, which saw revenues drop to $49.4 million, down 15.4% from the prior year. In contrast, Brick Products generated $43.8 million, down 11.5% year-over-year. For the nine months ended September 30, 2024, total revenues were $262.9 million, a 15.8% decrease from $312.4 million in 2023.

The company's profitability also suffered, with a net income of $11.6 million for Q3 2024, down from $16.6 million in Q3 2023. For the nine-month period, Vicor reported a net loss of $4.1 million, compared to a net income of $44.9 million in the previous year. This decline in profitability was influenced by increased litigation-related expenses, particularly a $19.5 million litigation-contingency expense related to a patent infringement lawsuit.

Vicor's gross margin for Q3 2024 was $45.7 million, a decrease of 18.1% from $55.9 million in Q3 2023, reflecting lower sales volume and an unfavorable sales mix. Operating expenses increased to $40.4 million, up 5.2% from the previous year, primarily due to higher corporate legal activity and stock-based compensation.

On the balance sheet, Vicor reported total assets of $632.8 million as of September 30, 2024, up from $594.9 million at the end of 2023. Cash and cash equivalents increased to $267.6 million, compared to $242.2 million at the end of the previous year. However, total current liabilities rose significantly to $70.4 million from $44.2 million, impacting the current ratio, which decreased to 6.4:1 from 9.5:1.

Strategically, Vicor is focusing on transitioning its product emphasis towards Advanced Products, targeting high-growth segments while maintaining profitability in its established Brick Products markets. The company has also authorized a new stock repurchase plan of up to $100 million, replacing a previous plan from 2000.

Overall, Vicor's financial performance reflects challenges in revenue generation and profitability, influenced by market conditions and increased operational costs, while the company continues to adapt its strategic focus.