Communications Power

Ramp-up of Power-on-Package Modules Produces Loss at Vicor

Vicor Corporation today reported financial results for the second quarter and six months ended June 30, 2017. Revenues for the second quarter ended June 30, 2017 increased to $57,709,000, compared to $52,941,000 for the corresponding period a year ago, and increased from $54,462,000 for the first quarter of 2017.

Second quarter bookings increased to $59,387,000 from $52,514,000 for the corresponding period a year ago, and increased from $57,891,000 for the first quarter of 2017.

Gross margin increased to $25,930,000 for the second quarter of 2017, compared to $24,471,000 for the corresponding period a year ago, and increased from $23,652,000 for the first quarter of 2017. Gross margin, as a percentage of revenue, decreased to 44.9% for the second quarter of 2017, compared to 46.2% for the second quarter of 2016, but increased from 43.4% for the first quarter of 2017.

Net loss for the second quarter was ($459,000), or ($0.01) per share, compared to a net loss of ($544,000), or ($0.01) per share, for the corresponding period a year ago and a net loss of ($974,000), or ($0.02) per share, for the first quarter of 2017.

Revenues for the six months ended June 30, 2017, increased 13.3% to $112,171,000 from $98,968,000 for the corresponding period a year ago. Net loss for the six month period was ($1,433,000), or ($0.04) per share, compared to a net loss of ($5,895,000), or ($0.15) per share, for the corresponding period a year ago.

Cash provided by operating activities totaled $644,000 for the second quarter of 2017, compared to cash used for operating activities of $3,171,000 for the corresponding period a year ago. Cash and cash equivalents sequentially decreased by $1,402,000 to approximately $51,425,000 at the end of the second quarter of 2017 from $52,827,000 at the end of the first quarter of 2017.

Total backlog at the end of the second quarter of 2017 was $53,157,000, compared to $51,732,000 at the end of the first quarter, and $48,371,000 at the end of 2016.

Commenting on the second quarter, Dr. Patrizio Vinciarelli, Chief Executive Officer, stated, “Vicor recorded incremental performance improvement with sequential increases in bookings and revenue. Consolidated gross profit dollars and margin percentage increased, reflecting higher production volumes. However, expenses associated with the initial production ramp of our Power-on-Package modules resulted in a small net loss.”

Dr. Vinciarelli concluded, “Vicor’s 48-Volt direct-to-processor solutions using our PRM-VTM ChiP-sets are gaining traction on motherboards for hyperscale datacenters while our MCD-MCM Power-on-Package ChiP-sets are getting designed within advanced CPUs, GPUs and ASICs for Supercomputing and Artificial Intelligence applications. Recent design wins and purchase orders for applications ranging from UAVs, to autonomous vehicles, to wireless telecom reflect our drive to expand our customer base and diversify our revenue streams.”

Vicor Corporation
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