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Vicor Corporation Stock Price: Quote, Forecast, Splits & News (VICR)

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Company Profile

New

Vicor Corporation Price & Performance (VICR)

Stock Performance

Updated Mar 14, 8:00 PM UTC

VICR:NASDAQ

$53.66USD

5.22% · $2.66

After Hours

-0.08% · $0.044

Open

$52.38

High

$54.12

Low

$52.20

Market Cap

$2.42B

P/E Ratio

383.3

Volume

227.70K

Year High

$65.70

Year Low

$30.90

News & Market Insights

Bank of New York Mellon Reduces Vicor Holdings by 6.3%
today
Bank of New York Mellon Corp has decreased its stake in Vicor Corporation by 6.3%, selling 10,058 shares during Q4 2024. The firm now owns 148,613 shares, valued at $7,181,000. Vicor's stock performance remains strong, with a 52-week range of $30.90 to $65.70, reflecting market interest.12
Vicor Stock Skyrockets After Strong Q4 Earnings
Feb 28, 2025
Vicor Corporation's Q4 2024 results exceeded expectations, with revenue of $96.2 million and an EPS of $0.23. These figures surpassed forecasts, boosting stock prices by 21.46%. Improved gross margins and strategic focus on licensing and innovation have fueled investor confidence despite annual revenue declines.34
Insider Stock Sales Highlight Vicor's Market Momentum
today
Vicor's VP Claudio Tuozzolo sold $213,732 worth of shares as the stock neared its 52-week high. Insider transactions coincide with a 19.47% weekly stock gain. Despite full-year revenue challenges, Q4 performance and strategic advancements in high-density power solutions signal long-term growth potential.56

What's Happening

Peers

Earnings

Report Date

Feb 20, 2025

Reported Revenue

96.2M

Avg 1d Change

11.37%

Report Period

Q4 2024

EPS Estimate

—

Implied Move 1d

12.21%

Transcript

11m 12s

In light of these risks and uncertainties, we can offer no assurance that any forward looking statement will, in fact, prove to be correct. Actual results may differ materially from those explicitly set forth in or implied by any of our remarks today. The risks and uncertainties we face are discussed in Item 1A. Of our 2023 Form 10 ks which we filed with the SEC on 02/28/2024. This document is available via the EDGAR system on the SEC's website. Please note the information provided during this this conference call is accurate only as of today. Thursday, 02/20/2025. Vicquera undertakes no obligation to update any statements including forward looking statements made during this call. You should not rely upon such statements after the conclusion of this call. A webcast replay of today's call will be available shortly on the Investor Relations page of our website. I'll now turn to a review of Q4 and full year financial performance. After which Phil will review recent market developments and Patrizio, Phil and I will take your questions. In my remarks, I will focus mostly on the sequential quarterly change as well as full year on year changes and refer you to our press release or our upcoming Form 10 ks for additional information.

12m 38s

As stated in today's press release, Vicor recorded total revenue for the fourth quarter of $96,200,000 up 3.2% from the third quarter total of 93,200,000.0 and up 3.8% from the fourth quarter of twenty twenty three total of $92,700,000 Revenues for the year ended 12/31/2024, decreased 11.4% to $359,100,000 dollars from $405,100,000 for the prior year. Advanced product revenue increased 18% sequentially while brick products revenue declined 13% from the third quarter. Revenues for Advanced Products for the year ending 2024 to to $197,300,000 from $223,900,000 the year before. Revenues for Brick Products for the year ending 2024 decreased 10.7% to $161,700,000 from $181,200,000 the year before Shipments to stocking distributors decreased 4% sequentially but increased 7.6% year over year. Exports for the fourth quarter increased sequentially a percentage of total revenue approximately 56.9% from the prior quarter's 49%. On a year over year basis, exports decreased as a percentage of total revenue approximately 48.2% from the prior year's 63.1%. For Q4, Advanced Products share of total revenue increased to 60.6% compared to 53% for the third quarter with Brooks BRIC product share correspondingly decreasing to 39.4% of revenue. Turning to gross margin. We recorded a consolidated gross profit margin of 52.4% approximately 3.3% more than the prior quarter.

14m 37s

For the full year 2024, gross margin rose by 0.7% to 51.2% from 50.6% in the prior year. The year on year increase in gross margin percentage was primarily due to increased royalty income and reductions in supply chain costs. I'll now turn to Q4 operating expenses. Total operating expense including litigation expenses increased 2% from the third quarter For the full year 2024, total operating expense as a percent of revenue increased to 51.6% from 37.9% in the prior year. The amounts of total equity based compensation expense for Q4 included in cost of goods SG and A and R and D was 858,000 million $106,000 and $1,093,000 respectively totaling approximately $4,100,000 For Q4, we recorded operating income of $9,200,000 representing an operating margin of 9.6%. For the full year 2024, operating loss totaled 1,300,000.0 or negative 0.4% of revenue compared to operating income of $51,400,000 or 12.7 Turning to income taxes. We recorded a tax provision for Q4 of approximately 1,500,000.0 representing an effective tax rate for the quarter of 12.9%. The tax provision for the full year 2024 was for the year of 41.5%. Net income for Q4 totaled $10,200,000 GAAP diluted earnings per share was $0.23 based on a fully diluted share count of $45,000,000 and For the full year 2024, net income decreased to $6,100,000 from $53,600,000 in the prior year.

16m 42s

In 2024, diluted fully diluted earnings per share decreased to $0.14 from $1.19 in the prior year. Turning to our cash flow and balance sheet. Cash and cash equivalents totaled $277,300,000 in Q4. Accounts receivable net of reserves totaled $52,900,000 at quarter end. With DSOs for trade receivables at thirty nine days. Inventories net of reserves increased 0.3% sequentially Annualized inventory turns were approximately flat at 1.65 Operating cash flow totaled approximately $10,100,000 for the quarter. Capital expenditures for Q4 totaled $1,700,000 We ended the quarter with a construction and progress balance primarily for manufacturing equipment of approximately $8,200,000 dollars and with approximately $4,900,000 remaining to be spent. I'll now address bookings and backlog. Q4 book to bill improving sequentially came in above one and with one year backlog in increasing 3.3% from the prior quarter closing at $155,500,000 Turning to the first quarter and the full year. 2025 is a year of uncertainty and opportunity. As of today, the year's outcome in terms of top line and bottom line is subject to a relatively wide range of scenarios Given the wide range of possible outcomes, we are unable to provide quarterly guidance until we are further along resolving uncertainties and capitalizing on of recent market developments and then Patrizio Phil and I will take your questions.

18m 28s

I ask that you limit yourselves to one question and a related follow-up. So the we can respond to as many of you as we have the time If you have more than one topic to address, please get back in the queue. So When we entered 2024, we talked about the year in terms of challenges and opportunities. As we enter a new fiscal year, a number of challenges have been overcome, and we now see 2025 in terms of opportunities. The two main challenges we faced in 2024 were refining processes and scaling up capacity in our chip fab, and protecting our intellectual property. Of our new vertically integrated chip factory which is now achieving the short cycle times and high yield goals that we set. Enabling a more efficient operation improving our customer responsiveness and key performance measures. 2025 will see further progress as we build out our top 100 customer operational excellence program leveraging the new factory. The recent final determination by the IT in our first NBM patent infringement case has resulted in exclusion and cease and desist orders banning the importation of infringing power modules unlicensed computer systems infringing two Viaco patents. Effective companies are taking notice of the risk of computing hardware being stranded because of infringing NBM's And the hyperscaler has recently taken a license to Vyco's NBN IP. [indiscernible] our first ITC action achieved most of its goals, foreign power module makers, certain contract manufacturers and some of their U. S. Customers are still playing a game of Catch Me If You Can.

20m 27s

Which we will. By pursuing monetary damages and by seeking additional enforcing relevant patents in our comprehensive IP portfolio. Turning to our fourth quarter, book to bill ratio rose above one in Q4 and with our new licensee booking its future MBM requirements in January, high performance computing business is beginning to strengthen. On the new product front, we are laser focused on delivering our ultra high density high bandwidth Gen five VPD system to a lead customer and to leading AI and network processor companies and hyperscalers. As Patrizio commented in our press release today, perfecting our second generation VPD has taken longer than expected with the fab out of a new ASIC raising the bar on the density and bandwidth of our current multipliers, for customers who need current densities up to five amps per millimeter squared. Industrial and broad business remained strong with bookings from top 100 customers in strength with channel partners globally. Our ATE customers are continuing to see strong growth servicing the processor, ASIC and memory testing needs for AI markets. A new family of factorized power chips will be sampled to these major ATE customers in Q2. Further strengthening our position as a leading modular power [indiscernible] Our aerospace and defense business maintained a double digit growth trajectory that began three years ago with our top 100 accounts.

22m 8s

Power system standardization with rack based power supplies offers further growth opportunities to Vicor for both power modules and for complete systems designed and manufactured by our subsidiaries. Opportunities in the satellite market for our factorized power radiation tolerant modules [indiscernible] and we are well positioned should favorable program award decisions occur in the second half of twenty twenty five. We closed out 2024 with continued global pipeline expansion for our automotive business and we're now shipping into production programs. Our focus for 2025 is to bring the many OEMs and Tier one collaborations to a design win status setting us up for continued growth in this new business through 2027. So in closing, we are in a stronger position at the start of this year than at this time last year. No doubt there are still challenges to be overcome, but we have the determination the staying power and the bench strength with our superior power system technology our new chip fab, and our global team to achieve our NorthStar financial goals of $1,000,000,000 in revenues, 65% gross margins, 2025 will be another exciting year. Thank you. So with that, we'll now take your questions.

23m 37s

Thank you. And our first question will come from John Tanwanteng with CJS Securities. Your line is now open.

23m 59s

Good afternoon. Thank you for taking my question. And nice quarter.

24m 2s

I was first wondering if you could talk a little bit more about delay you mentioned or taking longer than you expect in the VPT product Is there a change in your expectation for when that product will ship in volume? And if so, when do you think that would that window might be?

24m 18s

So it turns out we needed to compete in order to achieve the performance goals and in particular current capability efficiency that we think to major Panzasha with our five gs product line, in particular with second generation V That ASIC is coming out of fab. Before the February in the next ten days. And we expect to be able to in the month of March take final steps with respect to being in a position to compete high performance solution for our lead customer. And at the same time, the mocession capabilities to food performance a broader set of customers.

25m 28s

So is Fagan longer than expected [indiscernible] I view this a once [indiscernible] [indiscernible] in terms of its significance for AI, and I am computing. [indiscernible] the extra time necessary to achieve the level of performance we targeted we think is worth it. In terms of our lead customer, we are very focused on being able to support their ramping needs the second half of this year. We think we're going to be able accomplish that. Got it. Thank you, Prashish.

26m 20s

I ask a question for your lead customer? Do they have a dual source strategy on this product? Where maybe on one side they use your VPD and on the other they use a traditional multi phase maybe for a different type of SKU but with the same silicon.

26m 34s

So our lead customer relies on us with respect to scheduling production requirements on our new generation products. And I believe they're relying on us for the foreseeable future. The level of performance they require is not achievable by any competitive alternative The nature of the solution is that it provides a very expensively covered by RIP portfolio. So we are on a sound foundation in terms of Laurentian collaboration [indiscernible] Got it. Thank you. I'll jump back in queue. Thank you.

27m 29s

And our next question will come from Nicholas Doyle with Needham. Your line is open.

27m 37s

Hey, guys. This is actually Quinn from Needham. Just wanted to ask Patricio and Phil congratulations on your second licensee to the patent portfolio. Wondering if you could at all give us some sense How that might impact your future royalty revenue I know in the third quarter of last year, you generated over $13,000,000 and royalty income. Does this meaningfully increase the the royalty revenue going forward or would you expect your first licensee to continue to represent the majority of sorry, of royalty income going forward? And then I have a follow-up So all that I can tell you is is that it's a significant license, but we are constrained in terms of not being at liberty to disclose for obvious reasons. Any information relating to what it would mean for us, what it means for the licensee. We obviously value our licensee relationships. And want to be I want to honor commitments with respect to maintaining natural relationship Highly confidential. So I can't tell you anything beyond the fact that it's an hyperscaler and it's a significant license. Understood. The sensitivity. Appreciate it. Thank you for sharing what you can. Patricia, it sounds like you also may have secured NBN product orders from this hyperscaler, I believe, in the Phil mentioned that you received orders from this hyperscaler for NBN product in the January.

29m 34s

Can you give us any sense how meaningful those MBM orders are? I know in this press release you talked about margins going forward would depend on your ability to fill the new chip fab And I'm curious if the orders for MBMs are meaningful and could start you on your way to increase in the capacity utilization at the chip fab? Thank you. So in general, the answer is yes. A comment that may feature of our standard licensing methodology is incentives for licensees to do business with us as a module provider, needless to say, with a fab We have a very unique highly proprietary capability that is getting more and more levers with advances including our five gs capability So all of this goes in a common denominator type of reaction in terms of engaging with licensees both as a licensor of critical intellectual property, and as a supplier for major programs that enable the licensee to achieve levels of performance that can't realize otherwise. And all of this will lead [indiscernible] our first fab getting filled. It is not going to happen overnight.

31m 19s

It takes time. There's obviously a gestation field associated with all of these There is no sudden change So I just hope to be realistic with respect to the timescale and expectations But we we do see our first fab, but with a $1,000,000,000 per year in round numbers capacity getting field before Tula.

31m 55s

And our next question will come from Richard Shannon with Craig Hallum Capital. Your line is now open.

32m 5s

Great guys. Thanks for taking my question as well. Me ask a kind of top down question here. Jim's prepared remarks you talked about as you have recently about this year being one of uncertainty and And then you also described some of the dynamics here between your AI, slide change SBC opportunities and other markets. So I guess my question here is, trying to get a sense of the degree to which these uncertainties are related mostly related to HPC versus other markets, is there a heavy influence or a balance between those? Just want to get a sense here given some of your remarks about non HPC markets? Thank you.

32m 42s

I think the uncertainties and opportunities for this year revolve primarily around AI and I'm computing. I think with respect to other markets, I think there is a high degree of profitability. Phil, do you want to answer that? Yes. No, I totally agree. [indiscernible] automotive business is a fledgling business, so there's just full of opportunity there. And as I talked about, our goal is conversion of the pipeline Industrial and Defense and Aerospace, they are going from strength to strength and I've mentioned before, our goal is to double those businesses. And we're in good shape to do that. So it's about HPC. And That's a market that where we had a big reset a couple of years ago. [indiscernible] I think we're rebuilding it from a position of strength not just from the IP perspective, but [indiscernible] in terms of enabling solutions that cannot otherwise be realized. With our own hardware made in our fab.

33m 59s

Okay. I appreciate that detail.

34m 2s

My second question is related to your your second gen VPD products here.

34m 7s

I guess, there's a two part. I guess, it wasn't clear to me whether this ASIC re spend that you talked about is specific to the leading customer or applied to the broader portfolio across AI space here, if you can confirm that.

34m 21s

And then maybe just talk about the kind of the pipeline here for the next set of customers customers when you expect to sample and get some understanding of design wins, is it going to happen this year versus that second half or just some kind of detail how that's progressing? Thank you.

34m 37s

So the new asset is generally applicable [indiscernible] all of the current multipliers [indiscernible] the Faram square millimeter capability of five gs and its VPD implementation. It's something that we had in the pipeline from a next development perspective that we needed to Paradise and [indiscernible] Delivery of [indiscernible] some issues that we encountered in completing development of the current multipliers. So we are very close to the device and looking forward to completing this chapter. I must say, this one building block of a very comprehensive set of modules that perform In combination, all the essential functions of very high performance factorized power system, [indiscernible] Very well with respect to other building blocks, the Karma from a control perspective as an issue that we needed to address.

36m 21s

And our next question comes from John Dillon with D and B Capital. Your line is open.

36m 29s

Hi, guys. Congratulations on a good quarter and a nice book to bill, really good to see.

36m 36s

Patrizio, at the fireside chat, Quinn asked you if you had everything you need for a GPU manufacturer who is having heat problems. And I think you're answerable as you think you do.

36m 45s

And what I'm wondering is, has that customer got an insight into your second gen VPD and the new factory and what is their reaction?

36m 55s

I'm afraid this is a little bit too customer specific I think without naming names, it would be [indiscernible] with their customers. And so I'm going to [indiscernible] refrain from answering your questions. But I will answer the question in more general terms. I think Across All of the customers and potential customers In AI and I believe with second generation VPT, [indiscernible] five gs chipset we have what it takes to address outstanding needs, challenges that all these customers face. With respect to inability to deliver the current their Essex would want to be able to consume thermal management issues, noise issues, a long list of issues that conventional technology is saddled with and a fat price power system with essentially converts the current multiplier addresses much, much, much effectively. So no comments with respect to any one Preston Castell and former Castell, my future cast will seek to general practice of avoiding getting into those details But again, the confidence on my part with respect to are getting traction across the range of customers in that space. With [indiscernible] Can I ask a question a little more generally then? Are all the major GPU customers aware of your new second gen technology and have they seen your new factory and are they are they satisfied with what you're doing?

39m 23s

Not all of them. And as implied by earlier [indiscernible] We've been keeping our powder dry for two reasons. One, to make sure that we devote all the support necessary to our lead customer.

39m 42s

But also to make sure that when we spread out to service other applications and other customers, that we have completed all that we need to have in place for their scale up to be very predictable and very efficient. Phil, do you want to add anything to that?

40m 3s

No. I think the only thing I would add would be that John, we have Very clear. Line of sight to The target chip companies, whether it's AI GPU or network processor companies or hyper scalers that have programs in development. So we know when those programs are starting, what their specs are. We've got a very good picture view of the market. So As Patrikio said, we're focused on our lead customer and then we'll have a set of target follow on customers and I expect going from the evaluation to the design win will be fairly quick with some of them and a little bit longer for others, but it depends on the chip new chip schedules. So it'll be a mix.

40m 52s

Okay. That makes a lot of sense and I really appreciate you guys giving us those details. I'll get back in the queue. Thank you so much. Thank you.

41m 2s

And our next question will come from Don McKenna with DB McKenna and Company. Your line is open.

41m 10s

Hey, Patrizio, again congratulations. During the Needham conference, you indicated that you expected 25% to be a record year. And looking back at earnings in previous years, the high point was $126 a share in '21 Is that what you were referring to? Is the earnings that you expected to be the record?

41m 35s

I expected this year, under reasonable scenarios, would be a record year for revenues and profitability.

41m 46s

Great.

41m 46s

Thank you very much.

41m 53s

And our next question will come from John Tanwanteng with CJS CJS Securities. Your line is open.

42m 3s

I just wanted to follow-up on the licensing portion. You mentioned you signed a significant hyperscaler How many more of those entities are out there of size number one, that are negotiating good faith with you and contact with you. And then how many are there out there that maybe are trying to avoid you and that you may have to hunt down and litigate against? If there are a significant amount in the second part, what's the cost going to be to do that? Phil has been getting from Port Well, the ITC action is certainly smoking out the people who were hiding. That's Sure. So I think that yes, I'm getting contacted now by other companies wanting to talk about licensing. So that's a good thing and that's what the ITC action was meant to do I think one of the key things here is that I think when people think about this, they might think about it as adversarial, but our goal is not to have an adversarial relationship with our licensees as Patrizia talked about is a big incentive to buy modules from Vycor.

43m 8s

Not just because it helps you with the license royalty, but because it's amazing technology and it enables new performance levels that you haven't been able to achieve before. So I'm as I said, earlier, I think 2025 is going to be a very exciting year to double up on that, clearly, this customers or potential customers FSKL is Other parties have been using, buying infringing modules are not in effect the actual responsible for Things that happened without their [indiscernible] And because of that, we owe them [indiscernible] ensuring that that dealt with fairly in the aftermath of an exclusion order [indiscernible] The cause of the issues rest with infringing parties. They are the ones responsible for [indiscernible] these kinds of issues and hopefully they will learn from this experience not to make the same kinds of mistakes in the future. And if they do, there's going to be unfortunately more of these kinds of experiences coming that way and coming the way of their customers and their customers before too long will come to the conclusion that they can't really rely on suppliers that copy innovative products of America, Innovative well protected intellectual property, to avoid that property being infringed.

45m 21s

Got it. That's very helpful. I was wondering if you could also update us on if there's any viable work arounds that you've seen or heard about from the infringers if they're trying to get around the path.

45m 32s

Let me be categoric with respect to that.

45m 35s

There is no NBM alternative that doesn't infringe vital patents.

45m 44s

We have not played out all the patents There is no viable alternative known to me.

45m 53s

Now, again, there are suppliers to the market that are going to customers telling them We don't infringe Vygar IP. We know Vygar You can buy from us without any concern But the reality of it is that I don't really understand their product and VIP that covers them. Or they're misleading their customers. And they should know by now that that's not a long term win win strategy for their relationship with their customers.

46m 33s

Got it. Thank you.

46m 36s

And the next question comes from Patrick Connors with Ajax Capital. Your line is open.

46m 43s

Hi, guys. Really good quarter, really happy for you. Nice book to bill. But I think most importantly, so far it looks like a successful defensive IP, which I know has been very important to you. In that context, can you describe the I understand that your defendants have to post the bond Can you describe the mechanics of the bond? What's the purpose of the bond, the size of the bonds, etcetera? Can you walk me through those mechanics, please? [indiscernible] Following the final determination the ADC case is closed it undergoes a mandatory sixty days presidential review period the outcome of which is the most part the foregone conclusion, but they've been few instances in which there's been a presidential detail of an exclusion order. [indiscernible] the exclusion out that will go into effect sixty days from the final determination. At that point in time, Infiniti products cannot be imported into The U. S. [indiscernible] the aspiration of the presidential review period there is in effect a sixty day grace period within which to your point, [indiscernible] can import Infinixin products in The U. S. If they post a bond Now the bond in this particular investigation for computing systems was set at 100% of the value of the computing system.

48m 42s

So in the case of computing system, It would be a lot of money to post a bond and and that bond will not be recoverable. So who post the bond? Is it the customer or is it the vendor? Well, I cannot help you with respect to that. But fundamentally, customs will not allow importation of infringing product for which there is no bond.

49m 13s

Through the sixty day presidential review period At the end of that, would simply not allow the importation of the infringing Can I make the analogy to a bail bond whereby it goes in forfeiture, if they infringe upon your IP, Yes? And in fact, the complaint [indiscernible] Because we are [indiscernible] But you just said Vico can recover the bond? We could if bonds get positive. Now we have no way of knowing what is going to happen, right?

49m 50s

So needless to say, today is one week [indiscernible] [indiscernible] and there's still a good deal of uncertainty with respect to what is actually going to happen.

50m 8s

Okay. That's extremely helpful. Congratulations. Thank you. I'll jump back in the queue.

50m 14s

And the next question comes from Richard Shannon with Craig Hallum Capital. Your line is open.

50m 23s

Well, thanks guys. Let me ask a follow-up here. And this is kind of taking two different comments during the call here.

50m 30s

Phil is prepared to Mark talk about the ramp of the ship factory with getting short cycle times that you've been envisioning all along here? As well as high yields. And then a response to a later question here, you talk about devoting all your support [indiscernible] scale out to be predictable and efficient.

50m 51s

So I guess my question here is, to what degree has the chip fab been exercised at at high volumes and utilization? Can you describe or quantify the level of utilization today And then what do you mean by getting ready to be able to scale up predictably efficiently. Yes.

51m 11s

So part of your question has to do with capacity and factory utilization. In effect working out the inevitable glitches as you bring up something as new as the first ship fab.

51m 25s

The second part is really to do with the novelty of a new generation of products. So that has to do with other factors of play. Let me address the first part of the question first. So as implied, by Jim's opening remarks, pointing to the change in mix within the last quarter. [indiscernible] you should assume that these advanced products, they're all made So within the last year, and particularly getting into the fourth quarter, we've been scaling up its capacity all of us review every Thursday morning a bar chart showing the progression of chips made that we what we call three d I or three d mesh interconnect with which are some of the core fab processes And that bar chart has been stepping up [indiscernible] [indiscernible] segment within the year. So, good progress there. And again, to your point, it relates to related metrics, right? It's not just capacity, it's cycle time, it's yields. They all play together. You need them to support each other in account overall goal. So we've been able to enjoy We're able to make chips in a pinch if there is a very high priority [indiscernible] ten days. Which is a tiny little fraction of the time it used to take to complete the corresponding task two years ago.

53m 26s

Very small fraction of the time. And with respect to devices that are in mass production and new fab We have filed test yields of 96% [indiscernible] measures of progress with respect to the capability of the processes implemented in the new factor. With respect to the second part of your question, [indiscernible] the deployment of a new [indiscernible] relates to [indiscernible] everything in place. To Enable Solutions that can take on different forms in terms of requirement, multiplicity of routes, in different customer applications. It's more than adding the core modules and core capability is saving the complete understanding of how to adapt system solutions to a particular set of requirements, which would be different from customer to customer, application to application. And that's where we've been through a few other directions of our demo system. Capability I think we are on the tail round.

55m 3s

And it's gotten to a lower maturity that with respect to all the building blocks will showcase the performance that We think we'll bring about [indiscernible] Okay.

55m 29s

Appreciate all the detail there. Very interesting, Patrizio.

55m 31s

My follow on question here is related to kind of thinking through the towards the endpoint of of your ITC case. Obviously, these patents were directed good to see successful outcome here. I guess wondering not only the conversations about licensing related to NBM, so to what degree are these conversations having or intending by you to also involve your point of load products as well.

56m 4s

So Different licensees The focus is different. And so we have in particular we call an OEM license which gives access to all our IP.

56m 25s

The licensee [indiscernible] what particular But they encompass The entire pipe portfolio and that spans the gamut from The first stage of it, two stage point of loss solution or it could be a fast rise power system or a point of load device.

57m

Our first non OEM licensee as a narrow license, the specific to MBMs. So going forward, we expect to have a mix of Different scenarios, but generally speaking, we favor OEMs getting full access for their alternative sources requirements for their Capacity requirements to in effect take risk out of the supply chain which recent events underscore can otherwise be [indiscernible] And to be clear, in regards to our first ADC case, I want to be clear about the fact that litigation is never a perfect process, right? It's full of uncertainties, People have to make some of our limited visibility and and they need to do so with critical timelines and under a certain level of pressure. To be sure, we didn't get 100% of what we're looking for. But it's been successful [indiscernible] as I look at it, in terms of the overall strategy, it accomplishes it accomplishes its mission as a first demonstration of the risks [indiscernible] foreign suppliers that have had [indiscernible] and taking the chances with respect to what might happen with the legal system. I think [indiscernible] have just maybe necessary to get the industry to respect IP as it should be All that is worth, right, in terms of fostering innovation, fostering investment, in the advance of technology It shouldn't be that a company does the heavy lifting and others copy what their company does.

59m 40s

That's not the right solution to the industry needs.

59m 50s

Great. Thank you, guys.

59m 54s

And the next question comes from Nicholas Doyle with Needham. Your line is open.

1h 2s

Hey guys. Just a couple of quick follow ups. For the hyperscaler licensee Patricio Is that only pertinent to MBMs from Delta or other respondents? Or does it cover any NBM module imported by that hyperscaler. [indiscernible] any NBM module from any source?

1h 32s

Perfect.

1h 33s

And then maybe for Dimm or Phil, I think you've been a prepared script to ban products were up 18% sequentially. Just wondering if you could give us a sense what drove that strength? Was it mostly the industrial A and D segments, did you see growth in AI or HPC customers just any color you can give would be appreciated. Thank you.

1h 57s

Yes. Quinn, it was mostly HPC pickup, but also we saw growth in industrial advanced products and also aerospace and defense, but primarily HPC.

1h 1m 13s

Thanks, And the next question comes from John Dillon with DNB Capital. Your line is open.

1h 1m 26s

Hi, Patricio, earlier you mentioned that the new factory should be filled pretty quickly. So I'm wondering, are you in the early stages of planning a new factory? And what kind of timeframe and will that be a Vicor factory or licensee for factory?

1h 1m 43s

Yes, John. So I mentioned earlier that we should be realistic about the gestation time of all these developments, right? We're not going to be filling the factory this year to be clear. So it would be premature at this point to go out on limb with respect to the next factory. But I think it's fair to say that we understand what needs to be done there We've done planning with respect to what it would take There are scenarios as we get into next year there could be a need depending on what happens in terms of adoption of [indiscernible] And as you heard me say before, it is going to be a lot easier to build the next fab having accomplished completion of the first. So We're still very focused [indiscernible] making sure that everything is as good as it should be with it. Again, continue to reduce cycle time, improve yields, getting it filled, which will take time, right? It won't happen this year. But the good news is that replicating and scaling up the capacity assuming as they do that we're going to get great traction with our second gen VPD and five gs product capability in general, which is by the way not limited to point of load applications, right?

1h 3m 36s

It's not just for AI. It is also for industrial products. It's for automotive products. So the market opportunity there is quite broad. And with that broad market opportunity, there will be need for more capacity and more fabs and those may come about under different scenarios involving potential partnerships within Vicor and other parties.

1h 4m 9s

Excellent.

1h 4m 10s

And thank you very much for that detail. And my other question, I'm not sure if I missed this or not, but did you mention have you bought back any more of your stock in the fourth quarter?

1h 4m 23s

A very small amount John. The threshold wasn't happily, the threshold wasn't offset for the buyback to kick in.

1h 4m 33s

And are there any plans going forward I would say, we'll consider it again. I'm sure Patrizio will make a decision on that. But at this point, we still learn a good rate of return on our money market fund. And we have the resources now as a company to really go forward and the investment necessary in capital is really declining now. So I think also when I think about the factor, I think about loading and the leverage we're going to get just with this factory operating extremely efficiently. Going to be a beautiful thing as the loading comes in.

1h 5m 7s

Yes, I would imagine with the quick turns, you can really increase your cash flow. Talking about what you just said.

1h 5m 15s

Right. Excellent.

1h 5m 16s

Okay. Thanks so much guys.

1h 5m 22s

Thank you. This concludes the Q and A session and the call. And thank you for your participation. And you may now disconnect.

Key Insights

Q4 and Full Year Financial Performance: Vicor reported Q4 revenue of $96.2M, up 3.2% sequentially and 3.8% year-over-year. Full-year 2024 revenue decreased 11.4% to $359.1M. Advanced product revenue grew 18% sequentially, while brick product revenue declined 13%. Gross margin for Q4 was 52.4%, up 3.3% sequentially, and full-year gross margin increased to 51.2%.
Operational Highlights: Operating income for Q4 was $9.2M (9.6% margin), while the full year saw an operating loss of $1.3M (-0.4% margin). Net income for Q4 was $10.2M, with GAAP diluted EPS of $0.23. Full-year net income dropped to $6.1M from $53.6M in 2023, with EPS decreasing to $0.14 from $1.19.
Strategic Developments: Vicor's new chip fab achieved short cycle times and high yields, supporting operational efficiency and customer responsiveness. The company is focused on scaling its Gen 5 VPD system for AI and network processor companies, with production expected to ramp in the second half of 2025.
Licensing and IP Protection: Vicor secured a significant license agreement with a hyperscaler for its NBM IP, contributing to its strategy of leveraging intellectual property. The company emphasized its strong IP portfolio and ongoing efforts to enforce patent rights against infringers.
2025 Outlook: Management highlighted opportunities in AI, HPC, automotive, industrial, and aerospace markets. They aim to achieve $1B in revenue and 65% gross margins in the future but noted that factory capacity utilization will take time to scale. The company expects 2025 to be a record year for revenue and profitability under reasonable scenarios.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$297M	$359M	$399M	$405M	$170K
Cost of Revenue	$165M	$181M	$219M	$200M	$82K
Gross Profit	$131M	$178M	$181M	$205M	$88K
Gross Profit %	44%	50%	45%	51%	52%
R&D Expenses	$51M	$53M	$61M	$68M	$35K

2020

2021

2022

2023

2024

Revenue

$297M

$359M

$399M

$405M

$170K

Cost of Revenue

$165M

$181M

$219M

$200M

$82K

Gross Profit

$131M

$178M

$181M

$205M

$88K

Gross Profit %

44%

50%

45%

51%

52%

R&D Expenses

$51M

$53M

$61M

$68M

$35K

Cash Flow

Net Income

	2019	2020	2021	2022	2023
Net Income	$14M	$18M	$57M	$25M	$54M
Dep. & Amort.	$10M	$11M	$12M	$14M	$17M
Def. Tax	$60K	-$21K	$18K	-$72K	-$34K
Stock Comp.	$3M	$5.9M	$7M	$10M	$13M
Chg. in WC	-$5.1M	-$299K	-$21M	-$34M	-$9.8M

2019

2020

2021

2022

2023

Net Income

$14M

$18M

$57M

$25M

$54M

Dep. & Amort.

$10M

$11M

$12M

$14M

$17M

Def. Tax

$60K

-$21K

$18K

-$72K

-$34K

Stock Comp.

$3M

$5.9M

$7M

$10M

$13M

Chg. in WC

-$5.1M

-$299K

-$21M

-$34M

-$9.8M

Balance Sheet

Cash

	2019	2020	2021	2022	2023
Cash	$85M	$162M	$182M	$191M	$242M
ST Investments	$0	$50M	$45M	$0	$0
Cash & ST Inv.	$85M	$212M	$228M	$191M	$242M
Receivables	$38M	$41M	$55M	$65M	$53M
Inventory	$49M	$57M	$67M	$101M	$107M

2019

2020

2021

2022

2023

Cash

$85M

$162M

$182M

$191M

$242M

ST Investments

$50M

$45M

Cash & ST Inv.

$85M

$212M

$228M

$191M

$242M

Receivables

$38M

$41M

$55M

$65M

$53M

Inventory

$49M

$57M

$67M

$101M

$107M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Earnings

Report Date

Feb 20, 2025

Reported Revenue

96.2M

Avg 1d Change

11.37%

Report Period

Q4 2024

EPS Estimate

—

Implied Move 1d

12.21%

Transcript

11m 12s

12m 38s

14m 37s

16m 42s

18m 28s

20m 27s

22m 8s

23m 37s

Thank you. And our first question will come from John Tanwanteng with CJS Securities. Your line is now open.

23m 59s

Good afternoon. Thank you for taking my question. And nice quarter.

24m 2s

24m 18s

25m 28s

26m 20s

26m 34s

27m 29s

And our next question will come from Nicholas Doyle with Needham. Your line is open.

27m 37s

29m 34s

31m 19s

31m 55s

And our next question will come from Richard Shannon with Craig Hallum Capital. Your line is now open.

32m 5s

32m 42s

33m 59s

Okay. I appreciate that detail.

34m 2s

My second question is related to your your second gen VPD products here.

34m 7s

34m 21s

34m 37s

36m 21s

And our next question comes from John Dillon with D and B Capital. Your line is open.

36m 29s

Hi, guys. Congratulations on a good quarter and a nice book to bill, really good to see.

36m 36s

Patrizio, at the fireside chat, Quinn asked you if you had everything you need for a GPU manufacturer who is having heat problems. And I think you're answerable as you think you do.

36m 45s

And what I'm wondering is, has that customer got an insight into your second gen VPD and the new factory and what is their reaction?

36m 55s

39m 23s

Not all of them. And as implied by earlier [indiscernible] We've been keeping our powder dry for two reasons. One, to make sure that we devote all the support necessary to our lead customer.

39m 42s

40m 3s

40m 52s

Okay. That makes a lot of sense and I really appreciate you guys giving us those details. I'll get back in the queue. Thank you so much. Thank you.

41m 2s

And our next question will come from Don McKenna with DB McKenna and Company. Your line is open.

41m 10s

41m 35s

I expected this year, under reasonable scenarios, would be a record year for revenues and profitability.

41m 46s

Great.

41m 46s

Thank you very much.

41m 53s

And our next question will come from John Tanwanteng with CJS CJS Securities. Your line is open.

42m 3s

43m 8s

45m 21s

45m 32s

Let me be categoric with respect to that.

45m 35s

There is no NBM alternative that doesn't infringe vital patents.

45m 44s

We have not played out all the patents There is no viable alternative known to me.

45m 53s

46m 33s

Got it. Thank you.

46m 36s

And the next question comes from Patrick Connors with Ajax Capital. Your line is open.

46m 43s

48m 42s

49m 13s

49m 50s

So needless to say, today is one week [indiscernible] [indiscernible] and there's still a good deal of uncertainty with respect to what is actually going to happen.

50m 8s

Okay. That's extremely helpful. Congratulations. Thank you. I'll jump back in the queue.

50m 14s

And the next question comes from Richard Shannon with Craig Hallum Capital. Your line is open.

50m 23s

Well, thanks guys. Let me ask a follow-up here. And this is kind of taking two different comments during the call here.

50m 30s

50m 51s

51m 11s

So part of your question has to do with capacity and factory utilization. In effect working out the inevitable glitches as you bring up something as new as the first ship fab.

51m 25s

53m 26s

55m 3s

And it's gotten to a lower maturity that with respect to all the building blocks will showcase the performance that We think we'll bring about [indiscernible] Okay.

55m 29s

Appreciate all the detail there. Very interesting, Patrizio.

55m 31s

56m 4s

So Different licensees The focus is different. And so we have in particular we call an OEM license which gives access to all our IP.

56m 25s

57m

59m 40s

That's not the right solution to the industry needs.

59m 50s

Great. Thank you, guys.

59m 54s

And the next question comes from Nicholas Doyle with Needham. Your line is open.

1h 2s

1h 32s

Perfect.

1h 33s

1h 57s

Yes. Quinn, it was mostly HPC pickup, but also we saw growth in industrial advanced products and also aerospace and defense, but primarily HPC.

1h 1m 13s

Thanks, And the next question comes from John Dillon with DNB Capital. Your line is open.

1h 1m 26s

1h 1m 43s

1h 3m 36s

1h 4m 9s

Excellent.

1h 4m 10s

And thank you very much for that detail. And my other question, I'm not sure if I missed this or not, but did you mention have you bought back any more of your stock in the fourth quarter?

1h 4m 23s

A very small amount John. The threshold wasn't happily, the threshold wasn't offset for the buyback to kick in.

1h 4m 33s

1h 5m 7s

Yes, I would imagine with the quick turns, you can really increase your cash flow. Talking about what you just said.

1h 5m 15s

Right. Excellent.

1h 5m 16s

Okay. Thanks so much guys.

1h 5m 22s

Thank you. This concludes the Q and A session and the call. And thank you for your participation. And you may now disconnect.

Key Insights

Q4 and Full Year Financial Performance: Vicor reported Q4 revenue of $96.2M, up 3.2% sequentially and 3.8% year-over-year. Full-year 2024 revenue decreased 11.4% to $359.1M. Advanced product revenue grew 18% sequentially, while brick product revenue declined 13%. Gross margin for Q4 was 52.4%, up 3.3% sequentially, and full-year gross margin increased to 51.2%.
Operational Highlights: Operating income for Q4 was $9.2M (9.6% margin), while the full year saw an operating loss of $1.3M (-0.4% margin). Net income for Q4 was $10.2M, with GAAP diluted EPS of $0.23. Full-year net income dropped to $6.1M from $53.6M in 2023, with EPS decreasing to $0.14 from $1.19.
Strategic Developments: Vicor's new chip fab achieved short cycle times and high yields, supporting operational efficiency and customer responsiveness. The company is focused on scaling its Gen 5 VPD system for AI and network processor companies, with production expected to ramp in the second half of 2025.
Licensing and IP Protection: Vicor secured a significant license agreement with a hyperscaler for its NBM IP, contributing to its strategy of leveraging intellectual property. The company emphasized its strong IP portfolio and ongoing efforts to enforce patent rights against infringers.
2025 Outlook: Management highlighted opportunities in AI, HPC, automotive, industrial, and aerospace markets. They aim to achieve $1B in revenue and 65% gross margins in the future but noted that factory capacity utilization will take time to scale. The company expects 2025 to be a record year for revenue and profitability under reasonable scenarios.

Vicor Corporation Price & Performance (VICR)

Stock Performance

Open

High

Low

Market Cap

P/E Ratio

Volume

Year High

Year Low

News & Market Insights

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

News & Market Insights

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Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights