QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
$0.01 per share |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Common Stock, $.01 par value |
||
Class B Common Stock, $.01 par value |
Page |
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1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
7 | ||||
21 | ||||
32 | ||||
32 | ||||
34 | ||||
34 | ||||
34 | ||||
35 | ||||
EX-31.1 SECTION 302 CERTIFICATION OF CEO |
||||
EX-31.2 SECTION 302 CERTIFICATION OF CFO |
||||
EX-32.1 SECTION 906 CERTIFICATION OF CEO |
||||
EX-32.2 SECTION 906 CERTIFICATION OF CFO |
June 30, 2021 |
December 31, 2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
||||||||
Accounts receivable, less allowance of $ |
||||||||
Inventories, net |
||||||||
Other current assets |
||||||||
Total current assets |
||||||||
Long-term deferred tax assets, net |
||||||||
Long-term investments, net |
||||||||
Property, plant and equipment, net |
||||||||
Other assets |
||||||||
Total assets |
$ | |
$ | |
||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued compensation and benefits |
||||||||
Accrued expenses |
||||||||
Short-term lease liabilities |
||||||||
Sales allowances |
||||||||
Income taxes payable |
||||||||
Short-term deferred revenue and customer prepayments |
||||||||
Total current liabilities |
||||||||
Long-term deferred revenue |
||||||||
Contingent consideration obligations |
||||||||
Long-term income taxes payable |
||||||||
Long-term lease liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 10) |
||||||||
Equity: |
||||||||
Vicor Corporation stockholders’ equity: |
||||||||
Class B Common Stock: |
||||||||
Common Stock: |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury stock at cost: |
( |
) | ( |
) | ||||
Total Vicor Corporation stockholders’ equity |
||||||||
Noncontrolling interest |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ | $ | ||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net revenues |
$ | $ | $ | $ | ||||||||||||
Cost of revenues |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
||||||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
||||||||||||||||
Research and development |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations |
( |
) | ||||||||||||||
Other income (expense), net: |
||||||||||||||||
Total unrealized gains (losses) on available-for-sale |
( |
) | ||||||||||||||
Less: portion of (gains) losses recognized in other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net credit gains recognized in earnings |
||||||||||||||||
Other income (expense), net |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income (expense), net |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
||||||||||||||||
Provision (benefit) for income taxes |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated net income |
||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interest |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Vicor Corporation |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per common share attributable to Vicor Corporation: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Consolidated net income |
$ | $ | $ | $ | ||||||||||||
Foreign currency translation (losses) gains, net of tax (1) |
( |
) | ( |
) | ( |
) | ||||||||||
Unrealized (losses) gains on available-for-sale |
( |
) | ( |
) | ( |
) | ||||||||||
Other comprehensive (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
Consolidated comprehensive income |
||||||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest |
( |
) | ( |
) | ||||||||||||
Comprehensive income attributable to Vicor Corporation |
$ | $ | $ | $ | ||||||||||||
(1) | The deferred tax assets associated with foreign currency translation (losses) gains and unrealized (losses) gains on available-for-sale |
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Operating activities: |
||||||||
Consolidated net income |
$ | $ | ||||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operating activities: |
||||||||
Depreciation and amortization |
||||||||
Stock-based compensation expense, net |
||||||||
Decrease in long-term deferred revenue |
( |
) | ( |
) | ||||
Loss (gain) on disposal of equipment |
( |
) | ||||||
Decrease in contingent consideration obligations |
( |
) | — | |||||
Decrease in other assets |
||||||||
Increase in long-term income taxes payable |
||||||||
Deferred income taxes |
||||||||
Credit gain on available-for-sale |
( |
) | ( |
) | ||||
Provision for doubtful accounts |
— | |||||||
Change in current assets and liabilities, net |
( |
) | ( |
) | ||||
Net cash provided by operating activities |
||||||||
Investing activities: |
||||||||
Purchases of short-term investments |
( |
) | — | |||||
Sales or maturities of short-term investments |
— | |||||||
Additions to property, plant and equipment |
( |
) | ( |
) | ||||
Other |
( |
) | ||||||
Net cash used for investing activities |
( |
) | ( |
) | ||||
Financing activities: |
||||||||
Proceeds from employee stock plans |
||||||||
Payment of contingent consideration obligations |
( |
) | ( |
) | ||||
Proceeds from public offering of Common Stock |
— | |||||||
Net cash provided by financing activities |
||||||||
Effect of foreign exchange rates on cash |
( |
) | ||||||
Net (decrease) increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
Class B Common Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Vicor Corporation Stockholders’ Equity |
Noncontrolling Interest |
Total Equity |
||||||||||||||||||||||||||||
Three months ended June 30, 2021 |
||||||||||||||||||||||||||||||||||||
Balance on March 31, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: |
||||||||||||||||||||||||||||||||||||
Net income |
( |
) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) | ||||||||||||||||||||||||||||||||||
Balance on June 30, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Class B Common Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Vicor Corporation Stockholders’ Equity |
Noncontrolling Interest |
Total Equity |
||||||||||||||||||||||||||||
Six months ended June 30, 2021 |
||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: |
||||||||||||||||||||||||||||||||||||
Net income |
( |
) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) |
( |
) | ||||||||||||||||||||||||||||||||||
Balance on June 30, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Class B Common Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Vicor Corporation Stockholders’ Equity |
Noncontrolling Interest |
Total Equity |
||||||||||||||||||||||||||||
Three months ended June 30, 2020 |
||||||||||||||||||||||||||||||||||||
Balance on March 31, 2020 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: |
||||||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Balance on June 30, 2020 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Class B Common Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Vicor Corporation Stockholders’ Equity |
Noncontrolling Interest |
Total Equity |
||||||||||||||||||||||||||||
Six months ended June 30, 2020 |
||||||||||||||||||||||||||||||||||||
Balance on December 31, 2019 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
Issuance of Common Stock under employee stock plans |
||||||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: |
||||||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Balance on June 30, 2020 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||
1. | Basis of Presentation |
2. | Inventories |
June 30, 2021 |
December 31, 2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished goods |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
3. | Short-Term and Long-Term Investments |
June 30, 2021 |
||||||||||||
Cash and Cash Equivalents |
Short-Term Investments |
Long-Term Investments |
||||||||||
Measured at fair value: |
||||||||||||
Available-for-sale |
||||||||||||
Money market funds |
$ | $ | — | $ | — | |||||||
U.S. Treasury Obligations |
— | — | ||||||||||
Failed Auction Security |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
Other measurement basis: |
||||||||||||
Cash on hand |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | |
$ | |
$ | |
||||||
|
|
|
|
|
|
|||||||
December 31, 2020 |
||||||||||||
Cash and Cash Equivalents |
Short-Term Investments |
Long-Term Investments |
||||||||||
Measured at fair value: |
||||||||||||
Available-for-sale |
||||||||||||
Money market funds |
$ | $ | — | $ | — | |||||||
U.S. Treasury Obligations |
— | |||||||||||
Failed Auction Security |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
Other measurement basis: |
||||||||||||
Cash on hand |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
June 30, 2021 |
Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
||||||||||||
U.S. Treasury Obligations |
$ | |
$ | $ | $ | |
||||||||||
Failed Auction Security |
— | |||||||||||||||
December 31, 2020 |
Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
||||||||||||
U.S. Treasury Obligations |
$ | |
$ | — | $ | $ | |
|||||||||
Failed Auction Security |
— |
Cost |
Estimated Fair Value |
|||||||
U.S. Treasury Obligations: |
||||||||
Maturities greater than three months but less than one year |
$ | |
$ | |
||||
$ | $ | |||||||
Cost |
Estimated Fair Value |
|||||||
Failed Auction Security: |
||||||||
Due in twenty to forty years |
$ | $ | ||||||
2021 |
2020 |
|||||||
Balance at the beginning of the period |
$ | $ | ||||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized |
( |
) | ( |
) | ||||
Balance at the end of the period |
$ | $ | ||||||
4. | Fair Value Measurements |
Using |
||||||||||||||||
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Fair Value as of June 30, 2021 |
|||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | — | $ | — | $ | ||||||||||
Short-term investments: |
||||||||||||||||
U.S. Treasury Obligations |
— | — | ||||||||||||||
Long-term investment: |
||||||||||||||||
Failed Auction Security |
— | — | ||||||||||||||
Liabilities: |
||||||||||||||||
Contingent consideration obligations |
— | — | ( |
) | ( |
) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Fair Value as of December 31, 2020 |
|||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | — | $ | — | $ | ||||||||||
U.S. Treasury Obligations |
— | — | ||||||||||||||
Short-term investments: |
||||||||||||||||
U.S. Treasury Obligations |
— | — | ||||||||||||||
Long-term investment: |
||||||||||||||||
Failed Auction Security |
— | — | ||||||||||||||
Liabilities: |
||||||||||||||||
Contingent consideration obligations |
— | — | ( |
) | ( |
) |
Fair Value | Valuation Technique |
Unobservable Input |
Weighted Average |
|||||||||
Failed Auction Security |
$ | % | ||||||||||
% | ||||||||||||
% | ||||||||||||
% | ||||||||||||
% |
Balance at the beginning of the period |
$ | |||
Credit gain on available-for-sale |
||||
Gain included in Other comprehensive income |
||||
|
|
|||
Balance at the end of the period |
$ | |||
|
|
Balance at the beginning of the period |
$ | |||
Payments |
( |
) | ||
Decrease in contingent consideration obligations |
( |
) | ||
|
|
|||
Balance at the end of the period |
$ | |||
|
|
5. | Revenues |
Three Months Ended June 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
$ | $ | $ | ||||||||||
Six Months Ended June 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
$ | $ | $ | ||||||||||
Three Months Ended June 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
$ | $ | $ | ||||||||||
Six Months Ended June 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Asia Pacific |
||||||||||||
All other |
||||||||||||
$ | $ | $ | ||||||||||
Three Months Ended June 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors |
$ | $ | $ | |||||||||
Stocking distributors, net of sales allowances |
||||||||||||
Non-recurring engineering |
||||||||||||
Royalties |
— | |||||||||||
Other |
— | |||||||||||
$ | $ | $ | ||||||||||
Six Months Ended June 30, 2021 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors |
$ | $ | $ | |||||||||
Stocking distributors, net of sales allowances |
||||||||||||
Non-recurring engineering |
||||||||||||
Royalties |
— | |||||||||||
Other |
— | |||||||||||
$ | $ | $ | ||||||||||
Three Months Ended June 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors |
$ | $ | $ | |||||||||
Stocking distributors, net of sales allowances |
||||||||||||
Non-recurring engineering |
||||||||||||
Other |
— | |||||||||||
$ | $ | $ | ||||||||||
Six Months Ended June 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors |
$ | $ | $ | |||||||||
Stocking distributors, net of sales allowances |
||||||||||||
Non-recurring engineering |
||||||||||||
Other |
— | |||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
June 30, 2021 | December 31, 2020 | Change | ||||||||||
Accounts receivable |
$ | $ | $ | |||||||||
Short-term deferred revenue and customer prepayments |
( |
) | ( |
) | ||||||||
Long-term deferred revenue |
( |
) | ( |
) | ||||||||
Deferred expenses |
( |
) | ||||||||||
Sales allowances |
( |
) | ( |
) | ( |
) |
6. | Stock-Based Compensation |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenues |
$ | $ | $ | $ | ||||||||||||
Selling, general and administrative |
||||||||||||||||
Research and development |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total stock-based compensation |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Stock options |
$ | $ | $ | $ | ||||||||||||
ESPP |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total stock-based compensation |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
7. | Rental Income |
8. | Income Taxes |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Provision (benefit) for income taxes |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Effective income tax rate |
% | ( |
)% | % | ( |
)% |
9. | Net Income per Share |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: |
|
|||||||||||||||
Net income attributable to Vicor Corporation |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: |
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Denominator for basic net income per share-weighted average shares (1) |
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Effect of dilutive securities: |
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Employee stock options (2) |
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Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions |
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Basic net income per share |
$ | $ | $ | $ | ||||||||||||
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Diluted net income per share |
$ | $ | $ | $ | ||||||||||||
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(1) | Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. |
(2) | Options to purchase |
10. | Commitments and Contingencies |
11. | Impact of Recently Issued Accounting Standards |
• | Net revenues increased 7.4% to $95,376,000 for the second quarter of 2021, from $88,796,000 for the first quarter of 2021, as total bookings for the quarter increased 51.0% as compared to the first quarter of 2021, primarily due to a 99.3% increase in Advanced Products bookings in the second quarter of 2021 compared to the first quarter of 2021. Advanced Products revenue rose 19.7% sequentially compared to the first quarter of 2021. This growth, though, continued to be constrained by limited component availability due to global semiconductor supply allocation issues experienced during the quarter, along with certain internal processing and testing constraints. |
• | Export sales represented approximately 64.3% of total net revenues in the second quarter of 2021 as compared to 69.4% in the first quarter of 2021. |
• | Gross margin increased to $49,871,000 for the second quarter of 2021 from $44,700,000 for the first quarter of 2021, and gross margin, as a percentage of net revenues, increased to 52.3% for the second quarter of 2021 from 50.3% for the first quarter of 2021. Both the increase in gross margin dollars and the increased gross margin percentage were primarily due to the increase in net revenues, an improved product mix, a reduction in cost variances and process yield improvements. |
• | Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $210,565,000 at the end of the second quarter of 2021, as compared to $157,134,000 at the end of the first quarter of 2021. The increase in backlog was primarily due to the increased bookings, discussed above. |
• | Operating expenses for the second quarter of 2021 decreased $118,000, or 0.4%, to $29,862,000 from $29,980,000 for the first quarter of 2021, due to a decrease in selling, general, and administrative expenses of $365,000, partially offset by an increase in research and development expenses of $247,000. |
• | We reported net income for the second quarter of 2021 of $19,394,000, or $0.43 per diluted share, compared to net income of $15,092,000 or $0.34 per diluted share, for the first quarter of 2021. |
• | For the second quarter of 2021, depreciation and amortization totaled $2,812,000, and capital additions totaled $14,994,000, as compared to depreciation and amortization of $2,806,000 and $9,264,000 of capital additions, for the first quarter of 2021. |
• | Inventories increased by approximately $2,873,000, or 5.3%, to $57,129,000 at June 30, 2021, compared to $54,256,000 at March 31, 2021. |
Increase | ||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Brick Products |
$ | 54,352 | $ | 46,428 | $ | 7,924 | 17.1 | % | ||||||||
Advanced Products |
41,024 | 24,333 | 16,691 | 68.6 | % | |||||||||||
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Total |
$ | 95,376 | $ | 70,761 | $ | 24,615 | 34.8 | % | ||||||||
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Increase (decrease) | ||||||||||||
Legal fees |
$ | 510 | 213.6 | % | (1 | ) | ||||||
Advertising |
307 | 44.2 | % | (2 | ) | |||||||
Compensation |
191 | 1.8 | % | (3 | ) | |||||||
Travel expense |
89 | 53.0 | % | (4 | ) | |||||||
Depreciation and amortization |
63 | 8.1 | % | |||||||||
Commissions |
(92 | ) | (10.6 | )% | (5 | ) | ||||||
Other, net |
66 | 3.0 | % | |||||||||
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$ | 1,134 | 7.3 | % | |||||||||
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(1) | Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note 10) and certain corporate legal matters. |
(2) | Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
(3) | Increase primarily attributable to annual compensation adjustments in May 2021, partially offset by a decrease in stock-based compensation expense compared to the second quarter of 2020. |
(4) | Increase primarily attributable to a resumption of travel by the Company’s sales and marketing personnel. |
(5) | Decrease primarily attributable to the decline in net revenues subject to commissions. |
Increase (decrease) | ||||||||
Compensation |
$ | 375 | 4.1 | % (1) | ||||
Project and pre-production materials |
321 | |
16.6 |
% (2) | ||||
Supplies |
79 | 24.7 | % | |||||
Facilities allocations |
55 | 9.4 | % | |||||
Freight |
40 | 153.3 | % | |||||
Overhead absorption |
(523 | ) | (200.2 | )% (3) | ||||
Other, net |
96 | 8.7 | % | |||||
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$ | 443 | 3.5 | % | |||||
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(1) | Increase primarily attributable to annual compensation adjustments in May 2021, partially offset by a decrease in stock-based compensation expense compared to the second quarter of 2020. |
(2) | Increase primarily attributable to increased prototype development costs for Advanced Products. |
(3) | Decrease primarily attributable to an increase in research and development (“R&D”) personnel incurring time on production activities, compared to R&D activities. |
2021 | 2020 | Increase (decrease) |
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Interest income |
$ | 276 | $ | 17 | $ | 259 | ||||||
Rental income |
198 | 198 | — | |||||||||
Foreign currency (losses) gains, net |
(12 | ) | 3 | (15 | ) | |||||||
(Losses) gains on disposals of equipment |
(106 | ) | 6 | (112 | ) | |||||||
Other, net |
17 | 9 | 8 | |||||||||
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$ | 373 | $ | 233 | $ | 140 | |||||||
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2021 | 2020 | |||||||
Provision (benefit) for income taxes |
$ | 999 | $ | (406 | ) | |||
Effective income tax rate |
4.9 | % | (17.9 | )% |
Increase | ||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Brick Products |
$ | 108,811 | $ | 91,945 | $ | 16,866 | 18.3 | % | ||||||||
Advanced Products |
75,361 | 42,217 | 33,144 | 78.5 | % | |||||||||||
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Total |
$ | 184,172 | $ | 134,162 | $ | 50,010 | 37.3 | % | ||||||||
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Increase (decrease) | ||||||||
Compensation |
$ | 1,196 | 5.7 | % (1) | ||||
Advertising expense |
251 | |
18.6 |
% (2) | ||||
Legal fees |
188 | 16.3 | % (3) | |||||
Depreciation and amortization |
102 | 6.7 | % (4) | |||||
Facilities allocations |
95 | 13.3 | % | |||||
Travel expense |
(205 | ) | (30.0 | )% (5) | ||||
Other, net |
92 | 1.6 | % | |||||
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$ | 1,719 | 5.4 | % | |||||
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(1) | Increase primarily attributable to annual compensation adjustments in May 2021 and higher stock-based compensation expense associated with stock options awarded in June 2021. |
(2) | Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
(3) | Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note 10) and certain corporate legal matters. |
(4) | Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(5) | Decrease primarily attributable to reduced travel by our sales and marketing personnel, due to travel restrictions caused by the COVID-19 pandemic. |
Increase (decrease) | ||||||||
Compensation |
$ | 968 | 5.4 | % (1) | ||||
Facilities allocations |
198 | 17.0 | % (2) | |||||
Freight |
66 | 115.5 | % | |||||
Computer expense |
60 | 19.0 | % | |||||
Project and pre-production materials |
(354 | ) | (7.9 | )% (3) | ||||
Overhead absorption |
(830 | ) | (174.2 | )% (4) | ||||
Other, net |
26 | 1.0 | % | |||||
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$ | 134 | 0.5 | % | |||||
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(1) | Increase primarily attributable to annual compensation adjustments in May 2021 and higher stock-based compensation expense associated with stock options awarded in June 2021. |
(2) | Increase primarily attributable to an increase in utilities and building maintenance expenses. |
(3) | Decrease primarily attributable to lower prototype development costs for Advanced Products. |
(4) | Decrease primarily attributable to an increase in R&D personnel incurring time on production activities, compared to R&D activities. |
Increase | ||||||||||||
2021 | 2020 | (decrease) | ||||||||||
Interest income |
$ | 469 | $ | 70 | $ | 399 | ||||||
Rental income |
396 | 396 | — | |||||||||
(Losses) gains on disposals of equipment |
(106 | ) | 6 | (112 | ) | |||||||
Foreign currency losses, net |
(174 | ) | (117 | ) | (57 | ) | ||||||
Other, net |
20 | 26 | (6 | ) | ||||||||
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$ | 605 | $ | 381 | $ | 224 | |||||||
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2021 | 2020 | |||||||
Provision (benefit) for income taxes |
$ | 856 | $ | (900 | ) | |||
Effective income tax rate |
2.4 | % | (2,195.1 | )% |
Increase (decrease) |
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Cash and cash equivalents |
$ | (1,979 | ) | |
Short-term investments |
20,303 | |||
Accounts receivable |
14,013 | |||
Inventories, net |
(140 | ) | ||
Other current assets |
(99 | ) | ||
Accounts payable |
(7,960 | ) | ||
Accrued compensation and benefits |
(1,700 | ) | ||
Accrued expenses |
(994 | ) | ||
Sales allowances |
(1,322 | ) | ||
Short-term lease liabilities |
70 | |||
Income taxes payable |
(751 | ) | ||
Short-term deferred revenue |
3,393 | |||
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$ | 22,834 | |||
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(a) | Disclosure regarding controls and procedures. |
(b) | Changes in internal control over financial reporting. |
(1) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 29, 2001 (File No. 000-18277) and incorporated herein by reference. |
(2) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 4, 2020 (File No. 000-18277) and incorporated herein by reference. |
(3) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed on May 13, 2021 (File No. 000-18277) and incorporated herein by reference. |
VICOR CORPORATION | ||||||
Date: July 30 , 2021 |
By: | /s/ Patrizio Vinciarelli | ||||
Patrizio Vinciarelli | ||||||
Chairman of the Board, President and | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: July 30 , 2021 |
By: | /s/ James F. Schmidt | ||||
James F. Schmidt | ||||||
Vice President, Chief Financial Officer | ||||||
(Principal Financial Officer) |