Vicor Corporation Announces First Quarter Results.Business/Technology Editors ANDOVER, Mass.--(BUSINESS WIRE)--April 17, 2003 Vicor Corporation Vicor Corporation NYSE: VICR designs, manufactures and markets modular power components and complete power systems used primarily by original equipment manufacturers (OEMs) in the communications, data processing, industrial controls, test equipment, medical and defense (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :VICR VICR Virgin Islands Coral Reef National Monument (US National Park Service) ) today announced its financial results for the quarter ended March 31, 2003. Revenues for the quarter were $37,740,000 compared with $34,620,000 for the corresponding period a year ago. The Company reported a loss before taxes of $6,374,000 compared with a loss before taxes of $7,765,000 in 2002. The Company reported a net loss for the quarter of $6,629,000 compared with a net loss of $4,931,000 in 2002, and a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share of $.16 compared with a diluted loss per share of $.12 in 2002. Net loss for the quarter ended March 31, 2003 was higher than the comparable quarter in 2002 because of a tax rule change limiting the availability of tax loss carry-backs Loss Carry-Back (Carry-Forward) A tax provision that allows operating losses to be used as a tax shield to reduce taxable income in prior and future years. Losses can be carried backward for up to three years and forward for up to 15 years under current tax codes. in 2003 as discussed below. In the first quarter, revenues increased by 9.0% over the first quarter of 2002, but decreased by 9.4% on a sequential basis from the fourth quarter of 2002. The overall book to bill for the first quarter was 1.0:1 compared with 0.9:1 for the fourth quarter of 2002. Orders during the quarter increased by 3.6% compared with the fourth quarter. The order pattern by most customers was focused on filling short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. requirements and, consequently, visibility based on backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. remained limited. The Company finished the first quarter with approximately $32.6 million in backlog compared to $31.9 million at the end of 2002. In the first quarter, gross margin was 23.6%, which was unchanged from the first quarter of 2002, but gross margin decreased by 2.5% sequentially from the fourth quarter of 2002. The Company continued to operate on reduced work schedules for hourly factory employees and required mandatory use of accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. personal time by all others. Depreciation and amortization in the quarter was $5.7 million and capital additions were $1.9 million. The tax provision for the first quarter of 2003 was 4%. During 2002, the Company recorded a tax benefit of 36.5% reducing after tax losses due to a carry-back provision allowed by a temporary change in the tax laws. Beginning in 2003, with tax rules reverting re·vert intr.v. re·vert·ed, re·vert·ing, re·verts 1. To return to a former condition, practice, subject, or belief. 2. Law To return to the former owner or to the former owner's heirs. to a carry-back limited to two years, any losses incurred will only be available to offset future taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . A provision in 2003 is required as the Company operates in various state and international taxing jurisdictions, subject to a variety of income and related taxes. Cash and short-term investments were $97.8 million, a decrease of $3.1 million from the end of 2002. This decrease is attributable in part to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 453,400 shares of the Company's common stock for approximately $2.6 million during the first quarter. The Company has $26 million remaining on its authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. buy-back plan. Inventories decreased by approximately $4.0 million to $26.3 million as compared with $30.3 million at the end of 2002. During the quarter, the Company received 110 new design wins for its second-generation modules via its proprietary VDAC VDAC Vaginal delivery after cesarean section, see there design system and 53 new design wins for its VIPAC VIPAC Virtual Israel Political Action Committee VIPAC VIbration, Pressure and Acoustics (Melbourne, Australia) customer-configurable power systems. The Company believes that some of these design wins will result in future production orders. During the quarter, the Company successfully demonstrated prototype converters exhibiting major advances in power density, conversion efficiency and speed and utilizing proprietary power conversion technologies invented by the Company. Product development opportunities based on these technologies were confidentially reviewed with certain key customers as part of the Company's plan to develop a suite of products for target applications in broad markets. The Company expects to announce first products based on these disruptive technologies A new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Music CDs all but wiped out the phonograph industry within a few years, and digital cameras are destined to eliminate the film industry. later in this quarter. For more information on Vicor and its products, please visit the Company's website at www.vicorpower.com. Earnings Conference Call Vicor will be holding its investor conference call on Thursday, April 17, 2003 at 5:00 p.m. (EDST EDST Eastern Daylight Savings Time EDST Extended Daylight Saving Time EDST Enterprise Desktop Support Technician EDST Edge-Disjoint Spanning Tree EDST Engineering Design System Technology (San Jose, California) ). Shareholders interested in participating in the call, should call 1-800-299-0433 at approximately 4:50 p.m. and use the Passcode 83631787. Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f can listen to a real-time audio broadcast of the conference call on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Vicor's website at www.vicorpower.com/irwebcast. Please go to the website at least 15 minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary software. For those who cannot participate a replay will be available, shortly after the conclusion of the call, through 5:00 p.m. on April 24, 2003. The replay dial-in number is 1-888-286-8010 and the Passcode is 4376385. In addition, a webcast replay of the conference call will also be available on the Investor Relations section of Vicor's website at www.vicorpower.com/irwebcast beginning shortly after the conclusion of the call. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. You can identify these statements by our use of the words "may," "will," "would," "plans," "expects," "anticipates," "believes," "continue," "estimate," "project," "intend," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include our ability to develop new products cost-effectively and our ability to decrease manufacturing costs, as well as those risks and uncertainties identified in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The risk factors contained in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in that Form 10-K should be read together with other reports and documents that the Company files with the SEC from time to time, which may supplement, modify, supersede To obliterate, replace, make void, or useless. Supersede means to take the place of, as by reason of superior worth or right. A recently enacted statute that repeals an older law is said to supersede the prior legislation. or update those risk factors. Vicor Corporation designs, develops, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products primarily to the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , electronic data processing See EDP. (application) Electronic Data Processing - (EDP) data processing by electronic machines, i.e. computers. , industrial control and military electronics markets.
VICOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
QUARTER ENDED
(Unaudited)
----------------------------------------------------------------------
MAR 31, MAR 31,
2003 2002
----------------------------------------------------------------------
Net revenues $37,740 $34,620
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Costs and expenses
Cost of sales 28,833 26,458
Sales & administration 10,324 10,253
Research & development 5,334 5,107
----------------------------------------------------------------------
44,491 41,818
Operating loss (6,751) (7,198)
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Other income (expense), net 377 (567)
----------------------------------------------------------------------
Loss before taxes (6,374) (7,765)
Benefit (provision) for income taxes (255) 2,834
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Net loss ($ 6,629) ($ 4,931)
======================================================================
Net loss per share:
Basic ($ 0.16) ($ 0.12)
Diluted ($ 0.16) ($ 0.12)
----------------------------------------------------------------------
Shares outstanding:
Basic 42,054 42,405
Diluted 42,054 42,405
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VICOR CORPORATION
CONSOLIDATED BALANCE SHEET
(Thousands)
MAR 31, DEC 31,
2003 2002
(Unaudited) (Unaudited)
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Current Assets
Cash and cash equivalents $72,380 $72,120
Short-term investments 25,466 28,779
Accounts receivable 24,830 22,469
Inventories 26,258 30,325
Refundable income taxes 8,846 8,846
Deferred tax assets 8,126 8,126
Other current assets 2,259 2,399
----------------------------------------------------------------------
Total current assets 168,165 173,064
Property and equipment, net 95,120 98,738
Other assets 6,572 6,643
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$269,857 $278,445
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Liabilities and Stockholders' Equity
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Current Liabilities
Accounts payable $5,479 $5,724
Accrued compensation and benefits 4,284 3,379
Other accrued liabilities 11,223 11,282
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Total current liabilities 20,986 20,385
Deferred income taxes - long term 10,018 10,027
Stockholders' Equity
Capital stock 146,444 146,433
Retained earnings 196,769 203,398
Treasury stock (104,360) (101,798)
----------------------------------------------------------------------
Total stockholders' equity 238,853 248,033
----------------------------------------------------------------------
$269,857 $278,445
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