Vicor Accelerates Revenue Growth as Backlog Climbs
The power-module maker earned $1.04 a diluted share as quarterly net income more than doubled sequentially.
Vicor Corporation (VICR) accelerated in the second quarter as product and royalty revenue rose 26.9% sequentially to $143.4 million, following 5.3% growth in the first quarter.
The quarter also marked a sharp improvement in underlying year-over-year growth. Excluding a $45.0 million patent-litigation settlement in the prior-year period, revenue increased 49.3% from $96.0 million. Including the settlement, reported revenue rose 1.6% from $141.0 million.
Royalties drove much of the shift, nearly tripling to $30.4 million from $10.4 million a year earlier. Product revenue increased 31.8% to $112.9 million from $85.7 million.
Net income rose to $49.8 million from $20.7 million in the first quarter and $41.2 million a year earlier. Operating expenses increased 5.9% sequentially to $48.2 million, well below the pace of revenue growth.
Gross margin expanded to 58.0% from 55.2% in the first quarter, reversing the prior quarter’s slight compression. It remained below the year-earlier 65.3%, which benefited from the litigation settlement, while gross-margin dollars fell 9.8% year over year to $83.1 million.
Operating cash flow swung to a positive $34.0 million from a $3.9 million use of cash in the first quarter, which included a $28.6 million litigation-award payment. Cash and equivalents increased 12.2% sequentially to $453.6 million, while capital expenditures eased to $11.2 million.
Backlog climbed 26% sequentially to $380 million and reached nearly two and a half times its year-earlier level. Its first ChiP fabrication facility was nearing full utilization and the company was taking steps toward a second facility for high-current-density, second-generation VPD ChiPs.