Yahoo Finance Vicor Corp (VICR) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges with ...
Total Revenue: $83.9 million, down 9.5% sequentially, down 14.3% year-over-year.
Gross Margin: 53.8%, up 2.7% from previous quarter.
Operating Income: $1.1 million, operating margin at 1.3%.
Net Income: $2.6 million.
Earnings Per Share: GAAP diluted EPS $0.06.
Cash and Cash Equivalents: $239.2 million at end of Q1.
Operating Cash Flow: Approximately $2.7 million for the quarter.
Capital Expenditures: $7.4 million for Q1.
Book-to-Bill Ratio: Below 1; one-year backlog decreased 6.5% to $150.3 million.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you provide an update on the ITC case schedule and what you expect to happen next week? A: (Jim Schmidt - Vicor Corp - Corporate Vice President, Chief Financial Officer, Treasurer, Corporate Secretary) The proceedings are on schedule with a trial next week and a decision by the administrative law judge expected in September, with a final deadline in October. Vicor is prepared and confident of a positive outcome.
Q: Can you quantify the increase in royalty revenue in the March quarter and discuss expectations for the remainder of 2024? A: (Jim Schmidt - Vicor Corp - Corporate Vice President, Chief Financial Officer, Treasurer, Corporate Secretary) Royalty contributions to revenue and bottom line are expected to continue expanding. Specific figures for the March quarter were not disclosed, but the trend is anticipated to include potential step-up events.
Q: What milestones should we expect for the 5G, second-gen PPD product in terms of bookings and revenues? A: (Jim Schmidt - Vicor Corp - Corporate Vice President, Chief Financial Officer, Treasurer, Corporate Secretary) The 5G product is not a 2024 revenue opportunity but is set for 2025. This year is focused on delivering solutions to key customers, with production volumes expected next year.
Q: Could you update us on the potential for lateral vertical products shipping and their contribution in the coming years? A: (Phil Davies - Vicor Corp - Corporate Vice President, Global Sales and Marketing) There is still potential revenue from lateral vertical designs towards the end of this year or early next year, particularly in network communications markets.
Q: Can you break out the legal expense for the quarter and expectations for the next few quarters as the ITC case progresses? A: (Jim Schmidt - Vicor Corp - Corporate Vice President, Chief Financial Officer, Treasurer, Corporate Secretary) Legal expenses were the primary driver of the $4 million increase in OpEx this quarter, mainly due to preparations for the upcoming ITC trial. Future expenses could vary significantly based on the case's progress.
Q: What updates can you provide on the uptake of automotive products and the expected timeline for significant revenue contributions? A: (Phil Davies - Vicor Corp - Corporate Vice President, Global Sales and Marketing) Significant revenue from automotive products is expected in 2026-2027, with potential early production at the end of this year for high-performance applications. Conversations in the Asia Pacific could potentially accelerate this timeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
