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Sep 30, 2022
Vicor Q3 2022 Earnings Report
Reported financial results with revenue increase but net income decrease due to a deteriorating macroeconomic environment and legal expenses.
Key Takeaways
Vicor Corporation reported a 21.4% increase in revenue compared to the same quarter last year, but experienced a decrease in net income due to a deteriorating macroeconomic environment and legal expenses. The gross margin decreased to 45.5% compared to 50.4% for the corresponding period a year ago. The book-to-bill ratio came in below 1, reflecting a reduction in demand caused by recent market conditions.
Revenue increased by 21.4% year-over-year to $103.1 million.
Net income decreased to $8.1 million, or $0.18 per diluted share.
Gross margin decreased to 45.5% compared to 50.4% for the corresponding period a year ago.
Cash flow from operations totaled $6.6 million.
Forward Guidance
The company anticipates a reduction in production lead times and catching up with their backlog. Capital investment in their first ChiP foundry continued in Q3 to enable their Andover fab to support Advanced Product revenues with up to approximately one billion dollars per year total capacity.
Positive Outlook
- Reducing production lead times.
- Getting caught up with backlog.
- Capital investment in first ChiP foundry continued.
- Andover fab to support Advanced Product revenues.
- Capacity of approximately one billion dollars per year.
Challenges Ahead
- Deteriorating macroeconomic environment caused a shortfall in demand.
- Q3 profitability was significantly impacted by legal expenses.
- Book-to-bill ratio came in below 1.
- Reduction in demand caused by recent market conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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