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Sep 30, 2024

Vicor Q3 2024 Earnings Report

Vicor's Q3 2024 performance saw a decrease in revenue compared to the previous year, but an increase compared to the previous quarter, with net income and cash flow from operations improving.

Key Takeaways

Vicor Corporation reported Q3 2024 revenues of $93.2 million, a 13.6% decrease year-over-year but an 8.5% increase sequentially. Net income was $11.6 million, or $0.26 per diluted share. Cash flow from operations totaled $22.6 million.

Q3 2024 revenues totaled $93.2 million, a 13.6% decrease year-over-year.

Net income for the third quarter was $11.6 million, or $0.26 per diluted share.

Cash flow from operations totaled $22.6 million.

Backlog for the third quarter totaled $150.6 million, a 13.8% decrease year-over-year.

Total Revenue
$93.2M
Previous year: $108M
-13.6%
EPS
$0.26
Previous year: $0.37
-29.7%
Backlog
$151M
Previous year: $175M
-13.8%
Gross Margin
49.1%
Previous year: 51.8%
-5.2%
Gross Profit
$45.7M
Previous year: $55.9M
-18.2%
Cash and Equivalents
$268M
Previous year: $228M
+17.5%
Free Cash Flow
$14.1M
Total Assets
$633M
Previous year: $584M
+8.3%

Vicor

Vicor

Forward Guidance

The company is nearing initial deliveries of 2nd generation, high density VPD systems for leading AI applications.

Positive Outlook

  • Close to initial deliveries of 2nd generation VPD systems for AI.
  • VPD systems achieve superior density, bandwidth and signal integrity.
  • Vicor's VPD will enable AI processors setting new standards.
  • Vicor's VPD will enable AI processors achieving compute performance improvements.
  • Vicor's VPD will enable AI processors achieving power system efficiency improvements.

Challenges Ahead

  • Gross margins were impacted primarily by product mix.
  • Contract manufacturers may be precluded from importing computing systems using infringing modules.
  • Redesigned modules, or discrete alternatives, may still infringe.
  • OEMs condoning infringement are taking chances with their supply chain.
  • Unscrupulous actors playing a game of 'catch me if you can' are negatively impacting Vicor.