VICOR CORP
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
VICR$146.88+8.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0000950170-24-051264
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000950170-24-088586
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 75 current paragraphs.
23 unchanged; 25 reworded; 17 added; 8 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 7 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
We reported a net loss for the second quarter of 2024 of $(1,196,000), or $(0.03) per diluted share, compared to a net loss of $(14,473,000), or $(0.33) per diluted share, for the first quarter of 2024.
Current report
Gross margin for the second quarter of 2024 decreased $12,402,000, or 22.5%, to $42,771,000, from $55,173,000 for the second quarter of 2023. Gross margin, as a percentage of net revenues, decreased to 49.8% for the second quarter of 2024, compared to 51.7% for the second quarter of 2023. The decrease in gross margin dollars and gross margin percentage was primarily attributable to lower sales volume and to a lesser extent an unfavorable sales mix on that sales volume, offset by higher royalty revenue and production efficiencies and supply chain costs, including a reduction of $782,000 in outsourced manufacturing costs partially offset by incremental costs of bringing production in-house for certain Advanced Products, and an increase in freight-in and tariff spending of $710,000 (net of approximately $662,000 in duty drawback recovery in the second quarter of 2024 and $2,750,000 in duty drawback recovery in the second quarter of 2023 of previously paid tariffs).
Current report
Increase primarily attributable to higher stock-based compensation expense associated with stock options awarded in May 2024 and an increase in fringe benefits accruals.
Current report
The Company’s tax expense and the rate for the quarter continues to be negatively impacted by the capitalization of research and development expenses under Section 174 in the U.S., which given the Company’s close to breakeven performance, is having an outsized impact on the rate by effectively moving from a book loss to a taxable income position, which causes a significant tax expense. This is further compounded by the Company not getting a deferred tax benefit from temporary differences due to the full valuation allowance on domestic deferred tax assets.
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
Net revenues for the six months ended June 30, 2024 were $169,726,000, a decrease of $34,837,000, or 17.0%, from $204,563,000 for the six months ended June 30, 2023. Net revenues, by product line, for the six months ended June 30, 2024 and the six months ended June 30, 2023 were as follows (dollars in thousands):
Current report
Selling, general and administrative expenses were $49,317,000 for the six months ended June 30, 2024, an increase of $8,719,000, or 21.5%, compared to $40,598,000 for the six months ended June 30, 2023. Selling, general and administrative expenses as a percentage of net revenues increased to 29.1% for the six months ended June 30, 2024 from 19.8% for the six months ended June 30, 2023. The components of the $8,719,000 increase in selling, general and administrative expenses for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 were as follows (dollars in thousands):
Current report
Increase primarily attributable to an increase in audit and tax fees.
Current report
Research and development expenses were $34,978,000 for the six months ended June 30, 2024, an increase of $2,174,000, or 6.6%, from $32,804,000 for the six months ended June 30, 2023. As a percentage of net revenues, research and development expenses increased to 20.6% for the six months ended June 30, 2024 from 16.0% for the six months ended June 30, 2023. The components of
Current report
-21- the $2,174,000 increase in research and development expenses for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 were as follows (dollars in thousands):
Current report
Decrease in engineering supplies.
Current report
Litigation-contingency expense was $19,500,000 for the six months ended June 30, 2024 which related to the SynQor litigation, as compared to $0 for the six months ended June 30, 2023. See Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation.
Current report
Income (loss) before income taxes was $(10,370,000) for the six months ended June 30, 2024, as compared to $32,031,000 for the six months ended June 30, 2023.
Current report
The Company’s tax expense and the rate for the six months ended June 30, 2024 continues to be negatively impacted by the capitalization of research and development expenses under Section 174 in the U.S., which given the Company’s six month performance, is having an outsized impact on the rate by effectively moving from a book loss to a taxable income position, which causes a significant tax expense. This is further compounded by the Company not getting a deferred tax benefit from temporary differences due to the full valuation allowance on domestic deferred tax assets.
Current report
We reported a net loss for the six months ended June 30, 2024 of $(15,669,000), or $(0.35) per diluted share, as compared to net income of $28,345,000, or $0.63 per diluted share, for the six months ended June 30, 2023.
Current report
In July 2024, our Board of Directors authorized the repurchase of up to $100,000,000 of our Common Stock (the “New Repurchase Authorization”). The New Repurchase Authorization replaces the November 2000 Plan in its entirety and no further repurchases will be made pursuant to the November 2000 Plan. See Note 12 to the Condensed Consolidated Financial Statements for additional information.
Current report
The timing and amounts of Common Stock repurchases under the New Repurchase Authorization are at the discretion of the Company’s President and Chief Executive Officer based upon economic and financial market conditions.
Removed paragraphs (8)
Previous report
Changes from Previously Disclosed Results
Previous report
As discussed below, we reported a net loss for the first quarter of 2024 of $(14,473,000), or $(0.33) per diluted share, compared to $11,244,000, or $0.25 per diluted share, for the first quarter of 2023. Initially, in our earnings release issued on April 23, 2024, we disclosed net income for the first quarter of 2024 of $2,604,000, or $0.06 per diluted share. On April 24, 2024, after the issuance of our earnings release and completion of the related earnings call, the U.S. District Court for the Eastern District of Texas (the "District Court") issued an order granting SynQor, Inc.’s motions for enhanced damages, pre-judgment and post-judgment interest, costs and attorneys' fees. The District Court also entered a final judgment reflecting these rulings. The Company anticipates appealing the District Court’s final judgment to the United States Court of Appeals for the Federal Circuit.
Previous report
In light of this judgment, in accordance with applicable accounting standards, we recorded an incremental litigation related loss reserve of $17,200,000 in the first quarter of 2024, resulting in the decrease in our reported net income and net income per share from the amounts previously disclosed in our earnings release, as well as a corresponding $17,200,000 increase in operating expenses to $61,238,000 from the previously disclosed $44,038,000. See Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation and loss reserve.
Previous report
Increase primarily attributable to an increase in the use of consultants.
Previous report
Increase primarily attributable to training for new internal-use software implementation.
Previous report
Increase primarily attributable to increased prototype development costs for Advanced Products.
Previous report
Decrease primarily attributable to an increase in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred.
Previous report
We reported net loss for the first quarter of 2024 of $(14,473,000), or $(0.33) per diluted share, compared to $11,244,000, or $0.25 per diluted share, for the first quarter of 2023.
Reworded paragraphs (25)
Previous wording
-15- impact of the steps taken to mitigate supply chain disruptions have, to varying degrees and at different times, reduced our revenue, gross margin, operating profit and cash flow and may continue to do so in the future. While we continue to make progress in moving outsourced manufacturing steps in-house to the Company, we are still experiencing long lead times on certain raw material components, and uncertainty of output from our outsourced manufacturing supplier. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, average selling prices, average unit costs, the mix of products sold during that quarter, and the level of importation of raw materials subject to tariffs. Our quarterly operating margin as a percentage of net revenues also may vary with changes in revenue and product level profitability, but our operating costs are largely associated with compensation and related employee costs, which are not subject to sudden or significant changes.
Current wording
-17- impact of the steps taken to mitigate supply chain disruptions have, to varying degrees and at different times, reduced our revenue, gross margin, operating profit and cash flow and may continue to do so in the future. While we continue to make progress in moving outsourced manufacturing steps in-house to the Company, we are still experiencing long lead times on certain raw material components, and uncertainty of output from our outsourced manufacturing supplier. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, average selling prices, average unit costs, the mix of products sold during that quarter, and the level of importation of raw materials subject to tariffs. Our quarterly operating margin as a percentage of net revenues also may vary with changes in revenue and product level profitability, but our operating costs are largely associated with compensation and related employee costs, which are not subject to sudden or significant changes.
Previous wording
Summary of First Quarter 2024 Financial Performance Compared to Fourth Quarter 2023 Financial Performance
Current wording
Summary of Second Quarter 2024 Financial Performance Compared to First Quarter 2024 Financial Performance
Previous wording
The following summarizes our financial performance for the first quarter of 2024, compared to the fourth quarter of 2023:
Current wording
The following summarizes our financial performance for the second quarter of 2024, compared to the first quarter of 2024:
Previous wording
Net revenues decreased 9.5% to $83,872,000 for the first quarter of 2024, from $92,652,000 for the fourth quarter of 2023. Net revenues for Brick Products decreased 11.7% compared to the fourth quarter of 2023, primarily due to reduced market demand and lower available backlog. Advanced Products net revenues decreased 7.3% compared to the fourth quarter of 2023, primarily due to our continued softness in underpenetrated markets, partially offset by increased royalty revenue in the quarter.
Current wording
Net revenues increased 2.4% to $85,854,000 for the second quarter of 2024, from $83,872,000 for the first quarter of 2024. Net revenues for Brick Products decreased 2.7% compared to the first quarter of 2024, primarily due to reduced market demand. Advanced Products net revenues increased 7.1% compared to the first quarter of 2024, primarily due to reduced manufacturing constraints and increased royalty revenue in the second quarter of 2024.
Previous wording
Export sales represented approximately 42.6% of total net revenues in the first quarter of 2024 as compared to 56.5% in the fourth quarter of 2023.
Current wording
Export sales represented approximately 43.3% of total net revenues in the second quarter of 2024 as compared to 42.6% in the first quarter of 2024.
Previous wording
Gross margin decreased to $45,123,000 for the first quarter of 2024 from $47,344,000 for the fourth quarter of 2023, with gross margin, as a percentage of net revenues, increasing to 53.8% for the first quarter of 2024 from 51.1% for the fourth quarter of 2023. The decrease in gross margin dollars was primarily the result of lower sales volume in the first quarter of 2024, with the increase in gross margin percentage primarily attributable to improved sales mix on that volume and a reduction of freight-in and tariff spending of $153,000 (net of approximately $0 in duty drawback recovery in the first quarter of 2024 and $1,239,000 in duty drawback recovery in the fourth quarter of 2023 of previously paid tariffs).
Current wording
Gross margin decreased to $42,771,000 for the second quarter of 2024 from $45,123,000 for the first quarter of 2024, with gross margin, as a percentage of net revenues, decreasing to 49.8% for the second quarter of 2024 from 53.8% for the first quarter of 2024. The decrease in gross margin dollars and gross margin percentage was primarily attributable to the overall unfavorable sales mix on slightly higher sales volume in the second quarter of 2024, offset by production efficiencies and lower supply chain costs, including a reduction of freight-in and tariff spending of $1,041,000 (net of approximately $662,000 in duty drawback recovery in the second quarter of 2024 and $0 in duty drawback recovery in the first quarter of 2024 of previously paid tariffs).
Previous wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $150,340,000 at the end of the first quarter of 2024, as compared to $160,805,000 at the end of the fourth quarter of 2023.
Current wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $153,794,000 at the end of the second quarter of 2024, as compared to $150,340,000 at the end of the first quarter of 2024.
Previous wording
Operating expenses for the first quarter of 2024 increased $22,543,000, or 56.4%, to $62,538,000 from $39,995,000 for the fourth quarter of 2023. Selling, general and administrative expenses increased approximately $3,305,000, primarily due to an increase in legal expenses. Research and development expenses increased approximately $738,000, primarily due to an increase in compensation expense. Litigation-contingency expense related to the SynQor litigation was $17,200,000 for the first quarter of 2024, with no comparable expense in the fourth quarter of 2023. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
Current wording
Operating expenses for the second quarter of 2024 decreased $18,681,000, or 30.5%, to $42,557,000 from $61,238,000 for the first quarter of 2024. Selling, general and administrative expenses decreased approximately $2,681,000, primarily due to a decrease in legal expenses. Research and development expenses decreased approximately $1,100,000, primarily due to a decrease in project and pre-production materials. Litigation-contingency expense related to the litigation with SynQor, Inc. ("SynQor") was $2,300,000 for the second quarter of 2024, compared to $17,200,000 for the first quarter of 2024. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
Previous wording
For the first quarter of 2024, depreciation and amortization totaled $4,614,000 and capital additions totaled $7,270,000 as compared to depreciation and amortization of $4,038,000 and capital additions of $7,163,000 for the fourth quarter of 2023.
Current wording
For the second quarter of 2024, depreciation and amortization totaled $4,661,000 and capital additions totaled $6,141,000 as compared to depreciation and amortization of $4,614,000 and capital additions of $7,270,000 for the first quarter of 2023.
Previous wording
Inventories increased by approximately $5,737,000, or 5.4%, to $112,316,000 at March 31, 2024, compared to $106,579,000 at December 31, 2023.
Current wording
Inventories decreased by approximately $3,232,000, or 2.9%, to $109,084,000 at June 30, 2024, compared to $112,316,000 at March 31, 2024.
Previous wording
Net revenues for the first quarter of 2024 were $83,872,000, a decrease of $13,944,000, or 14.3%, as compared to $97,816,000 for the first quarter of 2023. Net revenues, by product line, for the three months ended March 31, 2024 and 2023 were as follows (dollars in thousands):
Current wording
Net revenues for the second quarter of 2024 were $85,854,000, a decrease of $20,893,000, or 19.6%, as compared to $106,747,000 for the second quarter of 2023. Net revenues, by product line, for the three months ended June 30, 2024 and 2023 were as follows (dollars in thousands):
Previous wording
Selling, general and administrative expenses were $25,999,000 for the first quarter of 2024, an increase of $5,776,000, or 28.6%, from $20,223,000 for the first quarter of 2023. Selling, general and administrative expenses as a percentage of net revenues increased to 31.0% for the first quarter of 2024 from 20.7% for the first quarter of 2023. The components of the $5,776,000 increase in selling, general and administrative expenses for the first quarter of 2024 from the first quarter of 2023 were as follows (dollars in thousands):
Current wording
Selling, general and administrative expenses were $23,318,000 for the second quarter of 2024, an increase of $2,943,000, or 14.4%, from $20,375,000 for the second quarter of 2023. Selling, general and administrative expenses as a percentage of net revenues increased to 27.2% for the second quarter of 2024 from 19.1% for the second quarter of 2023. The components of the $2,943,000 increase in selling, general and administrative expenses for the second quarter of 2024 from the second quarter of 2023 were as follows (dollars in thousands):
Previous wording
Research and development expenses were $18,039,000 for the first quarter of 2024, an increase of $2,170,000, or 13.7%, compared to $15,869,000 for the first quarter of 2023. As a percentage of net revenues, research and development expenses increased to 21.5% for the first quarter of 2024 from 16.2% for the first quarter of 2023. The components of the $2,170,000 increase in research and development expenses were as follows (dollars in thousands):
Current wording
Research and development expenses were $16,939,000 for the second quarter of 2024, an increase of $4,000, or 0.0%, compared to $16,935,000 for the second quarter of 2023. As a percentage of net revenues, research and development expenses increased to 19.7% for the second quarter of 2024 from 15.9% for the second quarter of 2023.
Previous wording
Litigation-contingency expense was $17,200,000 for the first quarter of 2024 which related to the SynQor litigation, as compared to $0 for the first quarter of 2023. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
Current wording
Litigation-contingency expense was $2,300,000 for the second quarter of 2024 which related to the SynQor litigation, as compared to $0 for the second quarter of 2023. See Note 10 to the Condensed Consolidated Financial Statements for additional information.
Previous wording
The significant components of ''Other income (expense), net'' for the three months ended March 31, and the changes between the periods were as follows (in thousands):
Current wording
The significant components of ''Other income (expense), net'' for the three months ended June 30, 2024 and 2023 and the changes between the periods were as follows (in thousands):
Previous wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of Vicor Japan Company, Ltd. (“VJCL”), for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced more unfavorable foreign currency exchange rate fluctuations in the first quarter of 2024 compared to the first quarter of 2023. Interest income for the three months ended March 31, 2024 increased due to higher interest rates received on the cash and cash equivalents balance the Company holds.
Current wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of Vicor Japan Company, Ltd. (“VJCL”), for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced less unfavorable foreign currency exchange rate fluctuations in the second quarter of 2024 compared to the second quarter of 2023. Interest income for the three months ended June 30, 2024 increased due to higher balances of cash and cash equivalents held by the Company.
Previous wording
Loss before income taxes was $(13,391,000) for the first quarter of 2024, as compared to income before taxes of $12,392,000 for the first quarter of 2023.
Current wording
Income before income taxes was $3,021,000 for the second quarter of 2024, as compared to $19,639,000 for the second quarter of 2023.
Previous wording
We reported a net loss for the first quarter of 2024 of $(14,473,000), or $(0.33) per diluted share, compared to net income of $8,668,000, or $0.19 per diluted share, for the fourth quarter of 2023.
Current wording
We reported a net loss for the second quarter of 2024 of $(1,196,000), or $(0.03) per diluted share, compared to net income of $17,101,000, or $0.38 per diluted share, for the second quarter of 2023.
Previous wording
The decrease in net revenues for Advanced Products was primarily due to our continued softness in underpenetrated markets, partially offset by increased royalty revenue in the quarter. The decrease in net revenues for Brick Products was primarily due to reduced market demand and lower available backlog.
Current wording
The decrease in net revenues for Advanced Products was primarily due to continued softness in underpenetrated markets, partially offset by increased royalty revenue. The decrease in net revenues for Brick Products was primarily due to reduced market demand.
Previous wording
Gross margin for the first quarter of 2024 decreased $1,411,000, or 3.0%, to $45,123,000, from $46,534,000 for the first quarter of 2023. Gross margin, as a percentage of net revenues, increased to 53.8% for the first quarter of 2024, compared to 47.6% for the first quarter of 2023. The decrease in gross margin dollars was primarily the result of lower sales volume in the first quarter of 2024, with the increase in gross margin percentage primarily attributable to improved sales mix on that volume, including royalty revenue, compared to the first quarter of 2023 and certain reductions in supply chain costs, including a reduction of $1,185,000 in outsourced manufacturing costs partially offset by incremental costs of bringing production in-house for certain Advanced Products, and an increase in freight-in and tariff spending of $1,222,000 (net of approximately $0 in duty drawback recovery in the first quarter of 2024 and $2,965,000 in duty drawback recovery in the first quarter of 2023 of previously paid tariffs).
Current wording
Gross margin for the six months ended June 30, 2024 decreased $13,813,000, or 13.6%, to $87,894,000 from $101,707,000 for the six months ended June 30, 2023. Gross margin, as a percentage of net revenues, increased to 51.8% for the six month period ended June 30, 2024, as compared to 49.7% for the six month period ended June 30, 2023. The decrease in gross margin dollars was primarily the result of lower sales volume in the first six months of 2024, with the increase in gross margin percentage primarily attributable to improved sales mix on that volume, including royalty revenue, compared to the first six months of 2023 and certain reductions in supply chain costs, including a reduction of $1,967,000 in outsourced manufacturing costs partially offset by incremental costs of bringing production in-house for certain Advanced Products, and an increase in freight-in and tariff spending of $1,932,000 (net of approximately $662,000 in duty drawback recovery in the first six months of 2024 and $5,715,000 in duty drawback recovery in the first six months of 2023 of previously paid tariffs).
Previous wording
Increase primarily attributable to a decrease in research and development (“R&D”) personnel incurring time on production activities, compared to R&D activities.
Current wording
Increase primarily attributable to a decrease in research and development personnel incurring time on production activities, compared to research and development activities.
Previous wording
As of March 31, 2024, we had $239,172,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 6.7:1 as of March 31, 2024 and 9.5:1 as of December 31, 2023. Working capital, defined as total current assets less total current liabilities, decreased $12,013,000 to $364,184,000 as of March 31, 2024 from $376,197,000 as of December 31, 2023.
Current wording
As of June 30, 2024, we had $251,884,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 6.4:1 as of June 30, 2024 and 9.5:1 as of December 31, 2023. Working capital, defined as total current assets less total current liabilities, decreased $8,698,000 to $367,499,000 as of June 30, 2024 from $376,197,000 as of December 31, 2023.
Previous wording
The primary sources of cash for the three months ended March 31, 2024 were $2,582,000 generated from operations, and $1,756,000 received in connection with the exercise of options to purchase our Common Stock awarded under our stock option plans and the issuance of Common Stock under our 2017 Employee Stock Purchase Plan. The primary uses of cash during the three months ended March 31, 2024 were for the purchase of property and equipment of $7,270,000.
Current wording
The primary sources of cash for the six months ended June 30, 2024 were $18,148,000 generated from operations, and $5,138,000 received in connection with the exercise of options to purchase our Common Stock awarded under our stock option plans and the issuance of Common Stock under our 2017 Employee Stock Purchase Plan. The primary uses of cash during the six months ended June 30, 2024 were for the purchase of property and equipment of $13,411,000.
Previous wording
In November 2000, our Board of Directors authorized the repurchase of up to $30,000,000 of our Common Stock (the “November 2000 Plan”). The November 2000 Plan authorizes us to make such repurchases from time to time in the open market or through privately negotiated transactions. The timing and amounts of Common Stock repurchases are at the discretion of management based on its view of economic and financial market conditions. We did not repurchase shares of Common Stock under the November 2000 Plan during the three months ended March 31, 2024. As of March 31, 2024, we had approximately $8,541,000 remaining available for repurchases of our Common Stock under the November 2000 Plan.
Current wording
In November 2000, our Board of Directors authorized the repurchase of up to $30,000,000 of our Common Stock (the “November 2000 Plan”). The November 2000 Plan authorized us to make such repurchases from time to time in the open market or through privately negotiated transactions. We did not repurchase shares of Common Stock under the November 2000 Plan during the
Previous wording
As of March 31, 2024, we had a total of approximately $11,475,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $1,983,000 of capital expenditure items and internal-use software which had been received and included in Property, plant and equipment, net in the accompanying Condensed Consolidated Balance Sheets, but not yet paid for. Our primary needs for liquidity are for making continuing investments in manufacturing and production equipment. We believe cash generated from operations together with our available cash and cash equivalents will be sufficient to fund planned operational needs and capital equipment purchases, for both the short and long term.
Current wording
As of June 30, 2024, we had a total of approximately $14,986,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $2,133,000 of capital expenditure items and internal-use software which had been received and included in Property, plant and equipment, net in the accompanying Condensed Consolidated Balance Sheets, but not yet paid for. Our primary needs for liquidity are for making continuing investments in manufacturing and production equipment. We believe cash generated from operations together with our available cash and cash equivalents will be sufficient to fund planned operational needs and capital equipment purchases, for both the short and long term.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The decrease in net revenues for Advanced Products was primarily due to our continued softness in underpenetrated markets, partially offset by increased royalty revenue in the quarter.
Current report — wording carried from elsewhere
Decrease primarily attributable to decreases in sales support expenses, direct mailings, and advertising in trade publications.
Current report — wording carried from elsewhere
Increase primarily attributable to an increase in activity related to corporate legal matters, asserting our intellectual property rights.
Current report — wording carried from elsewhere
Decrease primarily attributable to a reduced use of outside sales representatives.
Current report — wording carried from elsewhere
The significant components of ''Other income (expense), net'' for the six months ended June 30, 2024 and the six months ended June 30, 2023 and the changes from period to period were as follows (in thousands):
Current report — wording carried from elsewhere
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of VJCL, for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced more unfavorable foreign currency exchange rate fluctuations in the first six months of 2024 compared to the first six months of 2023. Interest income for the six months ended June 30, 2024 increased due to higher balances of cash and cash equivalents held by the Company.
Current report — wording carried from elsewhere
The provision for income taxes and the effective income tax rates for the six months ended June 30, 2024 and 2023 were as follows (dollars in thousands):
Current report — wording carried from elsewhere
The effective tax rates differ from the statutory tax rates for the six months ended June 30, 2024 and 2023 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets. The provision for income taxes for the six months ended June 30, 2024 and 2023 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Current report — wording carried from elsewhere
See Note 8 to the Condensed Consolidated Financial Statements for disclosure regarding our current assessment of the valuation allowance against all domestic deferred tax assets, and the possible release (i.e., reduction) of the allowance in the future.
Current report — wording carried from elsewhere
-23- three months ended June 30, 2024. As of June 30, 2024, we had approximately $8,541,000 remaining available for repurchases of our Common Stock under the November 2000 Plan.