VICOR CORP
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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.
Mar 31, 2025 · Filed Apr 30, 2025
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 2024-09-30; filed 2024-10-30.
0000950170-24-118784
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000950170-25-060629
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesThe 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 81 previous paragraphs and 58 current paragraphs.
20 unchanged; 28 reworded; 10 added; 24 removed; 9 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 6 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 (10)
Current report
Gross margin decreased to $44,365,000 for the first quarter of 2025 from $50,360,000 for the fourth quarter of 2024, with gross margin, as a percentage of net revenues, decreasing to 47.2% for the first quarter of 2025 from 52.4% for the fourth quarter of 2024. The decrease in gross margin dollars and gross margin percentage was primarily the result of the unfavorable impact due to lower royalty revenue within the quarter and production inefficiencies.
Current report
Operating expenses for the first quarter of 2025 increased $3,359,000, or 8.2%, to $44,514,000 from $41,155,000 for the fourth quarter of 2024.
Current report
Decrease primarily attributable to decreases in sales support expenses, direct mailings, and advertising in trade publications.
Current report
Increase primarily attributable to an increase in computer software services relating to new internal-use software implementation.
Current report
Increase primarily attributable to an increase in waste disposal activities of Advanced Products related to improving production process capabilities.
Current report
Increase in engineering supplies.
Current report
Increase primarily attributable to equipment set-up and calibration for Advanced Products production.
Current report
Increase primarily attributable to a decrease in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred.
Current report
The Company licenses its intellectual property under right to use licenses, in which royalties due to the Company have previously been based upon a percentage of the licensee’s sales. For these licensing transactions, the Company utilizes the exception under the revenue recognition guidance for the recognition of sales- or usage-based royalties, in which the royalties are not recognized until the later of when 1) the customer’s subsequent sales or usages occur, or 2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied or partially satisfied.
Current report
During the three months ended March 31, 2025, the Company signed a licensing agreement that includes certain minimum royalty amounts with the potential of additional variable amounts. The Company has applied a performance constraint on the minimum royalty amounts due to uncertainty and risk around their collectability and cannot conclude that it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur if the Company recognized the entire minimum royalty amount. At the end of each quarter, the Company will assess the level of uncertainty and recognize the portion of the transaction price for which it determines that a significant reversal in the cumulative amount of revenue recognized would not occur.
Removed paragraphs (24)
Previous report
Gross margin increased to $45,744,000 for the third quarter of 2024 from $42,771,000 for the second quarter of 2024, with gross margin, as a percentage of net revenues, decreasing to 49.1% for the third quarter of 2024 from 49.8% for the second quarter of 2024. The increase in gross margin dollars was primarily the result of higher sales volume in the third quarter of 2024, including royalty revenue, with the decrease in gross margin percentage primarily attributable to unfavorable product mix and higher supply chain costs, including increased freight-in and tariff spending of $1,153,000 (net of approximately $56,000 in duty drawback recovery in the third quarter of 2024 and $662,000 in duty drawback recovery in the second quarter of 2024 of previously paid tariffs) offset by production efficiencies.
Previous report
Operating expenses for the third quarter of 2024 decreased $2,199,000, or 5.2%, to $40,358,000 from $42,557,000 for the second quarter of 2024. Litigation-contingency expense related to the litigation with SynQor, Inc. ("SynQor") was $0 for the third quarter of 2024, compared to $2,300,000 for the second quarter of 2024. See Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the litigation with SynQor.
Previous report
Increase primarily attributable to higher stock-based compensation expense associated with stock options awarded in May 2024.
Previous report
Research and development expenses were $16,960,000 for the third quarter of 2024, a decrease of $792,000, or 4.5%, compared to $17,752,000 for the third quarter of 2023. As a percentage of net revenues, research and development expenses increased to 18.2% for the third quarter of 2024 from 16.5% for the third quarter of 2023. The components of the $792,000 decrease in research and development expenses for the third quarter of 2024 from the third quarter of 2023 were as follows (dollars in thousands):
Previous report
Decrease in engineering supplies.
Previous report
Increase primarily attributable to a decrease in research and development personnel incurring time on production activities, compared to research and development activities.
Previous report
Increase primarily attributable to higher stock-based compensation expense associated with stock options awarded in May 2024.
Previous report
For the three months ended September 30, 2024, the Company calculated the income tax provision using the discrete method as this was more appropriate given the facts and circumstances. The Company determined that the application of the estimated annual effective tax rate method generally required by FASB ASC 740, Income Taxes, results in a disproportionate tax provision (benefit) for income taxes for the quarter relative to the expected provision for the full year.
Previous report
The Company’s tax expense and rate for the three months ended September 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 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 recording a deferred tax benefit from temporary differences due to the full valuation allowance on domestic deferred tax assets.
Previous report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Previous report
Net revenues for the nine months ended September 30, 2024 were $262,892,000, a decrease of $49,515,000, or 15.8%, from $312,407,000 for the nine months ended September 30, 2023. Net revenues, by product line, for the nine months ended September 30, 2024 and the nine months ended September 30, 2023 were as follows (dollars in thousands):
Previous report
Gross margin for the nine months ended September 30, 2024 decreased $23,947,000, or 15.2%, to $133,638,000 from $157,585,000 for the nine months ended September 30, 2023. Gross margin, as a percentage of net revenues, increased to 50.8% for the nine-month period ended September 30, 2024, as compared to 50.4% for the nine-month period ended September 30, 2023. The decrease in gross margin dollars was primarily the result of lower sales volume in the first nine months of 2024, with the increase in gross margin percentage primarily attributable to higher royalty revenue and improved production efficiencies compared to the first nine months of 2023 along with certain reductions in supply chain costs, including a reduction of $2,108,000 in outsourced manufacturing costs partially offset by incremental costs of bringing production in-house for certain Advanced Products, offset by slightly unfavorable sales mix and an increase in freight-in and tariff spending of $1,502,000 (net of approximately $717,000 in duty drawback recovery in the first nine months of 2024 and $5,715,000 in duty drawback recovery in the first nine months of 2023 of previously paid tariffs).
Previous report
Selling, general and administrative expenses were $72,715,000 for the nine months ended September 30, 2024, an increase of $9,695,000, or 15.4%, compared to $63,020,000 for the nine months ended September 30, 2023. Selling, general and administrative expenses as a percentage of net revenues increased to 27.7% for the nine months ended September 30, 2024 from 20.2% for the nine
Previous report
-21- months ended September 30, 2023. The components of the $9,695,000 increase in selling, general and administrative expenses for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 were as follows (dollars in thousands):
Previous report
Decrease primarily attributable to a reduced use of outside sales representatives.
Previous report
Increase primarily attributable to a decrease in research and development personnel incurring time on production activities, compared to research and development activities.
Previous report
Increase primarily attributable to an increase in utilities and building maintenance expenses.
Previous report
Increase attributable to net additions of furniture and fixtures and capitalization of building improvements.
Previous report
Decrease in engineering supplies.
Previous report
Litigation-contingency expense was $19,500,000 for the nine months ended September 30, 2024 which related to the SynQor litigation, as compared to $0 for the nine months ended September 30, 2023. See Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation.
Previous report
(Loss) income before income taxes was $(1,271,000) for the nine months ended September 30, 2024, as compared to $49,652,000 for the nine months ended September 30, 2023.
Previous report
The Company's tax expense and the rate for the nine months ended September 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 nine 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.
Previous report
We reported a net loss for the nine months ended September 30, 2024 of $(4,117,000), or $(0.09) per diluted share, as compared to net income of $44,927,000, or $1.00 per diluted share, for the nine months ended September 30, 2023.
Previous report
Liquidity and Capital Resources
Reworded paragraphs (28)
Previous wording
The Company’s consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially and adversely affect its business, consolidated financial condition, and operating results, and the share price of its Common Stock. This document and other documents filed by the Company with the Securities and Exchange Commission (“SEC”) include forward-looking statements regarding future events and the Company’s future results that are subject to the safe harbor afforded under the Private Securities Litigation Reform Act of 1995 and other safe harbors afforded under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are based on our current beliefs, expectations, estimates, forecasts, and projections for the future performance of the Company and are subject to risks and uncertainties. Forward-looking statements are identified by the use of words denoting uncertain, future events, such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “if,” “intend,” “may,” “plan,” “potential,” “project,” “prospective,” “seek,” “should,” “target,” “will,” or “would,” as well as similar words and phrases, including the negatives of these terms, or other variations thereof. Forward-looking statements also include, but are not limited to, statements regarding: our ability to address certain supply chain risks; our ongoing development of power conversion architectures, switching topologies, materials, packaging, and products; the ongoing transition of our business strategically, organizationally, and operationally from serving a large number of relatively low-volume customers across diversified markets and geographies to serving a small number of relatively large volume customers; our intent to enter new market segments; the levels of customer orders overall and, in particular, from large customers and the delivery lead times associated therewith; anticipated new and existing customer wins; the financial and operational impact of customer changes to shipping schedules; the derivation of a portion of our sales in each quarter from orders booked in the same quarter; our intent to expand the percentage of revenue associated with licensing our intellectual property to third parties; our plans to invest in expanded manufacturing capacity, including the introduction of new manufacturing processes, and the timing, location, and funding thereof; our belief that cash generated from operations together with our available cash…
Excerpt shortened here; the source contains the full paragraph.
Current wording
The Company’s consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially and adversely affect its business, consolidated financial condition, and operating results, and the share price of its Common Stock. This document and other documents filed by the Company with the Securities and Exchange Commission (“SEC”) include forward-looking statements regarding future events and the Company’s future results that are subject to the safe harbor afforded under the Private Securities Litigation Reform Act of 1995 and other safe harbors afforded under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are based on our current beliefs, expectations, estimates, forecasts, and projections for the future performance of the Company and are subject to risks and uncertainties. Forward-looking statements are identified by the use of words denoting uncertain, future events, such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “if,” “intend,” “may,” “plan,” “potential,” “project,” “prospective,” “seek,” “should,” “target,” “will,” or “would,” as well as similar words and phrases, including the negatives of these terms, or other variations thereof. Forward-looking statements also include, but are not limited to, statements regarding: our ability to address certain supply chain risks; our ongoing development of power conversion architectures, switching topologies, materials, packaging, and products; the ongoing transition of our business strategically, organizationally, and operationally from serving a large number of relatively low-volume customers across diversified markets and geographies to serving a small number of relatively large volume customers; our intent to enter new market segments; the levels of customer orders overall and, in particular, from large customers and the delivery lead times associated therewith; anticipated new and existing customer wins; the financial and operational impact of customer changes to shipping schedules; the derivation of a portion of our sales in each quarter from orders booked in the same quarter; our intent to expand the percentage of revenue associated with licensing our intellectual property to third parties; our plans to invest in expanded manufacturing capacity, including the implementation of new manufacturing processes; our belief that cash generated from operations together with our available cash and cash equivalents will be sufficient to f…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The Brick Products category largely consists of our broad and well-established families of integrated power converters, incorporating multiple conversion stages, used in conventional power systems architectures. Given the growth profiles of the markets we serve with our Advanced Products line and our Brick Products line, our strategy involves a transition in organizational focus, emphasizing investment in our Advanced Products line and targeting high growth market segments with a low-mix, high-volume operational model, while maintaining a profitable business in the mature market segments we serve with our Brick Products line with a high-mix, low-volume operational model.
Current wording
The Brick Products category largely consists of our broad and well-established families of integrated power converters, incorporating multiple conversion stages, used in conventional power systems architectures. Given the growth profiles of the markets we serve with our Advanced Products line and our Brick Products line, our strategy involves a continuing transition in organizational focus, emphasizing investment in our Advanced Products line and targeting high growth market segments with a low-mix, high-volume operational model, while maintaining a profitable business in the mature market segments we serve with our Brick Products line with a high-mix, low-volume operational model.
Previous wording
The applications in which our Advanced Products and Brick Products are used are typically in the higher-performance, higher-power segments of the market segments we serve. With our Advanced Products, we generally serve large Original Equipment Manufacturers (“OEMs”), Original Design Manufacturers (“ODMs”), and their contract manufacturers, with sales currently concentrated in the data center and hyperscaler segments of enterprise computing, in which our products are used for power delivery on server motherboards, in server racks, and across datacenter infrastructure. We have established a leadership position in the emerging market segment for powering high-performance processors used for acceleration of applications associated with artificial intelligence (“AI”). Our customers in the AI market segment include the leading innovators in processor and accelerator design, as well as early adopters in cloud computing and high performance computing. We also serve applications in aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure, and vehicles (notably in the autonomous driving, electric vehicle, and hybrid vehicle niches of the vehicle segment). With our Brick Products, we generally serve a fragmented base of large and small customers, concentrated in aerospace and defense electronics, industrial equipment, instrumentation and test equipment, and transportation (notably in rail and heavy equipment applications). With our strategic emphasis on larger, high-volume customers, we expect to experience over time a greater concentration of sales among relatively fewer customers.
Current wording
The applications in which our Advanced Products and Brick Products are used are typically in the higher-performance, higher-power segments of the market segments we serve. With our Advanced Products, we generally serve large Original Equipment Manufacturers (“OEMs”), Original Design Manufacturers (“ODMs”), and their contract manufacturers, with sales currently concentrated in the data center and hyperscaler segments of enterprise computing, in which our products are used for power delivery on server motherboards, in server racks, and across datacenter infrastructure. We have established a leadership position in the emerging market segment for powering high-performance processors used for acceleration of applications associated with artificial intelligence (“AI”). Our customers in the AI market segment include the leading innovators in processor and accelerator design, as well as early adopters in cloud computing and high performance computing. We also serve applications in aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure, and vehicles (notably in the autonomous driving, electric vehicle, and hybrid vehicle niches of the vehicle segment). With our Brick Products, we generally serve a fragmented base of large and small customers, concentrated in aerospace and defense electronics, industrial equipment, instrumentation and test equipment, and transportation (notably in rail and heavy equipment applications). With our strategic emphasis on larger, high-volume customers, we expect to experience over time a greater concentration of sales, including from intellectual property licensing, among relatively fewer customers.
Previous 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. 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
-16- 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. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, licensing income, 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 Third Quarter 2024 Financial Performance Compared to Second Quarter 2024 Financial Performance
Current wording
Summary of First Quarter 2025 Financial Performance Compared to Fourth Quarter 2024 Financial Performance
Previous wording
The following summarizes our financial performance for the third quarter of 2024, compared to the second quarter of 2024:
Current wording
The following summarizes our financial performance for the first quarter of 2025, compared to the fourth quarter of 2024:
Previous wording
Net revenues increased 8.5% to $93,166,000 for the third quarter of 2024, from $85,854,000 for the second quarter of 2024. Net revenues for Brick Products increased 10.8% compared to the second quarter of 2024, primarily due to market demand. Advanced Products net revenues increased 6.5% compared to the second quarter of 2024, primarily due to increased royalty revenue in the third quarter of 2024.
Current wording
Net revenues decreased 2.3% to $93,968,000 for the first quarter of 2025, from $96,166,000 for the fourth quarter of 2024. Net revenues for Brick Products decreased 10.0% compared to the fourth quarter of 2024, primarily due to reduced market demand. Advanced Products net revenues increased 2.7% compared to the fourth quarter of 2024, primarily due to available capacity for increased demand offset by lower royalty revenue.
Previous wording
Export sales represented approximately 49.0% of total net revenues in the third quarter of 2024 as compared to 43.3% in the second quarter of 2024.
Current wording
Export sales represented approximately 60.8% of total net revenues in the first quarter of 2025 as compared to 56.9% in the fourth quarter of 2024.
Previous wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $150,590,000 at the end of the third quarter of 2024, as compared to $153,794,000 at the end of the second quarter of 2024.
Current wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $171,745,000 at the end of the first quarter of 2025, as compared to $155,505,000 at the end of the fourth quarter of 2024.
Previous wording
We reported net income for the third quarter of 2024 of $11,552,000, or $0.26 per diluted share, compared to net income of $16,582,000, or $0.37 per diluted share, for the third quarter of 2023.
Current wording
We reported net income for the first quarter of 2025 of $2,539,000, or $0.06 per diluted share, compared to net income of $10,246,000, or $0.23 per diluted share, for the fourth quarter of 2024.
Previous wording
For the third quarter of 2024, depreciation and amortization totaled $4,741,000 and capital additions totaled $8,455,000 as compared to depreciation and amortization of $4,661,000 and capital additions of $6,141,000 for the second quarter of 2024.
Current wording
For the first quarter of 2025, depreciation and amortization totaled $5,189,000 and capital additions totaled $4,550,000 as compared to depreciation and amortization of $4,610,000 and capital additions of $1,736,000 for the fourth quarter of 2024.
Previous wording
Inventories decreased by approximately $3,323,000, or 3.0%, to $105,761,000 at September 30, 2024, compared to $109,084,000 at June 30, 2024.
Current wording
Inventories decreased by approximately $7,517,000, or 7.1%, to $98,515,000 at March 31, 2025, compared to $106,032,000 at December 31, 2024.
Previous wording
Net revenues for the third quarter of 2024 were $93,166,000, a decrease of $14,678,000, or 13.6%, as compared to $107,844,000 for the third quarter of 2023. Net revenues, by product line, for the three months ended September 30, 2024 and 2023 were as follows (dollars in thousands):
Current wording
Net revenues for the first quarter of 2025 were $93,968,000, an increase of $10,096,000, or 12.0%, as compared to $83,872,000 for the first quarter of 2024. Net revenues, by product line, for the three months ended March 31, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
The decrease in net revenues for Advanced Products was primarily due to 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.
Current wording
The increase in net revenues for Advanced Products was primarily due to available capacity for increased demand and increased royalty revenue in the quarter. The decrease in net revenues for Brick Products was primarily due to reduced market demand.
Previous wording
Gross margin for the third quarter of 2024 decreased $10,134,000, or 18.1%, to $45,744,000, from $55,878,000 for the third quarter of 2023. Gross margin, as a percentage of net revenues, decreased to 49.1% for the third quarter of 2024, compared to 51.8% for the third quarter of 2023. The decrease in gross margin dollars and gross margin percentage was primarily attributable to lower sales volume and unfavorable sales mix on that volume, offset by higher royalty revenue and improved production efficiencies and supply chain costs, including lower freight-in and tariff spending of $430,000 (net of approximately $56,000 in duty drawback recovery in the third quarter of 2024 and $0 in duty drawback recovery in the third quarter of 2023 of previously paid tariffs).
Current wording
Gross margin for the first quarter of 2025 decreased $758,000, or 1.7%, to $44,365,000, from $45,123,000 for the first quarter of 2024. Gross margin, as a percentage of net revenues, decreased to 47.2% for the first quarter of 2025, compared to 53.8% for the first quarter of 2024. The decrease in gross margin dollars and gross margin percentage was primarily attributable to unfavorable sales mix and production inefficiencies partially offset by the favorable impact from higher sales volume including higher royalty revenue and lower supply chain costs.
Previous wording
Selling, general and administrative expenses were $23,398,000 for the third quarter of 2024, an increase of $976,000, or 4.4%, from $22,422,000 for the third quarter of 2023. Selling, general and administrative expenses as a percentage of net revenues increased to 25.1% for the third quarter of 2024 from 20.8% for the third quarter of 2023. The components of the $976,000 increase in selling, general and administrative expenses for the third quarter of 2024 from the third quarter of 2023 were as follows (dollars in thousands):
Current wording
Selling, general and administrative expenses were $25,137,000 for the first quarter of 2025, a decrease of $862,000, or 3.3%, from $25,999,000 for the first quarter of 2024. Selling, general and administrative expenses as a percentage of net revenues decreased to 26.8% for the first quarter of 2025 from 31.0% for the first quarter of 2024. The components of the $862,000 decrease in selling, general and administrative expenses for the first quarter of 2025 compared to the first quarter of 2024 were as follows (dollars in thousands):
Previous wording
Increase primarily attributable to an increase in activity related to corporate legal matters, including the assertion of our intellectual property rights.
Current wording
Decrease primarily attributable to a decrease in activity related to corporate legal matters, including the assertion of our intellectual property rights.
Previous wording
Increase primarily attributable to an increase in post-judgment interest relating to the SynQor litigation-contingency accrual.
Current wording
Increase primarily attributable to an increase in post-judgment interest and other costs relating to the litigation-contingency accrual with respect to our litigation with SynQor, Inc. ("SynQor").
Previous wording
Research and development expenses were $51,938,000 for the nine months ended September 30, 2024, an increase of $1,382,000, or 2.7%, from $50,556,000 for the nine months ended September 30, 2023. As a percentage of net revenues, research and development expenses increased to 19.8% for the nine months ended September 30, 2024 from 16.2% for the nine months ended September 30, 2023. The components of the $1,382,000 increase in research and development expenses for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 were as follows (dollars in thousands):
Current wording
Research and development expenses were $19,377,000 for the first quarter of 2025, an increase of $1,338,000, or 7.4%, compared to $18,039,000 for the first quarter of 2024. As a percentage of net revenues, research and development expenses decreased to 20.6% for the first quarter of 2025 from 21.5% for the first quarter of 2024. The components of the $1,338,000 increase in research and development expenses for the first quarter of 2025 compared to the first quarter of 2024 were as follows (dollars in thousands):
Previous wording
Decrease primarily attributable to a decrease in the use of consultants.
Current wording
Increase primarily attributable to an increase in the use of consultants.
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 favorable foreign currency exchange rate fluctuations in the third quarter of 2024 compared to the third quarter of 2023. Interest income for the three months ended September 30, 2024 increased due to higher balances of cash and cash equivalents held by the Company.
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 favorable foreign currency exchange rate fluctuations in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Income before income taxes was $9,099,000 for the third quarter of 2024, as compared to $17,621,000 for the third quarter of 2023.
Current wording
Income (loss) before income taxes was $2,985,000 for the first quarter of 2025, as compared to $(13,391,000) for the first quarter of 2024.
Previous wording
The (benefit) provision for income taxes and the effective income tax rates for the three months ended September 30, 2024 and 2023 were as follows (dollars in thousands):
Current wording
The provision for income taxes and the effective income tax rates for the three months ended March 31, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
The effective tax rates differ from the statutory tax rates for the three months ended September 30, 2024 and 2023 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets. The (benefit) provision for income taxes for the three months ended September 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 wording
The effective tax rates differ from the statutory tax rates for the three months ended March 31, 2025 and 2024 primarily due to the Company’s full valuation allowance position against net domestic deferred tax assets. The provision for income taxes for the three months ended March 31, 2025 and 2024 included estimated federal, state, and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Previous wording
We reported net income for the third quarter of 2024 of $11,552,000, or $0.26 per diluted share, compared to a net loss of $(1,196,000), or $(0.03) per diluted share, for the second quarter of 2024.
Current wording
We reported net income for the first quarter of 2025 of $2,539,000, or $0.06 per diluted share, compared to a net loss of $(14,473,000), or $(0.33) per diluted share, for the first quarter of 2024.
Previous wording
As of September 30, 2024, we had $267,605,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 6.4:1 as of September 30, 2024 and 9.5:1 as of December 31, 2023. Working capital, defined as total current assets less total current liabilities, increased $4,256,000 to $380,453,000 as of September 30, 2024 from $376,197,000 as of December 31, 2023.
Current wording
As of March 31, 2025, we had $296,099,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 6.4:1 as of March 31, 2025 and 7.5:1 as of December 31, 2024. Working capital, defined as total current assets less total current liabilities, increased $10,089,000 to $411,303,000 as of March 31, 2025 from $401,214,000 as of December 31, 2024.
Previous wording
The primary sources of cash for the nine months ended September 30, 2024 were $40,725,000 generated from operations and $7,047,000 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 nine months ended September 30, 2024 were for the purchase of property and equipment of $21,866,000.
Current wording
The primary sources of cash for the three months ended March 31, 2025 were $20,128,000 generated from operations and $3,166,000 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, 2025 were for the purchase of property and equipment of $4,550,000.
Previous wording
As of September 30, 2024, we had a total of approximately $14,073,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $2,976,000 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 March 31, 2025, we had a total of approximately $6,525,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $2,990,000 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 previous paragraphs (9)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Increase primarily attributable to an increase in activity related to corporate legal matters, including the assertion of our intellectual property rights.
Previous report — wording carried elsewhere
Increase primarily attributable to an increase in post-judgment interest relating to the SynQor litigation-contingency accrual.
Previous report — wording carried elsewhere
Decrease primarily attributable to decreased prototype development costs for Advanced Products.
Previous report — wording carried elsewhere
The significant components of ''Other income (expense), net'' for the nine months ended September 30, 2024 and the nine months ended September 30, 2023 and the changes from period to period were as follows (in thousands):
Previous report — wording carried 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 less unfavorable foreign currency exchange rate fluctuations in the first nine months of 2024 compared to the first nine months of 2023. Interest income for the nine months ended September 30, 2024 increased due to higher balances of cash and cash equivalents held by the Company.
Previous report — wording carried elsewhere
The provision for income taxes and the effective income tax rates for the nine months ended September 30, 2024 and 2023 were as follows (dollars in thousands):
Previous report — wording carried elsewhere
The effective tax rates differ from the statutory tax rates for the nine months ended September 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 nine months ended September 30, 2024 and 2023 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Previous report — wording carried 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.