VICOR CORP
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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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, 2025 · Filed Aug 1, 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 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 ResourcesCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000950170-25-101161
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 58 previous paragraphs and 79 current paragraphs.
25 unchanged; 25 reworded; 19 added; 8 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 6 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 (19)
Current report
In addition to revenues, the $45,000,000 received by the Company pursuant to the settlement agreements entered into in May 2025 to resolve various lawsuits, arbitrations, and appeals related to certain intellectual property claims between the Company and certain parties (collectively, the “patent litigation settlement”), is included in the second quarter of 2025 operating results. For additional information regarding the patent litigation settlement, see Note 11 to the Condensed Consolidated Financial Statements.
Current report
During the second quarter of 2025, the Company received a patent litigation settlement payment of $45,000,000.
Current report
Gross margin for the second quarter of 2025 increased $49,357,000, or 115.4%, to $92,128,000, from $42,771,000 for the second quarter of 2024. Gross margin, as a percentage of total net revenues and patent litigation settlement, increased to 65.3% for the second quarter of 2025, compared to 49.8% for the second quarter of 2024. The increase in gross margin dollars and gross margin percentage was primarily attributable to the $45,000,000 patent litigation settlement payment received by the Company in the second quarter of 2025 and the favorable impact from higher sales volume and improved sales mix on that revenue, including royalty revenue, offset by the unfavorable impact of production inefficiencies including an increase in freight-in and tariff spending of $2,305,000 (net of approximately $0 in duty drawback recovery in the second quarter of 2025 and $662,000 in duty drawback recovery in the second quarter of 2024 of previously paid tariffs).
Current report
Increase primarily attributable to $5,100,000 in legal fees associated with the patent litigation settlement offset by lower legal activity.
Current report
Increase primarily attributable to an increase in utilities and building maintenance expenses.
Current report
Decrease in engineering supplies.
Current report
Litigation-contingency expense related to the SynQor litigation was $0 for the second quarter of 2025 as compared to $2,300,000 for the second quarter of 2024. See Note 11 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation.
Current report
The Company’s tax expense and the rate for the quarter ended June 30, 2024 was 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, was having an outsized impact on the rate by effectively moving from a book loss to a taxable income position, which caused a significant tax.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Net revenues for the six months ended June 30, 2025 were $190,014,000, an increase of $20,288,000, or 12.0%, from $169,726,000 for the six months ended June 30, 2024. Net revenues, by product line, for the six months ended June 30, 2025 and the six months ended June 30, 2024 were as follows (dollars in thousands):
Current report
During the six months ended June 30, 2025, the Company received a patent litigation settlement payment of $45,000,000.
Current report
Gross margin for the six months ended June 30, 2025 increased $48,599,000, or 55.3%, to $136,493,000 from $87,894,000 for the six months ended June 30, 2024. Gross margin, as a percentage of total net revenues and patent litigation settlement, increased to 58.1% for the six-month period ended June 30, 2025, as compared to 51.8% for the six-month period ended June 30, 2024. The increase in gross margin dollars and gross margin percentage was primarily attributable to the $45,000,000 patent litigation settlement payment received by the Company in the second quarter of 2025 and the favorable impact from higher sales volume and improved sales mix on that revenue, including royalty revenue, when compared to the first six months of 2024, offset by the unfavorable impact of production inefficiencies including an increase in freight-in and tariff spending of $1,985,000 (net of approximately $0 in duty drawback recovery in the first six months of 2025 and $662,000 in duty drawback recovery in the first six months of 2024 of previously paid tariffs).
Current report
Selling, general and administrative expenses were $53,089,000 for the six months ended June 30, 2025, an increase of $3,772,000, or 7.6%, compared to $49,317,000 for the six months ended June 30, 2024. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement, decreased to 22.6% for the six months ended June 30, 2025 from 29.1% for the six months ended June 30, 2024. The components of the $3,772,000 increase in selling, general and administrative expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 were as follows (dollars in thousands):
Current report
Increase primarily attributable to $5,100,000 in legal fees associated with the patent litigation settlement offset by lower legal activity.
Current report
Research and development expenses were $38,168,000 for the six months ended June 30, 2025, an increase of $3,190,000, or 9.1%, from $34,978,000 for the six months ended June 30, 2024. As a percentage of total net revenues and patent litigation settlement, research and development expenses decreased to 16.2% for the six months ended June 30, 2025 from 20.6% for the six months ended June 30, 2024. The components of the $3,190,000 increase in research and development expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 were as follows (dollars in thousands):
Current report
Litigation-contingency expense related to the SynQor litigation was $0 for the six months ended June 30, 2025 as compared to $19,500,000 for the six months ended June 30, 2024. See Note 11 to the Condensed Consolidated Financial Statements for additional information regarding the SynQor litigation.
Current report
Income (loss) before income taxes was $52,027,000 for the six months ended June 30, 2025, as compared to $(10,370,000) for the six months ended June 30, 2024.
Current report
The Company’s tax expense and the rate for the six months ended June 30, 2024 was 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 caused 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 net income for the six months ended June 30, 2025 of $43,731,000, or $0.97 per diluted share, as compared to a net loss of $(15,669,000), or $(0.35) per diluted share, for the six months ended June 30, 2024.
Removed paragraphs (8)
Previous report
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 report
Decrease primarily attributable to a decrease in activity related to corporate legal matters, including the assertion of our intellectual property rights.
Previous report
Decrease primarily attributable to the fact that the Company no longer uses outside sales representatives.
Previous report
Increase primarily attributable to an increase in the use of consultants.
Previous report
Increase primarily attributable to annual compensation adjustments in May 2024 and higher stock-based compensation expense associated with stock options awarded in May 2024.
Previous report
Increase primarily attributable to annual compensation adjustments in May 2024 and higher stock-based compensation expense associated with stock options awarded in May 2024.
Previous report
Increase primarily attributable to an increase in the use of consultants.
Previous 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.
Reworded paragraphs (25)
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, including from intellectual property licensing, 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. Aggregate royalty revenues of $88,000,000 from our patent licensing arrangements and income of $45,000,000 from certain patent litigation settlements relating to Vicor’s power-conversion technology (as described in more detail in Note 11 to the Condensed Consolidated Financial Statements) have resulted in combined gross cash proceeds to the Company of approximately $133,000,000 since January 1, 2021.
Previous wording
Our quarterly consolidated operating results can be difficult to forecast and have been subject to significant fluctuations. We plan our production and inventory levels based on management’s estimates of customer demand, customer forecasts, and other information sources. Customer forecasts, particularly those of OEM, ODM, and contract manufacturing customers to which we supply Advanced Products in high volumes, are subject to scheduling changes on short notice, contributing to operating inefficiencies and excess costs. In addition, external factors such as supply chain uncertainties, which are often associated with the cyclicality of the electronics industry, regional macroeconomic and trade-related circumstances, and force majeure events (most recently evidenced by the COVID-19 pandemic), have caused our operating results to vary meaningfully. Supply chain disruptions, including those associated with our reliance on outsourced package process steps that are essential in the production of some of our Advanced Products, and those relating, for example, to the procurement of raw material, have in the past negatively impacted and may in the future negatively impact our operating results. We have taken steps to mitigate the impact of supply chain disruptions by, among other things and in varying degrees, moving outsourced manufacturing steps in-house to the Company, ordering supplies with extended lead times, paying higher prices for certain supplies or outsourced production, and expediting deliveries at a cost premium. The resulting
Current wording
Our quarterly consolidated operating results can be difficult to forecast and have been subject to significant fluctuations. We plan our production and inventory levels based on management’s estimates of customer demand, customer forecasts, and other information sources. Customer forecasts, particularly those of OEM, ODM, and contract manufacturing customers to which we supply Advanced Products in high volumes, are subject to scheduling changes on short notice, contributing to operating inefficiencies and excess costs. In addition, external factors such as supply chain uncertainties, which are often associated with the cyclicality of the electronics industry, regional macroeconomic and trade-related circumstances, and force majeure events (most recently evidenced by the COVID-19 pandemic), have caused our operating results to vary meaningfully. Supply chain disruptions, including those associated with our reliance on outsourced package process steps that are essential in the production of some of our Advanced Products, and those relating, for example, to the procurement of raw material, have in the past negatively impacted and may in the
Previous 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.
Current wording
-19- future negatively impact our operating results. We have taken steps to mitigate the impact of supply chain disruptions by, among other things and in varying degrees, moving outsourced manufacturing steps in-house to the Company, ordering supplies with extended lead times, paying higher prices for certain supplies or outsourced production, and expediting deliveries at a cost premium. The resulting 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 First Quarter 2025 Financial Performance Compared to Fourth Quarter 2024 Financial Performance
Current wording
Summary of Second Quarter 2025 Financial Performance Compared to First Quarter 2025 Financial Performance
Previous wording
The following summarizes our financial performance for the first quarter of 2025, compared to the fourth quarter of 2024:
Current wording
The following summarizes our financial performance for the second quarter of 2025, compared to the first quarter of 2025:
Previous 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.
Current wording
Net revenues increased 2.2% to $96,046,000 for the second quarter of 2025, from $93,968,000 for the first quarter of 2025. Net revenues for Brick Products increased 4.0% compared to the first quarter of 2025, primarily due to improved market demand. Advanced Products net revenues increased 1.2% compared to the first quarter of 2025, primarily due to available capacity for increased demand offset by lower royalty revenue.
Previous 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.
Current wording
Export sales represented approximately 51.9% of total net revenues in the second quarter of 2025 as compared to 60.8% in the first quarter of 2025.
Previous wording
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 wording
Gross margin increased to $92,128,000 for the second quarter of 2025 from $44,365,000 for the first quarter of 2025, with gross margin, as a percentage of total net revenues and patent litigation settlement, increasing to 65.3% for the second quarter of 2025 from 47.2% for the first quarter of 2025. The increase in gross margin dollars and gross margin percentage was primarily attributable to the $45,000,000 patent litigation settlement payment received by the Company in the second quarter of 2025 and the favorable impact from higher sales volume and improved product mix, offset by the unfavorable impact due to lower royalty revenue within the quarter and production inefficiencies including an increase in freight-in and tariff spending of $1,595,000.
Previous 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.
Current wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $155,214,000 at the end of the second quarter of 2025, as compared to $171,745,000 at the end of the first quarter of 2025.
Previous wording
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 wording
Operating expenses for the second quarter of 2025 increased $2,229,000, or 5.0%, to $46,743,000 from $44,514,000 for the first quarter of 2025.
Previous 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.
Current wording
We reported net income for the second quarter of 2025 of $41,192,000, or $0.91 per diluted share, compared to net income of $2,539,000, or $0.06 per diluted share, for the first quarter of 2025.
Previous 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.
Current wording
For the second quarter of 2025, depreciation and amortization totaled $5,190,000 and capital additions totaled $6,204,000 as compared to depreciation and amortization of $5,189,000 and capital additions of $4,550,000 for the first quarter of 2025.
Previous 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.
Current wording
Inventories decreased by approximately $3,022,000, or 3.1%, to $95,493,000 at June 30, 2025, compared to $98,515,000 at March 31, 2025.
Previous 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):
Current wording
Net revenues for the second quarter of 2025 were $96,046,000, an increase of $10,192,000, or 11.9%, as compared to $85,854,000 for the second quarter of 2024. Net revenues, by product line, for the three months ended June 30, 2025 and 2024 were as follows (dollars in thousands):
Previous 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):
Current wording
Selling, general and administrative expenses were $27,952,000 for the second quarter of 2025, an increase of $4,634,000, or 19.9%, from $23,318,000 for the second quarter of 2024. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement, decreased to 19.8% for the second quarter of 2025 from 27.2% for the second quarter of 2024. The components of the $4,634,000 increase in selling, general and administrative expenses for the second quarter of 2025 compared to the second quarter of 2024 were as follows (dollars in thousands):
Previous 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):
Current wording
Research and development expenses were $18,791,000 for the second quarter of 2025, an increase of $1,852,000, or 10.9%, compared to $16,939,000 for the second quarter of 2024. As a percentage of total net revenues and patent litigation settlement, research and development expenses decreased to 13.3% for the second quarter of 2025 from 19.7% for the second quarter of 2024. The components of the $1,852,000 increase in research and development expenses for the second quarter of 2025 compared to the second quarter of 2024 were as follows (dollars 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 favorable foreign currency exchange rate fluctuations in the first quarter of 2025 compared to the first quarter of 2024.
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 second quarter of 2025 compared to the second quarter of 2024.
Previous 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.
Current wording
Income before income taxes was $49,042,000 for the second quarter of 2025, as compared to $3,021,000 for the second quarter of 2024.
Previous 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.
Current wording
We reported net income for the second quarter of 2025 of $41,192,000, or $0.91 per diluted share, compared to a net loss of $(1,196,000), or $(0.03) per diluted share, for the second quarter of 2024.
Previous 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.
Current wording
The increase in net revenues for Advanced Products was primarily due to available capacity for increased demand and increased royalty revenue. The decrease in net revenues for Brick Products was primarily due to reduced market demand.
Previous 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.
Current wording
As of June 30, 2025, we had $338,541,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 7.0:1 as of June 30, 2025 and 7.5:1 as of December 31, 2024. Working capital, defined as total current assets less total current liabilities, increased $39,727,000 to $440,941,000 as of June 30, 2025 from $401,214,000 as of December 31, 2024.
Previous 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.
Current wording
The primary sources of cash for the six months ended June 30, 2025 were $85,353,000 generated from operations and $4,140,000 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, 2025 were for the repurchases of Common Stock of $17,609,000 and property and equipment of $10,754,000.
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”). 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. As of March 31, 2025, we had approximately $99,503,000 remaining available for repurchases of our Common Stock under the New Repurchase Authorization.
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”). 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. As of June 30, 2025, we had approximately $82,028,000 remaining available for repurchases of our Common Stock under the New Repurchase Authorization.
Previous 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.
Current wording
As of June 30, 2025, we had a total of approximately $4,894,000 of cancelable and non-cancelable capital expenditure commitments, principally for manufacturing and production equipment, which we intend to fund with existing cash, and approximately $2,279,000 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.
Previous wording
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 wording
The Company licenses its intellectual property under right to use licenses, in which royalties due to the Company are generally 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. In certain right to use licenses where payment is not based on sales-or-usage-based royalties, the Company estimates consideration it expects to be entitled to considering minimum expected payments and potential price concessions. Revenue for these licenses is recognized in an amount that is probable that a significant reversal in the cumulative amount of revenue recognized would not occur.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The increase in net revenues for Advanced Products was primarily due to available capacity for increased demand. The decrease in net revenues for Brick Products was primarily due to reduced market demand.
Current report — wording carried from elsewhere
Increase primarily attributable to an increase in computer software services relating to new internal-use software implementation.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Increase primarily attributable to an increase in waste disposal activities of Advanced Products related to improving production process capabilities.
Current report — wording carried from elsewhere
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 — wording carried from elsewhere
The significant components of ''Other income (expense), net'' for the six months ended June 30, 2025 and the six months ended June 30, 2024 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 Vicor Japan Company, Ltd., 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 six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current report — wording carried from elsewhere
The provision for income taxes and the effective income tax rates for the six months ended June 30, 2025 and 2024 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, 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 six months ended June 30, 2025 and 2024 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 9 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.