Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an over-weight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income, reflecting the author's background in the oil and gas industry [1] Portfolio Management Approach - A top-down capital allocation approach is recommended, tailored to each investor's personal situation, including factors such as age, retirement status, risk tolerance, income, net worth, and goals [1] - Suggested investment categories include S&P 500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash [1]

Power module specialist Vicor's (VICR -22.89%) was looking anything but powerful on Wednesday, as its shares lost more than 23% of their value. The culprit was a quarterly earnings report that investors found not to their liking, to put it mildly. Vicor's slide came on a not-bad day for stocks overall, which saw the S&P 500 index close up marginally (by almost 0.2%).Improvements in key line items, but...Vicor published its first-quarter earnings after market hours on Tuesday, and the market's blowback was s ...

Financial Data and Key Metrics Changes - Vicor recorded total revenue of $90.4 million for Q1 2025, down 2.3% sequentially from Q4 2024's $96.2 million, but up 12% from Q1 2024's $83.9 million [6] - Advanced products revenue increased 2.7% sequentially to $59.9 million, while product revenue decreased 10% sequentially to $34.1 million [6] - Gross profit margin for Q1 was 47.2%, a decrease of 520 basis points from the prior quarter [7] - Net income for Q1 totaled $2.5 million, with GAAP diluted earnings per share at $0.06 based on a fully diluted share count of 45.5 million shares [11] Business Line Data and Key Metrics Changes - Shipments to stocking distributors decreased 16.9% sequentially and 33.8% year over year [7] - Advanced product share of total revenue increased to 63.7% compared to 60.6% in Q4 2024, while Brick product share decreased to 36.3% [7] - Total operating expenses increased 8.2% sequentially to $44.5 million, primarily due to increased research and development expenses [10] Market Data and Key Metrics Changes - Exports as a percentage of total revenue increased to approximately 60.8% from 56.9% in the prior quarter [7] - The one-year backlog increased 10.4% from the prior quarter, closing at $171.7 million [12] Company Strategy and Development Direction - Vicor is focusing on developing complete front-end to point-of-load solutions centered on a 48-volt hub, which is proving effective as evidenced by strong engagements across top customers [20] - The company is navigating a changing tariff landscape and has informed customers of a 10% tariff surcharge for shipments after July [18] - Vicor is positioned to offer high-efficiency, high-density power delivery networks, with a market expected to exceed $5 billion by 2028 [17] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a year of uncertainty and opportunity, unable to provide quarterly guidance until uncertainties are resolved [13] - The company remains confident in its licensing business as a growth area, despite short-term impacts from a licensee transitioning to unlicensed products [25] - Management expects continued growth in product revenues and licensing income, with a focus on new product introductions [52] Other Important Information - The transition to a new ERP system (SAP) contributed to the decline in gross margin due to increased production and consulting expenses [9] - Capital expenditures for Q1 totaled $4.6 million, with a construction and progress balance of approximately $9.9 million for manufacturing equipment [12] Q&A Session Summary Question: Can you elaborate on the impact of Vicor's licensing business? - Management acknowledged a short-term impact from a licensee transitioning to unlicensed products but remains confident in the growth potential of the licensing business [25] Question: What are the expected impacts of tariffs on supply and demand? - Management assessed the impact of tariffs on the bill of materials and instituted a 10% tariff surcharge, not expecting significant negative impacts on demand [29] Question: What is the timeline for ramping second-generation VPD products? - Management expects to bring development to fruition for lead customers soon, targeting power production in the second half of the year [34] Question: How does the company view the NBM business going forward? - Management expects the NBM business to grow, driven by demand following the ITC win and concerns from OEMs and hyperscalers [67] Question: What is the status of the ITC case? - The ITC case concluded with a final determination, and management is confident in overcoming the commission's position regarding licensing [54] Question: What is the expected pricing after implementing tariff surcharges? - A 10% tariff surcharge will be applied across the board, with expectations to maintain margins despite varying impacts on different products [61]

Vicor (VICR) Q1 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants James Schmidt - Corporate VP, CFO, Treasurer & SecretaryPhilip Davies - Corporate VP of Global Sales & MarketingPatrizio Vinciarelli - Chairman, CEO & PresidentJonathan Tanwanteng - Managing DirectorAlan Hicks - Founder & Managing Member Conference Call Participants Quinn Bolton - Senior AnalystNone - AnalystRichard Shannon - Senior Research AnalystJames Liberman - Analyst Operator Good day and thank you for standing by. Welc ...

Exhibit 99.1 NEWS RELEASE FINANCIAL NEWS BRIEF April 29, 2025 For Immediate Release Vicor Corporation Reports Results for the First Quarter Ended March 31, 2025 Andover, Mass., April 29, 2025 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the first quarter ended March 31, 2025. These results will be discussed later today at 5:00 p.m. Eastern Time, during management's quarterly investor conference call. The details for the call are below. Revenues for the first quart ...

Core Viewpoint - Vicor Corporation reported a mixed financial performance for the first quarter of 2025, with revenue growth year-over-year but declines in gross margin and net income compared to the previous quarter [2][3][4]. Financial Performance - Revenues for Q1 2025 were $94.0 million, reflecting a 12.0% increase from $83.9 million in Q1 2024, but a 2.3% decrease from $96.2 million in Q4 2024 [2]. - Gross margin decreased to $44.4 million in Q1 2025 from $45.1 million in Q1 2024 and from $50.4 million in Q4 2024, with gross margin percentage dropping to 47.2% from 53.8% year-over-year and from 52.4% sequentially [3]. - Operating expenses were $44.5 million in Q1 2025, down from $61.2 million in Q1 2024 but up from $41.2 million in Q4 2024 [3]. Profitability - The net income for Q1 2025 was $2.5 million, or $0.06 per diluted share, compared to a net loss of $14.5 million or ($0.33) per diluted share in Q1 2024, and net income of $10.2 million or $0.23 per diluted share in Q4 2024 [4]. - Cash flow from operations was $20.1 million in Q1 2025, significantly up from $2.6 million in Q1 2024 and $10.1 million in Q4 2024 [5]. Backlog and Future Outlook - The backlog for Q1 2025 was $171.7 million, a 14.2% increase from $150.3 million in Q1 2024 and a 10.4% increase from $155.5 million at the end of Q4 2024 [6]. - CEO Dr. Patrizio Vinciarelli highlighted challenges in revenue and gross margin due to a licensee transitioning to new products, but noted potential for margin improvements with higher utilization of manufacturing capabilities and increased licensing income [7]. Capital Structure - As of March 31, 2025, cash and cash equivalents increased by 6.8% sequentially to approximately $296.1 million from approximately $277.3 million as of December 31, 2024 [5]. - Total assets as of March 31, 2025, were $665.0 million, up from $641.1 million at the end of 2024 [14][15].

ANDOVER, Mass., April 08, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) announced today it will hold its first quarter 2025 earnings conference call and webcast on Tuesday, April 29, 2025 at 5:00 p.m. (Eastern). Prepared remarks regarding the company's financial and operational results for the three months ended March 31, 2025 will be followed by a question and answer period with Patrizio Vinciarelli, Chief Executive Officer, Jim Schmidt, Chief Financial Officer, and Phil Davies, Corporate Vice ...

How to rapidly implement bi-directional 800V to 48V/12V DC-DC conversion using high-density power modules ANDOVER, Mass., April 01, 2025 (GLOBE NEWSWIRE) -- As the automotive industry migrates to 800V batteries and a 48V zonal architecture, power system designers are looking for rapidly deployable solutions that also optimize performance, minimize size, weight and system cost. Converting from high voltage to 48V and 12V, presents a variety of complex power design challenges. The new Vicor automotive grade p ...

ANDOVER, Mass., March 26, 2025 (GLOBE NEWSWIRE) -- Vicor has released a new DCM family that supports 48V-centric power delivery networks with greater system efficiency and performance. The DCMs (DCM3717 and DCM3735) range in power levels from 750W up to 2kW and provide an industry-leading power density of 5kW/in3. Power system designers requiring scalable solutions can parallel devices for higher power capability. Vicor DCM3717 and DCM3735, non-isolated regulated 48V-12V converters ease the migration to 48 ...

Financial Performance - Total net revenues for 2024 were $359,058, a decrease of 11.3% from $405,059 in 2023[212]. - Product revenue declined to $312,463 in 2024, down 19.7% from $389,187 in 2023[212]. - Consolidated net income for 2024 was $6,139, a significant decrease of 88.5% from $53,600 in 2023[212]. - The company reported a basic net income per share of $0.14 for 2024, down from $1.21 in 2023[212]. - The company’s net income attributable to Vicor Corporation for the year ended December 31, 2024, was $6,129,000, compared to $53,595,000 in 2023 and $25,446,000 in 2022, indicating a significant decline in profitability[267]. - In 2024, the Company reported income before income taxes of $10,487,000, a decrease of 82.6% from $60,244,000 in 2023[338]. Revenue Sources - Revenues from the United States increased to $185,834,000 in 2024, up 24.3% from $149,456,000 in 2023[305]. - Revenues from Asia Pacific decreased to $129,981,000 in 2024, down 32.4% from $192,267,000 in 2023[305]. - Approximately 12.6% of total net revenues in 2024 came from customers in China, down from 17.7% in 2023[309]. Expenses and Liabilities - Operating expenses increased to $185,308 in 2024, up 20.6% from $153,571 in 2023, primarily due to litigation-contingency expenses of $19,500[212]. - The effective income tax rate for 2024 was 41.5%, significantly higher than 11.0% in 2023, primarily due to an increase in valuation allowance[336]. - The Company recorded a litigation-related accrual of $26,000,000 in 2024 due to a patent infringement lawsuit, including enhanced damages and attorney fees[351]. Assets and Investments - Total assets increased to $641,118 in 2024, up 7.8% from $594,887 in 2023[210]. - Cash and cash equivalents at the end of 2024 were $277,273, an increase of 14.5% from $242,219 at the end of 2023[219]. - The company has a valuation allowance of $61.5 million against domestic deferred tax assets, indicating potential challenges in realizing these assets[205]. - The Company’s total deferred tax assets increased to $81,541,000 in 2024 from $71,052,000 in 2023, with a net deferred tax asset of $20,010,000[338]. Inventory and Production - Approximately 74% or $78.9 million of the company's total inventory balance is comprised of raw materials, indicating a significant reliance on these materials for operations[201]. - As of December 31, 2024, inventories totaled $106,032,000, a slight decrease from $106,579,000 in 2023, with raw materials at $78,934,000 and finished goods at $10,709,000[274]. - Vicor's inventory is valued at the lower of cost or net realizable value, with production overhead allocated based on normal capacity, ensuring accurate cost management[239]. Foreign Currency and Interest Rates - A 10% unfavorable movement in the value of the Japanese Yen relative to the U.S. Dollar would increase the company's foreign currency loss by approximately $49,000[191]. - The company estimates that its annual interest income would change by approximately $30,000 for each 100 basis point increase or decrease in interest rates[190]. - The company reported net interest income of $11.47 million in 2024, an increase from $8.22 million in 2023[335]. Business Strategy and Market Focus - The company is transitioning its business model to serve a smaller number of larger volume customers, which may impact future revenue streams[1]. - The company plans to expand the percentage of revenue associated with licensing its intellectual property to third parties[1]. - Vicor's principal markets include large OEMs and ODMs, indicating a focus on high-volume users in the power components sector[224]. Research and Development - Research and development expenses were $68,922 in 2024, slightly up from $67,857 in 2023, indicating continued investment in innovation[212]. - The Company has federal and state research and development tax credit carryforwards of $12,344,000 and $21,892,000, expiring in 2039 and 2025, respectively[341]. Stock and Compensation - Stock-based compensation expense rose from $12.869 million in 2022 to $15.302 million in 2023, marking an increase of 18.9%[221]. - The total grant-date fair value of stock options granted was approximately $19.28 million in 2024, up from $17.96 million in 2023[323]. - The company had approximately $26.27 million of total unrecognized compensation cost related to unvested awards as of December 31, 2024, expected to be recognized over a weighted-average period of 2.0 years[324]. Legal and Regulatory Matters - The company is involved in ongoing litigation, including a class action lawsuit related to alleged misleading statements during earnings calls in 2023[355]. - The Company faces uncertainties in forecasting operating results due to unpredictability in customer orders and product transitions[340].