Vicor (VICR) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $96.2M, up 3.2% sequentially and 3.8% year-over-year; full-year revenue was $359.1M, down 11.4% from 2023.

• Q4 net income was $10.2M ($0.23/diluted share), up from $8.7M a year ago but down from $11.6M in Q3; full-year net income dropped to $6.1M ($0.14/diluted share) from $53.6M ($1.19) in 2023.

• CEO highlighted improved gross margins and growing licensing traction, especially in high-density power for AI and hyperscalers.

• Advanced products revenue rose 18% sequentially in Q4, while Brick products declined 13%.

• Book-to-bill ratio exceeded one in Q4, with backlog up 3.3% sequentially to $155.5M.

Financial highlights

• Q4 gross margin was $50.4M (52.4% of revenue), up from $47.3M (51.1%) a year ago and $45.7M (49.1%) in Q3; full-year gross margin improved to 51.2%.

• Q4 operating income was $9.2M (9.6% margin); full-year operating loss was $1.3M (-0.4% margin).

• Q4 operating expenses rose to $41.2M from $40.0M year-over-year and $40.4M sequentially.

• Cash and equivalents at Q4 end totaled $277.3M, up 3.6% sequentially; operating cash flow for Q4 was $10.1M.

• Q4 capital expenditures were $1.7M, down from $7.2M a year ago and $8.5M in Q3; inventories increased slightly to $106M.

Outlook and guidance

• 2025 is described as a year of uncertainty and opportunity, with a wide range of possible outcomes for revenue and profitability.

• No quarterly guidance provided due to ongoing uncertainties and opportunities.

• Management expects further margin improvements with higher fab utilization and increased licensing income.

• Development of 2nd generation high-density VPD for AI applications is ongoing, with focus on delivering to a lead customer before broader demos.

• Management targets long-term financial goals of $1B revenue and 65% gross margin.