Vicor Q2 revenue rises 64.3%, beats analyst expectations

Overview

• Vicor Q2 revenue rises 64.3% yr/yr, beating analyst expectations, per LSEG data

• Net income for Q2 reaches $41.2 mln, marking a turnaround from last year's loss

• Gross margin improves to 65.3%, reflecting increased profitability

Outlook

• Vicor expects increased product revenues from high-performance ChiPs for AI

• Company anticipates higher utilization of first ChiP fab

• Vicor pursuing actions to limit importation of infringing systems

• Company sees future revenues reflecting patented innovations

Result Drivers

• PATENT SETTLEMENT - $45 mln from patent litigation settlement contributed to revenue increase

• LITIGATION SUCCESS - ITC actions resulted in cease-and-desist orders, aiding revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for Vicor Corp is $50.00, about 4.4% above its July 21 closing price of $47.80

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nGNXGy0wv