- Vicor ( NASDAQ: VICR ) stock price plunged to the red after the company saw a significant miss in its Q4 EPS and its Q4 Q4 book-to-bill came in far below 1 while backlog declined to $304M thereby supporting essentially flat quarterly revenue in the near term.
- The company estimates results to be approximately flat to Q4 for Q1 2023; operating expenses in 2023 are expected to decline modestly sequentially and a tax rate on the order of 15% to 20%;
- For Q4 results CEO Dr. Patrizio Vinciarelli stated, "Demand has fallen short of last year's peak and is anticipated to stay subdued until new AI, datacenter and automotive applications using advanced Power Distribution Networks get to production ramps."
- Q4 snapshot: Revenues totaled $105.5M (+16.8% Y/Y, +2.3% Q/Q), gross margin increased to 46.6% compared to 45.2% in year ago, net income narrowed to $8.1M or $0.18/share compared to net income of $8.9M or $0.20/share. Cash flow from operations decreased to $0.9M from $14.2M in year ago quarter.
- CEO further added, "Q4 profitability reflected manufacturing inefficiencies as Advanced Products have not yet fully transitioned to vertically integrated processes in our first ChiP foundry. We look forward to cutting manufacturing cycle times by nearly 2X soon after the balance of key outsourced processes are vertically integrated, which we anticipate to be Q2 2023."
- Craig-Hallum downgraded the stock to Hold from Buy post the Q4 earnings.
- On the contrary, Needham assigned a Buy rating with stock with price target of $65 based on the rating agency believes: "We believe both bulls and bears may be frustrated by the print. Vicor did not comment on rumors about its share at it’s largest GPU customer, Nvidia, but given low guidance and confirmation of its large customer’s strong ramp, “we believe this implies Vicor has little to no share. We believe VICR expects to win share on high-performace SKUs later this year."
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Vicor slumps post Q4 earnings miss amid low book-to-bill ratio, lower backlogs