Vicor Corp
NASDAQ:VICR
Vicor Corp
Nestled in the technical heartland of Andover, Massachusetts, Vicor Corp. has quietly carved a niche in the power electronics industry. Founded in 1981 by Patrizio Vinciarelli, the company has become a stalwart in designing and manufacturing high-performance power modules. Vicor's innovation lies in its advanced power conversion technologies, which enable efficient and compact electricity conversion across various voltages. The company's products serve a crucial role in sectors demanding high reliability, from data centers to automotive and industrial applications. Vicor thrives on its advancements in modular power systems—breaking complex power challenges into manageable solutions, enabling more efficient designs and higher power densities.
What sets Vicor apart is its focus on flexibility, customization, and scalability in power solutions. Instead of generic one-size-fits-all products, Vicor offers a comprehensive line of power components. Their unique high-density power modules are designed with end-users' specific needs and applications in mind, allowing for tailored solutions that optimize performance and energy consumption. The company generates revenue by selling these sophisticated components to original equipment manufacturers (OEMs) and integrators, forging strong ties with industries that rely on cutting-edge power delivery methods to stay competitive. Through its relentless commitment to innovation and quality, Vicor Corp. has established itself as a pivotal player in transforming how industries efficiently harness electrical energy.
Nestled in the technical heartland of Andover, Massachusetts, Vicor Corp. has quietly carved a niche in the power electronics industry. Founded in 1981 by Patrizio Vinciarelli, the company has become a stalwart in designing and manufacturing high-performance power modules. Vicor's innovation lies in its advanced power conversion technologies, which enable efficient and compact electricity conversion across various voltages. The company's products serve a crucial role in sectors demanding high reliability, from data centers to automotive and industrial applications. Vicor thrives on its advancements in modular power systems—breaking complex power challenges into manageable solutions, enabling more efficient designs and higher power densities.
What sets Vicor apart is its focus on flexibility, customization, and scalability in power solutions. Instead of generic one-size-fits-all products, Vicor offers a comprehensive line of power components. Their unique high-density power modules are designed with end-users' specific needs and applications in mind, allowing for tailored solutions that optimize performance and energy consumption. The company generates revenue by selling these sophisticated components to original equipment manufacturers (OEMs) and integrators, forging strong ties with industries that rely on cutting-edge power delivery methods to stay competitive. Through its relentless commitment to innovation and quality, Vicor Corp. has established itself as a pivotal player in transforming how industries efficiently harness electrical energy.
Revenue: Q3 revenue was $110.4 million, down 21.7% sequentially due to a prior quarter's one-time patent litigation settlement, but up 18.5% year-over-year.
Licensing Growth: Licensing revenue reached a $90 million annualized run rate in Q3, with management expecting 50% yearly growth and potential doubling of the licensing business in a couple of years.
Gross Margin: Gross margin was 57.5%, down 780 basis points sequentially due to the absence of the litigation settlement, but up 840 basis points year-over-year.
Profitability: Net income for Q3 was $28.3 million, with diluted EPS of $0.63.
Cash Flow: Operating cash flow was $38.5 million; cash and cash equivalents rose by $23.8 million to $362.4 million, even after $15.6 million in share repurchases.
AI & Data Center Strategy: Vicor’s second-generation VPD solutions are on track for Q1 2026 production with lead customers and are attracting interest from hyperscalers and OEMs.
Guidance: Management expects record results for 2025 overall but did not provide specific quarterly guidance due to uncertainty in timing of additional licensing deals.
