Vicor Corporation Shines in Q4 2024 Earnings Call
The recently concluded Fourth Quarter 2024 Vicor Earnings Conference Call offered insights into the company's financial performance for the period ending December 31, 2024. Key highlights from the call include a sequential quarterly increase in revenue and a notable rise in gross margin percentage.
According to Jim Schmidt, Chief Financial Officer of Vicor Corporation, the company recorded total revenue for the fourth quarter of $96.2 million, marking a 3.2% increase from the third quarter total of $93.2 million and a 3.8% rise from the fourth quarter 2023 total of $92.7 million.
Advanced Products revenue saw an impressive 18% sequential growth, while Brick Products revenue declined by 13% from the third quarter. On a yearly basis, Advanced Products revenue decreased by 11.9% to $197.3 million from $223.9 million in the prior year, and Brick Products revenue fell by 10.7% to $161.7 million from $181.2 million.
Shipments to stocking distributors experienced a 4% sequential decline but increased by 7.6% on a yearly basis. Exports as a percentage of total revenue rose sequentially to approximately 56.9%, up from the prior quarter's 49%. Year-over-year, exports decreased to around 48.2% from the prior year's 63.1%.
The Advanced Products segment contributed 60.6% of the company's revenue in Q4, a significant increase from the third quarter's 53%. Conversely, Brick Products accounted for 39.4% of revenue, down from the prior quarter's share.
Vicor Corporation also reported a notable improvement in gross margin percentage, reaching 52.4% in Q4. This represents an approximately 3.3% increase over the previous quarter. On a yearly basis, gross margin rose by 0.7% to 51.2%, primarily due to increased royalty income and reduced supply chain costs.
The company's operating expenses saw a 2% sequential increase in Q4. For the full year 2024, total operating expense as a percent of revenue surged to 51.6% from 37.9% in the prior year.
Vicor Corporation's recent earnings call demonstrated its resilience and adaptability amidst market fluctuations. The company's ability to navigate these challenges while achieving notable revenue growth and gross margin improvements is a testament to its commitment to innovation and customer satisfaction."
