Overview

• Vicor Q3 revenue grows 18.5% yr/yr, beating analyst expectations

• Net income for Q3 rises to $28.3 mln, up from $11.6 mln last year

• Cash flow from operations increases to $38.5 mln, up from $22.6 mln last year

Outlook

• Vicor expects substantial growth in IP licensing practice due to OEM demand

• Company anticipates higher margins with increased foundry capacity utilization

Result Drivers

• LICENSING REVENUE - Record licensing revenue rate in Q3 following patent litigation settlement, per CEO Dr. Patrizio Vinciarelli

• HIGH DENSITY POWER SYSTEMS - Vicor's high density power systems are critical for high performance computing, expected to drive IP licensing growth, per CEO Dr. Patrizio Vinciarelli

• CHIP FOUNDRY YIELDS - First ChiP foundry achieving 98% test yields, expected to enhance margins and foundry capacity utilization, per CEO Dr. Patrizio Vinciarelli

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 $52.50, about 10.6% below its October 20 closing price of $58.04

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nGNX5P8YPt

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)