Shares of Vicor Corporation (NASDAQ: VICR), a leading provider of power conversion and control solutions, plunged 16.59% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. The significant drop comes as the company's financial results fell short of Wall Street expectations, disappointing investors and analysts alike.

For the quarter ended March 31, 2025, Vicor reported revenue of $93.97 million, representing a 12% year-over-year increase but missing analyst estimates of $96.63 million. More notably, the company's earnings per share (EPS) came in at a mere $0.06, significantly below the consensus expectation of $0.29 per share. This EPS figure remained unchanged from the same quarter last year, indicating stagnant profitability despite the revenue growth.

Vicor's Chief Executive Officer, Dr. Patrizio Vinciarelli, addressed the company's performance, stating, "Revenues and gross margins declined sequentially, with reduced income from a licensee transitioning to a new generation of unlicensed products." He also noted that margin improvements would depend on higher utilization of their ChiP fab and increased income from existing and future licensees. The company's operating margin declined to -0.2% from 1.3% in the same quarter last year, suggesting increased cost pressures. However, Vicor maintained a robust backlog of $171.7 million at the quarter's end, potentially indicating future growth opportunities despite the current setback.