Vicor Corporation Reports 11.4% Revenue Decline to $359.1 Million for Fiscal Year 2024

Vicor Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net revenues decreasing by 11.4% to $359.1 million, down from $405.1 million in 2023. The decline was attributed primarily to reduced demand for its Brick Products and continued softness in underpenetrated markets for its Advanced Products, despite an increase in royalty revenue from intellectual property licensing. The company's gross margin also decreased in dollar terms to $184.0 million, although the gross margin percentage improved slightly to 51.2% from 50.6% in the previous year, reflecting better production efficiencies and higher royalty income.

Operating expenses rose by 20.7% to $185.3 million, largely due to a litigation-contingency expense of $19.5 million related to ongoing legal matters with SynQor, Inc. This increase in operating expenses contributed to a net income of $6.1 million, or $0.14 per diluted share, a sharp decline from the previous year's net income of $53.6 million, or $1.19 per diluted share. The company’s backlog at the end of 2024 was approximately $155.5 million, a slight decrease from $160.8 million at the end of 2023, indicating a stable demand environment despite the revenue decline.

Vicor's strategic focus continues to shift towards larger, high-volume customers, particularly in the data center and hyperscaler segments of enterprise computing. The company has emphasized its Advanced Products, which accounted for approximately 55% of total revenue in 2024, down from 61% in 2022. The company is also investing in expanding its manufacturing capacity and enhancing its product offerings, particularly in high-performance computing and electric vehicle markets. As of December 31, 2024, Vicor employed 1,074 full-time employees, reflecting a commitment to maintaining a skilled workforce to support its growth initiatives.

Looking ahead, Vicor anticipates that the percentage of revenue from Advanced Products will increase as it continues to target high-growth market segments. The company is also focused on mitigating supply chain risks and managing its inventory levels effectively. Despite the challenges faced in 2024, including legal expenses and fluctuating market demand, Vicor remains optimistic about its long-term growth prospects, supported by its differentiated technology and strategic investments in product development and manufacturing capabilities.