Investing.com -- Vicor Corp (NASDAQ: NASDAQ: VICR ) stock soared 22% following the company's release of better-than-expected fourth-quarter earnings. The power system solutions provider reported a quarterly EPS of $0.23, surpassing the analyst estimate of $0.18. Revenue for the quarter also exceeded expectations, coming in at $96.17 million against the consensus estimate of $87.13 million.
The company's financial performance showed a modest increase in revenue, up 3.8% from $92.7 million in the same period last year, and a sequential rise of 3.2% from the third quarter's $93.2 million. Gross margin improved both YoY and sequentially, reaching 52.4% for the quarter, compared to 51.1% YoY and 49.1% from the previous quarter. However, operating expenses saw a slight uptick to $41.2 million compared to the same period last year.
Vicor's net income for the fourth quarter stood at $10.2 million, or $0.23 per diluted share, an increase from the previous year's $8.7 million, or $0.19 per diluted share. Despite a lower cash flow from operations compared to last year, the company's cash and cash equivalents grew to approximately $277.3 million, marking a 3.6% sequential increase.
The backlog at the end of the quarter was $155.5 million, a decrease from the previous year but a 3.3% increase from the third quarter of 2024. Over the entire year, revenues declined by 11.4% to $359.1 million, and net income significantly dropped to $6.1 million, or $0.14 per diluted share. This was a stark contrast to the prior year's $53.6 million, or $1.19 per diluted share.
CEO Dr. Patrizio Vinciarelli commented on the results, noting improvements in revenues and gross margins, and the potential for further margin enhancements through increased utilization of their ChiP fab and licensing income. He also highlighted the company's focus on developing high-density power system solutions and the ethical and legal imperatives for hyper-scalers to avoid patent infringement.
Needham analyst N. Quinn Bolton provided insights, stating, "Our estimates move higher, largely on stronger Royalty and NBM assumptions." Bolton pointed out Vicor's lack of near-term guidance but mentioned the company's projection of 2025 as a record year for both revenue and profitability. He also noted the addition of a hyperscaler as a second licensee and orders for NBM product from this customer. Despite raising estimates based on these factors, Bolton maintained a Hold rating due to uncertainties around the product ramp and the current stock valuation.
Vicor's robust fourth-quarter performance and strategic positioning for future growth have clearly resonated with investors, as evidenced by the significant uptick in the stock price.
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