VICR

This article first appeared on GuruFocus. Robert Bruce (Trades, Portfolio), founder of Bruce & Co. and co-manager of the Bruce Fund (BRUFX) alongside his son Robert Jeffrey Bruce, recently filed his 13F for the second quarter of 2026. Known for a value-oriented, long-term approach, Bruce focuses primarily on small- and mid-cap common stocks, often targeting distressed companies trading at significant discounts with turnaround potential. His portfolio also includes high-yield and distressed debt, with occasional U.S. government securities when attractive equity opportunities are scarce. This quarter, his most impactful move was reducing his stake in Vicor Corp (NASDAQ:VICR), a decision that trimmed 0.78% from his portfolio's value. Warning! GuruFocus has detected 7 Warning Signs with PM. Is ABBV fairly valued? Test your thesis with our free DCF calculator. During the second quarter of 2026, Robert Bruce (Trades, Portfolio) initiated positions in 4 new stocks, signaling fresh conviction in select opportunities. While specific details on each new holding were not fully disclosed in the filing, the additions align with his strategy of seeking undervalued assets with recovery potential. Investors tracking Bruce's moves may find these new positions particularly noteworthy, as they often represent his highest-conviction ideas at the time of purchase. The Bruce Fund's flexibility across market caps and asset classes allows for such tactical entries, though the fund's long-term holding philosophy suggests these are not short-term trades. Robert Bruce (Trades, Portfolio) also increased stakes in a total of 4 stocks, with the most notable adjustments being: The most notable increase was Supernus Pharmaceuticals Inc (NASDAQ:SUPN), with an additional 50,000 shares, bringing the total to 150,000 shares. This adjustment represents a significant 50% increase in share count, a 0.63% impact on the current portfolio, and a total value of $6,976,500. The second largest increase was Beta Bionics Inc (NASDAQ:BBNX), with an additional 115,000 shares, bringing the total to 665,700. This adjustment represents a significant 20.88% increase in share count and a total value of $10,431,520. These increases reflect Bruce's confidence in the healthcare and medical technology sectors, which remain core areas of his portfolio. The substantial boost in Supernus Pharmaceuticals, a specialty pharmaceutical company, suggests a belief in its long-term growth prospects despite potential near-term volatility. Similarly, the larger position in Beta Bionics, a medical device firm, indicates a strategic bet on innovative healthcare solutions. In the second quarter of 2026, Robert Bruce (Trades, Portfolio) completely exited positions in 3 stocks, a move that simplifies his portfolio and reallocates capital toward higher-conviction ideas. While the specific names were not detailed in the filing, such exits typically occur when the thesis has played out, fundamentals have deteriorated, or better opportunities have emerged. For value investors, these sold-out positions can offer clues about sectors Bruce may be avoiding or rotating away from. The Bruce Fund's disciplined approach suggests these exits were deliberate, freeing up resources for the increases and new buys noted above. Robert Bruce (Trades, Portfolio) also reduced positions in 18 stocks, with the most significant changes including: Reduced Vicor Corp (NASDAQ:VICR) by 17,000 shares, resulting in a -26.15% decrease in shares and a -0.78% impact on the portfolio. The stock traded at an average price of $271.28 during the quarter and has returned -20.83% over the past 3 months and 109.86% year-to-date. Reduced U-Haul Holding Co (NYSE:UHAL.B) by 35,000 shares, resulting in a -7.74% reduction in shares and a -0.45% impact on the portfolio. The stock traded at an average price of $49.71 during the quarter and has returned 43.21% over the past 3 months and 40.21% year-to-date. The reduction in Vicor Corp, a power electronics company, is particularly notable given its strong year-to-date performance of 109.86%. Bruce's decision to trim this position, despite its recent gains, may reflect profit-taking or a valuation concern after such a significant run-up. Similarly, the reduction in U-Haul Holding Co, which has also performed well with a 40.21% year-to-date return, suggests a pattern of locking in gains in winners. These moves align with his value-oriented approach, where selling into strength is as important as buying undervalued assets. At the second quarter of 2026, Robert Bruce (Trades, Portfolio)'s portfolio included 41 stocks, with top holdings including 8.24% in AbbVie Inc (NYSE:ABBV), 7.89% in Allstate Corp (NYSE:ALL), 7.3% in AerCap Holdings NV (NYSE:AER), 6.99% in NextEra Energy Inc (NYSE:NEE), and 6.64% in Merck & Co Inc (NYSE:MRK). The holdings are mainly concentrated in 9 of the 11 industries: Healthcare, Utilities, Industrials, Financial Services, Technology, Consumer Defensive, Basic Materials, Communication Services, and Energy. This diversification across sectors reflects Bruce's balanced approach, though healthcare remains a dominant theme given the top positions in AbbVie and Merck. The portfolio's mix of defensive sectors like utilities and consumer defensive, alongside growth-oriented technology and industrials, underscores a strategy designed to weather various market conditions while seeking long-term appreciation.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Vicor (VICR) is back on many investors’ screens after its recent second quarter earnings report, which showed higher revenue and net income compared with last year, along with raised Wall Street earnings estimates. See our latest analysis for Vicor. The 13.08% 1 day share price return after the results stands out against a 30 day share price decline of 40.99%. At the same time, the year to date share price return of 76.85% and 1 year total shareholder return of about 4x suggest momentum has shifted, while longer term holders remain significantly ahead. If Vicor’s move has you rethinking exposure to power and AI related hardware, this can be a useful moment to scan other potential beneficiaries through the 56 AI infrastructure stocks After a sharp rebound on solid quarterly numbers, Vicor now sits between two clear narratives. Has the stock already reflected most of the good news in its current price, or is there still meaningful upside left based on today’s valuation? The most followed Vicor narrative pegs fair value at $406.25 compared with the last close at $206.67. That gap depends heavily on how future AI and automotive demand plays out. Read the complete narrative. Want to see what underpins that near doubling of fair value versus today’s price? The narrative leans on rapid top line expansion, resilient margins and a rich future earnings multiple tied to AI and auto power demand. Result: Fair Value of $406.25 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear risks to the Vicor story, including order softness signalled by a book to bill ratio below 1, and dependence on unpredictable licensing income. Find out about the key risks to this Vicor narrative. The most popular Vicor narrative leans on future earnings power, yet today the stock trades on a P/E of 65.6x. That is well above the US Electrical industry average of 36.8x and also above peer averages of 33.8x, even though the fair ratio sits higher at 83.3x. This gap suggests investors already pay a premium versus the sector, while the fair ratio points to room for sentiment to shift either way. The key question is whether you see that premium as justified by Vicor's specific growth profile or as a source of extra valuation risk. See what the numbers say about this price — find out in our valuation breakdown. Sitting between optimism and caution on Vicor, it helps to review the same facts that other investors are watching and then act on your own judgement using the 3 key rewards and 3 important warning signs. If Vicor has sharpened your focus on where to put fresh capital next, this is the moment to scan a few targeted stock ideas before the market moves. Explore companies that combine strong fundamentals and attractive prices by reviewing the 56 high quality undervalued stocks. Support the defensive side of your portfolio by checking stocks in the 89 resilient stocks with low risk scores. Identify potential future leaders early by reviewing the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VICR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Vicor Corporation’s recently reported second-quarter 2026 results showed revenue of US$143.35 million and net income of US$49.77 million, both higher than the same period a year earlier, with basic earnings per share rising to US$1.08 from US$0.92. These stronger earnings, together with higher Wall Street earnings estimates and technical signals pointing to renewed buyer interest, are drawing attention to Vicor’s near-term power in its core markets. With revenue and earnings improving year over year, we’ll now examine how this earnings strength reshapes Vicor’s existing investment narrative. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Vicor, you need to believe its power conversion technology will stay central to high performance computing and data center designs, with licensing income and product sales both contributing meaningfully. The latest quarter’s modest revenue growth but stronger profitability does not materially change the key near term catalyst: broader adoption of its newer power solutions in AI focused systems. It also leaves the biggest risk intact: earnings volatility tied to uneven licensing and litigation related income. The most relevant recent announcement here is Vicor’s May 26 guidance raise, lifting Q2 2026 revenue expectations to US$142 million on higher product revenue and royalties. Q2 results slightly exceeded that figure, reinforcing how licensing can quickly amplify earnings but also highlighting how dependent near term performance can be on a relatively concentrated stream of high margin royalty and settlement income. Read the full narrative on Vicor (it's free!) Vicor's narrative projects $1.3 billion revenue and $416.1 million earnings by 2029. This requires 45.7% yearly revenue growth and about a $279 million earnings increase from $136.7 million today. Uncover how Vicor's forecasts yield a $406.25 fair value, a 97% upside to its current price. Yet this stronger quarter still sits against the risk that high margin IP income, which some bulls expected to grow about 50 percent a year to roughly US$149.3 million in earnings by 2028, could fall short if new licenses slow or litigation outcomes become less favorable, something investors should be aware of if... Explore 4 other fair value estimates on Vicor - why the stock might be worth 14% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Vicor research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free Vicor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Vicor's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VICR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Vicor has delivered a very large 371.4% return over the past year, yet its valuation checks send mixed signals, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to a premium while market based multiples still screen as relatively undemanding. Over the last 12 months, Vicor shares are up 371.4%, which puts a lot more focus on whether the current price leaves enough room for error. Future growth in cash flows from Vicor's power solutions can support the current share price. However, any disappointment in execution or margins may have an outsized impact now that expectations are higher. Vicor scores just 2 out of 6 on the broader valuation checks, which leans expensive even though traditional multiples still suggest some value support. The issue now is whether Vicor's recent share price surge has pushed the stock too far above its intrinsic value estimate or whether the fundamentals can catch up. Vicor delivered 371.4% returns over the last year. See how this stacks up to the rest of the Electrical industry. The Discounted Cash Flow (DCF) model estimates what Vicor could be worth based on its future cash generation. Vicor produced about $52.5 million of free cash flow over the last twelve months, and the DCF uses a 2 Stage Free Cash Flow to Equity approach that assumes growing cash flows from this base. On these projections, the model points to an intrinsic value of around $176.81 per share. Compared with the current share price, this implies the stock trades at roughly a 16.9% premium to the DCF estimate, so the market is asking investors to pay ahead of the modelled cash flows. For investors, that means the recent strength in Vicor leaves less valuation cushion if future free cash flow does not develop as assumed. On this DCF view, Vicor stock screens as overvalued relative to its modelled cash flows. Our Discounted Cash Flow (DCF) analysis suggests Vicor may be overvalued by 16.9%. Discover 56 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Vicor. The P/E ratio suits Vicor because earnings remain a key anchor for how investors assess the stock after such a sharp price move. Vicor currently trades on a P/E of about 65.6x, which is well above the Electrical industry average of roughly 36.8x and also above the peer group average of about 33.8x. On simple comparisons, the stock trades on a clear premium to much of its sector. The fair P/E ratio that blends Vicor’s growth profile, profitability, size and risk comes out at about 83.3x. That figure is higher than the current 65.6x. This suggests the market price does not fully reflect the level of earnings multiple that this framework would support. For investors, that means the DCF work flags some stretch in the share price, while the earnings multiple model points in the opposite direction. On the P/E multiple alone, Vicor stock currently appears undervalued relative to its modelled fair earnings ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Vicor valuation puzzle leaves off. They spell out which assumptions around Vicor's future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price on the Community page. Each narrative ties a specific fair value to a clear story about Vicor's potential catalysts and risks so you can track over time which version of events appears to be unfolding. The community is split on Vicor, with one camp framing today’s price as an opportunity and the other as a stretch. Bull case: 35% undervalued Read the full Bull Case to see why Vicor could be undervalued Bear case: 80% overvalued Read the full Bear Case to see why Vicor could be overvalued Do you think there's more to the story for Vicor? Head over to our Community to see what others are saying! Vicor now sits in a grey zone where the Discounted Cash Flow (DCF) intrinsic value work points to an overvalued stock, while the P/E based view still screens as undervalued. The broader valuation checks are weak, so that supportive multiple signal carries less weight than it usually would. The split reflects very different assumptions, with the intrinsic value view more cautious on cash flow timing and capital needs, and the market multiple leaning on stronger growth expectations and sentiment. The real hinge from here is whether Vicor can convert its current AI related opportunity into durable cash flow and margins that justify today’s higher bar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VICR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth was driven by a 45% sequential increase in Advanced Products, reflecting strong demand for high-density power solutions in AI and high-performance computing. Management attributed the significant gross margin expansion to a $15 million contribution from a new licensing agreement, which carries 100% margin profile. The company is shifting toward a vertically integrated 'foundry' model, utilizing its Andover fab as the first of multiple planned sites to support long-term revenue targets. Strategic positioning is focused on 'Vertical Power Delivery' (VPD), where management claims a significant competitive lead in current density and signal integrity over first-generation solutions. Operational focus has shifted to being highly selective with customer engagements as the primary chip fab approaches full capacity utilization. The licensing practice has matured into a strategic tool to ensure supply chain integrity, compelling OEMs and hyperscalers to pay for IP used in infringing competitive products. Management expects Q3 revenue to increase by nearly 10% sequentially, supported by double-digit growth in Advanced Product shipments. The 2026 revenue target has been raised to over $600 million, incorporating conservative assumptions regarding the timing of new licensing deals pending ITC determinations in 2027. A second chip fab is deemed essential to reach the $2.5 billion long-term revenue goal, with a site selection decision expected within weeks. The second-generation VPD roadmap targets increasing current density from 3 amps per square millimeter to 5 amps by early 2027 to meet evolving AI compute requirements. Future licensing revenue is expected to be 'lumpy' due to the use of two-year all-inclusive deals that require renegotiation as licensee business volumes evolve. Product gross margins were temporarily weighed down by non-capitalized expenses related to reconfiguring equipment within the first fab to optimize for new capacity. Operating expenses saw a substantial sequential increase due to contingent legal fees associated with successfully closing the Q2 licensing agreement. The company received a $14.3 million IRS refund under the CHIPS Act, with additional investment tax credits expected to bolster cash balances in future periods. A $10.9 million tax benefit was recorded in Q2, primarily driven by the impact of stock option exercises on the effective tax rate. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that competitors are currently 'barely capable' of delivering 1 amp per square millimeter, while the market already requires 3 amps. Vicor is being approached by companies to provide building blocks for Integrated Voltage Regulators (IVRs), which they view as an incremental rather than cannibalistic opportunity. The second fab is expected to eventually provide 2x to 3x the capacity of the first facility, though it will be built out in phases to avoid premature depreciation. Management confirmed the $2.5 billion revenue target is impossible to achieve with the current single-fab footprint. Recent deals are structured as two-year all-inclusive licenses because the rapid expansion of the AI market makes long-term volume prediction impossible. The current Q2 licensee does not yet have a sourcing relationship, but management expects these to become standard in future VPD engagements. The 26% increase in one-year backlog is primarily attributed to increased needs from existing customers across Aerospace, Defense, and Industrial markets. Lead times have stretched slightly, which management characterized as consistent with broader industry trends where demand exceeds capacity.

Vicor Corporation VICR used its second-quarter 2026 earnings call to press a bigger message than the quarter’s headline beat. Management framed 2026 as the year its advanced power products and IP licensing model are gaining broader industry traction, particularly in AI infrastructure. That framing mattered because executives paired stronger near-term revenue expectations with a more ambitious long-term capacity and margin story. The call also gave investors a clearer look at how licensing, second-generation vertical power delivery and a second chip fab fit together. The company posted second-quarter revenues of $143.4 million, representing a 26.9% sequential gain and beating the Zacks Consensus Estimate of $138.7 million. Earnings per share (EPS) came in at $1.04, comfortably surpassing the Zacks Consensus Estimate of $0.62. Vicor Corporation price-consensus-eps-surprise-chart | Vicor Corporation Quote Advanced Products’ revenues climbed 45% from the first quarter to $94.2 million, lifting that business to 65.7% of total revenues. Brick Products’ revenues increased 2.4% sequentially to $49.2 million. Chief financial officer James Schmidt highlighted a key licensing contribution. Royalty income from the most recent agreement added $15 million in second-quarter revenues, though he said accounting treatment will make that contribution uneven, with $5 million expected in the third quarter and $10 million per quarter for the following four quarters. Global sales and marketing head Philip Davies said Vicor’s updated long-term targets now call for $2.5 billion in revenues, 70% gross margin and 40% operating income, replacing the company’s earlier $1 billion revenues and 65% gross margin goals. He tied that shift to a two-pronged strategy built on power modules and IP licensing. Davies put the heaviest emphasis on second-generation vertical power delivery, or VPD, for AI data centers. He said hyperscalers and OEMs need higher current gain and current density, and argued Vicor’s second-generation offering is ahead of current first-generation alternatives. Chief executive officer Patrizio Vinciarelli reinforced that point in the Q&A. He said the company has completed development around a 3 amps-per-square-millimeter baseline for its lead customer and is working toward more than 4 amps per square millimeter late this year or early next year. Schmidt said book-to-bill was above 1 in the second quarter, while one-year backlog rose 26% sequentially to $379.7 million. The press release put the year-over-year backlog increase at 145%, showing how quickly demand has built. Management used that demand picture to raise the near-term bar. Schmidt said Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in 2026 revenues, supported by double-digit sequential increases in Advanced Products revenues. Vinciarelli told analysts the 2026 uplift reflects both product revenue growth and new licensing deals. He added that the initial license signed in the second quarter does not include a sourcing relationship for the first couple of years, though that is expected to become part of the relationship alongside second-generation VPD capabilities. Management also made clear that capacity is becoming a strategic constraint. Vinciarelli said the first chip fab is moving closer to full utilization, which is why the company is now working to secure a second facility. He told analysts VICR has several site options and expects to make decisions in the coming weeks. Later in the call, Vinciarelli said the second fab will be necessary to support the path to $2.5 billion in revenues. He added that the selected site could support a facility two to three times the size of the first fab, though build-out would happen in stages. That response gave investors a more practical framework for how Vicor plans to scale without overbuilding too early. A Craig-Hallum analyst pressed management on product gross margin, noting that royalty revenues flattered the consolidated result. Schmidt responded that product margin should improve as utilization and cost absorption rise. He also said second-quarter product gross margin was weighed down by factory reconfiguration costs tied to moving equipment and preparing space for new tools. Those costs ran through cost of sales rather than being capitalized. Q&A also sharpened the timetable around second-generation VPD. Davies said management expects engagement with a hyperscaler and a couple of OEMs through the rest of 2026, with those programs moving toward production systems in the late third quarter or the fourth quarter of 2027. The clearest takeaway from management’s tone was that Vicor no longer wants investors to view the story as a niche power-module supplier with episodic upside. Executives repeatedly linked licensing, AI power architecture and fab expansion into one broader growth framework. At the same time, management stayed measured on customer-specific disclosures and exact design-win timing. That kept the call grounded in what the company says it can control now: adding capacity, expanding Advanced Products revenues and widening industry adoption of its IP. Vicor currently carries a Zacks Rank #2 (Buy), which points to favorable earnings estimate revision trends and generally signals stronger near-term performance potential than lower-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Scores are more mixed. The stock has a Value Score of F, Growth Score of D and VGM Score of F, but a Momentum Score of A. That combination points to stronger momentum characteristics than value or growth appeal, while also underscoring that the Zacks Rank can change as estimate revisions adjust after the quarter’s results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vicor Corporation (VICR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vicor VICR reported second-quarter 2026 earnings of $1.04 per share, beating the Zacks Consensus Estimate by 68%. The figure increased 14.3% year over year.Revenues increased 1.6% year over year to $143.4 million and surpassed the consensus estimate by 3.13%. Sequential growth in Advanced Products and a higher royalty contribution supported the quarterly results. Vicor’s shares were 3.28% at the time of writing this article. Its shares have risen 95.9% in the year-to-date period. Vicor Corporation price-consensus-eps-surprise-chart | Vicor Corporation Quote Advanced Products revenues increased 45% sequentially to $94.2 million. The business accounted for 65.7% of total revenues, up from 57.5% in the first quarter of 2026.Brick Products revenues rose 2.4% sequentially to $49.2 million and represented 34.3% of total revenues. Shipments to stocking distributors increased 4.2% sequentially and 38.8% year over year. Exports accounted for approximately 46% of revenues, down from 48.9% in the preceding quarter. Product revenues totaled $112.9 million, up 31.8% year over year. Royalty revenues surged to $30.4 million from $10.4 million, reflecting the growing contribution from the company’s intellectual-property licensing activities.A recent licensing agreement contributed $15 million to second-quarter revenues. Under its accounting treatment, the agreement is expected to contribute $5 million in the third quarter and $10 million in each of the following four quarters. The contract provides for four quarterly payments of $5 million in its first year and four quarterly payments of $10 million in its second year. The book-to-bill ratio remained above 1, while one-year backlog increased 145% from $155 million a year earlier to approximately $380 million. Management said the licensing agreement accounted for relatively little of the backlog increase.Demand remained strong across high-performance computing, automatic test equipment, industrial, aerospace and defense markets. The company highlighted growing automatic test equipment opportunities, where its low-noise performance and thin-package technology support differentiated power-system designs. Lead times extended modestly amid demand and capacity conditions. Gross profit increased sequentially to $83.1 million from $62.4 million. Gross margin expanded 280 basis points (bps) to 58%, aided by higher revenues and a more favorable contribution from royalties.Operating expenses rose 6.1% sequentially to $48.2 million. The increase primarily reflected contingent legal expenses associated with the licensing agreement completed during the quarter. Management also cited costs tied to moving equipment within the first fabrication facility to accommodate incoming machinery, which weighed on product gross margin. As of June 30, 2026, Cash and cash equivalents were $453.6 million compared with $404.25 million in the previous quarter. Operating activities generated $34 million in cash compared with cash usage of $3.9 million in the first quarter of 2026.Vicor is installing additional equipment at its first chip fabrication facility as demand absorbs available capacity. Capital expenditures totaled $11.2 million during the reported quarter. Construction in progress, primarily related to manufacturing equipment, stood at $18.2 million, with $23.5 million of remaining planned spending.The company is also evaluating sites for a second fabrication facility, which management said will be required to reach its $2.5 billion long-term revenue objective. Initial development would effectively double capacity, while the selected site could eventually support two to three times the capacity of the first facility.Vicor also received a $14.3 million CHIPS Act investment tax credit refund after quarter-end. Vicor expects third-quarter revenues to increase nearly 10% sequentially. The company also projects more than $600 million in revenues for 2026, supported by licensing income and double-digit sequential growth in Advanced Products revenues.The outlook assumes no additional licensing agreements before the final determination in the company’s second International Trade Commission case in 2027. Vicor expects gross-margin expansion as factory utilization and manufacturing-cost absorption improve. Vicor currently has a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Amphenol APH, Bandwidth BAND and Fortinet FTNT. Amphenol, Bandwidth and Fortinet sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Amphenol, Bandwidth and Fortinet are set to report their second-quarter 2026 results on July 29. Year to date, shares of Amphenol, Bandwidth and Fortinet have returned 16.8%, 355.4% and 99.1%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vicor Corporation (VICR) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, July 21, 2026 at 8 a.m. ET Chief Financial Officer - Jim Schmidt Chief Executive Officer - Patrizio Vinciarelli Corporate Vice President, Global Sales and Marketing - Phil Davies Operator: Ladies and gentlemen, thank you for standing by. Welcome to the second quarter 2026 Vicor Corporation earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Jim Schmidt, Chief Financial Officer. Please go ahead. Jim Schmidt: Thank you. Good morning and welcome to Vicor Corporation's earnings call for the second quarter ended June 30, 2026. I'm Jim Schmidt, Chief Financial Officer, and I'm in Andover with Patrizio Vinciarelli, Chief Executive Officer, and Phil Davies, Corporate Vice President, Global Sales and Marketing. Earlier this morning, we issued a press release summarizing our financial results for the three and six months ended June 30, 2026. This press release has been posted on the investor relations page of our website, www.vicorpower.com. We also filed a Form 8-K today related to the issuance of this press release. I remind listeners this conference call is being recorded and is the copyrighted property of Vicor Corporation. I also remind you various remarks we make during this call may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Except for historical information contained in this call, the matters discussed on this call, including any statements regarding current and planned products, current and potential customers, potential market opportunities, expected events and announcements, and our capacity expansion, as well as management's expectations for sales growth, spending, and profitability, are forward-looking statements involving risk and uncertainties. In light of these risks and uncertainties, we can offer no assurance that any forward-looking statement will in fact prove to be correct. Actual results may differ materially from those explicitly set forth in or implied by any of our remarks today. The risks and uncertainties we face are discussed in Item 1A of our 2025 Form 10-K, which we filed with the SEC on March 2, 2026. This document is available via the EDGAR system on the SEC's website. Please note the information provided during this conference call is accurate only as of today, Tuesday, July 21, 2026. Vicor undertakes no obligation to update any statements, including forward-looking statements made during this call. You should not rely upon such statements after the conclusion of this call. A webcast replay of today's call will be available shortly on the investor relations page of our website. I'll now turn to review of our Q2 financial performance, after which Phil will review recent market developments, and Patrizio, Phil, and I will take your questions. In my remarks, I will focus mostly on the sequential quarterly changes for P&L and balance sheet items and refer you to our press release or our upcoming Form 10-Q for additional information. As stated in today's press release, Vicor recorded product and royalty revenue for the second quarter of $143.4 million, up 26.9% sequentially from the first quarter of 2026 total of $113 million, and up 1.6% from the second quarter of 2025 total of $141 million, which included a $45 million patent litigation settlement. Advanced products revenue increased 45% sequentially to $94.2 million, and brick products revenue increased 2.4% sequentially to $49.2 million. Shipments to stocking distributors increased 4.2% sequentially and increased 38.8% year-over-year. Exports for the second quarter decreased sequentially as a percentage of total revenue to approximately 46% from the prior quarter's 48.9%. For Q2, advanced products share of total revenue increased to 65.7%, compared to 57.5% for the first quarter of 2026, with brick product share correspondingly decreasing to 34.3% of total revenue. Royalty income from our most recent license agreement, which provides for four $5 million quarterly payments in its first year and $10 million quarterly payments in its second year, contributed $15 million to Q2 revenue. In view of its accounting treatment, this license agreement is expected to contribute $5 million in Q3 and $10 million per quarter for the following four quarters. Turning to gross margin, we recorded a consolidated gross profit margin of 58%, a 280 basis point increase from the prior quarter. Q1 gross margin decreased 730 basis points from the same quarter last year, which included the previously mentioned $45 million patent litigation settlement. I'll now turn to Q2 operating expenses. Total operating expense increased 6.1% sequentially from the first quarter of 2026 to $48.2 million. A substantial increase in operating expenses was due to a substantial increase in contingent legal expenses paid out to the law firms partnering with Vicor for the license deal reached in Q2. The amounts of total equity-based compensation expense for Q2 included in cost of goods, SG&A, and R&D was $897,000, $2,085,000, and $1,198,000 respectively, totaling approximately $4.2 million. Turning to income taxes, we recorded a tax benefit for Q2 of approximately $10.9 million, representing an effective tax rate for the quarter of -27.9%. The company's tax provision and effective tax rate for the quarter ended June 30, 2026, was positively impacted by stock options exercised in the quarter. Net income for Q2 totaled $49.8 million. GAAP diluted income per share was $1.4 based on a fully diluted share count of 47,708,000 shares. Turning to our cash flow and balance sheet, cash and cash equivalents totaled $453.6 million at Q2, an increase of $49.4 million sequentially. We're pleased to report that last Monday, July 13, we received a payment from the IRS relating to our application for CHIPS Act investment tax credit in the amount of $14.3 million as a refund from our 2023 tax return. This amount and other tax credit amounts we expect from subsequent tax returns will add to our cash balance in Q3 and beyond. Accounts receivable net of reserves totaled $78.9 million at quarter end, with DSOs for trade receivables at 37 days. Inventories net of reserves increased 10.2% sequentially to $104.5 million. Annualized inventory turns were 2.1. Cash flow provided by operating activities totaled $34 million for the quarter. Capital expenditures for Q2 totaled $11.2 million. We ended the quarter with a construction in progress balance primarily for manufacturing equipment of approximately $18.2 million, and with approximately $23.5 million remaining to be spent. I'll now address bookings and backlog. Q2 book-to-bill came in above one, and one-year backlog increased 26% from the prior quarter, closing at $379.7 million. 2026 is the year in which Vicor's innovative products and technology licensing practice came into focus within the industry. As we bring on incremental capacity, we expect a nearly 10% increase in Q3 revenue and over $600 million in 2026 revenue. To achieve these growth objectives, we are planning for double-digit sequential increases in product revenue for advanced products. As we said last quarter, this guidance is based on conservative assumptions about our licensing practice. Specifically, the new licensing agreements may not result until our second ITC case gets to its final determination in 2027. Additional exclusion orders further restricting importation of infringing computing systems may provide motivation to close new licensing deals on favorable terms. Along with revenue growth, we expect margin expansion. Phil? Phil Davies: Thank you, Jim. At our recent annual shareholders meeting, I presented an update on our company's strategy and objectives. Our financial objectives of $2.5 billion in revenues at 70% gross margins supersede the $1 billion and 65% gross margin targets set in 2023, which we are on our way to achieving. Our updated objectives are based on a two-pronged strategy, leveraging synergy between our power module sales and IP licensing practice. As discussed at the ASM, our power module business is focused on a set of 100 customers across four markets and four regions globally. Within each of the four markets of HPC, industrial, automotive, and aerospace and defense, we have customers who are on the cutting edge of high-growth applications with the most demanding requirements for power and current density with high efficiency and signal integrity. A perfect example of this is Vertical Power Delivery. AI data center hyperscalers and OEMs need Vertical Power Delivery to meet compute density requirements and AI data center performance. The market opportunity is growing rapidly, and competitors are challenged to deliver on two key specifications, current gain and current density. With current gains greater than 40 and current density up to five amps per millimeter squared, Vicor's second-generation VPD is way ahead of all generation one competitive solutions. As discussed at the annual meeting, we will engage with selected customers with development systems and tools starting this quarter. Our objectives for our second-generation VPD solutions over the next few quarters will be to expand our business opportunities with OEMs and hyperscalers wanting to be long-term strategic partners. Major new product introductions are also underway in our industrial and aerospace and defense businesses. With market expansion now occurring outside of lead top 100 customer opportunities that drove initial module development. As stated at our ASM a few weeks ago, we are very focused on the successful execution of our business strategy, which leverages our vertically integrated chip fab in Andover as the first of a multiplicity of foundries supporting our new financial targets of $2.5 billion in revenues with 70% gross margins and 40% operating income. With that, we'll take your questions. Operator: Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Our first question is going to come from Quinn Bolton with Needham & Company. Your line is now open. Quinn Bolton: Hey, guys. Congratulations on the nice results and outlook. I guess I wanted to start with the second gen VPD and just maybe an update on how you're progressing with the lead customer, but also, Phil mentioned starting to more broadly sample second gen VPD to a broader customer base. Do you still feel like you're on track to secure ramp designs, with either a hyperscaler or other OEM customers for a second gen VPD over, say, the next 12 to 18 months? Patrizio Vinciarelli: Yes. We've completed development with respect to a baseline of 3 amps per square millimeter current density with initial chipset for our lead customer. We are now completing demo systems, including a dedicated VPD demo system to showcase with other customers. We're on our way to raising the bar past amps per square millimeter late this year, beginning of next year. I'm delighted with the progress we made within the last several months, in terms of reaching initial targets. We have a roadmap to expand on that. Quinn Bolton: Beyond the lead customer, Patrizio, would you expect design wins to sort of ramp maybe at this point, second half of 2027 for Vertical Power Delivery? Patrizio Vinciarelli: I'm not going to make commitments with respect to specific days. I will say that, I was in the Valley, for visits just last week. There's a great deal of interest in our capabilities. We've been approached by two companies wishing us to provide a building block that is critical to deployment of IVRs. We look at that as an incremental opportunity. The reality of these capabilities, competitive capabilities that is, as you look at the migration of VRs from 12 volt to 6 volt, to 1.8 volt inputs, is that they're barely capable of delivering the real world slightly over 1 amp per square millimeter. That's the message we're getting consistently from people in the know. When you look at all the factors at play, thermal derating, other factors, the competitive capability is quite limited, barely above 1 amp per square millimeter. The market need, particularly with respect to work for scale engines, other advanced HPC system, is already above those levels and projected to become much higher in a matter of a few years. frankly, the industry has no solution for these requirements. Quinn Bolton: Got it. Patrizio, just any updates on securing a site with or without building for your second chip fab? Patrizio Vinciarelli: We have several options at this point. We made some offers. None of them was taken up yet, but we have the investment of choice at this point. We'll probably be making decisions in the next few weeks. Quinn Bolton: Excellent. Thank you very much. Operator: Thank you. The next question will come from Richard Shannon with Craig-Hallum. Your line is now open. Richard Shannon: Great, guys. Thanks for taking my questions. I guess the first one is, Jim, I'd love for you to repeat the numbers regarding royalties with, I think it was a new licensee or something. Those went by pretty quickly here. If you could follow up with just kind of general expectations of how to think about royalties in the current quarter as you within the context of the guidance you just gave us of revenues up 10%, please. Jim Schmidt: Okay. Richard, I'll reread that paragraph for everyone. Royalty income from our most recent license agreement, which provides for four $5 million quarterly payments in its first year and $10 million quarterly payments in its second year, that's a total of $60 million, contributed $15 million in Q2 revenue. In view of its accounting treatment, this license agreement is expected to contribute $5 million in Q3 and $10 million per quarter for the following four quarters. The revenue is different than the cash collections, Richard, because of the GAAP accounting treatment. The $15 million recognized in Q2 was a result of the termination clauses in the agreement. We could account for $15 million of the deal in this quarter. Because of the accounting treatment, that will drop to $5 million of revenue recognition in Q3, and then back up to $10 million for the balance of the agreement per quarter. Richard Shannon: Okay. I think that answered my question also about the implied guidance there. Maybe I'll just ask Patrizio following up on this on, characterizing this customer here, OEM, hyperscaler, et cetera, and whether this has been a past customer as well, please. Patrizio Vinciarelli: I can't comment with respect to the identity of licensees. I think what we have publicly disclosed, which I can reiterate here, is that we have a multiplicity of OEM licensees, one hyperscaler as of now. Richard Shannon: Okay, fair enough. My follow-on question is partially based on what I see in the press release, and then also Patrizio, I think in your response to one of the past questions here about IVRs. The statement here in the press release about feeding IVRs with current multipliers an incremental opportunity for Vicor. Would love for you to help me understand that a little bit better here. It seems like you could interpret as an incremental opportunity or could be displacing a pull to a second-gen VPT solution here. I'd love for you to help us understand that a little better, please. Patrizio Vinciarelli: Our technology lends itself to supporting either alternative. Without question, a pure Factorized Power system is capable of considerably more current density, several times more, with considerably better efficiency. That doesn't mean that all applications would go in that direction for a variety of reasons. One thing that IVRs do have, to be fair, is that they have flexibility. In applications with a large multiplicity of nodes, highly fragmented set of nodes, there's something to be said for IVRs in that they do provide a great deal of flexibility and configurability. That comes at significant expense in terms of insertion loss. 15%, maybe 10%, but then if you try to get it down to a 10% loss, they need to run at a lower frequency, and they still have transient issues, which a Factorized Power system no longer has. We have a huge efficiency advantage relative to these competitive alternatives, but that doesn't mean we can't play a support role for those alternatives and capture significant business. Richard Shannon: Okay, great. Thank you. Operator: Thank you. The next question is going to come from Justin Clare with Roth Capital. Your line is open. Justin Clare: Hey, good morning. Thanks for taking our questions here. Wanted to touch on the guidance. Updated your 2026 guide to over $600 million here. It looks like the update is primarily related to the additional royalty payments that you had laid out. Wondering if there are any other notable changes relative to the initial guide related to shipment expectations, or related demands. Just on the new licensing agreement, wondering if you could share just how that's structured. Is that only royalty payments that you're anticipating from that, or could you also see greater demand from your fab as a result of that licensing agreement? Patrizio Vinciarelli: The total revenue growth comes, to your point, from a combination of new licensing deals, the ones we closed on, specifically the one that was closed in the second quarter, and product revenue growth. The initial license agreement that was closed in Q2 does not, for the first couple of years, provide for a sourcing relationship. That's understood to be part of the relationship going forward, in conjunction with our second-gen VPD capabilities. That's going to be the nature of these relationships going forward, with OEMs and hyperscalers. Justin Clare: Got it. Great. Thanks. Just wanted to touch on the expansion underway at your first fab here. Just wondering if you could share an update on the progress, when you anticipate the expansion being completed, and then you had previously talked about being able to reach $1.5 billion in revenue after that, or at least $1.5 billion in revenue could be supported by the expansion. I think that's sensitive to product mix. Just wondering if you could also share just how product mix might affect whether or not you could deliver either above or below that $1.5 billion. Patrizio Vinciarelli: As reported, we are expanding capacity but also absorbing that expanded capacity. As time progresses, we're inevitably getting close to full capacity utilization with the first chip fab, and that's why we're working to close on a second facility. The specific number at which the first fab will top out is, I think, yet TBD. To your point, that target as of a year ago was a lot lower than it has been. Our operations team is continuing to work to expand it to the extent possible. We are in a privileged position that with limited capacity, we have the opportunity to select those engagements that make sense strategically for the long term, and that's what we're doing. We're not sold out, but we're approaching capacity utilization. As we get closer, at least to the timeframe before the second fab comes up, we're going to be very selective in our engagements. Justin Clare: Got it. Okay, appreciate it. Thank you. Patrizio Vinciarelli: Thank you. Operator: Thank you. The next question comes from John Dillon with DMB Capital. Your line's open. John Dillon: Hi, thank you very much. Guys, congratulations on a great quarter. I've got a follow-up to the last question, and that's you've stayed your goals of $2.5 billion in revenue coming up here. I'm wondering, are you planning on getting there with your existing factory, or is it going to take a second fab to get there, along with revenue plus the royalty income? Can you get to $2.5 billion with your existing facility? Patrizio Vinciarelli: No. John Dillon: Okay. Patrizio Vinciarelli: That's a definitely no. It's going to take a second fab to get that. John Dillon: Okay. Well, that kind of leads into my follow-up. My channel checks are saying that you guys have Avago, Google, and AMD. AMD, we've seen pictures of gold bars in their new processor. How big are these going to be in the next year, and how are you going to have the capacity to serve them? Patrizio Vinciarelli: I'm not going to comment about sightings of gold bars anywhere. Needless to say, we have a very distinctive product. It's distinctive in that it's manufactured uniquely in a fab with three-dimensional interconnect processes that give it its golden look. To be clear, while it's got a golden look, it doesn't carry the cost of gold with it. To the contrary, among other things, we are going to have the lowest cost card. I think we got exciting years ahead with respect to raising the bar on the revenue line, on the profitability, along the lines of what Phil was suggesting earlier. It is going to take a second fab to get to those levels. John Dillon: How big will that second fab be? Will it be able to do $1.5 billion, or do you expect it to be able to do more in revenue? Patrizio Vinciarelli: We are down selecting two sites that have what we told to support a considerable expansion. As much as 2x, potentially 3x the first fab. John Dillon: Thank you very much. I'll get back in the queue. Patrizio Vinciarelli: Thank you. Operator: Thank you. Our next question will come from Richard Shannon with Craig-Hallum Capital. Your line is open. Richard Shannon: Great, guys. Thanks for taking the follow-up here. I am going to follow up on the last answer here for 2, just to make sure I understand it here. Your first model of $1 billion was just with the first fab, as we just heard from your answers here, the $2.5 billion requires a second fab here. If I heard you correctly, the second fab is going to be two to three times the first fab. Seems like you would have the ability to do a lot more than $2.5 billion with both those fabs, plus any licensing here. Wonder if you could rationalize the disconnect here, please. Patrizio Vinciarelli: With the second site and the second fab, there is going to be a series of steps. This is not all going to be built out on day one. Needless to say, we do not want to create unnecessary or premature depreciation. We are going to have a couple of steps to begin with. We are looking to essentially double capacity, but we are selecting sites that have the requisite expansion flexibility so that without having to go to a third site, we can further increase capacity. Richard Shannon: Okay. That is helpful. Thanks for that. My follow-on question is on product gross margins. I am assuming all the royalty revenue is 100% here, and if I back that out, calculate a product gross margin, it is actually down a couple of 100 basis points from the last couple of quarters here. I wonder if you could help us understand the dynamics there and whether that trend will reverse itself here in the near future. Patrizio Vinciarelli: I think Jim commented his potentials of increasing margins. Jim Schmidt: Yes. Patrizio Vinciarelli: We. Jim Schmidt: There will be lift in the GM, product GM going forward, Richard, as we get utilization to go higher and absorption to go higher. I will say that there was sort of a, maybe one-time, but an important event here in the second quarter relative to moving equipment around in the first fab, to make space for the equipment that is coming in. That was incremental expense and cost of sales in the period that did not get capitalized and cannot be capitalized. That did weigh on product gross margins as well. You can imagine what had to happen in the factory to make the space really optimized for the new equipment coming in. It was not cheap to do that. Richard Shannon: Okay, thanks for that explanation. That's all for me. Thank you. Operator: Thank you. The next question will come from Neil Gore, stockholder. Your line is open. Neil Gore: Your goal of $2.5 billion, within that goal, will royalties be at 50% of revenue at that time? Patrizio Vinciarelli: I don't think we're in a position to make a specific prediction with respect to the mix. I think there's a lot to happen on the AP front. Vicor is enabling technology on all of the areas where the industry needs for increased current density or increased power density. This will play itself out over a number of years, and the outcome of this campaign is still to undergo the steps we're going to need to take and the effect of those steps. I think all that I can say is that we see a significant expansion in licensing income in years to come. We do expect a crossing of the chasm within the industry by hyperscalers, balanced OEMs, recognizing that playing a game of catch me if you can will result in significant issues in terms of the supply chain. If they're using our technology, the only ethical, legal thing to do is to pay for it by way of a license. That, before too long, may apply to the industry as a whole. Neil Gore: Thank you. Operator: Thank you. Our next question is going to come from Quinn Bolton with Needham & Company. Your line's open. Quinn Bolton: Thanks for taking my follow-up. Patrizio, I wanted to come to the licensing side of the business. I think the second license with your first licensee as well as your most recent license looks like those were, I think, just a couple of years in duration, which probably means you need to re-sign licenses as you get close to the end of 2027. Can you just, from a big picture level, talk about your strategy with sort of new licenses? Would you look to expand to include more of the Vertical Power Delivery content or sourcing agreements, but can you provide any high-level thoughts on re-signing those licenses as the current licenses come due? Patrizio Vinciarelli: Yeah. We have a well-defined, mature licensing practice. It has got flexibility where needed. It is not, though, up for grabs, in terms of flexibilities that don't make sense. It does involve any OEM, any hyperscaler. It does not involve competitors. The competitors can participate, in terms of without infringing our IP, by sourcing their products, otherwise infringing products into OEMs or hyperscalers that have a license from Vicor. The licensing model has involved already two kinds of licenses. One, you might call a proportional license, which provides for royalties, unit royalties, in direct proportion to actual usage. We also, in more recent years, have done two-year deals that are, in effect, all-inclusive. With these deals, we understand, given the limited timeframe, what the current usage by the licensee is going to be. Needless to say, given the rate of expansion with hyperscalers and OEMs in the AI market in particular, it would be very difficult, if not impossible, to predict their level of business five, 10 years down the road. With all-inclusive licenses, by necessity, we have to have a short timeframe and then negotiate the new license depending on how the business by the licensee evolves during the two-year period. Quinn Bolton: Understood. Thank you, Patrizio. Patrizio Vinciarelli: Thank you. Operator: Thank you. The next question comes from John Dillon with DMB Capital. Your line is open. John Dillon: Hi. Thanks for taking my follow-up. Hey, Phil, I just wanted to check with you. How are the bookings looking for this quarter? Phil Davies: As I mentioned, I think it mentioned in the press release, John, the bookings are great. Our bookings tend to be lumpy. Sometimes, we know we've reported book-to-bills of close to two. This one was a little bit lower, I don't see any weakness at all going forward. Aerospace & Defense is strong. Industrial is very strong. High Performance Compute is strong. Yeah, no, things look good. John Dillon: Excellent. In the last press release, you talked about an OEM, you said they had a capability of being a second source. My question is, will they be a second source? If not, how's a second source coming along for you guys? Patrizio Vinciarelli: As commented at the shareholders meeting, our strategy in the short term has evolved with a focus on bringing on additional capacity through a second facility, a second chip fab, that we can totally control. We've had discussions with respect to potential alternate sources. There will likely be more discussions, but the nature of these engagements, both in terms of predictability, timeline, is such that it would not put us in the position we need to be in terms of expanding capacity for key customers in the next couple of years. A shift with respect to relative focus, not a change with respect to long-term strategy. I expect there's going to be alternate sources, not just in support of applications in AI, but potentially in other markets. That's consistent with, in fact, making the most out of a very comprehensive IP portfolio that spans across a number of key power system technologies. John Dillon: Excellent. Do you still expect 25%-30% of your business from Cerebras next year? Patrizio Vinciarelli: I'm not going to make specific comments with respect to customers for obvious reasons. We enjoy a very strong relationship, and I think these and other customers are doing very well in their own space. John Dillon: Thank you very much. Operator: Thank you. The next question comes from Richard Shannon with Craig-Hallum Capital. Your line is open. Richard Shannon: Thanks, Ashley, taking my follow-up again here. At the risk of asking a very similar question to the last one here, instead of asking about Cerebras going forward here, can you tell us whether Cerebras is a 10% customer in the second quarter? Patrizio Vinciarelli: Are we at liberty to say? Jim Schmidt: I think we'll disclose that in the Q, I don't know that it would have been, Richard. I don't know that I can comment right now, let's take a look at the Q. Richard Shannon: Okay. I'll look forward to reading that. My follow-on question here is looking at the next customers for second-gen VPD here, and love to get a sense of how you expect the sales cycle to go. Patrizio also, if you could comment on the degree to which any changes in architectures in whatever way that you would deem important to convey to us here, how those will affect that sales cycle here, just generally speaking, please. Patrizio Vinciarelli: Let me take the second part first, then Phil will address the first part of your question. As suggested earlier, we see the industry with its usual traits of looking over each other's shoulder and paralleling each other's initiative. To keep going down a path that is characterized by continued tall dependency on a voltage or a level engine at the point of load. That's fundamentally a flawed strategy. It's not going to work. As suggested in the earlier comments, it's a strategy where you can only get some incremental current density well below what's going to be needed before too long, at the expense of giving up on current gain. That doesn't solve the problem, a problem which requires a combination of high enough current density with overall high enough current gain. Now, if you don't have the current gain, as suggested earlier, that's been the catalyst for being approached by a couple of companies, you can use IVRs to stretch somewhat the current density capability, but still short of what's going to be needed, at the expense of requiring a still very high current bus converter at 1.8 V. That's a strategy that's got trade-offs, as suggested earlier. It's got some good redeeming features, flexibility in terms of partitioning domains. It's great at that, but not far from ideal in terms of overall power system figures are made. We see a different approach, it's reflected in the power system technology that we developed, patented. It's reflected in a chip, as in converter housing package, packaging technology that can only be made in chip fabs that are heavily protected by Vicor IP. That's the strategy we're pursuing. Phil Davies: Richard, this is Phil. With regards to the cycle, the development cycle, if you like. If you go back just a few months to the APEC conference in San Antonio, Texas, you had a number of big OEMs and a few hyperscalers almost sort of lobbying the semiconductor audience on their AI product development in terms of saying, "Here's what we need from you guys with regards to current density," which they were asking for something around three amps per mm², and package heights, in terms of thermal management and just assembly and yield issues of less than three millimeters. Now you look at what's being developed and delivered to these OEMs and hyperscalers today is generation 1 VPD that comes nowhere near that request. You can imagine the excitement that's out there to engage with Vicor that has three amps per millimeter squared now moving to five amps per millimeter squared next year, early next year, and a 1.5 millimeter package with very easy thermal management techniques. There's a lot of companies that want to engage because they're sort of making do with the current gen 1 VPD solution. What we expect is engagement with a hyperscaler and a couple of OEMs now the rest of this year. I believe that those programs will start to, if you like, evolve into production systems sort of, I would say, late third quarter, fourth quarter of next year in terms of the ramps that are needed. Which then, as Patrizio mentioned, allows us to move into our first fab, and then as we bring on the second fab in late 2027, 2028, you've now got the ramp that follows through into that new facility with its expanded capacity. That's what we expect to see. Richard Shannon: Okay, great. Thanks for all that detail, guys. Operator: Thank you. Our next question comes from Don McKenna with D.B. McKenna. Your line is open. Don McKenna: Hi, guys. Congratulations. My question deals with the backlog, and I was wondering how much of the significant increase there is attributed to the new licensing agreement, if any. Patrizio Vinciarelli: Relatively little. Don McKenna: I'm sorry? Patrizio Vinciarelli: Relatively little. We have, as Phil pointed out, strengths coming from a number of different end markets. Take as an example the A&D market. Our level of business with key customers there is a larger multiple of what it has been in past years, and that's the result of the build-out with respect to AI. That's just one example of growing demand coming from a multiplicity of end markets, which we need to address. Phil Davies: Just a comment on the automatic test equipment market. That's a great story because it's also a Factorized Power Architecture that relies on low noise performance and thin package technology. We've had a number of competitors come up to us in different shows saying, "We just can't get Vicor out of there because of the low performance, low signal-to-noise ratios that we are able to deliver and also the thinness of the packages. We can't get anywhere near that." It's a great market for us, and we're firmly entrenched in some of the biggest ATE companies, and that market is also growing with new entrants in overseas markets that we're also designing in our FPA solutions into. That's going to continue to be a good growth story for us going forward. Don McKenna: Great. I think what I'm hearing you say is it's existing customers with increased needs- Patrizio Vinciarelli: Yep Don McKenna: As for where the bulk of this is coming from. Do you also see any of it being just the fact that as you're nearing capacity, people are putting in their orders for farther out deliveries? Patrizio Vinciarelli: Yes. Lead times have stretched out a little bit. They're, generally speaking, consistent with industry trends. Nowadays, whether it's semiconductors, PC boards, some of the key components within the industry have lead times that reflect the realities of demand exceeding capacity in a number of key areas, not just ours. Don McKenna: Good. Thank you very much. Patrizio Vinciarelli: Thank you. Operator: Thank you. As a reminder, to ask a question, please press star one on your telephone. The next question comes from Joe DeBabny with Individual Investor. Your line is open. Joe DeBabny: Hey, guys. Thanks for taking my question. I was just wondering if you could speak a little bit about how the next generation advanced packaging architectures are going to help proliferate Gen 2 VPD across the industry. Patrizio Vinciarelli: It's just got by far the biggest current density, the lowest thermal resistance, the lowest noise. Phil pointed out earlier that in the A&D arena, we've had longstanding, when I say longstanding, I mean 40 years track record of dominance because of the unique signal integrity capabilities of our product. Those are also differentiators, believe it or not, in AI, in computing capabilities that more and more are relying on nodes with FinFET lithography operating at lower and lower voltages, where signal integrity becomes more and more of a key differentiator. We are unique in these capabilities. Again, that uniqueness is not limited to one facet of the overall challenge. It involves many different facets, all of which are heavily protected in terms of the IP we've been developing over the last 10 years. We feel very good about our opportunities going forward for all those reasons. Joe DeBabny: Great. Thanks. One more about the recent licensee that signed in May. Can you kind of speak on what would have happened to the supply chain if that license was not negotiated by them? Patrizio Vinciarelli: We have a well thought out strategy with respect to protecting intellectual property, enforcing our IP. As you know, in the U.S., a patent holder has a monopolistic right to the IP that is protected by patents. That right is a right to exclude, among other things, importation of infringing products. Infringing products are now limited to power modules copied by unscrupulous competitors. It does involve the competitor's customers, the contract manufacturers, and those customers' customers, OEM hyperscalers. It's incumbent on them to make sure in the supply chain that intellectual property is respected. Inventors deserve to have their IP respected in the marketplace, and we've been very focused on a very comprehensive strategy to make sure that our IP gets the respect it deserves. I think we have made strides in that direction. There is more strides coming. As I mentioned earlier, I believe there's going to be a crossing of the chasm in the industry taking place in the next couple of years. Joe DeBabny: I appreciate that, Patrizio. Thank you. Patrizio Vinciarelli: Thank you. Operator: This does conclude today's question and answer session. This will also conclude today's conference call. Thank you so much for your participation, and you may now disconnect. Before you buy stock in Vicor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vicor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $364,562!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,247,668!* Now, it’s worth noting Stock Advisor’s total average return is 894% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Vicor (VICR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

ANDOVER, Mass., July 21, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2026. These results will be discussed at 8:00 a.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below. Product and royalty revenues for the second quarter ended June 30, 2026 totaled $143.4 million, a 26.9% sequential increase from $113.0 million in the first quarter of 2026, compared to $141.0 million from product revenues, royalty revenues and a patent litigation settlement of $45.0 million for the corresponding period a year ago. Gross margin increased sequentially to $83.1 million for the second quarter of 2026, compared to $62.4 million for the first quarter of 2026, and decreased from $92.1 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 58.0% for the second quarter of 2026, compared to 55.2% for the first quarter of 2026. Gross margin decreased from 65.3% for the corresponding period a year ago which included the aforementioned $45.0 million patent litigation settlement. Operating expenses increased sequentially to $48.2 million for the second quarter of 2026, compared to $45.5 million for the first quarter of 2026, and increased from $46.7 million for the corresponding period a year ago. Net income for the second quarter was $49.8 million, or $1.04 per diluted share, compared to net income of $20.7 million, or $0.44 per diluted share, for the first quarter of 2026 and net income of $41.2 million or $0.91 per diluted share, for the corresponding period a year ago. Cash flow from operations totaled $34.0 million for the second quarter, compared to cash flow used for operations of $(3.9) million in the first quarter of 2026, which included the impact of a $28.6 million payment of an award for past litigation, and cash flow from operations of $65.2 million for the corresponding period a year ago. Capital expenditures for the second quarter totaled $11.2 million, compared to $12.4 million for the first quarter of 2026 and $6.2 million for the corresponding period a year ago. Cash and cash equivalents as of June 30, 2026 increased 12.2% sequentially to approximately $453.6 million compared to approximately $404.2 million as of March 31, 2026. Backlog for the second quarter ended June 30, 2026 totaled $380 million, a 26% sequential increase from $301 million at the end of the first quarter of 2026, and increased 145% from $155 million for the corresponding period a year ago. Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab. As we get closer to full capacity utilization, we are taking steps toward a second fab for high current density 2nd Gen VPD ChiPs. AI OEMs and Hyper-scalers are at a loss dealing with the current density and PDN limitations of 1st Gen. VPD systems. The industry’s fixation with PoL regulators (replacing VRs, operating from 12V or 6V, with IVRs, operating from 1.8V) merely trades off one handicap (low current density) for another (low current gain). Feeding IVRs with a current multiplier is an incremental opportunity for Vicor. With its 2nd Gen VPD IP, Vicor is uniquely equipped to overcome the power system challenges standing in the way of future advances in TPUs, GPUs and Wafer Scale Engines.” For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com. Earnings Conference Call Vicor will be holding its investor conference call today, Tuesday, July 21, 2026 at 8:00 a.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 8:00 a.m. on July 21, 2026. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2025, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments. Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.   For further information contact: James F. Schmidt, Chief Financial OfficerOffice: (978) 470-2900Email: [email protected]

Interested in Vicor Corporation? Here are five stocks we like better. Vicor’s Q2 revenue and profitability improved sharply, with product and royalty revenue rising to $143.4 million, gross margin expanding to 58%, and net income reaching $49.8 million. Advanced products drove much of the growth, and royalty income from a new licensing deal added $15 million to revenue. Backlog and guidance point to continued growth, as one-year backlog climbed 26% to $379.7 million and management guided for nearly 10% Q3 revenue growth and more than $600 million in 2026 revenue. The company said demand is broad-based across aerospace, industrial, high-performance computing and test equipment. Capacity expansion is central to Vicor’s long-term plan, and management said a second chip fab will be needed to reach its $2.5 billion revenue target. Vicor is also pushing its Vertical Power Delivery technology for AI data centers and hyperscalers, with performance and customer engagements expected to advance over the next year. The S&P 600’s newest, familiar members: Are they winners? Vicor (NASDAQ:VICR) reported a sharp sequential revenue increase for the second quarter of 2026, driven by growth in advanced products and royalty income from a recent licensing agreement, while management pointed to additional capacity, licensing activity and demand for power delivery technology as key factors in its outlook. Chief Financial Officer Jim Schmidt said the company recorded product and royalty revenue of $143.4 million for the quarter ended June 30, up 26.9% from $113 million in the first quarter of 2026. Revenue was up 1.6% from the second quarter of 2025, which included a $45 million patent litigation settlement. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Generac Powers Up as Summer Temperatures Rise Advanced products revenue rose 45% sequentially to $94.2 million, while brick products revenue increased 2.4% to $49.2 million. Advanced products represented 65.7% of total revenue, up from 57.5% in the prior quarter. Shipments to stocking distributors increased 4.2% from the first quarter and 38.8% year over year. Schmidt said royalty income from Vicor’s most recent license agreement contributed $15 million to second-quarter revenue. The agreement provides for four $5 million quarterly payments in its first year and $10 million quarterly payments in its second year, for a total of $60 million. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Because of the accounting treatment of the agreement, Schmidt said the license is expected to contribute $5 million in revenue in the third quarter and $10 million per quarter for the following four quarters. He later clarified during the question-and-answer session that the $15 million recognized in the second quarter differed from cash collections because of GAAP accounting treatment and termination clauses in the agreement. Chief Executive Officer Patrizio Vinciarelli declined to identify the licensee, saying the company does not comment on licensee identities. He said Vicor has “a multiplicity of OEM licensees” and one hyperscaler licensee as of now. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Vicor reported a consolidated gross profit margin of 58%, up 280 basis points from the prior quarter. Schmidt said total operating expenses increased 6.1% sequentially to $48.2 million, with a substantial portion of the increase tied to contingent legal expenses paid to law firms involved in the licensing deal reached during the quarter. The company recorded a tax benefit of approximately $10.9 million, representing an effective tax rate of negative 27.9%. Schmidt said the tax provision and effective tax rate were positively affected by stock options exercised during the quarter. Net income totaled $49.8 million, and GAAP diluted income per share was $1.04, based on 47.7 million diluted shares. Cash and cash equivalents were $453.6 million at quarter-end, up $49.4 million sequentially. Schmidt also said Vicor received a $14.3 million payment from the IRS on July 13 related to its application for a CHIPS Act investment tax credit as a refund from its 2023 tax return. He said additional tax credit amounts expected from later tax returns should add to the company’s cash balance in the third quarter and beyond. Vicor’s second-quarter book-to-bill ratio was above one, and one-year backlog rose 26% from the prior quarter to $379.7 million. Schmidt said the company expects “a nearly 10% increase” in third-quarter revenue and more than $600 million in 2026 revenue. To meet those growth objectives, Schmidt said Vicor is planning for double-digit sequential increases in product revenue for advanced products. He added that the guidance is based on conservative assumptions about the company’s licensing practice, noting that new licensing agreements may not occur until Vicor’s second International Trade Commission case reaches a final determination in 2027. In response to a question about backlog, Vinciarelli said relatively little of the increase was attributable to the new licensing agreement. He and Corporate Vice President of Global Sales and Marketing Phil Davies cited strength across multiple markets, including aerospace and defense, industrial, high-performance computing and automatic test equipment. Davies said Vicor’s updated financial objectives are $2.5 billion in revenue, 70% gross margins and 40% operating income. He said those targets supersede prior objectives of $1 billion in revenue and 65% gross margins set in 2023 and are based on a two-pronged strategy involving power module sales and intellectual property licensing. Davies said the company’s power module business is focused on 100 customers across high-performance computing, industrial, automotive, and aerospace and defense markets. He highlighted Vertical Power Delivery, or VPD, as a key opportunity for AI data center hyperscalers and OEMs seeking higher compute density. Vinciarelli said Vicor has completed development for an initial chipset for its lead customer at a baseline of 3 amps per square millimeter current density and is completing demo systems for other customers. He said the company is working to raise performance beyond that level late this year or early next year. Davies said Vicor expects to engage with a hyperscaler and a couple of OEMs during the remainder of the year, with programs potentially evolving into production systems in the late third quarter or fourth quarter of next year. He said Vicor’s second-generation VPD offers three amps per square millimeter now, moving toward five amps per square millimeter early next year, with a 1.5 millimeter package. Management said capacity remains a major focus. Vinciarelli said Vicor is expanding and absorbing capacity at its first chip fab and is approaching higher utilization. He said the company is working to close on a second facility and has several site options, with decisions likely in the next few weeks. Asked whether Vicor could reach its $2.5 billion revenue target with its existing facility, Vinciarelli said, “No,” adding that a second fab would be required. He said the company is evaluating sites that could support “as much as 2x, potentially 3x” the first fab, although he later clarified that the second facility would be built out in stages to avoid unnecessary or premature depreciation. Vinciarelli said Vicor’s near-term strategy has shifted toward adding capacity through a second chip fab that it can fully control, rather than relying on alternative sources. He said alternate sourcing may still be part of the long-term strategy, but would not provide the needed predictability and timing for key customers over the next couple of years. Management also said lead times have stretched somewhat, consistent with broader industry trends where demand exceeds capacity in several areas. Vinciarelli said Vicor is in a position to be selective about customer engagements as it approaches capacity utilization. Vicor Corporation is a designer and manufacturer of modular power components and systems, serving a wide range of industries that demand high performance and efficiency. Headquartered in Andover, Massachusetts, the company develops power conversion solutions that help customers optimize energy delivery in applications from telecommunications and data centers to industrial and automotive systems. The company's product portfolio includes high-density DC-DC converters, AC-DC front-end modules, point-of-load regulators and complete power systems that combine multiple conversion stages in a single package. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vicor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.