Vicor releases first quarter 2024 financial report: Facing challenges and actively seeking opportunities

Vicor recently released its first quarter 2024 financial report, which showed that the company's total revenue reached US$83.9 million as of March 31, 2024. Although it was a 14.3% decrease from US$97.8 million in the same period last year, the company's management remained confident in future growth and profitability.

Vicor's net profit fell compared to the same period last year, from $11.2 million in the same period last year to $2.6 million in the first quarter of this year, a year-on-year decrease of about 77%.

During the earnings call, CEO Dr. Patrizio Vinciarelli said the first quarter results reflected the company's efforts to safeguard its intellectual property, including reaching licensing agreements with OEMs to allow it to acquire patented power system technologies from other suppliers. This move is expected to supplement the company's future revenue.

In addition, Vicor has also increased its investment in new product development during the reporting period, releasing more than 20 high-power density products, mainly for the industrial and aerospace and defense business units. At the same time, the company is also strengthening its cooperation with global channel partners such as Arrow and Avnet, making power conversion and power management a strategic business and a major growth driver.

In terms of technology licensing, Vicor is expanding its relationships with OEMs and automotive Tier 1 suppliers, viewing them as an important part of its business portfolio, especially in the automotive market. In addition, the company is actively following up on the ITC patent infringement case, and the administrative law judge is expected to make a decision in September.

Despite the challenges, Vicor remains confident in its technology and market position. The company expects 5G products to become new revenue opportunities starting in 2025, while the fifth-generation vertical power supply chipset (VPD) will also be used in artificial intelligence processes, with evaluation systems and power module samples expected to be delivered in the second and third quarters. In addition, the automotive industry is also expected to generate significant revenue for the company starting in 2026 or 2027.

Overall, although Vicor faced certain challenges in the first quarter of 2024, the company is actively promoting product strategy, selective intellectual property licensing, and clear goals to ensure future growth and profitability. In an uncertain market environment, Vicor will continue to seek opportunities to achieve long-term sustainable development.