Vicor Corp. Message Board

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Technology Stocks : Vicor Corp.

VICR 89.65

-0.4%

9:30 AM EDT

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To: John B. Dillon who wrote (95)	7/20/1999 12:21:00 PM
From: Alan A. Hicks	Read Replies (3) of 118

John, here are my notes on the CC: Management feels all the pieces are coming together for an acceleration of revenue and earnings growth. Revenues grew 7% from Q1 and are expected to show similar quarter to quarter growth so that overall year over year product growth will be at a 30-40% annual growth rate by the first quarter of 2000. Both revenues and bookings were at record levels. Bookings were at $48.5 million. Book to bill for the quarter was at 1.07. Demand for 2nd generation products has been stronger than they have been able to supply. Units produced grew 50%, shipments grew 70%, while bookings grew 250%. The company plans to increase 2nd generation capacity by 100% in Q3 and double it again in Q4. Yields were at 80% and are expected to increase to 90% by year end. Mr. V seemed pretty pleased with the demand for 2nd gen products. 1st generation products were also strong and ahead of expectations. All lines will be moved into the new building in Q3, well ahead of the October deadline when they must vacate the old building. The recent agreement with Nortel should provide a contribution to Q3 and Astec will also have to pay Vicor royalties going forward. The company bought back another 40,000 shares at $12.5 last quarter. They do not expect to continue purchasing more shares until their cash level is higher. As they have purchased most of the manufacturing equipment they will need for the new lines, cash generation should begin to build nicely from here not including any other patent settlements that may be to come. Given earnings expectations of $0.45 to $0.50 this year and $0.90 - $1.00 next and depreciation running at a $16 - $20 million annual rate, Vicor could easily generate $50 million in cash next year and even more the following year.

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