VICOR CORP Q4 FY2024 earnings call

• Successfully ramped the new vertically integrated ChiP factory, achieving short cycle times and high-yield goals, improving customer responsiveness. - Recent ITC determination in the first NBM patent infringement case led to exclusion and cease-and-desist orders, with a hyperscaler taking a license to Vicor’s NBM IP. - VPD product development faced delays due to needing to compete in ASIC for performance goals, with the new ASIC expected out of fab soon and progress toward supporting lead customers. - Book-to-bill ratio improved sequentially in Q4, with 1-year backlog increasing 3.3%. - Market opportunities in 2025 include HPC, automotive (pipeline conversion), industrial, defense, and aerospace, with goals to double certain businesses.

Vicor recorded total revenue for the fourth quarter of $96.2 million. Advanced Products revenue increased 18% sequentially, with Q4 revenue for Advanced Products being approximately $58.3 million (60.6% of total revenue), and Brick Products revenue declined 13% sequentially, with Q4 revenue for Brick Products being approximately $37.9 million (39.4% of total revenue). For the year ended December 2024, Advanced Products revenue decreased 11.9% to $197.3 million, and Brick Products revenue decreased 10.7% to $161.7 million.

• 2025 is a year of uncertainty and opportunity, with the year’s top-line and bottom-line outcomes subject to a wide range of scenarios. - Unable to provide quarterly guidance until uncertainties are resolved and opportunities are capitalized on.

• Uncertainties in top-line and bottom-line outcomes for 2025. - Potential issues with IP enforcement and infringers possibly finding workarounds. - Challenges in scaling new VPD products and ensuring predictable and efficient production ramp.

Q: Talk about the delay in VPD products and when they might ship in volume?

A: Needed to compete in ASIC for performance goals, new ASIC out of fab in next 10 days, expect to take fast steps in March to provide solution for lead customer with ability to support their ramping needs in second half of the year.

Q: Sense of royalty revenue from new hyperscaler license?

A: Significant license, but details confidential as it's a hyperscaler and relationship is confidential.

Q: Uncertainties related to HPC vs other markets?

A: Uncertainties and opportunities primarily revolve around AI and high-end computing, with other markets having high stability.

Q: Details on second gen VPD ASIC and pipeline for customers?

A: New ASIC applicable to current multipliers enabling 5 amps per square millimeter capability, new ASIC adds to pipeline, with focus on lead customer and then scaling to other customers with demo systems and design wins expected this year.