April 21st, 2026

The call presented a strong operational and financial performance: sequential and year-over-year revenue growth, a sizable and rising backlog, robust bookings across HPC, industrial and defense, healthy cash on hand, affirmative guidance for 2026 revenue and margin expansion, and clear product/IP momentum with second-generation VPD and capacity expansion plans. Offsetting items include modest sequential margin pressure, higher operating and legal expenses, a sizeable one-time litigation cash outflow, inventory turns that warrant monitoring, and near-term uncertainty around incremental licensing revenue (management conservatively excluded new licenses from guidance until legal outcomes). Overall the positives — notably revenue growth, backlog/bookings strength, technology differentiation and guidance — materially outweigh the negatives.

Company Guidance

Vicor guided Q2 revenue of nearly $126 million and full‑year 2026 revenue of nearly $570 million (management expects margin expansion in 2026 and the guidance conservatively assumes no new licensing agreements until the second ITC case is finally resolved in 2027). That outlook builds on Q1 product and royalty revenue of $113.0 million (Advanced Products $64.9M, 57.5% of total; Brick Products $48.0M, 42.5%; Advanced +3.7% sequential, Brick +7.7% sequential), Q1 gross margin of 55.2% (‑20 bps sequential, +800 bps year‑over‑year), net income of $20.7M and GAAP diluted EPS of $0.44 on 47,254,000 fully diluted shares. Balance sheet and operating metrics cited in the call included cash and cash equivalents of $404.2M, accounts receivable net $67.4M (DSO 42 days), inventories $94.8M (annualized turns 2.1), Q1 cash used in operations $3.9M (which included a $28.6M litigation settlement), Q1 capex $12.4M, construction‑in‑progress ~$10.7M with ~$33.9M remaining to spend, Q1 book‑to‑bill above 2 and 1‑year backlog $300.6M (up 70% sequential), shipments to stocking distributors +0.5% sequential (+63.6% YoY), exports ~48.9% of revenue, and royalties running roughly $15M in Q1 (~$60M annualized) with the guidance including royalties from existing agreements but not assuming new license signings; Q1 tax benefit was ~$0.3M (effective tax rate ‑1.3%), though management expects a normalized rate nearer ~20% going forward.