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Vicor Corporation Reports Results for the Quarter and Year Ended December 31, 2010


February 22, 2011 - ANDOVER, MA

Vicor Corporation (NASDAQ: VICR) (the"Company") today reported its financial results for the quarter and yearended December 31, 2010.

Revenues for the fourth fiscal quarter ended December 31, 2010, increasedto $72,975,000, compared to $49,138,000 for the corresponding period a yearago, and increased from $68,672,000 for the third quarter of 2010. Grossmargin increased to $32,984,000 for the fourth quarter of 2010, compared to$22,497,000 for the corresponding period a year ago and $32,473,000 for thethird quarter of 2010. Gross margin, as a percentage of revenue, decreasedto 45.2% for the fourth quarter of 2010 compared to 45.8% for the fourthquarter of 2009 and 47.3% for the third quarter of 2010. Net income forthe fourth quarter was $10,807,000, or $0.26 per diluted share, compared tonet income of $2,309,000, or $0.06 per diluted share, for the correspondingperiod a year ago and net income of $15,819,000, or $0.38 per dilutedshare, for the third quarter of 2010.

Revenues for the year ended December 31, 2010, increased by 26.7% to$250,733,000 from $197,959,000 for the prior year. Net income for the yearwas $33,325,000, or $0.80 per diluted share, compared to net income of$2,798,000 or $0.07 per diluted share, for the corresponding period a yearago.

During the third and fourth quarters of 2010, the Company recordednon-recurring, non-cash tax benefits of $5,158,000, or approximately $0.12per diluted share, and $1,159,000, or approximately $0.03 per dilutedshare, respectively, due to the release of portions of its deferred taxvaluation allowance. These tax benefits were partially offset by estimatedfederal, state and foreign income taxes on the Company's 2010 pre-taxincome and estimated federal and state income taxes for certainnon-controlling interests that are not part of the Company's consolidatedincome tax returns.

The consolidated book-to-bill ratio for the fourth quarter was 0.66, ascompared to 1.02 for the third quarter of 2010. Total backlog at the endof the fourth quarter was $78,876,000, compared to $57,234,000, at the endof 2009.

Commenting on the Company's performance, Patrizio Vinciarelli, ChiefExecutive Officer, stated: "Vicor recognized a record level of quarterlyrevenue for the fourth quarter as a result of substantial bookings recordedearlier in the year. Consolidated revenue increased on a sequential basisby 6%, driven largely by a near doubling of V-I Chip™ shipments.Relative to a weak fourth quarter, bookings activity has thus farexperienced a nearly 50% increase in the first quarter of 2011."

Dr. Vinciarelli went on to say, "We also are pleased by the progress we aremaking in manufacturing and operational efficiencies across theorganization. While fourth quarter margins came under pressure due to ashift in mix to V-I Chip products, we are projecting benefits fromvolume-driven economies of scale once revenue levels resume their advance."

Dr. Vinciarelli concluded, "Our differentiated building blocks, Brick, V-IChip and Picor power components, continue to gain traction across newmarkets. Recently introduced Brick Bus Converters, with double the densityand efficiency of industry standard bricks, have underscored thecapabilities of our power conversion technology and given it uniquevisibility with leading Original Equipment Manufacturers seeking continuityof supply and competitive advantages enabled by higher density. Thisinitiative has already opened doors at major networking and data storageaccounts, supporting greater diversification and long term momentum."

Depreciation and amortization for the fourth quarter of 2010 wasapproximately $2,607,000, and capital additions totaled $4,362,000. In2010, depreciation and amortization was $10,159,000 and capital additionswere $12,103,000, compared to $10,198,000 and $10,643,000, respectively,for 2009. Cash, restricted cash equivalents, and short-term investmentsincreased by $6,280,000 to approximately $49,279,000 at the end of 2010from $42,999,000 at the end of 2009. There were no share repurchasesduring the quarter, and approximately $8,500,000 remains authorized foradditional purchases under the Company's stock repurchase plan.

As of December 31, 2010, the Company held approximately $19,075,000, at parvalue, of auction rate securities classified as long-term investmentspurchased though broker / dealer affiliates of Bank of America NA. Aspreviously disclosed, conditions in the market for auction rate securitiesand the repeated failure of auctions by which such securities are pricedhave led the Company to classify its holdings as long-term investments andreduce their carrying value to an estimated market value. Based on theCompany's ability to access cash and other short-term investments and itsexpected operating cash flows, management does not anticipate the currentlack of liquidity of holdings of auction rate securities will affect theCompany's ability to execute its current operating plan.

For more information on Vicor and its products, please visit the Company'swebsite at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, February 22,2011, at 5:00 p.m. Eastern Time. Shareholders interested in participatingin the call should call 877-703-6109 at approximately 4:50 p.m. and use thePasscode 30118753. Internet users can listen to a real-time audiobroadcast of the conference call on the Investor Relations section ofVicor's website at www.vicorpower.com/irwebcast. Please go to the websiteat least 15 minutes prior to the call to register, download and install anynecessary software. For those who cannot participate in the conferencecall, a replay will be available, shortly after the conclusion of the call,through March 9, 2011. The replay dial-in number is 888-286-8010 and thePasscode is 47604980. In addition, a webcast replay of the conference callwill also be available on the Investor Relations section of Vicor's websiteat www.vicorpower.com/irwebcast beginning shortly after the conclusion ofthe call.

This press release contains certain forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Anystatement in this press release that is not a statement of historical factis a forward-looking statement, and, the words "believes," "expects,""anticipates," "intend," "estimate," "plans," "assumes," "may," "will,""would," "should," "continue," "prospective," "project," and other similarexpressions identify forward-looking statements. Forward-lookingstatements also include statements regarding bookings, shipments, revenue,profitability, targeted markets, increase in manufacturing capacity andutilization thereof, future products and the Company's capital resources.These statements are based upon the Company's current expectations andestimates as to the prospective events and circumstances that may or maynot be within the Company's control and as to which there can be noassurance. Actual results could differ materially from those projected inthe forward-looking statements as a result of various factors, includingthose economic, business, operational and financial considerations setforth in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2009, under Part I, Item I -- "Business," under Part I, Item1A -- "Risk Factors," under Part I, Item 3 -- "Legal Proceedings," andunder Part II, Item 7 -- "Management's Discussion and Analysis of FinancialCondition and Results of Operations." The risk factors set forth in theAnnual Report on Form 10-K may not be exhaustive. Therefore, theinformation contained in the Annual Report on Form 10-K should be readtogether with other reports and documents the Company files with theSecurities and Exchange Commission from time to time, including Forms 10-Q,8-K and 10-K, which may supplement, modify, supersede or update those riskfactors. The Company does not undertake any obligation to update anyforward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures and markets modular powercomponents and complete power systems based upon a portfolio of patentedtechnologies. Headquartered in Andover, Massachusetts, Vicor sells itsproducts primarily to the electronic data processing, industrial control,military electronics and telecommunications markets.


VICOR CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)

QUARTER ENDED YEAR ENDED
(Unaudited) (Unaudited)
---------------- ------------------
DEC 31, DEC 31, DEC 31, DEC 31,
2010 2009 2010 2009
------- ------- -------- --------

Net revenues $72,975 $49,138 $250,733 $197,959
Cost of revenues 39,991 26,641 136,213 110,365
------- ------- -------- --------
Gross margin 32,984 22,497 114,520 87,594

Operating expenses:
Sales & administration 13,310 11,465 49,417 47,932
Research & development 9,151 8,443 35,981 31,636
Severance charges 0 16 0 4,099
Gain from litigation-related
and other settlements, net 0 0 0 (846)
------- ------- -------- --------
Total operating expenses 22,461 19,924 85,398 82,821
------- ------- -------- --------

Income from operations 10,523 2,573 29,122 4,773

Other income (expense), net (82) 120 497 682
------- ------- -------- --------

Income before income taxes 10,441 2,693 29,619 5,455

(Benefit) provision for income taxes (477) 197 (3,920) 1,362
------- ------- -------- --------

Consolidated net income 10,918 2,496 33,539 4,093

Less: Net income attributable to
noncontrolling interest 111 187 214 1,295
------- ------- -------- --------

Net income attributable to Vicor
Corporation $10,807 $ 2,309 $ 33,325 $ 2,798
======= ======= ======== ========


Net income per share attributable to
Vicor Corporation:
Basic $ 0.26 $ 0.06 $ 0.80 $ 0.07
Diluted $ 0.26 $ 0.06 $ 0.80 $ 0.07

Shares outstanding:
Basic 41,753 41,665 41,700 41,665
Diluted 41,860 41,678 41,772 41,671




VICOR CORPORATION

CONSOLIDATED BALANCE SHEET
(Thousands)

DEC 31, DEC 31,
2010 2009
(Unaudited) (Unaudited)
---------- ----------
Assets

Current assets:
Cash and cash equivalents $ 49,279 $ 40,224
Restricted cash equivalents 0 192
Short-term investments 0 2,583
Accounts receivable, net 38,825 26,565
Inventories, net 35,489 21,357
Deferred tax assets 2,164 181
Other current assets 2,397 4,345
---------- ----------
Total current assets 128,154 95,447

Restricted cash and cash equivalents 0 223
Long-term investments 18,417 30,957
Property and equipment, net 50,848 49,009
Long-term deferred tax assets, net 2,805 0
Other assets 4,688 4,941
---------- ----------

$ 204,912 $ 180,577
========== ==========

Liabilities and Equity

Current liabilities:
Accounts payable $ 11,999 $ 9,458
Accrued compensation and benefits 6,772 5,740
Accrued severance charge 0 259
Other accrued liabilities 3,240 2,678
Deferred revenue 689 2,521
---------- ----------
Total current liabilities 22,700 20,656

Long-term deferred revenue 2,178 2,196
Long-term income taxes payable 1,022 384
Deferred income taxes, net 0 1,275

Equity:
Vicor Corporation stockholders' equity:
Capital stock 164,436 162,248
Retained earnings 133,791 112,972
Accumulated other comprehensive loss (1,369) (1,608)
Treasury stock (121,827) (121,827)
---------- ----------
Total Vicor Corporation stockholders'
equity 175,031 151,785
Noncontrolling interest 3,981 4,281
---------- ----------
Total equity 179,012 156,066
---------- ----------

$ 204,912 $ 180,577
========== ==========

For further information contact:
James A. Simms
Chief Financial Officer
Tel: 978-470-2900
Fax: 978-749-3439

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