What drove VICR's EPS growth in 2024?

Vicor's EPS growth in 2024 was driven by a combination of factors:

1. **Revenue Growth**: Although total revenue declined by 11.4% year-over-year, Q4 revenue reached $96.2 million, exceeding analysts’ estimates, and increased by 3.2% sequentially. This growth in quarterly revenue, particularly in advanced products, contributed to higher EPS.
2. **Gross Margin Improvement**: Gross margin improved to 52.4% in Q4, up by 3.3% sequentially, driven by increased royalty income and supply chain efficiencies. Higher gross margins often lead to increased profitability, which can translate to higher EPS.
3. **Advanced Products Momentum**: Revenue from advanced products grew by 18% sequentially, contributing 60.6% of total revenue. The growth in advanced products, which likely have higher profit margins, is a key factor in the EPS growth.
4. **Intellectual Property Licensing**: Vicor secured new licensing agreements with hyperscalers, reinforcing its position in high-performance computing markets. Licensing revenue, which is a component of advanced product revenue, contributes to EPS growth.

In summary, Vicor's EPS growth in 2024 was driven by revenue growth, particularly in advanced products, gross margin improvement, and increased royalty income from licensing agreements.