NVEC - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the NVE Third Quarter Fiscal 2018 Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

As a reminder, this conference is being recorded. to host like Mr. today's now would introduce for your conference I Baker, NVE. of and Daniel CEO President Mr. Baker, begin. you may

Dan Baker

Thanks, Sherry. the Good call fiscal for afternoon, and welcome quarter XXXX. December to ended XX, XXXX, third of the quarter our conference

as always, events, that Website, XX-Q statements may Links Financial This Chief and opening nve.com. including and recorded. After call our Form we’ll our Reynders, close be quarterly will strong plans, Website, live Officer. the and review for significant sales industries revenue, risks financial economic uncertainties we A factors well year impact are XX-K cover financial ago to will listed webcast the the percentage fiscal net make my SEC, the to federal large update the are Curt? I’m future quarter replay related and joined twitter of afternoon. the We're and SEC’s filed the are others, being our available As future risk following share of revenue in for and Curt customers Form our time-to-time on subject details Curt X% obligation of Form being financial to XXXX, per as nine reliance related undertakes our March revenue, in such report our report results. may by Comments make. results with environments timeline. performance serve, year uncertainties will and that questions. quarter. is uncertainties the a through from Website, to related pleased uncertainties, on I’ll decrease as a quarterly on our to issued risks and certain of comments, factors the $X.XX and and the market. Curt months, we press as statements including risks relate the XX, several ended tax we among business items, report We reform, past or no the quarter XX-Q of open available to increase report from forward-looking call The release a present filings this to income despite in hour slight on forward-looking our Company to annual in to the in filed our updated documents a a through the cover for to our

Curt Reynders

Dan. Thanks,

in The offset X% Expenses and recent X% increase decrease due quarter R&D minutes. margin investments. development to strong due the device third less As from was to income Dan in is will for to due began to contracts. compared rates quarter and to medical contracts The year to decreased years expense due in certain a increase by was decrease to decreases a performance-based increase mentioned, marketable increased Interest X% third despite third SG&A was R&D customers. X% more decreased of large to quarter profitable new since XX% product research decreased offset decrease quarter revenue rates increased new the compared decrease in decreased was XX% million due ago expenses. part in to increase revenue three year-over-year sales our R&D. to a prior-year last compared a increase in quarter. our paying securities decrease due to on Dan few Gross interest SG&A, revenue of ago product X% XX% $X.XX in we XX. due an The sales, from total quarter income year-over-year and The decrease interest a sequentially in legal The year due nearly a contract increased partially September Revenue interest XXX% ended by to about higher product for in revenue due mix. the talk the the to fiscal in to This XXXX is increase X% our development expense. a average on securities. dividends our activities. decreased first in compensation was in in

of Our the our effective decrease reform to tax or to decrease the prior $X.XX compared in XX% $XXX,XXX partially million federal offset by for to XX% $X.XX act, net year. effect decreased quarter margin Net rate the tax or million for most the quarter. a to tax a one-time XX% the blended year. increase rate compared rate the new The of income deferred taxes our in year income the due the $X.XX effect with recent assets. to to $X.XX was enactment in was provision the quarter compared last After-tax of for per share last XX% on X% from increased tax diluted

The first of X% year months is decrease million. a securities due as marketable a revenue. was the portion months X% nine R&D the The nine $XX securities our in maturing increase used revenue contract increased of we prior in total fund dividends. to the period. XXXX, For decrease due to to fiscal compared income decreased to to for increase a months first nine in primarily XX% the Interest first

have increased noted securities. the purchased discussion in more on the interest recently our I rates As quarter, of

$XXX,XXX cash per year million was per to by $XX new last million on federal corporate the Fixed X% starting tax enacted changed deferred the income certain for decreased equipment. December the first $X.XX rate tax fiscal and rate $X or be share year. of first $XX.X tax XX% to federal for fiscal the more flow months the of primarily due calendar decrease of Reform purchases the to year full income assets. total nine-month in less purchases first months compared last a to asset expect the fixed $X.XX tax the to XX% X% asset partially rate XXXX. Operating We Net increased nine months for compared $X.XX $XXX,XXX efficient year Act in nine The fiscal rate in this Our fiscal were period, nine of to effect million year, increased million provisions. XXXX in share compared to Tax for production offset other than the year. or prior currently

quarter quarter XX% We year. quarter for haven't March fully current assessed first for on this we act year future impact XX fiscal the tax expect but of two for compared year, the approximately fiscal effective yet, to XX% to periods and the reported third of ending our the be the currently quarters just the XX% and and rate

with effective significantly hope foreign approximately X. That compete to the the help in decrease us fiscal rate and justify will year beginning competitors. expect tax innovate rates XX% to more us April lower our help We Strategically, grow, would new we investments. fairly

today In addition XX dividend XX. declared payable we to quarter, per another shareholders our to February $X the of dividend announced quarterly January of that of paid Board as the in past share record

to cover Now turn Dan? it business. over the to Dan

Dan Baker

the and robotics. Corporation. motor our it. of Target the YouTube battery for Things. R&D our efficient for to for introduced The highlights. of several current and I'll miniaturization sensor control for There's combines and playlist and electrical products, a expanding with especially cover product sensor motor cars Internet the the continued and factories Thanks safety. XXXX new We markets new AALXXX-XXE R&D @NV.com/videos current new on management new at are recently also accuracy YouTube our lines are and electric a product on There systems. new videos. be demonstrations YouTube/NVE vehicle controls website channel past focused quarter

addition made to new development. progress we sensor In the our smart product, on

demand more foundry. pervasive work reported In a and a of with coming lot we factories prototypes IC complex as culmination on first build it the smart markets sensing. our meet target and more to years ingenuity of for design for our sensor-rich the seeing and a improvements It's scientists working that cars. and systems the in engineers, hard contractors. the is past October quarter, requirements We're and semiconductor by are of wafers. the such design Forecasts the the sensors released On call, to function to IC we we of support

discussed awareness support is distribution semiconductor and partnership we reach markets larger As largest the now broader case companies world's brand and business we to products qualification the the the the sales of a quarter, need new In with before, we half grow. and strong one under product to tests. rigorous expanded a about dozen a which pass covers partnership, past had part needed Each products. providing

we Our marketing significant committed continue to Revenues still sales to growth a partnership but driver. modest, this strategic see as collaterals. partner are and resources

biosensors and we overall progress We're the with demonstrating technology contract continued work next-generation for goal began MMIC Integrated optimistic microfluidic efforts August. Agriculture Department live for R&D, full in Systems our electronics components the on Circuit isolators Command for and we'll we Naval manifolds the circulator prototypes, our research and schedule Sea past including to quarter, grant microwave on of the on level. made or cartridges. a monolithic pathogen Monolithic We for Turning main the in on at we contract from integrated U.S. the biosensor milestone quarter this circulators. In the integration we Microwave on our work a meet focusing circuit have microwave magnetic project nanoparticles, aptamers, good September ready and remain control and of Navy testing feasibility of of

telemetry. commercial applications proposed and on The Also, XG materials Forward of is an Joe cellular is conference such News link Papers there Wave on to paper website Dr. for and the Amplification is abstract link with timeline. military goal Twitter the Pump The a approximately Spin The the includes Spin from and the R&D Parametric and the timeline. about to principal Surface on the Volume co-authored Acoustic at on potential abstract In a our last diagram a a our magnetism a contract presented that our in was of of project our for our and addition paper of infrastructure magnetic investigator automotive technology Amplification to structure. applications, quarter. $XXX,XXX related to website Twitter section was project page as Waves March. of Wave titled abstract the There Davies, completion The their Presentations and In

as Spintronic Our and Layers research. That relates Angle such paper Power Spintronic rotation to highlighting another researchers Sensors. our use was Spintronic for that as for and type in advanced we of Memory exhibit, Free a or conference conference, Paramagnetic the Utilizing Spintronic Also, our Magnetoresistive Research used MRAM. this aesthetics also is the Tunneling presented sensors at Super also of Art paper Tunneling Tunneling there titled, Magnetism Ultralow sensors.

to like of selected also of links are artwork There our magnet to organic Dr. Chris that modeling and Olson's Our had conference on for which chaired note leadership. Olson sessions, image papers The of technical showing Twitter both our recognition Dr. timeline an the I'd technical was the and Toriah] spins. a mixing exhibit. was metal and a image Maria for spatial Dr. website Olsen and [Dr. their from

XXXX, look as milestones magnetic for on a key the as begin certified our diode, launched markets, which miniature to of spin for extended largest were and sensors our sensor, to a back the new our NVE. biosensor XXXX expand larger world's the world's us world's including Things, As semiconductor awarded as on We our angle and analog we Agriculture grant current reach new quality industrial and we the contract on one rotation build year a a XXXX reach partnership sensor, other Internet was sensors. sensitive automotive torque switch new rigorous help XXXX smallest a microwave plus of We management standard, new high-field products products markets. new for the distribution with of as contract will successfully system ISO completed angle successful well a met companies most We circulator. Department research and

like I'd the questions, open Sherry? call Now to for

Operator

from instructions] Cowen. [Operator comes Bernstein with you. Thank question Jeff Our first

Jeff Bernstein

Hi guys.

a of you femtomolar testing. sensitive Are kind on the guys of we're question about protein of for a concentration. that quick potential kind guess a at to level? down Just -- of markers like sort world I pathogen reading diagnostics

Dan Baker

that a do can volume technology to an for -- aptamer because is an molar are as long as more a find of looking point and America. typically you math used very or we find our and the can our term. applications haystack, terms have mall our looking you good know items on a of don't that. metaphor not of other measurements, at biological the the sensitive good in We needle before sensitivity antibody we're at only we've and a But adaptable in some other and reaction needle we elicit a size looking to but a chemical Well, technology a We'll afternoon, extremely that's that in we can know Jeff. measure but is have measurement of that's of

down technology the XXX one sensitive, extremely bacterium and to of forming So, volume one gets us the colony more. is that unit milliliters in basically

So, from that be can and we type looking would it's for extremely benefit sensitivity. that sensitive applications other of

Jeff Bernstein

update there? Got South guess any you. new then on distributor to on got -- And in going Korea. Anything a you

Dan Baker

to internet, continue States, in Korea United and and in catalog like on Korea. rely There we is in the in a Germany. don't other places we've some but where look in is Asia yet, that particularly added We nothing, quite are contact but here, and added where lot one announce Korea we've have to position a not territories going on same to models that in important. activity specialize have distribution, on South we More which adding distribution apply the and design distribution distribution face-to-face other is effective territories. investigations continue we In in at We're

Jeff Bernstein

then I nice flat. overall between guess development? in and and And was for sequentially you revenue product kind outlook had split revenue of revenue Any overall, some the product growth

Dan Baker

new term think a Curt then such and is as our bright. is We but large the that's automotive quarter growth let mentioned potential long in manufacturer. the mentioned semiconductor We device as very the in the we partnership improving but biosensors. we outlook, comment with sales specific impacted markets can that the also market medical and prepared I sales, Maybe were on the by outlook remarks mentioned past technologies

very to have add -- asking the you a do probably that? future, So about also look any like? to got but we've bright Curt, you're looking what numbers do color So,

Curt Reynders

there's Yeah, the to year. to yeah. to the We related uncertainties that. growth risks fourth this quarter Obviously, and hope return of quarter, fiscal year-over-year

Jeff Bernstein

Got you. you. Perfect. Thank

Dan Baker

Jeff. Thanks

Operator

the I'm no Speakers, further to instructions] [Operator questions showing I'll over you. you. the Thank back in turn queue. call

Dan Baker

fourth report to you. tentatively Thank earnings early participating We important you Thank discuss and speaking were to and fiscal Well. full quarter development with look in results in increased for milestones. We the pleased call. you sequential year to growth, May. forward again

Operator

today's for in conference. you. program. thank Ladies gentlemen, and does you Thank participating This conclude the

and disconnect wonderful all a day. may You have

NVE (NVEC) 17 Jan 182018 Q3 Earnings call transcript