NVEC - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the NVE Third Quarter Results Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to your speaker today, Daniel Baker, President and CEO. Please go ahead, sir.

Daniel Baker

you. Thank welcome XXXX. call and ended the our XX, December to afternoon for conference quarter Good

I’m by always, As joined Officer. Chief Financial Curt Reynders, our

replay I’ll comments, we'll to Curt being being present and a our This then live of will products nve.com. will the questions. and review A wins, quarter, website, opening is call through new be open my call After the financial available cover webcast recorded. and design

XX-Q our We documents past in issued SEC’s Form press and report our of are to Twitter website, our the the filed following Links quarterly close and through the website, hour, our timeline. on release market. available

risks Tax make obligation Federal the other as SEC, and results in relate from forward-looking in on in statements revenue, Company are March with related filings are and and we future plans, changes tariffs among and certain trade uncertainties uncertainties sales to that that others, the barriers, XX, risk such uncertainties, or year may XXXX risks to our including the may time our factors forward-looking no to XXXX. of annual listed performance for the as Reform risks undertakes Form events, including report financial factors impacts the to future statements related to Comments to ended related well update to time as enacted XX-K we The Act make. subject

cover the share net our examples. revenue for of Curt in We're then cover and expenses. increase and in two Curt? quarter, by results, pleased decrease will a financial products design to a report increase I'll a income driven new X% in X% new details

Curt Reynders

Thanks, Dan.

ended X%, the the total December quarter said, XX, quarter XXXX revenue compared increased XX, ended As XXXX. for to December Dan

semiconductor Semiconductor sales Semiconductor increase was due month, the year-to-year revenue. Industry contract Association. decreased device continued market. in R&D the our of in growth X% to sales available increase increase a most industry weakness was product the and in weakness to in market a medical recent despite The The and bit in X% a XX% according

offset included sensors. have new progress quarter, revenue due smart The in XXst. quarter completion. increase growth XX% Dan to Expenses net hope completion year, of activities development to March in few our to contract minutes. product sales in income from revenue The increase a the R&D prior year-over-year the quarter XX% to in in decrease by ongoing development sales product increase was partially We timing R&D, another will XX% a product certain future in decrease a of towards R&D of contract was due activities. expenses The and decreased discuss SG&A. ending this due of

to SG&A was staffing support changes. sales funds. rates decrease due average in third increased interest The quarter Interest the a due decreased and added X% for the securities more income in our on staff. market marketable to money We've primarily sales and

million dividend $X.XX past than total since paid more of On or million quarterly quarter. the dividends for to for this began strength expenses, to or increased XXXX. increased $X.XX revenue prior million in brought compared or $X net The we $X.XX the year per share, $X.XX and dividends to $X.XX the income quarter million share share per our diluted X% per $XXX quarter decreased

another payable February announced to we shareholders record XXth Xrd. Additionally, quarterly of dividend today, February

year. to $X.XX million for share due last per X% XX% income Net fiscal or in contract and product the share to of months nine decrease first year, or first a nine sales revenue in X% to the a $XX.X million, per decrease compared $XX.X total months $X.XX For decreased the X% fiscal decreased R&D.

as strong million decrease the due gain net market increased for $XX.X gain decrease first to year for Comprehensive X% to million for and The the nine fiscal cash than securities offset in period in year-to-date, was income. the $XX.X more income months the bond from marketable unrealized despite net income income. conditions. an the Comprehensive increased prior flow for

Cash marketable securities XXXX million million of from $XX.X XX, the was flow operations as increased plus $XX.X million. to Cash X% compared to December months first for nine $XX.X

the $XX.X million and flow last fiscal as securities paid. at gains covered year, the million cash marketable unrealized in dividends end and of operating nearly $XX.X

Now, I'll business. turn to cover Dan? the call over the to Dan

Daniel Baker

smart detection. had and design with very wider range is which a growth. cover month, I'll drive Curt. expanded future sensor will new Thanks, quarter good new magnetometer, product field we smart a automation products wins. which useful proximity development, industrial We our Last for line in

magnetoresistance first or September tunneling quarter, announced the switches. TMR magnetic we In our

low these duty conventional and called alkaline cycling. a power devices. switches duty or require technology not to This is duty need controls, sensors makes introduces which inherently power noise, zinc than do be lower speed, for for problem their hearing audio and off, motor reduces other what's parts achieve Our The semiconductor, on September semiconductors. and and To as introduced problem such quarter air cycling. and batteries cycling which we is run aids on X.X-volt the other in turned

magnetic ideal unique of such low we products. as power hearing aids over-the-counter YouTube switches to new rechargeable on speed X and smart for our website and and high combination past our X channel a these that showing volts, devices. on for devices introduced TMR run the video audio In quarter, the There's which is

of common. we thousands a which of medical sensors, large tens at quarter, devices. also MRI both uses high-field MRI to when power, operates enables magnetic imaging as in life more which medical MRI operate continue TMR TMR compared powered sensors our to little tolerance switches also and also machines, capability very industrial extends our high-field battery oersteds which which past to of MRI the traditional High-field security the become oersteds. This switch, the and used strength the technology In implants fields is operate important applications. in field to allows a medical announced exposed devices. tolerant of are of

Noise sensors Optimization affecting ever sensor the These website Junctions. our sensors in with higher Tunnel links in on on five more older a giant paper magnetism development accuracy. based conference merit paper uses timeline. TMR is magnetic reported GMR of is lower Twitter recently. or TMR are in at by and development. and precise in leaders our materials the power and our There structures quarter have abstract which than our junctions that products. our An deployed performance been Magnetic tunnel we smart of our to other We researchers research of our TMR and annual is presented than was discussed detectivity, titled some of called in the We magnetic magnetoresistance example past key of figure are products elements and a generally

to foundry, to we In tapeout. with a thousand dollars. called of smart significant several that’s is often recently addition integrated an met milestone our the hundred product release custom introductions, after R&D of a milestone sensor new This circuit design investment a development

make of our expensive, allow us to hard sensor most ingenuity The contractors. a work this custom and the but smart ICs engineers, will scientists ever. and by are represents our IC of accurate lot culmination

spacecraft deep ensure the qualify NASA parts the NASA but testing, moons. In did Europa environment. radiation lot. we as our quarter, testing, will Jupiter's We priority we production can chipped testing targeting successfully the qualifying Laboratory dose harsh to to of in complete did previous to Clipper high Testing quarter, rigorous environmental and ready to the the a a for to a couplers Propulsion because parts one is total past systems. including completed stress couplers the more the started testing have XXXX. of Jet do space in a the of NASA to had other our even as withstand by tests. mission number ionizing JPL, launch We products of contract is be spacecraft soon and for

life. past do the scientists published The look survey detailed believe the in Nature detected quarter the landing all missions. they for internal which necessary NASA has would Europa paper mission will elements sites future and of mean and a for In water, Europa Astronomy, for

more of of the but part is revenues, project it huge which applicable technology, was to a not $XXX,XXX Our and bit than markets. commercial validates Europa ruggedness our for

expand couplers internet have of in world. selling These communication versions constellations, begun to potential. the do we've satellite news decent internet over example, the similar way the have For been as revenue a for which all

sensors switches lower of protocol, and ultra-low we discussed battery systems, power medical the voltage couplers couplers high-speed look XXXX, minutes development, Internet FD on back use network of bus. only TMR high-field using Things working for sensor tunneling magnetoresistance smart XXXX start sensor, of magnetometer, starting smart with products smart day XXXX as we product the our the few a automotive industrial angle the lines a the new that two for and world's ago, productive magnetic year TMR other first we As new of CAN a powered the data new for devices including announcement

especially I'd We've two examples. been new like to to pleased response sensors. our with products, smart share the application our

without or a they write win our sensor magnetometers project selected The to they first with the for win May, the validation the was customer is smart customizations. on their circuit were good testing, past example evaluate for design so good and strategy. some board production sensor a quickly thousand in European of sophisticated we and very in the design several product able order firmware. and an having it design robotics them demonstrated manufacturer. quarter. shipped is We quickly first gave The product evaluation smart We a to proximity a to said smart the sensor kit, a it After sensor contingent of

sensor was able in just months. those of customizations the a our architecture, smart our few With around team turn flexibility to

of for this for XX first for order first was $XX,XXX, The orders customer. and hope project many we the and to this

this revenue, our addition improve improve us tools. In sensor the helped to customer from development and feedback

with Japan. dispenser the application an dispenser field detect system major batteries. optimizes The batteries, for spoilage. whether running batteries dispenses batteries past smart in as design on not in uses tested system merchandiser in supplier travel of smart so batteries wide power. been sensitivity and and this only of high the second our application are can of shown The Things distributors but advantages sensors sensor system The sensor the developed a The system a replenished. cooperation quarter. example of now to a use via the trade battery consumer in Internet at for show is powers, was inventory notifies our and since the uses This has low be smartphone, for The for case low our is one latitude

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

Operator

comes first our question from And Cowen. Jeff with instructions] Bernstein [Operator

Your is open. now line

Jeff Bernstein

Hey. Good guys. evening,

question the products product a you on quick wins you the the for for on these of design general a availability of a particular ever So, product? announce have couple you announcements. before customer Do

Daniel Baker

with products new develop input will often the customers. We from

what So, you maybe not

product, good a they'll meets their in and win. the the we're But customers is the if cases, classify many requested design as strictly developing it's that presumption it. expectations product use that that

So, standing would both into two call to closely customers we gave those our work sensors from smart and examples you start. But, at that what a with those try category. were fell that I

So, about data we go. those were customers who sheets data the we announced it, had to when and sheets, development final kits ready and learned product

environment development that very manufacturer the that was to the mentioned. So, important customer, I first robotics

Jeff Bernstein

Yes.

particularly said. I that the switches you TMR mentioned, interested So, was in X.X-volt magnetic you

there's about I know Phonak there a aids rechargeable a magnetic Do talked hearing be second battery I type battery. that the about TMR appropriate it, be now you would think was and a and sounded out And have to aid would then go talking discussion that. in hearing to about for that's like aids. And already? it hearing some a for you the wins appropriate switch wanting disposable

Daniel Baker

fair business don't of hearing talk in Speakers]. new We sector. aid generally Right. amount the have [Multiple We a about

fairly devices correctly products traditional you generally that But, specific So, the hearing interest hearing for we entering for our and guard translators battery about the pointed or things navigation aid normal sometimes personal manufacturers as like aids because devices closely. hearing market, in both by tend rechargeable or for folks, amplification talk customers out, sound, and don't systems. systems, companies the there's to hearing sometimes

are voltage amount batteries. ideal we there's know as fair for interest. been higher mentioned a rechargeable of So, And that you products the

in that win design space. We have a

And aids. a can lot rechargeable of And that's hearing the type to traditional on get sensor challenge up go We to X.X-volt single of to whom. also very as a run battery voltage much air because a But, haven't zinc interest in zinc volts. bit know, said a which different air battery. then quite a that's you still battery systems is not there's in X.X used

Jeff Bernstein

you. Got Yes.

regulation having potentially the have be allowing opportunity of amplification as as And in this assume higher a from obviously Okay. know paradigm if just I volume. disclosed -- are going about -- Phonak be cheaper about I magnitude much, get has set think it's where these to anything a aid cheaper, premium, past. then, much Minnesota. I that. product would And the curious changing. that's like time, hearing that in supposed you They well. the been Starkey devices, difficulty] then change for much price personal price you which do premium a customer the than is hearing different are $X,XXX And guess supposed you, they had anything aid, I into I was would same as the of low you a Is order can sort an say a in product be super segments? different? the or But, to hearing fancy to have And in talked but at that you class this [technical you've

Daniel Baker

Right.

a So, say, high to that's some and that that from as hearing we of for out broad products devices And Jeff. very is end a products. cost very are and have offerings. those types market some There you lower great lines span ranging product coming amazing point

have because require the to, is which on they're the pointed they fields that that with then, typically they thing different, those of single batteries, one different different the you've types that draw, all sensing rechargeable elements. different they on whether vary of so do, out, that the And sensitive the amount they're the application. outputs, are current products running they sensor cells we applications, X.X-volt, So, running voltages are are and for that

platform, flexibility we've developing been more of particularly or a trade either gives tunneling so, a products can that lot will, horsepower, we for if lot magnetoresistance or space, that using in voltage. lot which sensitivity a our us And and power more you

great it's and that of So, developing know, done working really markets. our with an And exciting products you job has in our in development those various team a that as fit time customers marketplace.

an that wrist. were from It's new pointed think, Jarvis out for article new where be said going I somebody ear the had like that the and had you to hearing the wearables. aids Ironman platform peripheral is

that So, lead we're think we to market. well-positioned

Jeff Bernstein

some that have sounds to are value be degree where it like to there capability pretty to some parameters there price some kinds to price ability So, the hit you have is that? significant to and of to

Daniel Baker

-- typically Yes, exactly.

costs targeted make that has [ph] much more we And and are higher performance less got have and then, a products make value. those. expensively if product, So typically, it more some price-sensitive that recognize are products can it we that to there at more we are de-featured that we

Jeff Bernstein

Got you.

wondered if I of talked products you're you robotics those any, that did you past what about about in smart update also in design kinds of of interface anything opportunities. rotation for automotive Can one then, those And automotive automotive and specifically? traction, Okay. on give automotive But, sensing, each kind you couplers an in us could talk and you’ve segments and just say having being the about a and if just talk you talked have about sensing, about robotics current -- win. making,

Daniel Baker

Right.

growth see to move And the So, automotive excellent autonomous towards and sophisticated cars increase market number in is we as of more driven for a an safety by sensors systems. projected rapidly, us. electric,

turn, information. rugged our lower knobs smaller, sensing. then conventional and electric electronics of used things So, and then And for which more dials as lot proximity in is cars, used which parts have we are that current, engine battery for is for be and precise, a rotation on power mentioned, than vehicles, sensors, transmit used motors well as to crank, side, the can more interfaces, you coupler management electric systems sensors user and sense cam that and as

through those label plan automotive channels. to market a we with that company our has So, strong private partnership products sales

of of We IATF, have of International automotive letter an conformance, letter the automotive Automotive conformance some to barriers which and task force the Task removes Force market.

we proximity manufacturers manufacturers rigorous have on sensors through automotive working and process sensors, We're get those and the have automotive that getting And and because getting into those qualification them current focusing on in particular, specific cars. products. qualified, interest from we're

term to or And we as can sensors think parts our term particular, one for fast It's in be the well that mentioned, systems. as of our of worth rapidly, possibly longer large medium -- is get smart a of pushing it's a the investment. for as We're very perhaps one sort management opportunity, it's growing get of market. qualified. years qualified. we sensing I that can us couple to that's battery a But, products Now, and current used

Jeff Bernstein

Great. then, the a volatile. think, be little And obviously, can you. Got PUF business bit I

there. You recovery saw some

how was it going visibility just of that quarter. last on wondering think forward? looking, have kind And that's you I what

Daniel Baker

I can answer Yes. that.

We little in we market devices. visibility those Obviously, bit right in expect that. quarter, we're longer term now. most very to of on demographics for have current stabilize quarter are the of a medical the The favorable types

-- the our And some of of be kind so struggles well we up anti-tamper weakness can but, in and have business the as some semiconductor as market, with had down.

Jeff Bernstein

do there quarters And next now anti-tamper couple that or is that -- is on the have basis? in that some sort of of you visibility quarter-by-quarter

Daniel Baker

That's a quarter. early that. And visibility basis. the lot don't of we're really pretty We quarter-by-quarter current forward in have on

Jeff Bernstein

suspended Got progress on are for are Good, the the okay. guys detection safety now? exosome And or food you. those you applications making any or sort then, of

Daniel Baker

a exciting invest to opportunities. continue of in. the that some particularly areas for still And And some we're area opportunities, specifics continue something Well, work report But, And longer those quarters. to don't biosensors, We view it's issues future -- we very cancer have we'll have we exciting report, hopefully, research of to on for food one in safety. detection. but more term as on but detection, them. working we any remaining is cancer the exosomes very specifics early to with

Jeff Bernstein

thanks. I'll Great, ask. somebody let great, else

Daniel Baker

Thanks, Jeff.

Operator

[Operator turn any Thank closing not you. this at further remarks. to I I'm Daniel to for Baker now the like call time. Instructions] any questions showing over back would

Daniel Baker

Joelle. speaking revenue And with Thank you you in the thank new results. and report year growth quarter. you. products to two fourth again thanks, forward We for Well, quarter past full May call. the in again We pleased were fiscal solid in discuss and earnings and to growth, early to look participating

Operator

Ladies you concludes today's Thank and conference call. this for gentlemen, participating.

may You disconnect. now

NVE (NVEC) 22 Jan 202020 Q3 Earnings call transcript