NVEC - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the NVE Conference Call on Third Quarter Results. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference maybe recorded. now for hand today, would to conference I speaker your Daniel Instructions] like the to over [Operator Baker.

You may begin.

Daniel Baker

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

may report undertake time fiscal for filed we business to questions. forward-looking that quarterly review in make provided being and I’ll Reynders, are with following Form filed the related As information I’m risks March Financial performance ended year to such pandemic, and then release and call future XX, differ present being no payments, and make. and are available through risks will repurchases risks or joined the the will We Form future on A report certain line. the Curt to our the to through and cover as factors materially among time issued financial obligation to uncertainties uncertainties, update our XXXX relate nve.com. financial results results stock for webcast subject Twitter website, are hour always, documents including, time as opening just from could our future our uncertainties and our well comments, filings and to XX-Q our updated related others, events, live sales dividend revenue, factors the XX-K Comments the press to SEC, and the Curt annual statements XX-Q. including COVID-XX of website, as risk related to forward-looking we that statements listed by Form from open SEC’s as Officer. and call we past in Actual Links our on on quarterly Chief This website the replay the report may market. plans, the be available quarter recorded. is we’ll After close of our a in our my

on are in effects report We $X.XX business increase net a our driven X% reported years We’re pleased by a to COVID-XX as quarter in our the product best subsiding. sales. income to share per increase two pandemic of the in X%

cover of financials. Curt? Now our Curt details the will

Curt Reynders

revenue third million diluted decrease the on rates income last or in quarter X%, and changes. those third Net due impact in in was decreased effects and developments. some sequentially quarter The certain contract in million year. appear quarter due revenue per due although X% second be securities X% increased expense the due increase the decrease to fiscal income Total X% funds. increased XX, third our SG&A decrease product income revenue. XX% of last The from R&D due COVID-XX Dan. sales pandemic, prior offset compared a quarter securities a share, average was was the R&D to was in for XX% XX%. to the of to a decrease decreased X% staffing the decrease ended $X.XX market to to for in Expenses those The interest for SG&A. new The money the completion to December for continued in compared in Thanks, Interest prior $X.XX or in $X.XX year, a completion and funds decrease marketable XXXX product due by the increase the was quarter to immediately decrease the to decrease and the despite $X.XX year XXXX, in contract product the increased sales, partially to quarter subsiding. a net of R&D compared of a R&D XX% in and Total contracts.

paid of We of as February per net and per was quarterly by in that profitable the Xst. more record a another XX% Board margin record to dividend margin mix gross XX%. announced declared of today revenue share and our $X past quarter $X record payable we driven a share was dividend a shareholders XXth Our a February

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

months, strong, our in those shareholders, returns For we cash and with as sheet of Even marketable paid of $XX.X $XX.X million the plus of nine million remains with balance stock. our December to dividends repurchased securities $XX,XXX XXst.

the the Now business. cover to Dan? back turn call to Dan I’ll

Daniel Baker

Curt. I’ll and review new products. quarter, to and In we on past the XXXX. the work coupler Thanks, business continue cover sensors

existing We also improving worked on continuously our products.

such industry. couplers For Spintronic introduced Mode called ago, best the for those specification important charging. efficiency of our parts example, hybrid ILXXX Transient line power specification Common in or flagship CMTI. control, motor key vehicles control In but is the electric improved quarter, CMTI past as XX the applications the improving was Series Immunity we in more for it’s still battery an the than years and

for the stations. We’re and onboard vehicle, circuitry target with German upgraded our distributor electric working the to charging charging parts

challenging XXXX December, long-term some had to demanding with subsidiary. Abbott, the groundwork our negotiate the future. was agreement In partnering products was extension time available supply that amendment. we for SEC with a The us The end is filed accomplishments lay month customers, would agreement our we gives to expired the end some the definitive most important XXXX supplier a a of but including May. material of via world’s the extension four is at of Abbott’s year, extended which Pacesetter proud We’re to website. and have

for for more in XXXX, into $XX lease leading best-in-class addition returning Sonova, Common was and year extended supplier Mode high and magnetic control, productive It been previewed mode five as and sensors by ULTRAPRECISE of than new magnetoresistance new and for will tolerant areas, called and enhance for shape DC tunneling our or field the extended to versatile -- factory it’s industry calendar data with new says robotics care couplers we We medical R&D the which shareholder In decadal introduction value converters the launch as R&D, shareholders smallest motor into in we family years. a cars, to The agreement several our smart for also Transient sensors motion supply switches the In a Immunity to world’s extension, conductivity. power, DC devices. quarter, of hearing automation, year industrial the in to data of of plan, it past energy technology. future identifies Abbott the transmit of in and efficient Smart sensors XXXX sensors have million with semiconductor MRI building more networks association including repurchases so thrusts XXXX. one stock dividends our year. the chip past the well XX

The Two San and the Sensor Test sensors, sensing. Internet us With event North + sensor and the in first America’s Jose as to new for the event past smart the largest forward those Sensors build Germany, number big in billed EXPO to of industry’s for five which Things. -- as sensors, of have shows largest connectivity dedicated in to looking year, a systems, areas and is trade possibility connectivity June, is we’re scheduled products in XXXX. shows been trade of of dedicated

the I’d Now questions. Towanda? like to for call open

Operator

of Thank question from [Operator with line comes first you. Cowen. Our Instructions] the Jeff Bernstein

Your line is open.

Jeff Bernstein

Congratulations. It’s a guys. Hey great quarter.

up and guided I a not to robust little be less originally think revenue year-to-year. you for had

of So what I’m curious us couple if sort push you quarters through can pull-ins, happened last the cancellations, of here? with maybe walk sort through outs

Curt Reynders

take Yeah. I that Jeff. can

As lot our be Revenue elective quarter appears of the market although be the hearing, I orders what pandemic devices on is in uncertainty. been expect fiscal we’ve the still on improving. we The last for to a -- prepared currently the to forecasts, and of mentioned effects The slightly medical year. less remarks, worldwide in appears revenue current there��s strong. than outlook be us to electric subsiding, the semiconductor based

quarter, quarter. in to quarter most some that in We the into see third have are orders of did being orders a pulled were recent lot that pulled our starting we

expected we quarter. the we a So off in up better originally ended little than bit earlier

Jeff Bernstein

Got for you. sudden factories various or stop/start of of the pieces having this supply week operations backed there’s of parts obviously, about and a auto to hearing kind suspend chain kind we’re been getting And two and then, waiting for up.

tabs kind double out going you what’s getting understand ordering of thing? a sort and on do that kind how if now out like been In of in terms of the trying drained channel are that to has there people channel could inventory up. of there bulk guys of But kind be you’re heated and situation probably with keep that into or or the on back seems

Daniel Baker

experienced Yeah. But answer some shortages, haven’t can and This as some raw color is for Dan. services. I Maybe lengthened any significant Curt that. lead but can well. materials material add times have we

see we our buy talked that such as threat incorporate are the into raw raw that carried shortages opportunity. guard building as and as before, both a foundry wafers, inventories of an we We’ve we’re products about addressing material. products threat inventories, contingencies always end critical against of and ample and semiconductor we So to which by materials, as

well those shortages. positioned weather to we’re of So sorts

is we’re are the don’t traditional that opportunity, any from we also can facing shortage from shortages -- does suppliers not perhaps customers then industry who lean as And our the automotive as inventories by We’re which our help keep we means. competitors. addressing or --

our it So shortages. any making contingency suppliers up kind are monitoring, to our contact inventories we an in and as adequate folks for pick close have opportunity share and critical constantly sure that we see are of or

Jeff Bernstein

compatibility So, be actually or there design for -- these can somebody new board there’s of it in able a pin take where to shortages somebody where who parts parts else some Dan, on accommodate parts? for does to your is fill you some

Daniel Baker

our replacements, In to design optical coupler many have outs. use the example, couplers, drop in Jeff. We pin we old our cases, for isolators,

also some older use the packages. we So of

PDIPs called are or what Inline Packages. So Dual

use minimum circuit couplers, of with of might redesign. boards want And to So if our they parts. customers of some might of to take our advantage some traditional a they optical are products, change semiconductor products they or need can such cases, their to in as short

been semiconductors migrate are the that’s have parts, traditional customers technology our make semiconductor always our that too. it’s for parts try We designed We that have our and exotic our -- to to so customers parts make want our the we But replace to and legacy smallest products, you know, we easy that for But easy as parts change best-in-class from in industry. they’re philosophy. performance. to our sure to that to also have

Jeff Bernstein

actually parts. right in automotive to are hand living front now be may in mouth this who get an of guys some opportunity So to

Daniel Baker

Exactly.

Jeff Bernstein

Yeah.

give you any Can was in kind quarter? view book-to-bill of great. the That’s what Okay. us on the

Daniel Baker

more that’s orders But for metric We a mentioned, that we pulled commodity were semiconductor Curt useful had suppliers. precisely, don’t some track that because it’s as in.

orders had we were course, We for So Otherwise, revenue. to wouldn’t that able fulfill were have them. unexpected. counted they of

think, and paid having against So off. has having inventories contingencies, hedges I

Jeff Bernstein

Got you.

Great. downloadable this with new SnapEDA cetera. obviously, selling you’re and Okay. era? had And Anything change with you’ve and then, changed et things done worked redid files, to the of how some your pandemic that’s the way are website, you’ve you that because in on you else EDA progressing

Daniel Baker

more we’re Well, lot a like of Skype and course, Right. Zoom most calls, folks. doing

Our the same label partners doing are private thing. also distributors and

So our talking we’re and talking them customers. to to

opportunity products. our or train their of new mostly the offices. on at our in to using some distributors home We’re They’re

onboard partnership, An to the remarks German that an example traveling. that opportunity to the electric -- interface an working mentioned have our get together, in it in I AC electric an we them in charging distributor hybrid briefly this a we distributor vehicle, in to on OBC, prepared voltage reference car. the they’re have the don’t platform a of is is charger that’s a So for the when charging to -- electronics vehicle line design case, batteries

Things. great opportunity finding markets to automotive And the such are has that smaller in the address to Internet facilitate. into we’ve industrial as opportunities helped a distributor that our other that’s with we’re new that our so and and of past, targeted distributors get And there markets

Jeff Bernstein

some Thanks. great. questions. else Thanks. somebody let I’ll That’s ask

Daniel Baker

Jeff. Thanks,

Operator

the have do follow We Thank further you. question up showing [Operator Bernstein. questions Instructions] queue. in I’m no from a Jeff

Jeff Bernstein

that been Dan, next economic a right. that’s can your visibility in business, on talk unpredictable a quarters? macro so you little -- terms of what’s about All bit But little what impacts. the few the PUF

Daniel Baker

Right.

to which a So embodied a that’s PUFs Functions, but is Physical hard in to Unclonable structure replicate. function are physical easy and that’s evaluate predict

systems So they’re component or sensitive important anti-tamper Spintronic an electronics, for are anti-tamper military systems and to of data primarily designed systems. our protect

the of some that quarter not in, intermittent part be -- But Curt’s contributor in and lumpy a got fairly I It tend it business was to to as those may an outlook recent tempered So as we quarter. and quite see of that builds can continue our also huge businesses that think be strong not to current that be a business orders, what’s pulled that significant important remains it they but most It’s fairly a revenue. to for the is contributing but and strong year-over-year, intellectual property. it’s business.

Jeff, As commercial in can you products. we that use know,

is So we time important a see a for have business it. We’ve suited a well and it it’s good for extremely and been as it our where reputation. strategically technology we long in

intellectual MRAM or and valuable where that use So is we for we area continue a memory to and and and significant continue sell to space Spintronic memory, MRAM security, we property that’s effort devote there. cryptokeys for believe. Related into we the develop

general business and some mostly the because so technology or this of expense develop can it’s allows anti-tamper large that And customer technology a it’s having where business accrue and benefits business, to without category expense. this R&D we funded, us

Jeff Bernstein

was MRAM big the now for the applications is solar that that recently, there winds at and obviously the that there for the all? outlook Does business cryptokeys and changing for are commercial is -- issue security,

Daniel Baker

including do that continues the goes mentioned, issue commercial We secure high-speed streams. data much communication and so that Yeah. to of communications to an and applications, all that see for electronically. be for as And security consumer you there’s electronics potential encryption

this reasons important applications do though even business we now. one huge revenue and it’s not it’s term, So we a area longer commercial the consider why right driver but of see that’s

Jeff Bernstein

type new then And one the and can hearing hearing have rules of the market, you hopefully, developing? or a have to the anything I of bit but has obviously, on wins just about to et Okay. they’re talk how year, delayed, the next-gen that’s cetera. aid, guess, work report by FDA I in in OTC the going any guess of market, little you aid a when else been end But terms

Daniel Baker

see continue market. to we Well, it important an as

has in formally the half could FDA XXXX. it the hearing that out, -- but approved aids, be the pointed not you called first in As yet of over-the-counter so appears still

your $XXX compounded a that’s rate estimated XXXX, excellent audio called an so normal and be would market -- a but peripheral. by that’s That’s So XX%. to people in devices, become a for hearables, market with then also of nearly billion hearing, growth which with as annual

it’s excellent an So market.

have batteries As sensors the early-stage are aids. are hearing in some are you out, we wins used design rather traditional We that wearables that consumer disposable in space. that used point began that offering compatible than batteries rechargeable in with generally often

hearing -- have both the the we an hopefully going It’s aid and we’re to products. accelerate market. continue will hearables market market, development will our that the So excellent over-the-counter the market acts. and And FDA once

Jeff Bernstein

much. That’s great. very Thanks

Daniel Baker

Jeff. Thanks,

Operator

Thank queue. you. [Operator Instructions] the questions I’m showing in no further

Daniel Baker

of despite and participating no results. to are best there the everyone you if thank in questions, years speaking fourth call. our May Well, full challenges look two forward in to safe in discuss with pleased again were year pandemic. other early the and quarter fiscal you to quarter the we Stay report for We

Operator

and call. Ladies this concludes you participation. gentlemen, Thank your today’s for conference

You may disconnect. now

NVE (NVEC) 21 Jan 212021 Q3 Earnings call transcript