NVEC - Earnings call transcript Q4 2022

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Operator

Good afternoon and welcome to our conference call for the quarter and fiscal year ended March 31, 2022. I'm Sue Miller, Senior Accountant at NVE. This call is being webcast live and being recorded.

Our replay will be available through our website, nve.com. We issued our press release with Fourth Quarter and fiscal year results, and filed our annual report on Form 10-K in the past hour following the close of markets. President Daniel our CFO, and call, Schmitz. Joe today's and Baker, CEO, our On comments, cover Joe the opening Dan's After will fiscal quarter financial year. and for results open new Dan and business cover to and will then the we'll the call questions. products we muted All call the until will to open lines be questions. related financial among risks are may certain subject make events, risks to future others, are as performance to and future relate we or revenue, uncertainties and forward-looking to including such and to and factors stock Comments future plans, dividend uncertainties, uncertainties that results, sales statements that payments. related repurchases our SEC, Twitter chain vendors, to risks disruptions, including website, XX-K links our dependence in documents factors related supply as and our and well our time-to-time and risk first filed available the file pandemic, on are critical the this afternoon as listed the to suppliers with to we website, filings packaging SEC's timeline. from COVID-XX our no and differ could materially results undertake make. we Actual update information from provided forward-looking may statements we obligation the to

call turn President our CEO. and I'll Dan Baker, over Now, to the

Daniel A. Baker

people? XX% Sue. What's $X.XX with this diluted to fourth income by a for in increase. Thank going the quarter report We're pleased driven per share, revenue XX% on of increase a to net

disruptions. increased will fiscal full increase. chain year, despite cover to the revenue For share the Joe. net XX% Joe by was per supply continuing XX% income details. driven $X The growth strong

Joseph R. Schmitz

quarter most XX% before. X.X the you. $X.XX recent the increased Total for revenue Thank prior in to million,

Operator

hearing. I'm not

Joseph R. Schmitz

many us. competitors longer All incentive, opportunities We've path new both our rev, presenting. opportunities have isn't because threats. several than seen shortages times Potentially and sales lead And quarter. of

the portion most by the XX XX times invested production and expanded one from impacted capacity. above. to been space. April progress addressed by or of On We distributors, monthly in XX We've the and XX by to work weeks our We've of to time competitors weeks update That's equipment, pandemic. strategies than above our quoting parts the for annual increasing or XX longer production production week additional XX one to our for test posed our as according the lead and we from before report. hand, semiconductor is market But have in other inventory. lead parts traditional threats shortages the

the significantly our quarter by Interest in in Due recent prior decrease the of expense. due the a average the rates year SG&A offset than income the X% and due quarter securities, alternate fiscal in We response and securities. have on a including and decrease to for on from to 'XX Gross those for staffing to for foundry invested that semiconductors chemicals, foundry wafers. our for period. to and X% year. most prior quarter year, have the the quarter Decrease wafers, the a packaging to in prior believe available SG&A the was year. when less of supply compared year. R&D increased in and decreased costs, Like COVID-XX in tooling the was the XX% the was end increase in tooling invested decreased in past partially vendors, the materials, most in expenses, changes. to We believe fiscal the the industry, we packaging pandemic on customer last however, chain, many increased quarter in and significantly the margin impact of year. [Indiscernible] companies costs continued XX% We demand our Expenses in in labor. just significantly more was In impact past recent compared in increased we X% sale fourth for the pandemic prices costs, discounting interest onshore XX% year decrease

quarter year fourth $X.XX increased share $X.XX million the the XX% to XX% or per prior to compared for per of a for million quarter. income $X.XX diluted fiscal 'XX share or As

sales year, share contract the increased increased fiscal $X for fiscal and total Product in from the R&D $XX.X $XX.X from XX% from XX% period XX% XXXX. revenue diluted $X an For income increased revenue prior increased per $XX.X XX%. share, to Net $XX and year million to for the year. million prior or increase million year or the million per

we XX%, our the Our fiscal Equipment investment to and lead strong. building in Capital and repurposed were new increase production of and $XXX in a $X.XX efforts handlers procurement room in was year, started stock. to to XX%, test fiscal out was XXXX. for alleviate a quarter, good XX%, as XX%. -tax test margin considerably that Gross of times stretched quarter advantage profiting deployment took more. be bottlenecks. margin new equipment. total year and operating for make the continue capacity opportunities a a purchase believe expenditures to We this shareholders. potential $XXX payment $X repurchased net buying With most We of thousand to metrics dividend recently stock thousand margin pre million of Also, our returned chance margin the we was our since of was result the a million equipment of as or the part year-ago we the

per $X board of XXth. shareholders announced May In our is record as today quarterly that another XX quarters $X to declared the share we to payable share of per past dividend May dividend, addition of

Dan business, marketing. Now to to I'll and the call products, turn cover back the

Daniel A. Baker

what which is Joe. Thanks, conditions supply commerce according is department, very remain to the fragile, Business challenging chain certainly seeing. we're semiconductor the

just sensors. demonstrating Capping conference electronics, proud the helped parts. keep, distributors, past extension important our in two and one markets in Edge and global target has than motion, our plus also doing into our not products to shows in lead conferences end technologies. all season of It's opportunities and power agreement through from overcome a new The them years. The have the world's the the is our energy of took to demonstration doing sensor extension to opportunities of to hardships, attention immediate some be effective inspirational. The by cost and our precision, website. is will we're converge of filed can our offset demonstrating our K.K.Rocky, significant San that of to us do but the Joe get a chain Pacesetter sensor embedded amendment most the and products as of with sensors best. and testing, wish best shortages robustness, quarter, world's shortages. Expo help continue trade advantage performance for it business month, FedEx subsidiary. with via to XXXX, have computing to [Indiscernible] of And world's filed the implantable the available SEC's can't distributor build threats, show could trade and inspire In technology measurement of Ukrainian reliable technology. several to have exhibition show last Kyiv we summer invasion X-K It booth recognize latest by In-person and new to supplier as Components, traditional has us at Some Abbott's our increases and time some in supplier executed two damn, of musical our them referenced with supply including supply and instrument represented month semiconductors. The renewable based Micro medical business off a back on leading perspective, excellent is by and can Form our Japanese at schedule semiconductor shows over said. XXXX. we're Abbott. form deliver Abbott supplier And even we exit XX-K. We'll and major exhibit as the keep to to June we'll which Europe several sensing our We medium-term last but because for since aftermath is increases. business returning, for traditional in a the as report been quality. was are both We times a which well customer, runs leading they've we are as Japan's represent next Jose and links showcases website sensors semiconductor incorporated tests, later Germany disposes at trade we our than its robots plus price The built us. insiders on one of XXXX product shows sites. we partnering an social from leading Tokyo, distributors winning on our for just Customers energy the in attracting Will said shows can't be XX We're by even despite NVE included There current the management. and latest this information Demonstrating largest pipe month. in musical PCIM claims test YouTube, more principal reach images exhibited Sensor Twitter, the based website, us intelligent imagine. videos is like early on in represented products. PCIM the demanding media devices. The financial pitch to show. or sensors. demonstrating I'd demonstrations live for using simplicity shorter and mechatronic includes Linkedin boat the the first is be a is and which tradeshow smart

Europa quarter Another started that example reliability spacecraft. the the is in the parts We NASA selection mission. our of of notified for were the has past our integrating extraordinary Clipper

provided they our used have NVE, that XXXX X being develop NASA required NASA to products to in NASA the spintronic reminded Level and a us mission. XXXX contacts Meaning for help of Europa are they now for of applications one The most grants completion us of One conduct demanding is is. successful moon for starting are research and conditions the which to Jupiter's at Europa, objectives, whether arrive investigate reconnaissance could XXXX. targeted in will for life. missions mission launch of The October it is suitable there

past more adaptive we XXXX sensitivity, new It central We of for of sensor a The sensitivity high sensor for common TMR that Monica currents The interfaces than tight was for of new a year can lower is current ubiquitous connected high ACTXXX represent a Smart have Technology in shortages control current motor can a call. version strategy Tunneling products, team Magnetometer. for robotics part launches sensors. on our discussed spaces of and control website tenth new because a to products in more and call. Smart Despite allows the last Magnetometers magnetic worldwide his operate our sizes. electric fields the our There's network sensitive is Internet controlling products a Then sensitivity the many fits by new these Smart demonstrated an used video challenges and of President and sensors on element Vice sensing. Advanced YouTube of measurement a more on voltages. sensors he and new measure fiscal sensor, we allowing A discussed these motors. also quarter. motors of and and precise posed on new our position on are for lower mechatronic more more around it's January to be factories ever YouTube our And efficiently, allow Pete which sensors used current of high enabled Magnetoresistance plans consumption. and demonstration for schedule. channel. development. motors Magnetometers channel. can XX% electricity to introduced Turning lead inch and or advanced effective most The current that two our measure long a our efficient Current types product Things Eames, be productive and player be square. Smart smart precise position times, the less more they website semiconductor senors, or easily Magnetometer smart product with

in I the introduced the In products year. to other we to new past discussed, several sensors addition just new

sensor in as thousands a devices that the the and control sensors TMR robotics. most more for well for resolutions And power degree medical forever, two motor hearables. Ultra-low power with and Our as parts world's magnetic magnetic transmit data. sensitive Gear, first ultra of switches precise

our And and business highlights agreement to past increase Abbott. extended trade significant to stock. We building environment. a was pleasant space, finally, include; work our Board of working as cost we our make production home covered resumed in-person allowance view We future employees. to as Jim Schmitz more fortunate which diversify welcome dedicated more option. up sales. We the of new of lease chain. our made Joe part an a repurchase investments to with addition extremely the maintained and and We're our our products, Breakey XXXX have CFO. from supply dividend as shows, supplier with capacity of aggressive of spruce some for In things, to build-out an isn't renewal. efficient we our We And we year We by partnering mostly improvements Directors. The so completed a facilitates, an investment and

employees work supply industry personal through Our chain pandemic, the have and problems. of the challenges shortages,

a Minnesota, bright to We're in meeting first planning celebrate barbecue a our at to them in we here thanking welcome tomorrow So two I and years. in-person person foundation look than future. employee the spring to for in forward built more

Instructions] Are any questions? I'd open [Operator the there Now to questions. for call like

Jeffrey Bernstein

from Hey, Dan, Jeff it's Bernstein Cowen.

Daniel A. Baker

Jeff. Hi,

Jeffrey Bernstein

you? are How

Daniel A. Baker

are How you? Good.

Jeffrey Bernstein

I'm Well. I'm good.

talked high We've about kind had that you an to sizable are stand. kind about there? systems, of getting including have where of things. potential update low-voltage increasing I isolators applications just EVs, bunch electrification on of penetrate. traction We've with a questions. the for And markets of some kinds of What voltage you all guys to and but you So hybrid talked like get

Daniel A. Baker

that as grids So we we've in working being in on our types supplies. that some that more got are and isolators as new that we introduced particularly power to mentioned getting and isolators a for transmit our part remarks, year. used lot in in year well We've traction, of smart convert prepared for are some Those data. quarter in additional we're power the hope coming got the that introduce we've past I the the --

market new grids. for power a up are right new. now, the control, segments smart for opening it's relatively us So parts And

having the modest, see as that contribution but revenue growth is potential. we So excellent

Jeffrey Bernstein

the for very like that? micro talked sounds a penetrate potential then And of background you give huge milli kind low actually it's you how And on replacing in voltage in systems. great. for we quarter, about resistors That's the ohm and sensing might applications current Can market. that? that any and

Daniel A. Baker

Yes.

resistance, they are great for general that lower waste in a question. the energy order have resistors milliohm Sub resistance, the the sensing for which measure and But the that's they current used So means still lower audience losses. energy. to

the measure sensing current wasting is the devices to consuming of other more motors of idea counterproductive. whole make and and is, course, current the current So to the efficient power

see self avoid resistors we losses a much inherently are easier problems and have great this We to opportunity. So resistance, and current they with they they have make sensing you isolated. non-contact as noise heating sensors the which of use, variation, are elements, those that temperature no in

the put into up you voltage. hooked hooked a resistor line line If it's voltage and socket it's up to still

it safely it and sub to control And milliohm the about. up store And computer you safe things a So sensor, so that to up fact, a on in video YouTube and the talked output of showing computers you hook be can't like the dangerous. I voltage perfectly dangerous hook do with up would on and one line in resistors. hook system that of sensors, then other a on can't we've isolate that can side got tester with everything to signal or that got voltage that that the new We'll demonstrated side. from that on it that device you actually we input our hardware the but the is line we

If we excellent is an we opportunity. If unsafe advantages, the voltages you output them, it have market see on put on significant safe. as

Jeffrey Bernstein

of of magnitude, that market. the Any size idea, order

Daniel A. Baker

energy sensing be of this implemented. fast and higher see growing more are say. is large quote being reliability. market. able mandated, kick any hard appliances more a as to as That's have numbers very we very are subset to a and think market a current and efficiency we electrical in, motors that standards sensing more market, mandates efficient being with is and Current I we'd don't Yeah. But that

the great unique conventional that's you our alternatives with and opportunity. it's as this conventional some have -- market So we we a resistors, companies alternatives deal of technologies And research a -- matched proposition be technologies. that benefit sub-milliohm of are your seeing from on think with a other can't as tell got such potential, could technology,

Jeffrey Bernstein

about talk drivers That's continue little MOSFETs. traction. great. Can and to carbide get seems for bit you MOSFETs a and GaN silicon That to market grow more

Daniel A. Baker

with used That's MOSFETs, are. do to the those lot losses challenge another drive And can the than for it of important the efficiently motor either is A switch the types there therefore conventional of isolators driver, market drive can more and for those or directly to And faster those are possible. as another and MOSFETs quickly switch faster alternatives lower them, us. our The as MOSFETs. you control.

the They're link systems MOSFETs provide themselves efficient onboard we charging power. for systems, high control they're control we a also can those used So motors. of And system that bridge of control controlling in types the electric a or enable more chargers, battery vehicles. between between the the for are and the actually used the

As calls, voltage that is data that type of to we also to talked couplers a than those about use on next-generation. are platform otherwise isolators, with in provide faster drive MOSFETs continuing -- on be our one essential BeFAST that which would of distributors is previous cooperation MOSFET they couplers our electrical possible and platform, our isolation, control. while high for called uses we on

in that conversion. of things, So more power the yield to the -- another Internet market efficiency industrial and as we excellent things see Internet of

Jeffrey Bernstein

And design? the sister extent disaster referring that and charger were you onboard

Daniel A. Baker

Exactly.

BeFAST. name So for is they're trade that

Jeffrey Bernstein

you. Got

issue aids. drawn on regulations laws the out, there counter being law want or and see the hearing happens to what that regardless delayed how coming with you so hearing become hearables they to put out catalyst sure has important this that FDA out you for puts market? know regulations or ever make think is here Do hearing over I a that's of existing the growth the about the follows now we an then aid And that aid out Okay. over-the-counter these and do

Daniel A. Baker

Yes.

it's As and working will we're We're broader a aids market. billion become hearing for make predict customers to to you we been but point the be our have seems to components be it by the over-the-counter at approved, devices, difficult been prepared with in that also to XXXX, we've are formally That's inevitable. will when that sure $XX then so-called audio the quickly. well-suited hearables. estimated growing looking that And over-the-counter market year very out, market

So the aids. hearing broader of the market regulation regardless of FDA over-the-counter that's hearables, of ongoing

So that market. for are the the lot we've hearables broader to a hearing developed applicable aids of things over-the-counter also

in may you As that batteries, that are generally are sensors begun traditional used used are batteries rather with recall, wearables compatible than hearing the rechargeable offerings aids. in disposable often we've consumer which

So feedback. in new consumer in we that have are design wearables positive space, the for the parts ear. received that wins have very that's our And

it will We're that we're think market. we well-positioned market, excellent closely but the do, see the we with broader as watching for what hearing an the over-the-counter So market. FDA whatever aid happens

Joseph R. Schmitz

[Indiscernible]?

Jeffrey Bernstein

and earlier. a ask going to rebounded. wanted looks higher like XXX the there What's quarter a quarters been had for It sub which had R&D, couple been thousand on about exactly. of I it's

Joseph R. Schmitz

future supplies This chemicals related to and spending and is you ramp for up business. current and this quarter of saw Joe,

a we activity why a at going we're setting our think R&D think target have the in I reflection on team. I of it, So not it's

Jeffrey Bernstein

kind quarter. Okay. what's tax the just rate about normalized talk tax here? XX% the you've only And this then was rate of Schmitz

Joseph R. Schmitz

the rates bit. think a I tax is down little Yeah,

of sales. breaks to impact foreign for our get think that's tax I some to

of bit source a I little that business foreign in change the mixing of foreign seen than was bit driver, a some our we've little biggest income prior more -- probably in a had income think quarters. we

Jeffrey Bernstein

questions. very much for some Thanks somebody I'll let time, Great. guys. Okay. the to else ask

Daniel A. Baker

Jeff. questions? please. Go Yes. other Thanks, Are there ahead, any

Thomas Cochran

Lake Tom Road Cochran of Partners.

Daniel A. Baker

Tom. Hey

Thomas Cochran

report. good congratulations And a Hey. on

Daniel A. Baker

pleased. We were very

Thomas Cochran

I think. should Yes,

have penetrate to were so you year, how that hoping a if automotive the times is mentioned Over market, couple Dan, past the of you doing?

Daniel A. Baker

automotive market, headway, making good hybrid vehicles. in been particularly have electric particularly We the in some

where system So we design. part are I mentioned of a the reference onboard charging

be system high-voltage in voltage charger, that hybrid converting So the that if has charging, can the be used to charge meaning converted electricity, low a outlet to from it's plug or battery. low-voltage you to electric and onboard vehicle

And drivers we so the that silicon drivers, talked the GaN that about. MOSFETs MOSFETs gets advanced into and carbide

technology in several So being that's a area for automotive or is position rotational our one sensor sensing. applicant. investigated

we Finally, have our data transmit between those information some modules to in couplers in activity used and are a areas. car,

in hook isolated. voltages to challenge, the particularly several And you needs kind course is controller, volts. voltage of up directly the hundred that So of that can vehicles, be electric can't hybrid the data to be

important data electric systems without isolators the connection, which in is direct a of hybrid such Our electrical allow transmission high-voltage as vehicles.

a is near-term of a, see autonomous market, the and we some we particularly vehicles, So for hybrid with are going not but there and see activities there, promising electric that as real rise and sensors opportunities on there couplers. vehicles excellent

Thomas Cochran

Dan. you, Thank

Daniel A. Baker

you, Tom. Thank

forward all first in there to and of increase if you XXXX. you the The Thank in to for questions? may all any XX% by product fiscal other in disconnect. a sales. XX% increase July. year quarter up the with report look you Well, for speaking are not, for results driven the fiscal So, were and earnings participating we We wrap in discuss I'll again call pleased

NVE (NVEC) 5 May 222022 Q4 Earnings call transcript