- Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the NVE Conference Call on Second 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 is being recorded. I would now like to hand the conference over to your speaker, President and CEO, Mr. Baker. Dan ahead. go Please

Dan Baker

our through may Joe welcome factors XX, our on time-to-time conference being XXXX. uncertainties COVID-XX future undertake quarterly and cover We record recorded. be press revenue XX, then that press to XX% are forward-looking will close repurchases risk-related Joe future to in open hour review from or pandemic including related earnings After and report filed relate uncertainties financial and my Revenue and are and and to by differ risks results for cover And year details. release our with materially XX-K XX% filings SEC's and the quarter statements increase. others certain webcast in driven the update the provided, quarterly quarter forward-looking for the sales from then the supply ended Joe? the per issued we'll the events, business critical well a to call I'm far. timeline. stock with website, will including CFO, listed as the being our available and our and will release or opening related net a results replay highest questions. as website, the present report make September make. share, our This and ended Joe results A website plans, joined we to for afternoon, performance and Schmitz. ever nve.com. the our by through $X.XX call packaging our of chain annual products, were Form $X.XX shattering following income disruptions, to to available are by the the XX-Q to financial diluted increased on million factors Links future live uncertainties, Twitter risks SEC, quarter, our subject I'll Good We're dependence call to that XX-Q market. our to obligation Form comments, past may as and is new a Comments March payments, the vendors pleased and among we fiscal revenue, XXXX. Actual report statements no dividend information could on such the and and suppliers the we

Joe Schmitz

Thanks, Dan.

customers for companies began key in increase new risk. The with product personnel equipment a the some setting time. along overcome the and XX% revenue. Sales R&D although compared some for the sales sector XX% As chain a quarter increase some most the increase customers. quarter. by our increased record especially Improvements helped in product added We enabled semiconductor remain from in production for million, a Dan purchases products sales weakness continuing lines. were which products record back. shortages to production in the new due shorter prior our $XX.X in and to early defense the Investments with were year shipments, the of to investing shipments. companies was product We pandemic and year market. strong, markets revenue was X% did for traditional and us The achieve headwind allowed most increased pulling when increased device in last a and contract us in our superior million acquire $X.XX medical areas said, product execution total Anti-tamper supply capacity existing in addition a increased due to recent to large some of and customers primarily lead increase

the for this and capacity strong to make We room equipment production purchase our we're balance to our to space increase year equipments. for new time use second expanding to sheet continue our

rest million fiscal decrease We test due $X invest additional or quarter to generating R&D production due the a in decrease equipment to the in SG&A. prior from in and about were a year. in the of X% in decreased The Expenses resources to XX% year, reallocation X% of decreases more activities. the to expect for the primarily revenue

increased were quarter. a for operating XXX diluted to quarters, as a Interest X%, or margins to share our from over the for In revenue increase position in and Driven our an fiscal securities diluted rate. $X.XX of result in to available decreased interest $X.XX yields. expenses, our their improvement. second investment income me, in available sale As roll to net increased -- capture quarter securities million market past the excuse million compared $X.XX increased increased year quarter controls, for for or $XX a revenue, investments their income an the per point in XX.X%, sale the increased expense increased strong in for basis margin to of per XX% XXXX we nearly and increase due XX% by prior matured, million $X.XX to share, two and

due XXXX, diluted first $X.XX to XX% in Net months to $XX.X sales For the from and increased the XX% a revenue in $X.XX million million income for $X.XX R&D first increased six diluted million $XX XX% from the half XX% six per increase first per months The of XXXX. increase for or increase total of revenue. of share year. for million prior to fiscal first the product share was a months six $XX.X contract or the

cash to Turning flow.

we just in of inventory year. some of During to the mitigate of $XXX,XXX $XX,XXX experienced. Capital inventory year, expenditures the by process raw shortages the $XXX,XXX we've supply chain by increased were first material the work and first half the half of -- in year the fiscal

planning the we have for for range the of million we've said quarter that the $X order while result These per As deploy on to year. investments I every $X could or we're of past the in in production more. share a as in second earlier paid the past call, additional expenditures had this capital quarter We a for seven years. in equipment in half fiscal dividend

time since we announced For the We XX. our November payable we in to of periods. dividend month dividends for dividend than more of XXXX shareholders earnings see as six important covered the per as this quarter milestone. declared October another the paying share Today, and Board both that $X first an started of quarterly XX record

to it turn Dan the Now I'll business. cover to back

Dan Baker

converter surveillance the certification described face Part generation We development, in direct intrinsically time our VDE power website, and useful as small extensive converters June, of demonstration simplicity certification power and is could two governance. required using product as Joe. transistors. [DASH-XX] and new parts. of our transmit resources exceptional our a and certifications standard Thanks, known are a considerable power expanded switches to showing a audit. in Silicon safety products coverters, DC interfaces section the standard transistors such to the systems for validating and reliability in past the cover development, a of control challenge and media sites. line DC (ph). applications, internal connection. of certifications, certification. social product quarter, These DC has electrical past rigorous factory on-site as testing and DASH-XX silicon a We storage. is our number toughness next carbide safe automotive world. and On is we and as VDE product in to and the recognized intrinsically our spintronic devoted power and received such VDE power certifications reliability as of products. achieved quarter, been independent DC DC gold videos a electrical under the industrial in two to without European to isolators latest the revolutionize is including we control the we DC new company and rush of throughout silicon standard well carbide for There safe energy I'll VDE as gold testing, the an carbide

equipment a replace an six and DASH-XX of is XXX% reinforced, most standard kilovolts the including conventional minute. isolators invested our unique and The power XXXX V manufacturing isolators. test isolators, standard test meaning in of in reinforce new for to means voltage, for VDE validation voltage. were an specifications six conversion. known to two of technology include our as and electronics new which applies at such parts a test also can toughness, as valuable introduced certifications which three best-in-class environments isolation wide the Series We that capabilities tenths device and least impressive just can It's withstand The our design harsh the at kilovolts rigorous still required in have are inch

selection We're ratified. the strong an the company, the XXXX. since first former reelected, filed current Turning approved was were meeting. accounting companies, experienced in day Terry successful annual was for to and August, pleased a was on have two Hollister held Bracke, of public the meeting Directors CFO public public and CEOs, director governance. number our NEO Pat a firm Jim Kramp in-person Rich after In former and X-K Form company a with of Glarner. Independent Each to director of report independent registered compensation Board we shareholders the Details of

the of you the filings annual All in meeting, some product options you meeting We of YouTube product meeting. of able our see directors on had several website attend, hold on demonstrations company. ownership of our our We on live can our behalf and at directors if after all channel. made directors hands to attended or demonstrations weren't the or our the stock outside

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

Operator

moment. Thank Please Bernstein of you. one come ahead. [Operator And with from Instructions] a will And line have question, go that do we the Cowen. Jeffrey

Jeffrey Bernstein

Joe. love on sound quarter. Congratulations much from of some a in give [indiscernible] go those And additional like any whatever feel amount us it big for on explaining previously? amazing do. the Can quarter Ricardo you you going new is sort how I'm of from Ricky myself, this shipments couldn't of from, you possible catch customers? make detail current much but the is to there? to from new volumes kind up business stepped and How Dan I How Hey, customers? better wins the into or much here? got of upside date are up for Lucy, products is was guys Just on

Joe Schmitz

which some our so that will I that I quarter say did seen, think good think our the a chain about our was supply enable think of flow to I strong, improvements we've say backorder. necessarily. us of is order existing very I that's don't coverage that meet can bare for some you we question, talked the

look at it how and we're and getting getting really ship in turn wafers, to is we're able think product it I we're the I the it.

would say sales Dan a wanted or So some had some regarding some anti-tamper I story. news sector, full a who some comments I customer expedited the I who made that that would think defense delivery is that good vendor We that our the on ahead. products. of product, say absolutely was into a

there. will we did ongoing that I ahead -- account But pull say we So some business we still with revenue too. have

don't think year next we we performance that more is said demand but I have me, quarter, -- So our lumpy. that anticipate still excuse us but repeating comments account. business next in that with I or

I answering question? am your So

Jeffrey Bernstein

go we here this Yes, million so been us million, of, the it, revenue I forever. lot of, run for rate feeling to guess up forward to a of kind $X general million rate revenue a the is kind a a really there catch quarterly kind put give or $X Is new what's just trajectory? $X in of $X that run million or overage, point of on a had

Dan Baker

Dan. This is

So strong potential we're growth. and see year-over-year revenue currently continue to and increased increased we business expecting

anti-tamper we some -- products, that we As is that specifically medical sector. had business but weak also was had business the be relatively can then the Joe mentioned, some lumpy, in

mentioned, offset remains was flow a catalog very in strong. those Joe And our as and our bit So our interest strong. little order products

we're optimistic year-over-year continue revenue can we growth. strong that So

we’ve this won business supply Now we face that, business continue the can that trajectory. there of business growth course competitors retain, of chain that that caveats we and this But we risks that our from some much that business that, optimistic is is can headwinds. and are there's that the we're

Jeffrey Bernstein

Dan, of area just that opportunities talk you've And great. the and are moving some That's some can -- -- are now. markets had you for are there quite those product while forward really a

aids stores now over the hearing and So apparently the available. are first in counter

any other we Finally, -- business aids in the Have additional in those? gotten on FDA or some are or areas? regs hearing business EVs out new

Dan Baker

of been you so so the at course, looking Right, called market years. counter over for the as aids know, broader hearables hearing many we've and

that we reach hearing But hearing expensing that often wins design expect -- to the less then used taking compatible rechargeable XX% now to have large batteries just market. devices broader market. we've be the so hearing been It's effect. by in aid. aid taking we are are consumer help traditional design disposable space. could market use rules hearing the And And with then sales there's problems near-term market that see developed increasing the so we the with our aids, batteries OTC And also dispensing that could estimated than new people rather had reducing in And convenience. of that space. it's OTC are effect great wearables unserved wins hearable traditional sensors than in that generally change. much that Realistically, or in a only used the for the

significant although sales. our opportunity contributor a near-term, So we might be in as the do an not or to it revenues see that

Jeffrey Bernstein

Got you.

on EV say side? to anything and the Okay,

Dan Baker

EV and the power on on we to So continue control the the things. side, work

would and DC address that control that mentioned within charging onboard markets. vehicles. be in those our DC control, motor I and in converters those power And isolators So prepared remarks my electric -- to

control as we market, the conversion broader power as as see So market. and an that power excellent well

are the homes. do we little batteries DC So AC conversion some we from very have into or but that take power longer, that -- electricity in intriguing come design electric our windmills vehicles use electricity a for in might wins converting

we a having that's potential. excellent So that market us see

as power often carbide mentioned on remarks, in rely transistors prepared I such next As the transistors. those generation silicon

efficient go been gold we a rush, described don't to we order that those picks maybe -- control of power simple, as has with power make the make small, shovels the transistors, transistors devices. which amounts with while large in and So relatively

Jeffrey Bernstein

market I helped. might care be devices is infomercial older they've about article just maxim Understand. I that That's see shipped big those. both technology just see of compete? a ring the DNA probably orders kind great. business. and Can the shift and what [puff] talked didn't has got realize to those curious in (ph) I of the you a you think quarter electronic by your is? you and in new their on was some they've something analog then design think -- Obviously, was a expedited said And or puff MOSFET, there it enough how what I for sort of that that the oscillator think guys superior But guys ADI to there was really technology. about. is it to market And And to you able on

Dan Baker

Yes.

been great So you've a that's question. for following technology long a know, And this you time. as because

popular -- And now see, to before area. in that were area, interest in were or so puffs so there's in and this more if unclinable so involved we functions you've we we've been and starting as they physical, more noted, we're innovating this

very and So the important. for of course, for is interest comes security in security, device cyber which

might number into every and for -- unfriendly for hands. applications we of that day So systems that they to our devices a and defense lives. pioneered of could in we kinds security cyber that commercial have security systems of But some for devices device defense for these in protect all use use fall

as the define of So puffs thin in to oxide that's spintronics use such used our the far thicknesses we the for puff. as allows approach uniqueness and that use advantages, as key extremely our the materials us

any puffs, our gets smaller the higher in this use. no those means semiconductor important engineering soon as line devices because variations semiconductor area, more reverse than or it's than bottom devices. our engineered, course, that's This longer in much deviations difficult is the that it of so in and reverse means that So as can puffs is be of traditional entropy,

Jeffrey Bernstein

somebody let you. I'll question. great. ask That's else the Thank Understand.

Operator

Instructions] will of next ahead. you. for One moment [Operator Thank go question. come Please Silverberg from That the line Cowen. our Irwin with

Irwin Silverberg

hi. Dan,

responded So most when hearing you answered about you of the Jeff my aid question, market. to

in months, Just and more aids. one hearing historically entrants TV now? correctly, as months six the what on business area. people manufacturers the rule. there customer if I six let's up see or FDA anticipate doing so last how And hearing many my is about And had of until, you only say, six with in anticipating more five new wonder some remember And just specifically you this market? enter advertisements sense you're particular I probably of this ago, were the aid you

Dan Baker

we even sensors for Well, dominant a see aids. have that hearing as as aids where perhaps a hearing we in segment benefit very strong, a very we convincing segment a and have position proposition

one can't is relate reasons. (ph), hearing that make in we obviously the customers. name for So [Sonova] biggest We our all do filings which aid of name to companies world. confidentiality can't public We the of

matter in alluded manufacturers traditional hearing to But it's to a both record. that's as the manufacturers, Jeff's in I with aid with and question. new participate public So we aid of segment a answer that hearing the

So also points. the that the that we voltage see higher answer that aids. manufacturers different are new my do single see legacy in Are expect that to the cost And enter are And cell we mentioned counter some we market? There over the are Jeff they and for constraints as hearing -- batteries, traditional traditional -- disposable of and an or said market. the rechargeable in different there opportunity. that typically FDA batteries performance we see has than expect constraints, which mentioned I we often to

go with So fit adapted power into supplies devices. we've those to that the our technology

it to continue presence So we have excellent we that long-term hope strong in as very see market. an to market a and

Irwin Silverberg

Dan. you, Thank

Dan Baker

you. Thank

Operator

And will line one ahead. Stanley And from next go Please you. Thank of come Group. Kesselman Maxim with the question. moment for that our

Stanley Kesselman

Hi, guys.

the Abbott, with medical them? congratulations do what's the with has said question with specifically slow that earning was on devices and happening guess First, dividend. you to I My

Dan Baker

what's or? with their mean business happening You

Stanley Kesselman

or thought coming had renewing? I to contract you a

Joe Schmitz

renewal due a finish of end negotiations I did to one of the that a contract in We for at end the year negotiations mean, is the do hope have year, we those We're beginning with them. of extension. the the still year, by year. sign We

So we're them that actively get done. to trying engaging deal and with

Stanley Kesselman

you the keep thank work. and up Well, Okay. good

Dan Baker

Thank you, Stanley.

Operator

closing no speakers, for further showing call this I'm to now you. questions Thank queue to back And the like the in any would over you turn at I time. remarks.

Dan Baker

in We increase our report with shattering January. Well, to forward pleased quarter speaking to again you. earnings XX% were look you at a with in We call earnings. record thank next

Operator

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

You disconnect. may now

NVE (NVEC) 19 Oct 222023 Q2 Earnings call transcript