Earnings call transcript Q4 2023

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Operator

Good evening and thank you for standing by. Welcome to NVE Conference Call on Fourth Quarter and Fiscal year Results. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded.

now CEO conference of to Baker, to like and President NVE would hand over the Dan I Corporation.

[Audio Gap]

Dan Baker

Thanks, Dan.

As for the million in our and XX% to net the quarter prior from most revenue Total in $X.X million the far. history Dan best by year increased for recent the $XX.X quarter said, were revenue income quarter.

fourth fiscal primarily profit XXXX, compared of quarter scale contract increased XX% to of and a The economies increased to increased offset XXXX, XX% sales research from development was for costs. increase for quarter product and was material increase the partially production percentage increase of labor and due in as the revenue. to prices, the XX% Gross to of revenue increased fiscal increase in a due by a fourth and XX%

fourth expense for to due fiscal fiscal Total increase development and increased XX% the compared increased were increased a in increase staffing in of to quarter expenses quarter expense, the compensation. due XXXX expense. primarily SG&A to and XXX% of The a research fourth in and XX% XXXX, decrease

and in income increased XX% increase fiscal for of for average our rate. in increased XXXX available the sale an to Interest the due fourth securities interest an quarter

equipment. and Our and tax CHIPS newly of our the new of compared effective to to for of to taxes income tax XX% space in quarter due for rate, fourth production related deployed percentage which Act quarter fiscal production is fiscal the in before a production deployed XX% those as the provision past the taxes was credit the equipment expansion depreciation year,

share, to $X.XX fiscal quarter. of Net prior or per income for million or XXX% fourth $X.XX $X.XX to increased for $X.X year compared the the million per share XXXX quarter diluted

to increase decrease contract due the for $XX XX% records to year. income The increase in million, record revenue year. fiscal R&D Total partially new for was offset increased prior set to in million X% revenue. net and in a the production a sales revenue XX% $XX.X also We compared a by

for increased the to offset due scales labor the to year XX% XXXX increased profits. $X.XX increased from year our XX% or and prices, or income costs. per from a share partially fiscal $XX.X material of diluted increase margin of year million It Gross fiscal Net from and XXXX. second XX% increased was for increased $XX.X The by XXXX. for prior to share fiscal from $X production primarily record per consecutive economies million was record for

on to Now financial will provide Joe. Over color our you, results. some Joe

Joe Schmitz

large with to increase shorter traditional semiconductor the customers. Thanks, increased lead product of Sales Daniel. was existing due and quarter companies The superior lines. in new customers by purchases products along new acquire customers for did most times. our product in our We markets sales and from with increased primarily

in Improvements new resulting product capacity increased supply shipments. the from increase chain NVE enabled equipment with to deliveries, along purchases,

Although supply the do improved past risks has remain. over delivery quarter, chain performance

safe as raw disruptions in remains Our build material and to up effect. a inventory strategy WIP –

is demand NVE sales have and and Gartner, businesses flow, ending quarter the from recent in softening for spreading downturn this worldwide to to a XX, challenges. revenue This expected will future to our XX% order experienced affect upcoming weak semiconductor According XXXX. forecast in could June by in its quarters. some and is consumer decline has year

booking starting a year the positive, significant base. with the we are On

be profit metrics Our continue to strong.

with the balance and Pre-tax and Cash we from XX, ended a XX%, was quarter strong the operations was sheet. for was margin strong flow XX%. million, was XX% margin March year fiscal net a the fiscal margin For operating margin ended was gross year XX%. $XX.X

Inventory vendor the timing mitigate and support times. increased receivable increased to $X.XX longer decision increased to Current primarily customers. sales to to product million, Accounts primarily million, those $X.XX to assets growth. and increased product lead due inventories increased support sales to due sales our our increase of

Purchases were we $XXX,XXX quarter, earnings most in of year, capital fixed assets additional executing in were These primarily had our successfully XX in equipment equipment, deployed plan production for of expenditures that in the the discussed we the fiscal most past call. the January years.

Net income XXXX. began since for covered more dividends dividends year, than the in paying we first

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

our March XX year the to whom XX past XXXX. in were our as XX, March proud We the of productivity full-time, increased We're employees. employment of of XX, employees of compared XX to employees, of as

Our per the semiconductor are employee industry. best among revenue in employee per the and net income

Now to and Baker Dan cover products I'll back marketing call and turn accomplishments. to our past summarize to year's the new

Operator

Please, standby.

We are having technical difficulty.

[Operator a presentation. the will As we a reminder, presentation have Instructions] following Q&A

Dan Baker

Now are we

Operator

Yes, we can

Dan Baker

Well, thanks, Joe.

PCIM First, motion, and markets target important of power German world's PCIM Europe two one for I'll energy distributors. and built shows for Both marketing. trade renewable cover We'll shows exhibition later is management. our as major the SENSOR+TEST. with intelligent month. electronics, co-exhibiting Germany leading in energy this conference reach us. and be We're

show at California SENSOR+TEST trade the Clara, claims that showcases in the to for the which Sensors be month, latest testing sensing will We'll products. new sensor, next And technology. Converge We'll spring Santa at supporting forum off show. demonstrate exhibit several be world's a season technologies. and measurement leading distributor capping

components boards to quickly and our computers. interface Shield introduced products. of our of allows The demonstration for X X new Arduino to size These Turning Arduino the of by demonstrate to called the format. boards applicability recently and software to inches single-board customers We have application. connect Arduino a write standard on line a popular what's parts approximately new their circuit

large isolated the to It inches connectors. Since six the Power capability and up horsepower space, Board converters The of of little our a available large of used portion parts and just take drivers. control can DC power square for Control range motors. small DC FET size our shows very areas

can demonstration horsepower see a as in applications, and such range used We YouTube the on bicycles ebike conversion our power motor, parts inverters using boards be The and you website controls, video can which motor battery did our channel. electric electric vehicles. on a

Power that that's required the electricity available changes a the form function. from the form conversion for process to is

that is conversion, our always and lost decrease energy energy. Some can products in save and those losses therefore,

compatible are power products transistors with wideband carbide as silicon gap and Our next-generation transistors galium-nitride such

Fiscal development. year XXXX product was a for productive

to new new I that products In offerings the most well power magnetometer our discussed, sensors converters. We expanded our family evaluation addition boards to sensors expanded transmit the DC data. magnetic of We year, our we in our of several ever. past world's introduced the parts other ever, smallest just as sensitive DC smallest as

production reinforce highlights In products, restrictions eased, we space return received certification. safe to Abbott. the include, addition business our our intrinsically extended and new VDE for shipped the added increase We we parts to and equipment important participation mission, in our as increased expanded two energy and certification past wins had our We home capacity. electric supplier year stations. trade pandemic of shows Mars and for certifications, storage partnering design with we sample charging vehicle We agreement

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

Operator

Cowen Our time, we will session. first this Prime from conduct At Advisors. Jeffrey Instructions] Bernstein you. question [Operator question-and-answer comes from Thank the

Jeffrey Bernstein

it beginning, a by know wanted there if to guess, and you covered if that FYI. cut hear questions. of there's Hi just don't Joe, didn't the you we I out I guys. anything or repeat, was your but And from script. had in Dan, I Daniel so opening couple

on business know the been before with So, year, can in some drove lumpiness what but increase? revenue number, in little give big I huge granularity obviously, there's very you the just strong a sequentially puffs, us

Joe Schmitz

a This is Schmitz. at Joe stab I'll that. take

think added, which were to customers one helped to is a us our deliver output, mind my increase of orders rate. production in capacity I at faster things the we able big on we the

I think win huge a us. for that's

seen an commented product, on quantity of I in the there process. some product also improvement value-added our the issues. but in the of the chain time both supply turn also in of We've

that's increase our us mention we've We think of build to two team are did our some headcount help -- factors. driving those production I targeted some to big also out. that had So

So those positives. three big are

had And then mentioned of some we that. think you the absolutely chunkiness, of I some

Some our of as past happens based two in this it was back of schedules. quarter was program it quarter, this customers' strong year. And on that business

Jeffrey Bernstein

Joe, the you or deliver. so on able being have having constrained were last you over year talked to that guys about some backlog

or So has one byproduct in that was a – this shot. big still normal, up have now cleared we cleared being more and that. feel than of visibility up do kind of Or that

Joe Schmitz

this a have that certainly, happen will role. still working that a play into next year. through. And backlog We way did our But we're

Jeffrey Bernstein

Got you.

any are so, details wanting guys that backlog Okay. new attribute than customers before, that? stock or And more you or have safety who to wins would on more to

Dan Baker

Yes.

mentioned. think two But increases, exact -- tied wins know breakdown give both. that I and to can't sales it's of you customers’ I it's an think seen some We've the I we getting. you they're some same factors

So can't the exact mentioned. on give an I factors you two breakdown you just

Jeffrey Bernstein

Yes. No, I understand that.

It then to for improving factor and Abbott's Cardiac the Abbott. deal quarter is use or significant just is of Okay. business them? the signed stocking in any looks that positive. And sequentially with nature, more Management of like And normal feeling shipment of sort is had Rhythm you they're Was that a a that

Dan Baker

I signs business looking has seen is statistic for Yes, basically it's I'm is for for here. as trend them -- with say -- But Most the of short the I normal guess, in term would them. that rate normal business positive their some and that us.

Jeffrey Bernstein

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

Dan Baker

sorry. I'm

their sales X%. for looking we say before will for go I Just on, that quarter management Abbott was the rhythm the statistic. first reported I increased

So encouraging us. that is for

Joe Schmitz

which think organic, any currency as by started missed you organic, marketing comments. the miss for And be didn't they I I my Jeff, over what and way, would about talked don't after corrected technical report difficulties. That the of variations. you is

could that hear I So then. you me believe

Operator

stand we Please Q&A roster. stand by. Instructions] Thank Thank you. [Operator by, you. Please compile while the

Prime follow-up have a Cowen Advisors. from question Bernstein of We Jeffrey

Jeffrey Bernstein

Okay.

an obviously, just DC just there. I'm bit you wins. at guys chargers, carbide you're EV converters a of talk are selling? talk GaN about And you to wins the So kind what traction and charger little applicability charger getting guys there's in DC or quarter a little about least NEV but about and EV silicon Can wondering, that associated some last just talked EVs you generally

Dan Baker

with remarks power pleased -- Baker. both in yeah, valuation mentioned the Board. very conversion have products that been reaction this those types We've Dan as the products, of prepared applicable to we the is our two are about to types we Jeff, of

turn So we switches. off to which required the drive make DC to and on those create DC voltage next-generation converters, transistor that's

you as conversion, drive been has a very And response And gates positive the those of of isolator the electric energy for interest to pointed onboard from both charge in lot then are that power cars that station directly. systems batteries. and the needed switches, those the the to the systems, that's that are the the for make vehicles. which needed, within there's charging out convert drivers electricity we drivers There electricity also -- switches charging the the that's

the that on the we And referred win charging that mentioned was stations. you design to before

there's So next-generation electric will vehicles. stations allow a an switches. our And of us devices infrastructure conversion use will charging that electric long and allow of nationwide course, support energy to to those the in large to efficiently that and drive vehicles of investment build distances

So electric vehicles markets. and in long-term in we conversion see excellent energy opportunities that, general is

Jeffrey Bernstein

those be big are volume sounds like It markets to actually too. reasonably Yes. going

partner. presenting you're you're could you with just update a mentioned for with be shows So doing how guessing when little at sensor that's I'm in the contraction on angst that pleased the distribution -- are they there? you to getting you're Europe, a give Are -- German you you? going

Dan Baker

have sensors. have as we Yeah. strong and We're excellent specializes very distributors fortunate to distributors mentioned, Germany, pleased. two in in We're -- Angst+Pfister, very you

isolators. distributor in have which DC Line and DC We converters another Germany, excellent Power, High in to specializes

a bit high-line I but So with co-exhibiting guess, of actually technicality, we're it's power. a

well sales what supporting questions. them. So program experts will we that means support questions somebody to with answering is qualified listed They co-exhibiting in application also and -- our products. Angst+Pfister, very have along on also about answer have there the who are meaning We're are we'll that

street coming as otherwise of strong important an mentioned it Germany have the in important might have with and up is the particularly trade we so a for Europe shows reach to amplifies -- magnifies presence are shows that distributors, like to contacts advantage on number us of customers and such our us that, allows at large -- it So market that a and couple trade of a weeks. European those two I in that not feet

Jeffrey Bernstein

management in But were gotten think me a has traction? refresh this, I'm system. and design Dan, on Pfister. battery And for you I guess if a but Angst any that wrong reference I with

Dan Baker

Yeah.

as on Angst Pfister's called excellent website on BeFAST platform. and You true. That's from as leads And website videos as there's ours information we've was That their it well system, interest and excellent some that and well. have memory. an and their gotten

So onboard charging you that recall. platform was designed as for may

to to So to station applicable onboard the in possible. as efficiently drive the charging like the becoming batteries energy convert to and energy And controls. motor of a charge but the and means conversion things range the broad are required it's energy drives motors car motor the that's charging actually more vehicle, from important more such electric as in those as to

Motors are worldwide. a electricity use of very large

control. emphasize own prepared is there platform in remarks, and Arduino for which conversion, applicability motor Shield we see I the we our in So about that talked just power

with motor that's more very board. small than and So we're a horsepower controlling slightly on that a motor, e-bike a an demonstration,

control applications we other applications. there So vehicles see for in and motor

So we it an excellent area. as see

a in Power have Pfister, and which area with and partnership that as does We Angst well. strong works HY-LINE

got good distribution, we've unique So products with worldwide. good savings an and conversion on power emphasis opportunity energy a and

Jeffrey Bernstein

That's innovations Are on feeling are cetera? from side. you. and the over-the-counter there you impact aid that the great. And going the hearing market, just on Thank then any et

Dan Baker

will that market a the reaction to That's products. develop, Yeah. we're but by to a take our while encouraged

to developed talked aids hearing hearables about that used as batteries before, sensors or in consumer we've are and wearables batteries generally traditional disposable aids. in the are OTC we've compatible with used that's that As often are that rechargeable hearing the opposed

lower voltage. are those So

We wins market. we it potential in excellent and space, design as long-term see have that an

Jeffrey Bernstein

did There's pieces really applying or that credits guess to you All credits to then, particular, benefit two then Joe, made. do Act, that you just anything in Are specific you CapEx right. think CHIPS And guess apply expect to related through I to for for mentioned there's credits subsidies tax And for. I have the you projects from have that's for there's some that. I you CapEx?

Dan Baker

Both.

already we've So gotten credits.

And As in related Act. Joe credits and mentioned, which tax the that as are reduced mentioned, accelerated as taxes Joe CHIPS our for well qualified also the year. significant the quarter depreciation, to we

Commerce very disclosing grant you could Department but as know, prohibits the our So help of applications, well the expansion. act

course, Act make are onshore. We opportunities in areas here And States. the to in the And sensors. that studying an based and are have make sensors in or particular, application CHIPS to the of United been highlighted we opportunities we

front-end parts test have out operations last here. and expanded We We operations, back-end. our the back-end back-end door go which the means things the is before the

we're CHIPS to think at to intent packagers expand the We that here. rely on spirit We back And some and of that the United of also work further. the the bringing end And of States. that bring that here and Act now grant. looking meets opportunities course,

going our seriously. companies we're application So at be on May X. very in to window for that space looking The preliminary opened

final would process. then application at And there we're after a be looking that that, So seriously.

we it but beneficiaries potential of see grants. as those ourselves So may while, take certainly a

Jeffrey Bernstein

I'm you. own operation. a knowing going stock a going I'm well tonight, Thank XX% in that to tell you And I great. to that that company That's sleep has

for So good a thank quarter. you

Dan Baker

Well, Joe our employees, thank of and the Jeff. credit margins to a you, efficiency it's productivity, and their said, provide. that we're their And our proud as folks those ingenuity

Jeffrey Bernstein

Thanks. Great.

Operator

comes Our of Please from Ho Q&A [Operator you. compile Don [ph]. the the after. question while stand Instructions] Thank next by we line

Unidentified Analyst

to a just are exciting. redundant. Dan. of more can adding call, knockout this the Don you may thank going so It’s quarter, But capacity, much. part It's running And be are very you capacity? tell Hi, missed early I us, Ho. or really you at the you be

Dan Baker

about, as opportunities we at more talked add are Well, looking we're added we've -- capacity. to capacity. And we

And we overhead. order So cover commodity excess to to call not to what as their very to like run you would we're at know, to full running have maximize avoid trying we to us, overhead. aren't and capacity. in utilization for semiconductors full utilization They want close do. depreciation -- it's it their They tend our

to is relatively compared our CapEx revenues. Our small

excess So capacity. we to generally want have

area, As area. the equipment. Joe back-end We've expanded We test added mentioned, production our we've added people.

significant for looking the quarter So made we more. year, in we've and and are plans at fiscal expansions past

industry plans still opportunity. mentioned, at actual long-term as as a these downturn So an for an potential Joe are downturn looking We're industry or growth.

their or to are cutting growth. opportunity an companies as investments this Some lay see back groundwork CapEx their on for future we the

Unidentified Analyst

Good. Thank you have very given in guidance. much. not I know the you past

So can throughout this rest or I bump earnings fair expect at wonder, say, level that can unusual quarter, if is this this the the of a question? year? Is an I we

Joe Schmitz

is Joe. Well, this

about We factors year talked the the Of of we future. course, capacity predict we from productive had some a can't and record-setting a standpoint.

wanted the going help it dynamics be industry believe to the to are investors. to our overall about product. think and grow try We're our there. company, I wise our in the we kind that we to in calibrate mean, out we not but not believe continue to challenges talk of I acknowledge business, would

cloudy the to a So year hold there's on what but going industry. happening, crystal ball is little this things next bit is good for

Unidentified Analyst

year fiscal next year that's year, just we well, don’t guess, -- -- the calendar the I entered, right, By I know. I guess

Joe Schmitz

year. Right. fiscal Yes, the

Unidentified Analyst

thanks best wish luck, the your Okay. performance. Well, I you and all of for

Joe Schmitz

Dan. Thanks,

Operator

Instructions] [Operator you. Thank

Dan Baker

than again first there to speaking if record report quarter XXXX doubling the doubling the were shattering no results year questions, quarter We in discuss for product to of are July to with fiscal quarter. we and with pleased sales look a in other nearly profits Well, you more forward fiscal for

Operator

conclude today's participation your the in does for conference. This you Thank program.

You may now disconnect.

NVE (NVEC) 3 May 232023 Q4 Earnings call transcript