Earnings call transcript Q1 2024

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Operator

Welcome to the NVE conference call of First Quarter Results. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to turn the call over to Dan Baker, President and CEO. Please go ahead.

Dan Baker

to XXXX. call welcome ended the and XX, June afternoon, our for conference quarter Good is webcast call This being live and recorded. be A will available website, our replay nve.com. through I'm Manager by Daniel Dan I'm Financial Nelson. Principal Officer, Accounting Baker, and and joined was May also early presented position call. and last promoted to our Daniel current in his on by by go reduce Dan goes He I confusion. to Daniel, he's originally Ohio. from Also, Liberia, Columbus, and I'm from

products, will cover the the accent. After new Daniel one marketing comments, I'll results. with bland we'll call present I'm the financial So opening our open to and and my questions.

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

make provided, Actual to filings economic risk make. could that revenue subject that ended as statements report to forward-looking statements time to listed uncertainties in among the we results others, and as relate from are our may just as Risks the no and time in information annual we undertake sales serve. events, credit on as updated the factors including XX-Q. SEC, such and differ March report our on our Form including, for risks related from future well the XX-K are performance or obligation and XXXX, Form to with year XX, to financial quarterly losses and the uncertainties the we update filed materially future factors Comments environments relating may in results industries forward-looking we to of risks certain plans, uncertainties

industry prior sales increased X% report quarter for the headwinds. to year XX% to quarter, compared to compared income to year the pleased per $X.XX share. net prior the growth diluted Product and solid increased We're despite

financial of cover Nelson results. details our Daniel Now will Daniel? the

Daniel Nelson

XX, ended XX% by to product customers was XXXX. increase XX% in product in R&D. Total offset revenue increase contract industry. June XX, increased existing a customers. in XXXX, to despite XX% was in increased and quarter The by ended Dan. increase the downturn semiconductor a due the Thanks, certain in to R&D primarily decrease sales quarter June compared in the new The partially The for The due the revenue sales purchases was contracts. decrease product was of contract to completion due increase sales a

accounting XXXX in expense, XXXX expense a Total of expenses and adopted increased XX% The an statement. SG&A SG&A compared to and newly first primarily in increase most quarter credit increased credit to increase quarter loss compensation fiscal losses resulted recent standard. line a was $XXX,XXX our into the due a for under XX% and credit were This staffing for increases to R&D new quarter. expense the expense in due due in allowance increase The fiscal the our first the in expenses. loss of R&D to XX% income for

June the for XXXX due XX, high security XXXX. quarter to on fiscal income -- after XX% increased quarter yields for purchase the Interest first of

of in fiscal as of to compared Our fiscal is for effective and for taxes percentage changes income credits. first income XX% which to for timing tax the rate, the of XXXX first tax the was taxes provision quarter the quarter before The to XX% increased of increase due availability a XXXX.

standard. Net of expense the XXXX. as an of million credit fiscal adopted income $X.XX primarily diluted and unfavorable to newly loss and the revenue or partially the under million increased $X.XX increased XXXX by impact includes increased due Net to The $X.XX $X.X compared quarter or share fiscal X% $X.XX first of increased was increase noncash quarter of per income first offset for expenses interest or accounting taxes. for $XXX,XXX income, share reported higher per to

Net to flow for operating the cash XXXX million the million quarter first the cover first increased for of to more compared than dividend. fiscal by strong provided XXXX. $X.XX cash The operating quarterly XX% quarter $X.XX activities of fiscal

turn cover marketing to call the and our to Dan. back to Meeting. and to Dan Over new Shareholders' I'll Now you, Baker preview products Annual

Dan Baker

Daniel. Thanks,

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second which tie we annual has of meeting disclosures compensation item and is agenda to pay approval performance compensation. how new and performance This show our versus shareholder year's value. officer The proxy metrics,

principles Our in don't benefits or are fringe officers, detailed all perks parachutes. same overpay officers and our no we as the executive have as golden there our include, employees proxy compensation our

The say-on-pay item governance. is vote allow for third of compensation. frequency good advisory to every agenda shareholders Board officer to a on year votes on recommends the The vote

fiscal agenda the for audit. their year, our our item of for auditor And approval XX, is year we since the Boulay the our has recommend final XXXX. and next auditors March ending XXXX, this ratification been

annual manager Boulay the meeting. to our expect We audit and partner audit attend

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

Operator

And going line be Silverberg Management. Instructions] is with your question from first Bernstein Capital [Operator the Bernstein to of Jeffrey

Dan Baker

Congratulations on the new firm.

Jeffrey Bernstein

Appreciate very Thanks that. much.

for you. So I couple had questions a of

some issues, volatility supply in few So And et revenue quarters there's impact good in last way. chain a obviously, cetera. there's the been the semiconductor from some

to you're a the norm. expectation. million a et revenue the over some quarter CapEx for testing, peanut improve feels you in million this capacity. sort of new volatility run just bit feeling of butter is maybe sort money spent and of you've think rate $X have about per can to guys several a what talk like But on seen quarters, your a little it lumpiness You we of $X about cetera, When kind order of baseline spreading kind about that

Daniel Nelson

sorry, Yes. I was I'm muted.

Nelson. question. is So Daniel This great Jeff,

the as for unusual pointed we the XXXX, revenue with our so, less than was out, -- you fourth of quarter somewhat ended first of was fiscal obviously, fiscal XXXX quarter. extremely fiscal quarter QX what XXXX And an

our purchased which we the As demands we that some towards deploy did fourth us equipment, fiscal of the you additional mentioned, quarter. had helped customers for XXXX, which significantly meet end

So wear pretty expect as revenue for But the we kind don't of XXXX expect from to XXXX. significantly year progresses. our fiscal lumpiness, that to fiscal we much differ

So…

Jeffrey Bernstein

the That's in you great. of business, say is be anything over the continue forward-looking book-to-bill, And can in one. terms that to about indicators

Dan Baker

but our continue Jeff. with Baker, We and been pleased industry, is book-to-bill have outperform goal to the we've although precise to down, Dan the is don't outperformed data, And the flow. order industry is the This industry. we've

we're new order bit and flow. But getting been industry. our we're the a we're outperform There So current still orders. to pleased catch-up we've significantly of little able is that optimistic in

in prepared report, were down recent mentioned in industry most Daniel As semiconductor XX% our XX%. up sales the remarks, product is and the the

Jeffrey Bernstein

of number customers? gain anything do a think in And of What is a of indicative say not know came and additionally, there. Dan, anything qualitatively you a of starting -- kind out the had really sort anything, of with but more with opportunity of thing. that terribly supply new customers? was terms think of can about once-in-a-lifetime sort chain you kind people that sourcing designs about you about I away say safety and that stress supply to of you could chain of with new you their domestic customers

Dan Baker

get sure Yes, marketing customers excellent we like a considered risk-averse we've we ordering shortages. have priceless and to exactly. company was, who double might customers. did it right, prior door that expect, you're retained as exactly able NVE And of that There get But to the making we not shortages. to to customers foot adequate amount -- the was were that in the you during had some able and And a reach supplies. were those certain Jeff, a might smaller period of opportunities

that come that or So great for as they might lead service excellent we've them said continues we're they NVE. opportunity, from some stay the confident before, a and excellent the they're get going it for products to probably and to be have while time, the was of and

Jeffrey Bernstein

PUFs revenue. And great. of been have volatility some That's then just a source in curious,

of talk to know about bit PUFs you or business discussion about the you'll just in quarter? volumes can't business There's us. PUFs, Any a could on lot But visibility kill a of to quarters? in next a I few us manufacture lot have kind little the armaments. you that about a higher of having their lot was tell

Daniel Nelson

is this Daniel. Jeff, Yes,

anti-tamper we considerable dependent lines. procurement unfortunately, sensor did So some experience sales. and product heavily because customers. sales our on as anti-tamper it's very schedules mention, we unusual But in increase that's significantly sales saw -- and did decrease not in our still And by a

there we're there long still out opportunities sales. short, anti-tamper decrease story are So for -- sales quarter. in did for anti-tamper we but But a more positive see the that

Dan Baker

If I also what to could said. addition add just Daniel in

-- are that provided of or sales. of system anti-tamper be point it's defense sensitive allies. is for applications sold Department to one might does the out, -- technology Defense that the of say the anti-tamper to to Jeff, you there defense is opportunities And protect As allies --

that. course, So of been a there's amount of fair

pointed in there So can long procurement defense correctly the can it excellent vary schedules. on are it's as it you depending out, significantly but quarter-to-quarter be, run, -- business opportunities,

Jeffrey Bernstein

lastly, how product on then great. a question customer That's launches. And just big around behaviors

no introductions product both and the of aid in kind larger And arena. are up coming. in a tech ramp? ramp they customers, some advance generally of is it hearing is or product Do of there on as important around stock med got sensors some market doesn't much probably You've Or or of there they the in really there launching pattern kinds up cost to a stock that? sort

Dan Baker

actually Baker. It startups regulatory in often Yes. Jeff. a This is question, is relatively restrictions. That's slow are Dan great there the because

a III many manufacturer, a rolled regions. medical life are roll might device In manufacturer in out device product. out Class or So certain medical particularly gradually a support cases, products to a have

the regulatory long the First, has relatively FDA. cycle a U.S. through

might development So and practitioners the as the are as are see approvals use regulatory as the and met, cycles ramp-up the products long what gradual -- as we and products. is deployed often more more a

to an know, it you industry. device as are cycles. and and a proposition for of benefit those We in with unique patient reliability, the been, miniaturization things the medical power. it's terms business invest are we've important And very And low provide excellent in us. willing in So be to been that regulatory

foreseeable significant we business And it a business our significant be part of and the so part it's future. expect our to of now, a for

Operator

Instructions] One is And Private next our our for Makovsky], next of question. from moment question Investor. line [Hirosto the [Operator

Unidentified Analyst

more mass into that talk of semiconductor about [Hirosto bit going you're is if Makovsky]. as where inroads a the industry. more is Could compared to happening? market rest you be might making applications the great you and Congratulations This any little on results, into especially

Dan Baker

Yes, absolutely.

So sensors the that parts excellent in then which design that. revolution, as sensors talked and hearables which about, hearables in the we're that that invested but used are batteries compatible medical addition aren't aids. still often received wins hearables have aids. And be that highlighted in generally we with with market, some in We have next-generation developers life include cycles previous for OTC cycles, question, consumer markets traditional to particular, that hearing we're developing the hearing disposable in broader in that longer longer our includes term, markets design there but in used we've batteries can see we've opportunities in wearables have support we long that we are new hearables engaged and the hearables rechargeable we have as development are positive used as about we're space. The talked in and quite and rather, there investing are feedback,

would area market. highlight would the that I The automotive other be

safety cautioned invest while, in we've that take autonomous of for a in to next-generation for automotive can we've and products cars. systems and So the but development electric especially continued more sophisticated qualification sensors and

lines, the parts which also and in in in green important on remarks, lower those expanding energy such energy electronics, energy vehicle are storage and automotive power but DC than touched have DC smaller, prepared are conventional conversion which Our market, power, electric and our to precise, during more markets. our I We're rugged as market. potential product more advantages converter the also

Unidentified Analyst

keep Would mass or the in making able market money? more of lowering but would kind be still you devices to same margins your your margins, be those

Dan Baker

Yes, that's question. a great

So at total looking new the could we're look shareholder value at that add product and it the it a might is that line the way create. we contribution

gross be a have make but gross So markets higher. such where as we that when consider markets decisions. margin, don't example, margins We for in the market, we the investment specific target might consumer volumes lower, be certainly might target and

could large these where also but proposition. gross we have a So types markets margins, we have as it's possible them benefit markets see convincing that of lower

at we it make primary have a but that to have money, to we we're demonstrate think particular metric. Obviously, margin using as minimum. able a have makes margin So looking sense, that not we're not and we can to a as we be gross

Unidentified Analyst

Have qualifications yet? you gotten automotive new

Dan Baker

some qualifications. have we So

individual look IATF We at have a the Standard of from products. We under conformance letter XXXXX.

the So that's the you IATF as know, probably in to practice, be certified XXXXX. needs company for automotive

those themselves passed audits so to And have the approved. be we often products and then

certainly look involved we we certification. on case-by-case product things much but So have like basis at other or the gone QXXX a automotive-specific testing the through approvals in and -- of

that. reason be do part it's why take So might the -- a design prepared we're do but to prepared might significant that. to of the a that's -- we're And while, cycles

recognize into We markets. that, have people part who of And getting know that's it. how to we these do

Unidentified Analyst

you your efficiency to hearables do higher, in hear. afford of Okay. size have you have advantage you like need And good That's to what power significant what bigger kind and is there, than automotive because can advantage? But in in a pacemakers.

Dan Baker

That's Yes. good a point.

and in aid, sometimes a because, power cram that our for as it's right, in example, hearing vehicle's not you a lower hybrid electric or sophisticated point advantage vehicles, a determine range pacemaker. the out, gallon. and an particularly they're is miles is the size per existing So an bigger automotive industry. But But for equivalent helps than important Often, electronics -- the it's you're and more more trying footprint. to lot

can parts, transient temperature are little can important ruggedness and in of that that they nonvolatile, lower is the the the electrical fact helps automotive couplers and So and sensors market. they power or our be important extremes withstand every and bit in inherently

then I might is And precision. advantage the the final highlight

So very for sensor some having a important precise applications. is

rotation motor extremely some precision cases, imagine batteries, many an could important position applications, things like current sensing critical. things sensor, and or one or a which not motors is But be advantage. like for in Now seat can position

we the market. those highlight So in the are advantages automotive that

Unidentified Analyst

you're the I sensing have no for right? wire, not you whatsoever assume current to current connected like because And drainage

Dan Baker

Yes.

current sensing. So we noncontact often call that

So losses. the there aren't

with You appear familiar that. very

with puts or resistor, often the shunt inherent conventional there's you're sense, one called device a to a device So there. losses series trying that's in if

work way So sensors is the our of -- their current our current most sensors is noncontact.

and And series. go there having losses to the very in currents inherent they board, and no next so or resistor can they wire would have to therefore, sense a are the circuit high without

advantage that efficiency of was part about. that's talking So the I

that for through vehicle. longer higher range and would an So electric efficiency ripple eventually to

Unidentified Analyst

assume DC Right. advantage? to a converters have the efficiency And DC I similar

Dan Baker

Yes.

like switches there power can advantage side we isolated. are and is conversion things our for devices the drive high fully that So

in So other or conversion efficient either they markets. power energy more vehicles, storage electric allow power of storage types

advantages the isolators. off, efficient also switch they they faster, than that are the the can and accrue faster they efficiency during couplers faster very our the So that that but very more power And efficient switches can switch is are from transitions. couplers when conversion the lower the switch, there the conventional on losses not because or used the they're for are efficient they're can

time. that transition So we've reduced

Unidentified Analyst

right. All

get those you to from are Sounds great. and time see qualified market. require you get from understand already these? revenues some revenues And Are I seeing to When to this? all going applications

Dan Baker

not some it opportunities. to seeing be but at revenues. small We're enough long-term look significant, as we It's

asked do of we a you so it frame, particular a longer-term longer don't looking course. but term. as see time what great be And to fast as a we are want at we question possible, And opportunity. as have it We

Unidentified Analyst

right. getting the details and Thank of technical details you. good All Thank luck. you into for complicated

Operator

And time. for now questions conference further I would Baker to at turn closing no showing back this I to Dan am remarks. like the

Dan Baker

at continued operating seeing up we there cash Well, look other XX%. sales forward on you. to our We were August next Thank X XX% earnings and product October. in to flow, if no pleased our report growth questions, and up annual some with of are call meeting you to

Operator

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

may You now disconnect.

NVE (NVEC) 19 Jul 232024 Q1 Earnings call transcript