NVEC - Earnings call transcript Q4 2024

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Operator

Good day. Thank you for standing by. Welcome to NVE Corporation Conference Call on Fourth Quarter Results too. [Operator Instructions] Please note that today's conference is being recorded. I will now hand the conference over to Mr. CEO. and President Baker, Dan Please go sir. ahead,

Daniel Baker

replay Good quarter and and call being nve.com. cover Principal Officer, products recorded. call welcome and website, through XX, to open After the Controller and Daniel present our to and Daniel for is A the opening and marketing, comments, live call conference webcast will be fiscal by This questions. available our financial I'm our Nelson. XXXX. afternoon, joined will year March Financial my results, I'll we'll ended

our We and Links issued known formerly hour on in financial the release our website following Twitter. press release as website, are the past to filed Form and with results XX-K on the market. report our through and annual X of press the close available XX-K SEC's

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

the ago. strong Daniel? shattering a Daniel report financials. will a from cover record of our pleased in a earnings decrease despite details to year revenue Nelson quarter We're

Daniel Nelson

and semiconductor The primarily our year in fourth the decreased an product was industry fiscal revenue XX% XXXX Dan. contract sales and sales tough in decrease to development XX% to The with quarter. compared due revenue due record research to comparison. Thanks, was product our XX% a decrease a of decrease in Total quarter prior downturn. decrease for

calendar trade The of that is XX% Semiconductor XXXX. market in XXXX. after in forecast gaining industry and plummeting X% grow recovery the is semiconductor news is strength statistics to forecasts XXXX in global good in strong industry the

product Our recent most from product quarter. increased the -- quarter recent the our sales to sequentially for XX% immediately quarter sales increased most prior the

expect we our As timing. especially product to can fluctuate quarter. we were sales in -- market the fiscal sales as procurement weak X recovered first expected, in year cycle These defense to of due the the and quarters past

due to primarily fiscal decreased was increase R&D the in expenses in compensation accruals. decrease decreased offset primarily compared XXXX Total quarter fourth R&D. in of XX% new due SG&A to The in was decrease expense XXXX for XX% due of X% to in by decrease fiscal the a development. The performance-based partially fourth quarter increase product a an SG&A to

Interest the quarter rates. fiscal increased income fourth to XXXX interest for of higher XX% due

XXXX. was rate, tax the compared increased the quarter and increased credits fiscal quarter. The revenue of as expenses. in to production effective year prior for lower which our of XX% is quarter the to due income primarily and high decrease to Our deployed for of fourth the tax primarily space fourth fiscal the fourth federal quarter before was interest decreased rate, effective to offset year for prior new income by taxes a taxes, XXXX tax for The production income in and the XXXX due prior the of net decreased CHIPS fiscal expansion the income the partially equipment year in to quarter to XX% rate related Act percentage quarter of XX% a provision compared

net industry downturn. margin solidly share, was products to XX% and high-value per with have weather margin a allowed It us profitable of $X.XX XX%. the was was quarter earnings Gross

$XX.X For primarily year, operating revenue fiscal Net for XX% down flows was of over fiscal were XXXX assets the XX%, year, was income $XX,XXX sales. and for $XX.X cash hope $XXX,XXX solid fiscal million was to fiscal product we to decreased million last due Net decreased this XXXX. deploy per the but fixed quarter. but $X.XX only share. in a quarter, Purchases income still equipment June

fiscal We're payments X we've will And equipment XXXX. million the fiscal capital some this of our represent to quarter capital details investment minutes. largest next few quarter, the some a in investments years, and ever. planned expansion planning $X the $X made of will down XXXX. in in million already first fiscal XXXX of Dan provide This

business. the Baker to call I'll Dan. you, turn back Over Dan over the Now to to cover

Daniel Baker

product I'll of Daniel. YouTube that line which customers past Internet of promote the new tunneling magnetic expands and expanded boards quarter, our opens vehicles. our In potential fields prospective marketing cover, and products recent our products, of boards. products the Things easily channel The magnetometers. out Thanks, range we evaluation allow major cover applications and initiative we a magnetoresistance of and are try products. unique the marketing The in We've other new There boards. on both to version to industrial had CapEx. areas. the serves our more website our These lines highlight several broaden videos boards and

be June, products. Silicon and largest this Sensor+Test We've North have booth, shows is international and show, testing Germany. measuring electronics event. year, we space Later is the fair major on us to America's will to but more planning will at which own quarter, trade which Nuremberg, built our as Converge The trade represent Valley, June promote is trade including typically leading in give Sensors exhibit us which relied international we'll sensing, shows, for billed in distributors at in as also we're to marketing, the technology. our On this X show

semiconductor smaller, pay expansion packaged The to and currently for self-sufficient We value. more wafer-level plans capture by even our there X dollar the our allow future prototypes, subcontractors test plastic in chip and solid interest. has planned multimillion chip wafer-level overmolding. be off manufacture be been increase capacity believe with We capability risks. than the and these We investments will next packages can higher in and chip conventional will Daniel fiscal parts sales. investments scale outsourced begin investments assembly shows or chain more fiscal Wafer-level scale our these are provided The using to customer in-house. products this Most be a reduce us These year. customers hope OSAT including performance smaller of encapsulated production and capabilities during scale will Asia mentioned to years. also some will parts and supply components.

the shortages pandemic of There have government the been their raw exposed shortages. OSAT OSATs supply have restrictions, vulnerabilities labor for materials, OSATs chain. of shortages lockdown material and had COVID-XX processes. also raw The need

and we number earned We to CE like exhibitions begin line products. related isolated of the XXXX, extended for introduced distributor network own DC of world's temperature DC highlights supported fiscal our couplers. under our to converter smallest transceivers the review banner. and of some conversion partnering agreement. power data prestigious and isolation As mark We We a We fiscal ultra-high our I'd XXXX. Abbott exhibited extended products

transmit data power with converters couplers isolated DC We launched DC combining more to data. as products well as to

and programs the next-generation sensors drive hearing Medium-term anti-tamper chip in implanted growth. past We applications, potential TMR also future initiatives scale for and with extremely for development R&D to medical aids sensors sensitive sensors. the next-generation year in invested devices, wafer-level MRAM included

were the included in our of on neuromorphic and link programs paper the Highlights could Long-term the tunnel accelerate computing. energy the that is published needed efficiency technology in research this magnetic provide junctions to year of use a past and website. memory, logic to

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

Operator

Instructions] Silverberg Capital from line of have question a [Operator the we And Bernstein Management. Jeffrey with Bernstein coming

Jeffrey Milton Bernstein

it's announcement and of the as I being about years revenue you, profitable. think a enough if with to the money big grow weren't here. think had spending guy, tend anything been that Dan, over you to to as I maybe opposed the incredibly to So anyone's company, complain conservative

percentage the in capital I and up, the revenue you're quarter, SG&A planning is is R&D plan. see as big a of here a So up

out that's done be feeling some capability just you're willy-nilly. the you get demand and going I That strong be for capacity And pretty that, there's there to so having indications adding. that not must this

a can color have little what commitment levels bit interest to in or that make give us be willing more to you on terms got commitments. you these Board the that on of just So and you

Daniel Baker

opportunities return presents. Well, expansion investments to you high about money capital for sure that treat Right. our a as make And them. say, investment going we standard. seriously, try this a Jeff. thanks, And we But -- and and to this we're excited we spend with obligation are hold that that it get the that to it's we we shareholders' when

extend capabilities our improve more We them our really to smaller and make dramatically as advantages. products sensitive and opportunities historic to see and our

the the for talked large reason do us the What about of prepared was that is packages, investment will major the a things give remarks. which scale that's wafer-level the investment. I the to the we capability about chip talked bit so in -- And X

our significantly smaller conventional are our are these electronics. than than significantly smaller products So and products current most current

number be is Obviously, industrial as medical will risks miniaturization devices, allow -- smaller. because sensors incisions, for allows it in of it will devices, they're is less So implanted more of dramatic a important and smaller smaller complications, markets. It The in smaller better. another step a forward. precise well

that of the X in. we're that's So areas investing

prepared remarks, the been and -- able strong. has them to we've we've of customers been has with our I been shared very those again able As in interest And make devices. mentioned team prototypes the

on sets So mentioned make mentioned process to investments, that's parts of is is R&D the you planned devices. Ingenious to part and you X make working -- who capital investments, mentioned of capabilities folks the make next-generation the investment, to which are the you sorts these of And these and production prototypes. these which the the developing equipment

So you're right.

seeing our willing opportunities, invest been are supportive. to it, in historic has very we're Board and We some and

Jeffrey Milton Bernstein

to of delivering Dan, Got nature and this chip now be in is internally? Or package for are this you. it going then, to customers want anything a current brand today scale you that's you do new? And

Daniel Baker

brand Primarily, this will new, be Jeff.

What prototypes, currently small production. develop our in delivering test scale, get to and to is get We are for not sample allows the now it and parts evaluation but customers relatively doing to to market. we're samples us we're to and

As is said, fiscal be to I this in year. goal later production our

getting in space developed and the equipment building of have some mean now. running variety mean some some And production of a processes getting will getting the in, up repurposing and and will we so of it processes that and the the that expansion

Jeffrey Milton Bernstein

established Got had you. semiconductor find customers result that between better relationships investment were And to is who there of a as and front of and this other any and you're supply? the sources just more in getting shortages relationship COVID new really of

Daniel Baker

are related, Jeff. They

right. absolutely You're

the things encapsulated -- was of customers the chain have during the interested the of X pandemic were risks this. in risks supply that and highlighted that parts. the And face for we pandemic chain We who are supply also then highlighted the that

the for most these of companies a done by contractors, like or OSATs in the supply significant semiconductor the vulnerability chain industry encapsulation in subcontractors in packaging Asia So and exposed that or types parts. is

we had to processes to So onshore that. do in-house to bring and to us wanting us customers encourage

some investments And customer the response and feedback chip of kind shortages. of got are pandemic during we these interest that the so that in to and -- those

Jeffrey Milton Bernstein

Got you.

application of of in I K, some in wondering the power mentioned curious even the was on there. higher the mentioned isolators. some you the here, kind K And lastly, initiatives. see new what development, and product to the And call Okay. is just you

I to out some higher happening really you of things in and capability that carbide powered the the power and think But higher modules GaN previously, new semis silicon there. work what's compound with domain? like had

Daniel Baker

in there's interest area much exciting power Well, efficient conversion. very that's and because power a more so conversion

are that to available and now higher know band gap you switch higher higher are as transistor our of devices pointed So switches powers. uniquely these and at out, drive some voltages as and that you wide situated higher and becoming

systems So be and mean voltages and the power controlled. higher efficiency generally larger the to higher and more motors allows larger

vehicles conversion power electric and energy clean we in in applications storage. energy So see alternative and

excellent providing to growth product an those that's areas. and expand we're area continuing line in that opportunities, we as So see our

the the in to those going with mentioned up remarks, prepared for I in switches. that market to our devices As can power higher and higher we're ultra-high-efficiency withstand voltages order keep

common-mode figure of industry, highest we figure called have in have we also a which merit their isolation or is merit. capability And transient of key So switching speed with is highest voltage, highest the the the the type. immunity, sometimes CMTI which of another

market power So we switching. best demanding in the the and In more efficient have that rapidly devices more industry. and that's a is growing

Jeffrey Milton Bernstein

you. Got

transmission with engaging parts OEMs talked the challenges we've and the of just and et where then about these market cetera. to maybe to those And and industrial a kinds for sounds might guys past easier. major some like and of It the be you would electricity folks kinds the like just of more talk manufacturers the Can little things applications bit? Okay. for you of appropriate that in auto storage ability there, be

Daniel Baker

Exactly.

So but conversion solar we're can area automotive conversion. we nearer wind while But which markets markets, expanding have Those our product power lines, cautioned on. fast-growing that a DC-to-DC we're develop, potential talked important and about take term, that an have storage remains markets. power are it to we in those and energy focusing

of these most range see of important. for opportunities the energy and we broad a Automotive are So products. X clean

Jeffrey Milton Bernstein

Great. I'll ask some else questions. let someone

Daniel Baker

Thanks, Jeff.

Operator

conference queue this back questions any remarks. closing in further the time. you, for to Instructions] Baker Mr. [Operator turn no I call And the I'll see at

Daniel Baker

everyone. for the Well, strong thank report to you, earnings pleased We quarter. were

pleased our recovery. in are capital first to with investment. about of talk to well -- review to you July quarter next an plans quarter and speaking look first our We XXXX. for fiscal expansion positioned forward We earnings call the again We're at industry

Operator

you that our gentlemen, conference and for may you now for end your participation, and today. disconnect. Thank Ladies does

NVE (NVEC) 1 May 242024 Q4 Earnings call transcript