NVEC - Earnings call transcript Q1 2025

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Daniel Baker

Good afternoon, and welcome to the NVE Corporation Conference Call for the quarter ended June 30, 2024. I'm Dan Baker, NVE's President and CEO. I'm joined by Controller and Principal Financial Officer, Daniel Nelson. This call is being webcast live by YouTube and Amazon Chime and it's being recorded. A replay will be available through our website, nve.com and our YouTube channel, youtube.com/nvecorporation.

opening Nelson my financial present After results. Instructions] comments, will Daniel our [Operator and open and questions. cover marketing I'll products will the to call We XX-Q with quarterly release market. following issued and of our our filed the financial close report the in results Form past hour on press website, as the to Twitter. SEC's and and on available through XX-Q Links website are X, release the press our formerly known

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

report Daniel? environment quarter. to Daniel financials. will earnings and pleased Nelson from our strong despite exceptional industry flow ago year We're details the and revenue a challenging cash an decrease in cover of

Daniel Nelson

primarily high to in sales, research quarter. primarily increase compared the a inventory decrease revenue product distributor to for partially semiconductor an was and industry Total ended product year XX, decrease offset decreased Thanks, sales quarter development The revenue. in in and XX% to XX% The Dan. contract June by XXXX, channels. exceptional in prior levels, downturn decrease the due was XX% a due

gross XXXX was the more first and in to Gross XX% XXXX. XXXX fiscal forecasts to for quarter year distributor the strong margin a margin in sales. prior the percentage percentage on recover profitable the to direct portion rather quarter. XX% calendar was in is path mix larger growth of However, of indicate due increase product industry and in compared The than a

and due selling, for and the and product quarter We increased fiscal loss quarter Total primarily increase of expense, to of development selling, increase due was fiscal in marketing due the activities. those about was in first and and increase The first to by increase a in in expenses activities compared general credit to general a shortly. and administrative X% in to talk XXXX increased administrative XXXX Dan decrease a increased increased personnel expense and and added expenses development new research activities. expense sales marketing will sales partially The development offset activities. XX% marketing research expense. XX%

Interest rates. the due increased income for quarter XX% to higher interest

revenue, primarily was of from rate, decreased of decrease of the for rate. Our is prior for tax of offset a in and X% in decrease first to compared margin lower With deductions. due unrealized XXXX. fiscal fiscal due income compared net a first taxes provision the credits federal prior to and just the marketable gain effective comprehensive the interest as increased for as quarter fiscal X% to income from XXXX quarter year profit decreased The quarter which a increased the XX% gross tax quarter timing quarter. the income in securities, was by partially to XX% income and XXXX changes tax year the of income revenue, to an percentage first effective of before The amounts decreased taxes percentage

XX% more to per cash quarter. for covered It margin, XX% the XX% flow quarter earnings $X.XX margin for flow net year million most million operating share. of margin, XX% gross Operating $X.XX and increased the prior than was $X.XX profitable exceptionally $X.XX an compared the dividend. Operating quarter recent with to cash million

Our and from capital in balance marketable our to $XX Even plus increased $XX.X cash million $X.XX sheet $XXX,XXX securities after expenditure, million million. strong. dividend remains

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

Daniel Baker

I'll and cover sales Daniel. CapEx. marketing Thanks, and

and X sales Our marketing main thrusts. includes

the First, providing and involves newsletters support questions frequency distributor videos; shows. quarter, videos fast, in the and and We direct rates customer past boards; well-informed click-through answering and trade and we metrics. and evaluation application support; visits, and good and customer second, third, newsletters customer engineering. finally, Distributor increased have open of

evaluations. We on exhibited product trade month, distributors efficient we technology. and international trade international represent was typically new billed customer X shows major quarter, to introduced past Evaluation trade Nuremberg, at is Germany. We've including dozens fair supports which of board leading Sensor+Test, measuring at testing sensor, relied And in for as the show shows. in boards. That more the evaluation us last

which but booth is own us some space distributor, leads, quality and at magnetoresistance also promote gained to also particular continue in which Converge products. German were this Valley, had We Silicon in as high largest tunneling North we America's to We with co-exhibit event. year, gave We sensors. our there Sensors billed more was interest a our electronics

quarter, Asia scale currently assembly parts and performance overmolding. including the be will will investments can XXXX plans conventional will products parts and capabilities, fiscal X chip Wafer-level shows million than $X to to packaged over more OSAT, allow wafer-level in We and encapsulated our The plastic more capture these $X chip smaller, smaller our in These off next of pay the even the packages increase to discussed our in-house. capability or years, subcontractors be scale using semiconductor test and fiscal future Most for Last manufacture capacity believe we investments million XXXX. outsourced and self-sufficient us higher by components. capital in and sales. investments be are value.

some to late fiscal We provided hope there prototypes, and year. wafer-level with this interest. begin have production customers customer solid been We scale chip has

payment equipment Fund. potential been to production help from and loan $XXX,XXX announced Minnesota based number certain purpose-built added incentives for a next were in awarded the yet. XXXX X-year be up the Our of year. that to no-interest finalized finance $XXX,XXX We There's Minnesota to to also was have incentives intended delivered be paid new production state the quarter, the other conditions. CapEx Investment awarded past past on is the to custom, quarter In $XXX,XXX The we agreements mostly not of down of had in been a subject jobs equipment. funding

Annual August will Our Meeting be Shareholders' X.

this be our with here been product shareholders' we hands-on do. shareholders tours, and can directors at meeting except have during pandemic, see managers in-person, demonstrations. meetings year's so so will and NVE can response see to meet request, shareholders Our the what In

will which going meetings time. on live of and our annual follow that product will and showing the demonstrations at themes, Our We'll products. year, be the the have theme endurance precision, this be Olympics, strength

you website see on our demonstrations YouTube If can you product can't or attend, channel.

is X statement website agenda for for the or items our proxy meeting. Our available the website. There meeting via are annual the SEC's

annual fill to welcome Board and also for We She's our The a to full to Board is Sadly, for nearly Rich's nominated term who Rich election were Dr. directors. Kelly unexpired meeting. been We shareholders. of company in of and to been passed member Rich item first Kramp a Wei had at our was term. XX May. away him. valuable dedicated our pleased miss agenda the had our years a Director starting

executive a engineer. and and education is technical her her to Kelly director. Her accomplished medical engineering and a medical Medtronic exceptionally device management, an as qualified strong and experience make serve

is agenda of item second compensation. approval officer The

proxy our we in detailed include, officers. as principles compensation Our overpay our don't

no are Our and officers perks parachutes. same golden fringe have benefits the there all executive as or employees

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

We meeting. attend expect from representatives the to Boulay annual

far The was proxy X and return of the markets. shareholder years from consisted appreciation total Returns which XX% past the stock exceeded broad fiscal XX% dividends. for reports XX%,

like we'd questions. the for open Now to call

Daniel Baker

Instructions] [Operator

Jeffrey Milton Bernstein

it's Capital Silverberg, Management. Dan, Bernstein Jeff from Bernstein

to CapEx wanted bit little investment. talk the about a just more So

revenue million flat is and Just spent little actually over looking, going $X much pretty that period. and guys back over XXXX XXXX. you between And a time

going improve can which You're improvement going CapEx a to kind capability lead and you're of going talk not that that this new investment make to bring a little capability revenue to actually because you buy you it's to understand But can externally. margins I some to packaging-wise, may what your have big think here, you bit to?

Daniel Baker

this Yes, about talked excited we that's a are about well about and That's And underway. we we quarter. the great Jeff. that question, briefly last plan expansion quarter talked

As Daniel piece down we've noted, payment of a equipment. on made a

them revenue potential, are chip prospects in the which give who our offer move even smaller medical opens using As for around now and construction smaller customers the who us capabilities, our existing folks this room, also, scurrying hope wafer-level begin available. we smallest have would we make and we believe products products like excellent and things components make want scale it for to to quarter. we will markets sensors than believe It we new to industrial customers a and the both speak,

see it our potential only but to also excellent not providing So and increase with with capability in-house as we do revenues. capturing value us more

Jeffrey Milton Bernstein

installed. sometime equipment folks revenue what's you your do this, that, it's of start orders soon give being that Or able delivered you to certainty we indications up can to have so from and hey, of have And after if new kind deliver you? orders filling with

Daniel Baker

believe customers existing customer realistic. committed once order say going expect indications type and we excellent to type when a do this customers. good gotten feedback and we or these just haven't purchase of them have and They But potential available. as interest, from made investment products wouldn't expressions that have buy direct this they're from they're strong of and you something not have Well, without investment we've said, interest wouldn't of there's product, of to expressions this That's to that we we waiting. quite as

that have who for looking general sensitivity and have in always to the able offer to are for and addition higher better be products products that, capabilities can prospects So detectivity. that that additional -- smaller will we

Jeffrey Milton Bernstein

privy that So breaking sort to customer And of dual bit big push cardiac a of would of chamber new because assume rhythm one I like you're road just a its AVEIR and size. that has back that's Abbott that -- to record map. map a I terms kind on management that little road has want got that product a in

you putting to be would And serve degree road of place in high existing that map. have an so capacity that kind confidence of would there a

maps there are road with imply get used. large some is that So this capacity customers that to going

Daniel Baker

road are we enables technology our It smaller a a maps be specifically There for in leadless us AVEIR figure the we on Abbott's to wouldn't -- road comment is maps. plans, those And and appropriate very pacemaker. of example devices, component fulfill of excellent is type implanted course, deeply devices. device helps as having them an small make This and which medical you, point where mission the of their out.

we an that see excellent as market. So

We of this Abbott investment. and companies space of this have that's in gives confidence a us with who a a what other long-term and so that high are part degree good partnership is

Jeffrey Milton Bernstein

you. Got Understand.

and XX% big that at talking CAGR, market Allegro, about for you they year, supplier And in focused TMR a big and see bought measurement Okay. an EV within paid a money Last your points about is are auto, how which which current magnetometers. they're cetera. talked is on current And XX multiple. lot there measurement and et a a very then TMR measurement and of competitor Crocus current growing a

market comment EV just of electrification going TMR been the it's of you your for -- on little guys can about all But know to difficult I and products general specifically. into a that's kinds you bit opportunity. break

Daniel Baker

that for a That's have And know, an market. excellent market as for electric a and vehicle conversion that the number and us, successes the you then of wins we and energy in design of have number geared of products we customers broader Jeff, market market, space.

that do of and a towards revolutionary one towards motors. with better opportunities as these energy electrification, So batteries, management energy of see storage we move

And have the devices, link systems power So allow and introduced and control our a or off a isolators then and market, the competitive provide sensors microcontrollers have sensors. we faster which the new which in between couplers, to competitive you that available products. are particular, our efficiency power we manage couplers than therefore switch have best sensors, can alluded have also more but transistors And It's the on current and we energy. we to. current or current

energy in we generation. of we're positioned for management So changes very one biggest believe well a in the

Jeffrey Milton Bernstein

really And me just the spintronic-type There correct isolators. rest largely isn't technologies? other who else optical anybody on making isolators, are is and the those

Daniel Baker

Exactly.

of other have semiconductor use a unique spintronic there. advantages or optical number Other technology. We have And isolators. we isolators

One them faster, gap efficient. wideband allows of us them is speed more and makes to transistors that switch which switching

Jeffrey Milton Bernstein

you. Got

volatility it's a there's it about value as autonomous systems sort going and to large smaller and talk the some then source And then business. high was PUF whether the of not more this military Okay. used the as a value. And I'm very they systems, revenue very but like just are software be of that quarter. been is and I factor the know more curious, sounds by in maybe high of

would think that? you have unit with just so that potentially on And PUFs But discuss can a market that trend. would larger your you thoughts

Daniel Baker

Yes.

defense in to physical the particular, includes which but can be to function which that that PUFs easy evaluate are devices, are and is embodied PUFs, anti-tamper So in hard a replicate. business, predict a structure

systems. those are anti-tamper systems of used defense in components they're So and important primarily

business expect be was the relatively know to September continue what strong on defense the based we the in and strong current past in quarter, that, at quarter, least. to we So now, quarter, our

smaller your we great part high very that tending the a Sometimes, to these question or one the value-added there's business. But great And very move that. systems. get of so but on don't in second far, expensive of defense out systems visibility of as and products from you in in that been are those factors important point more to interest deal is systems

there's defense protection a to as importance or we are And tamper and and provide defense also those technology, technology. anti-tamper as sell to nation we have into to vulnerable we allies, anti-tamper unfriendly systems, hands as so sell falling particularly excellent systems an

and vehicles. drive take a see we business management, it's prospects, not business dramatic type that growth this prospects. tremendous to So nevertheless, energy the solid at with near-term we look hope of as the and say and electric we that good is solid in. opportunities one and like It's we pride see that hybrid this business for with But going

on the challenging We call environment. October Well, can look August you. report I www.youtube/nvecorporation. this annual earnings XX% so we a on you of our Events our will some our X. Investor strong queue, operating don't next to up. again flow have the you A meeting in and any a and other meeting, website, replay speaking cash at earnings of to available our Thank section YouTube questions pleased sum in in increase despite nve.com call and be We that's with of were channel forward

may now You disconnect.

NVE (NVEC) 17 Jul 242025 Q1 Earnings call transcript