Q1 2025 NVE Corp Earnings Call Transcript
Key Points
- NVE Corp (NVEC) reported strong earnings and cash flow despite a challenging industry environment.
- Gross margin percentage increased to 86% from 77% in the prior-year quarter, attributed to a more profitable product mix and a larger portion of direct sales.
- Operating cash flow increased by 16% to $5.85 million, more than covering the $4.83 million dividend.
- The company has a strong balance sheet, with cash plus marketable securities increasing to $53.2 million.
- NVE Corp (NVEC) has been awarded incentives from the Minnesota Investment Fund and a $200,000 no-interest loan to finance new production equipment.
- Total revenue for the quarter decreased by 23% compared to the prior-year quarter, primarily due to a 24% decrease in product sales.
- The semiconductor industry downturn and high inventory levels in distributor channels contributed to the decrease in product sales.
- Total expenses increased by 3% due to a 26% increase in research and development expenses and a 14% increase in selling, general, and administrative expenses.
- Net income decreased by 7% compared to the prior-year quarter, primarily due to decreased revenue.
- Comprehensive income decreased by 1% from the prior-year quarter, despite an unrealized gain from marketable securities.
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. (Event Instructions) After my opening comments, Daniel Nelson will present our financial results. I'll cover products and marketing, and we'll open the call to questions.
We issued our press release with financial results and filed our quarterly report on Form 10-Q in the past hour following the close of market. Links to the press release and 10-Q are available through the SEC's website, our website, and on X, formerly known as Twitter.
Please refer to the Safe Harbor statement on your screen. Comments we may make that relate to future plans, events, financial results, or performance are forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
