Q2 2025 NVE Corp Earnings Call Transcript
Key Points
- Gross profit increased by 5% from the prior year, with gross margin percentage rising to 86% from 78%.
- Contract R&D revenue saw a significant increase of 3,950%, contributing positively to overall revenue.
- NVE Corp (NVEC) introduced a new product, the ALT 521-10E tunneling magneto resistance rotation sensor, which is touted as the world's most sensitive device of its type.
- The company has a strong balance sheet, allowing it to maintain an aggressive dividend policy while investing in capital expenditures.
- NVE Corp (NVEC) is optimistic about growth markets in the industrial Internet of Things and electrification, indicating potential future revenue streams.
- Total revenue for the quarter decreased by 5% due to a 14% decrease in product sales.
- Total expenses increased by 55% compared to the previous year, driven by a 24% increase in R&D expenses and a 31% increase in selling, general, and administrative expenses.
- Interest income decreased by 9% due to lower interest rates.
- The effective tax rate increased to 17% from 8% in the previous year, impacting net income.
- Net income decreased by 15% compared to the prior year quarter, primarily due to decreased revenue and increased expenses.
Good afternoon and welcome to the NVE Corporation conference call for the quarter ended September 30th 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 via youtube and Amazon chime and it's being recorded. A replay will be available through our website NVE dotcom and our youtube channel, youtube dotcom slash NVE corporation. All participants are currently in a listen-only mode. After our presentation, there will be a question and answer session. You'll be able to ask a question by pressing Star Seven from a phone or clicking, raise my hand from the chime website or app. 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
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