Latest news with #NVECorp
Yahoo
3 days ago
- Business
- Yahoo
NVE Corp Q1 Earnings Decline Y/Y, Stock Falls More Than 20%
Shares of NVE Corporation NVEC have declined 20.4% since reporting earnings for the first quarter of fiscal 2026. This compares with the S&P 500 index's 0.9% growth over the same time frame. Over the past month, the stock has declined 14.2% against the S&P 500's 3.9% rally. For the first quarter ended June 30, 2025, NVE Corp reported total revenues of $6.10 million, a 10% decline from $6.78 million in the same period last year. This decrease was primarily led by an 11% year-over-year drop in product sales, slightly offset by a 17% rise in contract research and development revenues. Net income fell 13% to $3.58 million, or 74 cents per diluted share, from $4.10 million, or 85 cents per share, in the year-ago quarter. NVE Corporation Price, Consensus and EPS Surprise NVE Corporation price-consensus-eps-surprise-chart | NVE Corporation Quote Other Key Business Metrics Gross profit for the quarter stood at $4.92 million, down from $5.81 million in the prior-year period, reflecting a gross margin decline to 81% from 86%. The reduced margin was attributed to a less favorable product mix and increased distributor sales, which generally carry lower margins than direct sales. Total operating expenses dropped 20% year over year to $1.14 million, driven by an 18% decrease in research and development (R&D) expenses, and a 23% reduction in selling, general and administrative (SG&A) costs. The decline in R&D expenses stemmed from the completion of certain wafer-level chip-scale packaging projects and the reallocation of some R&D resources to manufacturing. Similarly, SG&A expenses were reduced due to the timing of sales and marketing activities, as well as the reassignment of administrative roles to production functions. Operating income was $3.78 million for the quarter, with an operating margin of 62%. Interest income contributed $498,208, and other income added a minor $811, resulting in a pretax income of $4.28 million. After taxes, the net margin was a robust 59%. Comprehensive income, which includes approximately $75,000 in unrealized gains from marketable securities, totaled $3.65 million. Management Commentary CEO Daniel Baker acknowledged the earnings decline but emphasized the company's strong profitability and cost control. He noted that non-defense product sales were stabilizing and industry conditions were improving. Distribution channel sales showed early signs of recovery, which the company views as an encouraging indicator of a broader market rebound. Defense-related product sales, particularly in the physical unclonable function segment, were cited as a source of revenue variability due to the cyclical nature of government procurement. However, Baker expressed optimism about sequential growth in defense orders in the coming quarters and a return to historical demand levels in fiscal 2027. Factors Influencing the Results The revenue and earnings declines were largely due to lower defense product sales, which are known to be lumpy and dependent on the timing of government contracts. The gross margin also narrowed because of the higher mix of distributor sales. However, the company partially mitigated these pressures through disciplined expense management. Capital expenditure in the quarter totaled $1.06 million, mostly allocated to wafer fabrication equipment. The acquisition of this equipment was strategically timed ahead of the expiration of a reciprocal tariff exemption in early July. This investment supports NVE's two-year expansion plan and will also qualify for a 25% advanced manufacturing investment tax credit under a recently extended tax bill, translating into a benefit of $700,000-$800,000 this fiscal year. Additionally, changes to the U.S. Internal Revenue Code now permit the immediate expensing of previously amortized R&D costs, improving near-term cash flow though not materially affecting net income. Guidance Management signaled expectations for quarter-over-quarter growth in defense product sales throughout the remainder of the fiscal year. Additionally, encouraging trends in distributor sales and ongoing product innovation efforts are expected to contribute positively to future performance. Product development initiatives included the launch of ultra-miniature wafer-level chip-scale sensors and expanded promotion of rare-earth-free ferrite magnet sensors, targeting markets where geopolitical risks pose supply-chain threats. These initiatives were showcased at major trade events — SENSOR+TEST in Germany and Sensors Converge in California — which generated promising customer leads. Other Developments In the quarter, NVE continued its investment in wafer-level packaging technology aimed at serving the medical device and industrial automation markets. The company has begun sampling these miniaturized components, which offer increased spatial precision, to potential customers in both sectors. Initial feedback has been favorable, and NVE expects to move toward higher-volume production later this fiscal year. The company also maintained its shareholder return policy, declaring another quarterly dividend of $1.00 per share, payable August 29, 2025. The company's ongoing capital investments and IP development activities continue to support its long-term strategic growth initiatives. Management reaffirmed its commitment to balancing R&D, operational efficiency and shareholder returns in an evolving macroeconomic environment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVE Corporation (NVEC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
NVE: Fiscal Q1 Earnings Snapshot
EDEN PRAIRIE, Minn. (AP) — EDEN PRAIRIE, Minn. (AP) — NVE Corp. (NVEC) on Wednesday reported profit of $3.6 million in its fiscal first quarter. On a per-share basis, the Eden Prairie, Minnesota-based company said it had profit of 74 cents. The nanotechnology company posted revenue of $6.1 million in the period.
Yahoo
10-05-2025
- Business
- Yahoo
NVE Corp (NVEC) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Investments
Release Date: May 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NVE Corp (NASDAQ:NVEC) reported a 3% year-over-year increase in revenue and a 44% sequential revenue growth for the quarter. Gross margin increased to 79% from 76% due to a more profitable product mix and a larger portion of direct sales. Net income for the fourth quarter increased by 2% to $3.89 million, indicating improved profitability. The company has a strong operating margin of 58% and a net margin of 54% for the quarter. NVE Corp (NASDAQ:NVEC) has successfully expanded its manufacturing capacity and capabilities, including new equipment deployment. Total expenses increased by 17% for the fourth quarter, driven by a 28% increase in R&D expenses. For the fiscal year, revenue decreased by 13% due to declines in the first three quarters. Net income for the fiscal year was down 12% to $15.1 million, reflecting a challenging industry environment. The company plans significant capital expenditures of $2 to $3 million for fiscal 2026, which could impact cash flow. Accounts receivable increased by $444,000, indicating potential delays in customer payments. Warning! GuruFocus has detected 3 Warning Sign with NVEC. Q: Can you explain how much of this quarter's revenue improvement was due to channel replenishment versus new business? A: It was a combination of both. We saw customers replenishing inventories and buying more for their end use, alongside significant interest in our new products. This resulted in high-quality revenues for the past quarter. (Respondent: CEO Dan Baker) Q: What end markets or capabilities are your new products targeting? A: Our new products focus on medical devices, industrial control, and the industrial internet of things. The advanced magnetic sensors we introduced are omnidirectional, providing flexibility for industrial controls and advanced robotics. We aim to lead the industry in performance, accuracy, size, and power efficiency of sensors. (Respondent: CEO Dan Baker) Q: How do your isolators perform in high voltage environments? A: Our isolators have the highest isolation voltage in the industry, up to 7 kilovolts, and the best common mode transient immunity, allowing faster switching at higher voltages. This makes them ideal for interfacing with wide band gap transistors in high voltage systems. (Respondent: CEO Dan Baker) Q: What gives you confidence in earning a return on your planned CapEx investments? A: We have received excellent feedback on prototype and sample devices from customers, which gives us optimism that these investments will open significant new markets for us. (Respondent: CEO Dan Baker) Q: Can you elaborate on your CapEx plans for fiscal 2026? A: We plan significant capital expenditures of $2 to $3 million, which will enhance our capability and capacity, including making more wafer-level chip scale parts in-house. We are prepared with the necessary infrastructure and expect to receive a major equipment cluster in the September quarter. (Respondent: CEO Dan Baker) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
07-05-2025
- Business
- San Francisco Chronicle
NVE: Fiscal Q4 Earnings Snapshot
EDEN PRAIRIE, Minn. (AP) — EDEN PRAIRIE, Minn. (AP) — NVE Corp. (NVEC) on Wednesday reported net income of $3.9 million in its fiscal fourth quarter. The Eden Prairie, Minnesota-based company said it had net income of 80 cents per share. The nanotechnology company posted revenue of $7 million in the period. For the year, the company reported profit of $15.1 million, or $3.11 per share. Revenue was reported as $25.9 million. _____
