How did NVEC's revenue and expenses shift in Q3 2025 compared to previous quarters?

NVE Corporation (NVEC) experienced a significant decline in revenue and an increase in expenses in Q3 2025 compared to the previous quarter and the same quarter in the prior year. 1. **Revenue Shift**: - In Q3 2025, NVEC's total revenue decreased by 25% to $5.06 million compared to the same quarter in the previous year ($6.76 million). - This decline was primarily due to a 22% decrease in product sales and a 74% decrease in contract R&D revenue. - The company's revenue also decreased by 9% in Q3 2024 compared to the previous year. 2. **Expense Shift**: - Despite the revenue decline, NVEC's total expenses increased by 40% in Q3 2025. - The company's R&D expenses rose by 61%, driven by heightened investments in new technologies. - Selling, general, and administrative (SG&A) expenses increased by 11.7% due to increased sales staff and marketing activities. - Interest income decreased by 4% due to a decrease in marketable securities and lower yields on recently purchased securities. |code|Ticker|Name|Date|Total Revenue|Total Expenses|market_code| |---|---|---|---|---|---|---| |NVEC|NVEC.O|NVE|2024 Q3|6756260||186| |NVEC|NVEC.O|NVE|2024 Q4|7083229|0|186| |NVEC|NVEC.O|NVE|2025 Q1|6783244||186| |NVEC|NVEC.O|NVE|2025 Q2|6758690||186| |code|Ticker|Name|Date|Gross Profit Margin|Total Revenue|Operating Expenses|market_code| |---|---|---|---|---|---|---|---| |NVEC|NVEC.O|NVE|2024 Q4|77.2766|7083229|0|186| |NVEC|NVEC.O|NVE|2025 Q1|85.6191|6783244||186| |NVEC|NVEC.O|NVE|2025 Q2|85.8015|6758690||186| |NVEC|NVEC.O|NVE|2025 Q3|85.3783|5063045||186| The net income for Q3 2025 decreased by 27% to $3.05 million, or $0.63 per diluted share, compared to the same quarter in the previous year. This decline in revenue and increase in expenses reflect the challenges faced by NVEC in maintaining profitability amidst a downturn in the semiconductor industry.