What factors drove the changes in NVE's revenue and profit?

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Did NVE beat or miss consensus estimates last quarter?

What does NVE do and what are its main business segments?

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What were the key takeaways from NVE’s earnings call?

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What is NVE's latest dividend and current dividend yield?

- **Revenue Growth**: 4% QoQ from distributor and non-defense sales, despite 6% YoY decline.
- **Margin Challenges**: Gross margin 78% (vs. 86%) due to distributor mix; net income down 17% YoY.
- **New Products**: Wafer-level packaging, medical sensors, and industrial IoT solutions launched.
- **Market Focus**: Medical devices, electric vehicles, and domestic defense supply chain.
- **Financial Outlook**: 16-17% tax rate with $0.7-1M credits; R&D investments to fuel future growth.

**【CEO Opening Remarks】**
- Q2 2026 revenue increased 4% sequentially, driven by strong distributor and non-defense sales (+21%), offsetting a 64% decline in defense sales.
- Highlighted new product launches: rotation sensor, data coupler, and wafer-level chip scale voltage regulator.
- Emphasized medical device market growth through miniaturization and low-power solutions for implantable devices and surgical robots.

**【CFO Financial Commentary】**
- Revenue $12.5M (FYTD), down 6% YoY due to 68% drop in contract R&D revenue.
- Gross margin 78% (vs. 86% prior year), impacted by lower-margin distributor sales.
- Operating expenses decreased 7%: +3% R&D, -23% SG&A (timing of marketing activities).
- Net income $3.31M ($0.68/share) vs. $4.0M ($0.83/share) YoY, driven by lower revenue and margins.
- Tax rate 20% (FY26: 16-17% expected with $0.7-1M manufacturing credits).

**【VP of Advanced Technology】**
- Installed new production equipment enabling wafer-level chip scale packaging in-house.
- R&D focus on medical devices, electric vehicles, and industrial IoT.
- New products include sensors for robotics, energy conversion, and harsh environment power management.

**【Sales & Marketing】**
- Exhibited at medical design shows, showcasing ultra-low power sensors for implantables.
- Annual shareholder meeting featured new production capabilities and live demos.
- Distributor sales recovery offset defense volatility.

**【Q&A Highlights】**
- New equipment to drive industrial IoT and medical device growth within 12 months.
- Domestic supply chain for wafer-level packaging reduces tariff risk.
- Targeting 800V DC data centers and eVTOLs with high-isolation voltage products.
- Defense R&D contracts (6% revenue) balance IP development with commercial opportunities.
- Rare earth-free magnet sensors gaining design wins in robotics and EVs.

NVE Corporation (NVEC) Q2 2026 Earnings Call Transcript

- **Revenue Resilience**: Nondefense sales stabilized, offsetting 11% defense decline. Distributor sales improved after industry downturn.
- **Margin Challenges**: Gross margin dropped to 81% due to lower-margin distributor sales. Net income fell 13% but maintained strong 59% net margin.
- **Strategic Investments**: $1.06M in wafer fabrication equipment; WLCS sensors launched for medical and robotics markets. Rare earth-free magnets target supply chain risk mitigation.
- **Defense Outlook**: Sequential PUF sales growth expected, with FY2026 return to historical levels. Management evaluates non-defense revenue reporting.

**【Management Opening Remarks】**
- CEO Dan Baker highlighted strong revenue and earnings for Q1 2026, driven by nondefense sales stabilization despite a 11% decline in defense industry sales. Distributor sales showed improvement after industry downturns.
- CFO Daniel Nelson noted a 10% year-over-year revenue decrease due to lower product sales, partially offset by a 17% increase in contract R&D revenue. Gross margin fell to 81% from 86% due to less profitable product mix and distributor sales.

**【CFO Financial Commentary】**
- Net income decreased 13% to $3.58 million ($0.74 per diluted share) due to lower revenue and margins, partially offset by 20% expense reductions (18% R&D, 23% SG&A). Operating, pretax, and net margins remained strong at 62%, 70%, and 59%, respectively.
- Operating cash flow of $5.19 million covered the $4.84 million dividend. Capital expenditures included $1.06 million for wafer fabrication equipment, with a $1 million milestone payment due in the current quarter.
- The company expects $700-800k in advanced manufacturing tax credits and significant cash flow savings from R&D expense deductions.

**【CEO Business Update】**
- **CapEx Investments**: Deployed new wafer fabrication equipment and installed a multi-million dollar cluster for wafer-level chip scale packaging (WLCS). Samples and evaluation boards are available, with high-volume production planned for the next fiscal year.
- **Product Launches**: Introduced WLCS sensors (<1,000th of a square inch) and promoted rare earth-free ferrite magnets/sensors at SENSOR+TEST (Germany) and Sensors Converge (USA). These address supply chain risks from Chinese rare earth dependency.
- **Annual Meeting**: Scheduled for August 7, 2025, with director elections, officer compensation approval, and auditor ratification. Proxy statement highlights 3-year total shareholder return of 39% (17% stock + 22% dividends).

**【Q&A Highlights】**
- **Defense Business Recovery**: CEO expects sequential growth in PUF (physical unclonable function) sales over the next quarters, aligning with DoD budget expansion. Historical levels expected in FY2026.
- **Ferrite Magnet Opportunity**: Design wins for ferrite magnet/sensor systems are progressing, with customers evaluating solutions for automotive, robotics, and medical applications. Minimal redesign required for rare earth replacement.
- **WLCS Market Traction**: Targeting medical devices (implantable navigation) and industrial robotics (precise position sensing). Positive customer feedback on samples, with volume production pending.
- **Military Sales Transparency**: Management considers reporting non-defense revenue separately but requires infrastructure for consistent segment reporting. Current expectations: sequential defense sales growth in coming quarters.

NVE Corporation (NVEC) Q1 2026 Earnings Conference Call Transcript

- **Revenue rebound**: Q4 2025 revenue up 3% YoY, 44% QoQ, driven by 40% product sales growth and 558% R&D surge.
- **Margin expansion**: Gross margin 79% (vs. 76%), net margin 54%, fueled by direct sales and new sensors.
- **Strategic bets**: $2-3M 2026 CapEx for WLCSP fab tools, targeting EV/robotics with 700kV/μs CMTI isolators.
- **Tariff resilience**: $10.5M inventory buffer mitigates 25% Chinese raw material tariffs.
- **Product pipeline**: 14 new sensors launched, including medical-grade MRAM and WLCSP packages.


**【CEO Opening Remarks】**
- Q4 2025 revenue increased 3% YoY to $10.2 million, with 44% sequential growth driven by product sales and contract R&D.
- Net income rose 2% to $3.89 million ($0.80 EPS), supported by improving industry conditions and new product adoption.
- FY2025 revenue declined 13% to $36.5 million, but non-GAAP EPS of $0.80 exceeded expectations.

**【CFO Financial Highlights】**
- Q4 contract R&D revenue surged 558% ($270,000), offsetting 1% product sales decline.
- Gross margin expanded to 79% (vs. 76% prior quarter) due to direct sales and profitable product mix.
- R&D expenses rose 28% to $1.2 million, reflecting investment in next-gen sensors.
- FY2025 capital expenditures reached $1.2 million, with $2-3 million planned for FY2026 for wafer fabrication equipment.

**【CEO Strategic Updates】**
- Tariff resilience: 25% Chinese raw material tariffs mitigated by $10.5 million inventory buffer.
- New product launches: Advanced magnetic sensors for robotics, wafer-level chip-scale packages (WLCSP), and medical-grade MRAM.
- Customer wins: Extended partnership with Abbott for implantable medical devices.
- Trade show presence: Sensor+Test (Germany) and SensorCon (USA) to showcase 14 new products.

**【Q&A Key Takeaways】**
- Revenue recovery driven by 40% product sales growth and 210% R&D demand.
- WLCSP isolators handle up to 7kV, targeting EV/robotics with 700kV/μs CMTI rating.
- FY2026 CapEx of $2-3M justified by $1.5M+ customer pipeline for WLCSP devices.
- R&D intensity at 14% of revenue to maintain sensor tech leadership.


NVE (NVEC)-7 May 25-2025 Q4 Earnings call transcript

- **Resilient Margins Despite Revenue Drop**: 84% gross margin vs. 80% prior year, driven by direct sales.
- **R&D Intensity**: 17% of revenue invested in new products for medical and AI applications.
- **CapEx Expansion**: $1.16M spent YTD toward $4-5M two-year plan for equipment and facilities.
- **Market Recovery Signals**: Distributors expect 12-18 months to clear inventory, with end-market demand improving.
- **Defense Resilience**: Pulp business (defense) shows quarterly strength amid broader semiconductor challenges.
- **AI Sensor Potential**: Spintronic sensors enable precise data for AI in hearing aids and medical devices.


**【CEO Opening Remarks】**
- Reported strong earnings despite a 25% YoY revenue decline, driven by inventory liquidation in distribution channels.
- Highlighted 84% gross margin, up from 80% prior year, due to higher-margin direct sales and product mix.
- Emphasized R&D investment at 17% of revenue, leading to new wafer-level chip scale products for medical and robotics applications.
- Capital expenditures of $1.16M YTD, with plans for $4-5M over two years for equipment and facility expansion.
- Lease extension for 62 months with $100K improvement allowance, supporting capacity growth.

**【CFO Financial Summary】**
- Q3 2025 Revenue: $10.2M (down 25% YoY), with 22% product sales decline and 74% contract R&D drop.
- Operating Expenses: +40% YoY to $4.2M, driven by 61% R&D increase and 12% SG&A rise.
- Net Income: $0.63M (down 27% YoY), with 84% gross margin and 58% operating margin.
- 9M 2025 Results: Revenue $28.5M (-18% YoY), Net Income $11.2M ($2.31 EPS).

**【CEO Business Update】**
- Introduced new wafer-level chip scale products, world's smallest for medical devices and robotics.
- Launched evaluation boards for Adreno single-board computers, showcasing sensor capabilities.
- Direct sales resilient at higher margins, while distributors face inventory challenges.
- Positive outlook on medical device and defense markets, with Abbott's 6% Rhythm Management growth cited.

**【Q&A Key Takeaways】**
- **Direct Sales Strength**: Direct customers show strong demand, contrasting distributor inventory burn.
- **Sensor Tech in AI**: Spintronic sensors enable precise data for AI applications in hearing aids and medical devices.
- **Defense Growth**: Pulp business (defense) shows resilience, with long-term optimism despite quarterly volatility.
- **Sales Expansion**: Increased sales staff and marketing efforts targeting new designs and trade shows.
- **Market Recovery**: Distributors expect 12-18 months to clear inventory, with end-market demand improving.


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