NVEC Corporation (NASDAQ:NVEC) Q3 2023 Earnings Conference Call January 25, 2023 5:00 PM ET

Company Participants

Daniel Baker - President and Chief Executive Officer

Joseph Schmitz - Chief Financial Officer

Conference Call Participants

Jeffrey Bernstein - Cowen

Alex Woodward - Bridge City Capital

Walter Morris - Baraboo Growth

Operator

Good day and thank you for standing by. Welcome to NVE Conference Call on Third Quarter Results. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to your speaker Dan Baker, President and CEO. You may begin.

Daniel Baker

Good afternoon and welcome to our conference call for the quarter ended December 31st, 2022. This call is being webcast live and being recorded. A replay will be available through our website nve.com. I'm joined by our CFO, Joe Schmitz. After my opening comments, Joe will present a financial review then I'll cover marketing, design wins, new products and then we'll open the call to questions.

We issued our press release with quarterly 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 our Twitter time line.

Comments we may make that relate to future plans, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties, including among others, such factors as uncertainties related to the economic environments in the industries we serve.

Risks and uncertainties related to future sales and revenue, uncertainties related to future stock repurchases and dividend payments, our dependence on critical suppliers and risks related to supply chain disruptions as well as the factors listed from time to time in our SEC filings, including our annual report on Form 10-K for the fiscal year ended March 31st, 2022, as updated in our just filed quarterly report on Form 10-Q.

Actual results could differ materially from the information provided and we undertake no obligation to update forward-looking statements we may make. We're pleased to report a strong quarter. Net income for the quarter increased 22% to $0.88 per diluted share, driven by a 22% increase in product sales.

Joe will cover the details of our financials. Joe?

Joseph Schmitz

Thanks, Dan. Third quarter total revenue increased 18% to $7.4 million from $6.29 million for the prior year quarter. This was our second consecutive quarter with large year-over-year revenue increases. The increase was due to a 22% increase in product sales, partially offset by a 46% decrease in our contract R&D revenue.