NVE Corporation (NASDAQ:NVEC) Q2 2023 Earnings Conference Call October 19, 2022 5:00 PM ET

Company Participants

Dan Baker - President and Chief Executive Officer

Joe Schmitz - Chief Financial Officer

Conference Call Participants

Jeffrey Bernstein - Cowen

Irwin Silverberg - Cowen

Stanley Kesselman - Maxim Group

Operator

Good day, and welcome to the NVE Conference Call on Second Quarter Results. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, President and CEO, Mr. Dan Baker. Please go ahead.

Dan Baker

Good afternoon, and welcome to our conference call for the quarter ended September 30, 2022. This call is being webcast live and being recorded. A replay will be available through our website nve.com.

And I'm joined by our CFO, Joe Schmitz. After my opening comments, Joe will present a financial review then I'll cover the business and new products, 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 timeline.

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 risks and uncertainties related to future sales and revenue, uncertainties related future stock repurchases and dividend payments, our dependence on critical suppliers and packaging vendors and risk-related to the COVID-19 pandemic and supply chain disruptions, as well as the factors listed from time-to-time in our filings with the SEC, including our annual report on Form 10-K for the fiscal year ended March 31, 2022. Actual results could materially differ from the information provided, and we undertake no obligation to update forward-looking statements we may make.

We're pleased to report a record shattering quarter, net income for the quarter increased 67% to $6.09 million, or $1.26 per diluted share, driven by 57% revenue increase. Revenue and earnings were the highest ever by far.

Joe, will cover the details. Joe?

Joe Schmitz

Thanks, Dan. As Dan said, total revenue for the most recent quarter increased 57% to a record setting $10.7 million, compared to $6.82 million for the prior year quarter. The increase was due to a 59% increase in product sales and a 5% increase in contract R&D revenue.