NVE Corporation (NASDAQ:NVEC) Q1 2023 Earnings Conference Call July 20, 2022 5:00 PM ET

Company Participants

Sue Miller - Senior Accountant

Daniel Baker - President and Chief Executive Officer

Joseph Schmitz - Chief Financial Officer

Conference Call Participants

Jeff Bernstein - Cowen

Alex Woodward - Bridge City Capital

Daniel Baker

Thank you and good afternoon. Welcome to our conference call for the quarter ended June 30, 2022. My name is Dan Baker, I'm the President and CEO of NVE Corporation. 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 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 and 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 to future stock repurchases and dividend payments, our dependence on critical suppliers and packaging vendors, and risks related to COVID-19 pandemic and supply chain disruptions, as well as the risk factors listed from time-to-time in our filings with SEC, including our annual report on Form 10-K for the fiscal year ended March 31st, 2022. 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 16% increase in net income for the first quarter to $0.86 per diluted share. Joe will cover the details. Joe?

Joseph Schmitz

Thanks Dan. Total revenue for the most recent quarter increased 3% to $7.34 million from $7.15 million in the prior year quarter. The increase was due to a 2% increase in product sales and a 32% increase in contract R&D revenue. The growth was from a strong quarter last year.

Product sales increased 11% sequentially from the March quarter. We continue to be challenged by supply chain shortages, although we're seeing signs of improvement. During the quarter, deliveries from our supply base enabled NVE to increase work in process inventory by $508,000 to support future growth.