NVE Corporation (NASDAQ:NVEC) Q2 2025 Earnings Conference Call October 23, 2024 5:00 PM ET

Company Participants

Dan Baker - President & Chief Executive Officer
Daniel Nelson - Controller & Principal Financial Officer

Conference Call Participants

Jeff Bernstein - Silverberg Bernstein Capital

Dan Baker

Good afternoon and welcome to the NVE Corporation Conference Call for the Quarter Ended September 30, 2024. I'm Dan Baker NVE's President and CEO. I'm joined by Controller and Principal Financial Officer, Daniel Nelson.

This call is being webcast live via YouTube and Amazon Chime and is being recorded. A replay will be available through our website nve.com and our YouTube channel youtube.com/nvecorporation.

All participants are currently in a listen-only mode. After our presentation, there will be a question-and-answer session. You'll be able to ask a question by pressing star seven from a phone or clicking raise my hand from the Chime website or app.

After my opening comments, Daniel Nelson will present our financial results. I'll cover products and marketing, and we'll open the call to questions. We issued our press release with financial 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 on X formerly known as Twitter. Please refer to the Safe Harbor statement on your screen. 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 and risks and uncertainties related to future sales and revenue as well as the risk factors listed from time to time in our filings with the SEC including our annual report on Form 10-K for the year ended March 31, 2024.

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 strong earnings despite continuing challenges in the semiconductor industry. Daniel Nelson will cover the financials. Daniel?

Daniel Nelson

Thanks, Dan. Total revenue for the quarter ended September 30, 2024 decreased 5% due to a 14% decrease in product sales partially offset by 3,950% increase in contract R&D revenue. The decrease in product sales was primarily due to continued inventory clots particularly in the distributor channels driven by weak chip demand and a slow recovery in global manufacturing.