NVE Corp (NVEC) 2025 Q1 法說會逐字稿

Good afternoon, and welcome to the NVE Corporation conference call for the quarter ended June 30, 2024. I'm Dan Baker, NVE's President and CEO. I'm joined by Controller and Principal Financial Officer, Daniel Nelson.

下午好，歡迎參加 NVE Corporation 截至 2024 年 6 月 30 日的季度的電話會議。我是丹貝克 (Dan Baker)，NVE 總裁兼執行長。與我一起的還有財務長兼財務長 Daniel Nelson。

This call is being webcast live by YouTube and Amazon Chime, and it's being recorded. A replay will be available through our website, nve.com; and our YouTube channel, youtube.com/nvecorporation. (Event Instructions) 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.

YouTube 和 Amazon Chime 正在對通話進行網路直播並進行錄音。重播將透過我們的網站 nve.com 提供；以及我們的 YouTube 頻道 youtube.com/nvecorporation。 （活動說明）在我的開場白之後，丹尼爾尼爾森將介紹我們的財務表現。我將介紹產品和行銷，然後我們將開始提問。

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.

我們在收盤後的一小時內發布了包含財務業績的新聞稿，並以 10-Q 表格形式提交了季度報告。新聞稿和 10-Q 的連結可透過 SEC 網站、我們的網站以及 X（以前稱為 Twitter）取得。

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.

請參閱螢幕上的安全港聲明。我們可能發表的與未來計畫、事件、財務表現或績效相關的評論屬於前瞻性陳述，受到某些風險和不確定性的影響，其中包括與我們所服務產業的經濟環境相關的不確定性等因素與未來銷售和收入相關的風險和不確定性，以及我們向SEC 提交的文件中不時列出的風險因素，包括我們截至2024 年3 月31 日的10-K 表格年度報告。

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 and cash flow despite a challenging industry environment and the decrease in revenue from an exceptional year-ago quarter.

實際結果可能與所提供的資訊有重大差異。我們不承擔更新我們可能做出的前瞻性陳述的義務。儘管行業環境充滿挑戰，而且收入較上年同期有所下降，但我們很高興地報告強勁的盈利和現金流。

Daniel Nelson will cover details of our financials. Daniel?

丹尼爾尼爾森將介紹我們的財務細節。丹尼爾？

Thanks, Dan. Total revenue for the quarter ended June 30, 2024, decreased 23% compared to an exceptional prior-year quarter. The decrease was due to a 24% decrease in product sales, partially offset by a 28% increase in contract research and development revenue.

謝謝，丹。截至 2024 年 6 月 30 日的季度總收入與去年同期相比下降了 23%。下降的原因是產品銷售額下降 24%，但合約研發收入成長 28% 部分抵消了這一下降。

The decrease in product sales was primarily due to semiconductor industry downturn and high inventory levels, primarily in the distributor channels. However, forecasts indicate the industry is on the path to recovery in calendar 2024 and strong growth in 2025.

產品銷售下降的主要原因是半導體產業低迷和庫存水準高（主要是在經銷商通路）。然而，預測顯示該行業將在 2024 年走上復甦之路，並在 2025 年實現強勁成長。

Gross margin percentage for the first quarter of fiscal 2025 was 86% compared to 77% in the prior-year quarter. The increase in gross margin percentage was due to a more profitable product mix and a larger portion of direct rather than distributor sales.

2025 財年第一季的毛利率為 86%，而去年同期為 77%。毛利率的增加是由於利潤較高的產品組合以及直接銷售而非分銷商銷售所佔的比例更大。

Total expenses increased 3% for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 due to a 26% increase in research and development expense and a 14% increase in selling, general, and administrative expense, partially offset by a decrease in credit loss expense.

與 2024 財年第一季相比，2025 財年第一季的總費用增加了 3%，原因是研發費用增加了 26%，銷售、一般和管理費用增加了 14%，但部分被下降所抵消信用損失費用。

The increase in research and development expense was due to increased new product development activities. The increase in selling, general, and administrative expenses was primarily due to increased sales and marketing activities. We added sales and marketing personnel and increased marketing activities. Dan will talk about those activities shortly.

研發費用的增加是由於新產品開發活動的增加。銷售、一般和管理費用的增加主要是由於銷售和行銷活動的增加。我們增加了銷售和行銷人員並增加了行銷活動。丹很快就會談論這些活動。

Interest income for the quarter increased 13% due to higher interest rates. Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes, decreased to 16% for the first quarter of fiscal 2025 compared to 24% for the first quarter of fiscal 2024.

由於利率上升，本季利息收入成長 13%。我們的有效稅率（即所得稅撥備佔稅前收入的百分比）在 2025 財年第一季降至 16%，而 2024 財年第一季為 24%。

The decrease was due to changes in the timing and amounts of federal tax credits and deductions. The 7% decrease in net income in the first quarter of fiscal 2025 compared to the prior-year quarter was primarily due to decreased revenue, partially offset by increased gross profit margin as a percentage of revenue, increased interest income, and a lower effective tax rate.

減少的原因是聯邦稅收抵免和扣除的時間和金額變化。與去年同期相比，2025 財年第一季淨利下降 7%，主要是由於收入減少，但部分被毛利率佔收入百分比的增加、利息收入增加和有效稅收降低所抵銷速度。

With an unrealized gain from marketable securities, comprehensive income decreased just 1% from the prior-year quarter. It was an exceptionally profitable quarter, with 86% gross margin, 65% operating margin, 60% net margin, and earnings of $0.85 per share.

由於有價證券的未實現收益，綜合收益僅比去年同期下降 1%。這是一個利潤異常豐厚的季度，毛利率為 86%，營業利潤率為 65%，淨利潤率為 60%，每股收益為 0.85 美元。

Operating cash flow increased 16% to $5.85 million for the most recent quarter compared to $5.03 million for the prior-year quarter. Operating cash flow more than covered the $4.83 million dividend. Our balance sheet remains strong. Even after $4.83 million dividend and $917,000 in capital expenditure, our cash plus marketable securities increased to $53.2 million from $53 million.

最近一個季度的營運現金流成長了 16%，達到 585 萬美元，而去年同期為 503 萬美元。營運現金流超過了 483 萬美元的股息。我們的資產負債表仍然強勁。即使扣除 483 萬美元的股息和 917,000 美元的資本支出，我們的現金加有價證券也從 5,300 萬美元增加到 5,320 萬美元。

Now I'll turn the call back to Dan Baker to cover the business. Back to you, Dan.

現在我將把電話轉回給丹貝克 (Dan Baker) 處理此事。回到你身邊，丹。

Thanks, Daniel. I'll cover sales and marketing and CapEx. Our sales and marketing includes four main thrusts: first, distributor and direct customer support; second, newsletters and videos; third, evaluation boards; and finally, trade shows.

謝謝，丹尼爾。我將介紹銷售和行銷以及資本支出。我們的銷售和行銷包括四個主要重點：第一，經銷商和直接客戶支援；第二，新聞通訊和影片；第三，評估板；最後是貿易展覽。

Distributor and customer support involves customer visits, answering questions, and providing fast, well-informed application engineering. We increased the frequency of newsletters and videos in the past quarter, and we have good open rates and click-through metrics.

經銷商和客戶支援包括拜訪客戶、回答問題以及提供快速、資訊靈通的應用工程。上個季度我們增加了新聞通訊和影片的頻率，並且我們擁有良好的開啟率和點擊率指標。

Evaluation board supports more efficient customer product evaluations. And in the past quarter, we introduced dozens of new evaluation boards. We exhibited at two major trade shows last month including Sensor+Test, which is billed as the leading international trade fair for sensor, measuring, and testing technology. That show was in Nuremberg, Germany.

評估板支援更有效率的客戶產品評估。在上個季度，我們推出了數十個新的評估板。上個月，我們參加了兩個主要貿易展，其中包括 Sensor+Test，該展會被譽為感測器、測量和測試技術領域領先的國際貿易展。那場演出在德國紐倫堡舉行。

We've typically relied on distributors to represent us at international trade shows. We continue to co-exhibit with a German distributor. But this year, we also had our own booth which gave us more space to promote our products.

我們通常依賴經銷商代表我們參加國際貿易展覽。我們繼續與德國經銷商聯合參展。但今年我們也有了自己的展位，這給了我們更多的空間來推廣我們的產品。

We were also at Sensors Converge in Silicon Valley, which is billed as North America's largest electronics event. We gained some high-quality leads, and there was particular interest in tunneling magnetoresistance sensors. We believe the investments and shows will pay off in future sales.

我們也參加了矽谷的 Sensors Converge，該展會被譽為北美最大的電子盛會。我們獲得了一些高品質的線索，人們對隧道磁阻感測器特別感興趣。我們相信這些投資和演出將在未來的銷售中得到回報。

Last quarter, we discussed our plans for $4 million to $5 million in capital investments over the next two fiscal years, fiscal 2025 and 2026. The investments will increase our capacity and capabilities, including the capability to manufacture wafer-level chip scale packages in-house.

上個季度，我們討論了未來兩個財年（2025 財年和 2026 財年）400 萬至 500 萬美元資本投資的計畫。這些投資將提高我們的產能和能力，包括內部製造晶圓級晶片規模封裝的能力。

These parts will be smaller, higher performance, and allow us to be more self-sufficient and capture more value. Most of our products are currently packaged in Asia by outsourced semiconductor assembly and test or OSAT, subcontractors using conventional plastic overmolding.

這些部件將更小、性能更高，並使我們能夠更加自給自足並獲得更多價值。我們的大部分產品目前在亞洲由外包半導體組裝和測試或 OSAT、分包商使用傳統塑膠包覆成型進行封裝。

Wafer-level chip scale parts can be even smaller than these encapsulated components. We have provided customers with wafer-level chip scale prototypes, and there has been solid customer interest. We hope to begin some production late this fiscal year. Our $917,000 CapEx in the past quarter was mostly a downpayment for custom, purpose-built production equipment to be delivered next year.

晶圓級晶片尺寸部件甚至可以比這些封裝部件更小。我們已經為客戶提供了晶圓級晶片規模原型，並引起了客戶的濃厚興趣。我們希望在本財年末開始部分生產。上一季我們的資本支出為 917,000 美元，主要是明年交付的客製化專用生產設備的首付款。

In the past quarter, the state of Minnesota announced we had been awarded incentives from the Minnesota Investment Fund. There's up to $111,000 of potential incentives to be paid in 2026 based on the number of jobs added and certain other conditions. We were also awarded a $200,000 seven-year no-interest loan intended to help finance new production equipment. The funding is subject to agreements that have not been finalized yet.

在上個季度，明尼蘇達州宣布我們獲得了明尼蘇達投資基金的獎勵。根據增加的就業數量和某些其他條件，到 2026 年將獲得高達 111,000 美元的潛在獎勵。我們還獲得了 20 萬美元的七年期無息貸款，旨在為新生產設備提供資金。該資金取決於尚未最終確定的協議。

Our Annual Shareholders' Meeting will be August 1. Our meetings have been in-person, except during the pandemic, so shareholders can meet our managers and directors and see hands-on product demonstrations.

我們的年度股東大會將於 8 月 1 日舉行。除疫情期間外，我們的會議都是面對面的，因此股東可以與我們的經理和董事會面，並觀看實際的產品演示。

In response to shareholders' request, this year's meeting will be here at NVE with tours, so shareholders can see what we do. Our annual meetings follow themes. And this year, the theme will be the Olympics, which will be going on at that time. We'll have live product demonstrations showing the precision, strength, and endurance of our products.

應股東要求，今年的會議將在NVE舉行，並進行參觀，以便股東可以看到我們所做的事情。我們的年度會議遵循主題。今年的主題將是奧運會，屆時將舉行。我們將進行現場產品演示，展示我們產品的精度、強度和耐用性。

If you can't attend, you can see product demonstrations on our website or YouTube channel. Our proxy statement for the meeting is available via our website or the SEC's website. There are three agenda items for the annual meeting.

如果您無法參加，您可以在我們的網站或 YouTube 頻道上觀看產品展示。我們的會議委託書可透過我們的網站或 SEC 網站取得。年會共有三個議程項目。

The first agenda item is election of directors. Sadly, Rich Kramp, who had been a director for nearly 10 years, passed away in May. Rich had been a valuable member of our Board and was dedicated to our company and our shareholders. We miss him.

第一個議程是選舉董事。可惜的是，擔任導演近10年的里奇·克蘭普(Rich Kramp)於5月去世。里奇是我們董事會的寶貴成員，致力於為我們的公司和股東服務。我們想念他。

We were pleased to welcome Dr. Kelly Wei to our Board to fill Rich's unexpired term. She's also nominated for a full term starting at the annual meeting. Kelly is a Medtronic executive and an accomplished engineer. Her strong management, technical, and medical device experience and her engineering and medical education make her exceptionally qualified to serve as a director.

我們很高興歡迎 Kelly Wei 博士加入我們的董事會，以填補 Rich 的未滿任期。她也獲得提名，任期從年會開始。凱利是美敦力公司的高階主管，也是一位出色的工程師。她豐富的管理、技術和醫療設備經驗以及她的工程和醫學教育使她非常有資格擔任董事。

The second agenda item is approval of officer compensation. Our compensation principles, as detailed in our proxy include, we don't overpay our officers. Our officers have the same fringe benefits as all employees, and there are no executive perks or golden parachutes.

第二個議程項目是批准官員薪酬。我們的薪酬原則（如我們的代理書中詳述）包括：我們不會向管理人員支付過高的薪酬。我們的管理人員享有與所有員工相同的附加福利，並且沒有高階主管津貼或黃金降落傘。

The third agenda item is the ratification of our auditors for this fiscal year, the year ending March 31, 2025. Boulay has been our auditor since 2019, and we recommend their approval for our next audit. We expect representatives from Boulay to attend the annual meeting.

第三個議程項目是本財政年度（截至 2025 年 3 月 31 日）審計師的批准。Boulay 自 2019 年以來一直擔任我們的審計師，我們建議他們批准我們的下一次審計。我們期待 Boulay 的代表出席本次年會。

The proxy reports total shareholder return for the past three fiscal years was 46%, which far exceeded the broad markets. Returns consisted of 29% stock appreciation and 17% from dividends.

委託書報告過去三個財年的股東總回報率為46%，遠超過大盤。回報包括 29% 的股票增值和 17% 的股息。

Now we'd like to open the call for questions.

現在我們想開始提問。

(Event Instructions)

（活動須知）