NVE Corp (NVEC) 2026 Q1 法說會逐字稿

Good afternoon, and welcome to the NVE Corporation conference call for the quarter ended June 30, 2025. I'm Dan Baker, NVE's President and CEO. I'm joined, as usual, by Controller and Principal Financial Officer, Daniel Nelson. This call is being webcast live via YouTube and Amazon Chime and being recorded. A replay will be available through our website, nve.com, and our YouTube channel, youtube.com/nvecorporation. (Event Instructions)

下午好，歡迎參加 NVE 公司 2025 年 6 月 30 日結束季度電話會議。我是 NVE 總裁兼執行長 Dan Baker。像往常一樣，和我一起參加的是財務總監兼首席財務長丹尼爾·尼爾森 (Daniel Nelson)。此次通話透過 YouTube 和 Amazon Chime 進行網路直播並錄音。您可以透過我們的網站 nve.com 和 YouTube 頻道 youtube.com/nvecorporation 觀看重播。（活動須知）

After my opening comments, Daniel Nelson will present our financial results, I'll cover the business, and then we'll open the call to questions.

在我的開場白之後，丹尼爾·尼爾森將介紹我們的財務業績，我將介紹業務情況，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 the 10-Q are available through our website, the SEC's website, and X, formerly known as Twitter.

我們在市場收盤後一小時內發布了包含財務結果的新聞稿，並提交了 10-Q 表格季度報告。您可以透過我們的網站、美國證券交易委員會的網站以及 X（原名 Twitter）取得新聞稿和 10-Q 的連結。

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, risks and uncertainties related to future sales and revenue, and risks and uncertainties related to tariffs, customs, duties, and other trade barriers 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, 2025. Actual results could differ materially from the information provided, and we undertake no obligation to update forward-looking statements we may make.

請參閱螢幕上的安全港聲明。我們可能就未來計劃、事件、財務結果或業績作出的評論均為前瞻性陳述，受某些風險和不確定性的影響，包括但不限於與我們所服務行業的經濟環境相關的不確定性、與未來銷售和收入相關的風險和不確定性、與關稅、關稅和其他貿易壁壘相關的風險和不確定性以及我們向美國證券交易委員會提交的文件中截至 2015 年的年度報告 15 月 3025 月 3025 月。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。

We're pleased to report strong revenue and earnings for the quarter, driven by an increase in distributor and nondefense sales despite a decrease in defense sales.

我們很高興地報告本季強勁的收入和收益，儘管國防銷售額有所下降，但分銷商和非國防銷售額仍有所成長。

Daniel Nelson will cover details of the financials. Daniel?

丹尼爾·尼爾森 (Daniel Nelson) 將介紹財務細節。丹尼爾？

Thanks, Dan. The 10% year-over-year revenue decrease for the first quarter was due to an 11% decrease in product sales, partially offset by a 17% increase in contract R&D revenue. The decrease in product sales was due to a decrease in defense industry sales, which can be highly variable because of procurement cycles.

謝謝，丹。第一季營收年減 10% 是由於產品銷售額下降 11%，但合約研發收入成長 17% 部分抵銷了這一下降。產品銷售額的下降是由於國防工業銷售的下降，而國防工業銷售因採購週期而變化很大。

We were pleased to see nondefense sales stabilize with improving industry conditions in the quarter. We saw an increase in distributor sales, which were hit particularly hard by the recent industry downturn.

我們很高興看到本季非國防銷售額隨著產業狀況的改善而趨於穩定。我們看到分銷商的銷售額有所成長，但他們的銷售額受到近期行業低迷的嚴重打擊。

Gross margin decreased to 81% from 86% due to a less profitable product mix and strengthening distributor sales, which tend to have lower margins than direct sales. Total expenses decreased 20% for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 due to an 18% decrease in R&D expense and a 23% decrease in SG&A. The decrease in R&D was due to completion of some of our wafer-level chip scale packaging activities and reallocation of some R&D resources to manufacturing. The decrease in SG&A was primarily due to the timing of sales and marketing activities and reallocation of some general and administrative resources to manufacturing.

由於產品組合利潤率較低以及經銷商銷售加強（其利潤率往往低於直銷），毛利率從 86% 降至 81%。2026 財年第一季的總支出與 2025 財年第一季相比下降了 20%，原因是研發費用下降了 18%，銷售、一般及行政費用下降了 23%。研發費用的減少是由於我們完成了部分晶圓級晶片規模封裝活動，並將部分研發資源重新分配到製造業。銷售、一般及行政費用的減少主要是由於銷售和行銷活動的時間安排以及將一些一般和行政資源重新分配給製造業。

Net income for the first quarter of fiscal 2026 decreased 13% to $3.58 million or $0.74 per diluted share, compared to $4.1 million or $0.85 per share for the prior-year quarter. The decrease in net income for the first quarter of fiscal 2026 compared to the prior year was primarily due to decreased revenue and lower margins, partially offset by decreased expenses. Adding in approximately $75,000 in unrealized gains on our marketable securities, comprehensive income was $3.65 million.

2026 財年第一季淨收入下降 13% 至 358 萬美元或每股 0.74 美元，去年同期為 410 萬美元或每股 0.85 美元。2026 財年第一季淨收入與前一年相比有所下降，主要是由於收入減少和利潤率下降，但部分被費用減少所抵消。加上我們有價證券的未實現收益約 75,000 美元，綜合收入為 365 萬美元。

Our profitability metrics remain strong. Operating margin was 62%, pretax margin was 70%, and net margin was 59%. Fixed asset purchases were $1.06 million last quarter. Most of that was for a cluster of wafer fabrication equipment, which recently arrived. We were able to expedite the delivery to get the equipment before the US reciprocal tariff pause was scheduled to expire July 9.

我們的獲利指標依然強勁。營業利益率為62%，稅前利潤率為70%，淨利潤率為59%。上季固定資產購買額為 106 萬美元。其中大部分是用於最近抵達的一組晶圓製造設備。我們能夠加快交貨速度，以便在美國互惠關稅暫停期（7 月 9 日）到期之前獲得設備。

We have a milestone payment of approximately $1 million due this quarter, which will substantially complete our two-year multimillion-dollar expansion. Dan Baker will provide more color on capital investments in a few minutes.

本季我們將收到約 100 萬美元的里程碑付款，這將基本完成我們為期兩年的數百萬美元擴張計劃。丹貝克 (Dan Baker) 將在幾分鐘內提供有關資本投資的更多詳情。

The 25% advanced manufacturing investment tax credit was extended in a recent tax bill. Therefore, we currently expect to realize advanced manufacturing investment tax credits of between $700,000 and $800,000 if we deploy equipment as planned in fiscal 2026. Although it would not significantly affect our earnings, we will also realize significant cash flow savings this fiscal year due to changes in Section 1, 7, and 9 of the Internal Revenue Code. The recent legislation allows us to deduct on our tax returns previously unamortized R&D expenses rather than amortize them over five years.

最近的稅收法案延長了25%的先進製造業投資稅收抵免。因此，如果我們在 2026 財年按計劃部署設備，我們目前預計將實現 70 萬至 80 萬美元之間的先進製造業投資稅收抵免。雖然這不會對我們的收益產生重大影響，但由於《國內稅收法典》第 1、7 和 9 條的變化，我們本財年也將實現大量現金流節省。最近的立法允許我們在報稅表上扣除以前未攤銷的研發費用，而不是在五年內攤提。

Turning to cash flow items. We paid our $1 per share quarterly dividend the past quarter and declared another dividend to be paid at the end of August. Operating cash flow was $5.19 million in the quarter, which more than cover our $4.84 million dividend. Accounts receivable decreased $1.34 million due to decreased revenue and the timing of customer payments. Accrued payroll and other liabilities increased $523,000, primarily due to the timing of estimated tax payments.

轉向現金流項目。我們在上個季度支付了每股 1 美元的季度股息，並宣布將於 8 月底支付另一筆股息。本季經營現金流為 519 萬美元，足以支付我們 484 萬美元的股息。由於收入減少和客戶付款時間縮短，應收帳款減少了 134 萬美元。應計工資和其他負債增加了 523,000 美元，主要原因是預估稅款的支付時間。

Now, I'll turn the call back over to Dan Baker to cover the business and preview our Annual Shareholders' Meeting. Back to you, Dan.

現在，我將把電話轉回給丹貝克，讓他介紹業務狀況並預覽我們的年度股東大會。回到你身邊，丹。

Thanks, Daniel. I'll cover CapEx, marketing, and our upcoming annual meeting. Starting with CapEx, we deployed one new machine in the past quarter. As Daniel Nelson mentioned, we also took possession of a several million-dollar equipment cluster in the past quarter. It's being installed in an expanded production area on the east end of our building, and we hope to deploy it later this fiscal year.

謝謝，丹尼爾。我將介紹資本支出、行銷和我們即將召開的年度會議。從資本支出開始，我們在上個季度部署了一台新機器。正如丹尼爾·尼爾森所提到的，我們在上個季度還獲得了價值數百萬美元的設備集群。它正在安裝在我們大樓東端的擴建生產區，我們希望能在本財政年度稍後部署它。

Turning to product development. In the past quarter, we launched more wafer-level chip scale sensors, which are less than 1,000th of a square inch. There are demonstrations of the new products on our website and our YouTube channel. We promoted new products, including wafer-level chip scale sensors and advanced magnetic switch sensors launched earlier in the year at two major trade shows the past quarter.

轉向產品開發。在過去的一個季度，我們推出了更多晶圓級晶片規模感測器，其尺寸小於千分之一平方英吋。我們的網站和 YouTube 頻道上有新產品的示範。我們在上個季度的兩場大型貿易展會上推廣了新產品，包括今年稍早推出的晶圓級晶片規模感測器和先進的磁開關感測器。

The SENSOR+TEST show was in Nuremberg, Germany, and the Sensors Converge show was in Silicon Valley. SENSOR+TEST is built as the leading international trade fair for sensor, measuring, and testing technology, and Sensors Converge is North America's largest electronics event. We've been following up on some good leads from the shows, and we believe the investments in these shows will pay off in future sales.

SENSOR+TEST展會在德國紐倫堡舉行，Sensors Converge展會在矽谷舉行。SENSOR+TEST 是全球領先的感測器、測量和測試技術國際貿易展覽會，而 Sensors Converge 則是北美最大的電子盛會。我們一直在跟進展會上的一些好線索，我們相信對這些展會的投資將在未來的銷售中獲得回報。

We also promoted rare earth-free ferrite magnets and sensors to detect them. Most rare earth magnets and the materials to make them come from China, which has put the supplies at high risk. The primary ingredients of ferrite magnets, however, are iron and oxygen, the two most abundant elements in the Earth's crust. Our unique high-sensitivity magnetic switch sensors and angle sensors are ideal for use with readily available ferrite magnets. Videos of some of our recent demos are on our website and YouTube channel.

我們還推廣了不含稀土元素的鐵氧體磁鐵和感測器來檢測它們。大多數稀土磁鐵及其製造材料都來自中國，這使得供應面臨很高的風險。然而，鐵氧體磁鐵的主要成分是鐵和氧，這是地殼中最豐富的兩種元素。我們獨特的高靈敏度磁性開關感測器和角度感測器非常適合與現成的鐵氧體磁鐵一起使用。我們最近的一些演示的影片可以在我們的網站和 YouTube 頻道上找到。

Our Annual Shareholders' Meeting will be August 7 here at NVE. Our proxy statement for the meeting is available via our website or the SEC's website. Our meetings have been in person except during the pandemic, so shareholders can meet our managers and directors and see hands-on product demonstrations. If you can't make it in person, we plan to have a replay available.

我們的年度股東大會將於 8 月 7 日在 NVE 舉行。我們本次會議的代理聲明可透過我們的網站或美國證券交易委員會的網站取得。除疫情期間外，我們的會議都是面對面舉行的，因此股東可以與我們的經理和董事見面，並觀看實際的產品演示。如果您無法親自到場，我們計劃提供重播。

There are three agenda items for the annual meeting. The first agenda item is the election of directors. We're fortunate to have a strong independent Board of Directors, all of whom have extensive experience as directors or executives of public companies.

本次年會共有三項議程。第一項議程是選舉董事。我們很幸運擁有強大的獨立董事會，所有董事都擁有豐富的上市公司董事或高階主管經驗。

The second agenda item is approval of our 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.

第二項議程是批准我們的官員薪酬。我們的代理中詳細說明的薪酬原則包括：我們不會向高階主管支付過高的薪水，高階主管享有與所有員工相同的福利，並且沒有高階主管津貼或金色降落傘。

The third agenda item is the ratification of our auditors for this fiscal year, the year ending March 31, 2026. 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.

第三項議程是核准本財政年度（截至 2026 年 3 月 31 日）的審計師。Boulay 自 2019 年起擔任我們的審計師，我們建議他們批准我們下一次審計。我們期待布萊的代表出席年會。

The proxy reports total shareholder return for the past three fiscal years was 39%, exceeding broad market returns. Our returns consisted of 17% stock appreciation and 22% from dividends.

代理報告顯示，過去三個財年的股東總回報率為 39%，超過了大盤回報率。我們的回報包括 17% 的股票增值和 22% 的股息。

Now we'd like to open the call for questions. (Event Instructions)

現在我們開始提問。（活動須知）

Hi, Dan. It's Jeff Bernstein from Silverberg Bernstein Capital.

你好，丹。他是 Silverberg Bernstein Capital 的 Jeff Bernstein。

Hi, Jeff.

你好，傑夫。

So yeah, a couple of questions. You touched on the weakness in the PUF business in the quarter, and it sounds like the distribution channel business is recovering. Can you give a little bit more color there? What do you think happens with the PUF business in the next couple of quarters? Is there any kind of seasonality to that?

是的，有幾個問題。您提到了本季 PUF 業務的疲軟，聽起來分銷通路業務正在復甦。您能提供更多一些顏色嗎？您認為未來幾季 PUF 業務將如何發展？這其中是否存在某種季節性？

There's not really seasonality to the PUF business, but there is a certain amount of lumpiness to that business because it's driven by procurement contracts for defense systems. So those can be -- they're typically large contracts, but they -- we don't know the exact timing. I should say for background, PUFs are physical unclonable functions, which is a function that's embodied in a physical structure that's easy to evaluate but hard to predict. So they're an important component of spintronic anti-tamper systems. And those systems are designed to protect sensitive data or electronics.

PUF 業務實際上沒有季節性，但由於其受國防系統採購合約驅動，因此存在一定程度的波動性。所以這些通常是大合同，但是我們不知道具體的時間。我應該說一下背景，PUF 是物理不可複製的功能，它是一種體現在易於評估但難以預測的物理結構中的功能。所以它們是自旋電子防篡改系統的重要組成部分。這些系統旨在保護敏感資料或電子設備。

So we sell those for military systems. They're often deployed in systems that are sold to foreign militaries. And so that is -- there are some commitments that the DoD has for those types of systems. It helps us in the long run, but in the short run, it can be unpredictable.

因此，我們將這些產品出售給軍事系統。它們通常部署在出售給外國軍隊的系統中。因此，國防部對這些類型的系統做出了一些承諾。從長遠來看，這對我們有幫助，但從短期來看，它可能是不可預測的。

So Dan, it sounds like we should expect some growth with all the growth in the DoD budget and defense budgets around the world that on a multi-quarter kind of basis, we ought to continue to look at this as a growth business.

所以丹，聽起來我們應該預期隨著國防部預算和世界各地國防預算的成長，在多個季度的基礎上，我們應該繼續將其視為一項成長業務。

Indeed. We currently expect that, that business will grow quarter-over-quarter sequentially in the coming quarters, next quarter and the following quarters. And we expect to return to more historical levels in the next fiscal year.

的確。我們目前預計，未來幾季、下個季度以及接下來的幾個季度，該業務將逐季成長。我們預計下一財年將恢復到歷史最高水準。

To the second part of your question, though, on distributor sales, that's very encouraging because that's related to the strength of the industry as a whole. And we're seeing the industry recover. So to see those systems -- those sales increase, I think, bodes very well for the future.

不過，對於您問題的第二部分，關於分銷商的銷售，這是非常令人鼓舞的，因為這與整個行業的實力有關。我們看到該行業正在復甦。因此，我認為，看到這些系統銷售額的成長，對未來來說是一個好兆頭。

Okay. And then you mentioned this opportunity in replacing rare earth metals with ferrite magnets and your highly sensitive magnetic sensors. And I assume that is 100% for positioning kinds of measurements. The rare earth magnet business is a huge, huge business. The positioning part of that, I think, is a smaller piece, but still a very large business, nonetheless. I think a lot of automotive, but some other things as well. Can you just talk to us a little bit more about what you know and understand about that opportunity? And how quickly you think design wins can convert to business? Any kind of stumbling blocks there like availability of ferrite magnets, et cetera?

好的。然後您提到了用鐵氧體磁鐵和高靈敏度磁性感測器取代稀土金屬的機會。我認為這對於定位測量來說是 100%。稀土磁鐵業務是一項龐大的業務。我認為，其中定位部分只佔較小部分，但仍然是一項非常大的業務。我認為很多是汽車，但也有一些其他的東西。您能否進一步向我們談談您對這個機會的了解和理解？您認為設計勝利能多快轉化為業務？是否有任何障礙，例如鐵氧體磁鐵的可用性等等？

Yeah, that's a good question, Jeff. And as you know, virtually all rare earth magnets and materials such as neodymium and dysprosium are -- come from China. So that puts the supply chains at some risk. As far as the availability, as I mentioned in the prepared remarks, ferrite magnets are made from iron oxide, which is similar -- chemically similar to rust and iron and oxygen are the two most abundant elements in the earth's crust. So it's materials that are widely available.

是的，這是個好問題，傑夫。眾所周知，幾乎所有稀土磁鐵和釹、鏑等材料都來自中國。因此，這會使供應鏈面臨一定的風險。就可用性而言，正如我在準備好的評論中提到的那樣，鐵氧體磁鐵是由氧化鐵製成的，氧化鐵在化學上與鐵鏽相似，鐵和氧是地殼中最豐富的兩種元素。所以這些材料都是可以廣泛取得的。

We have -- so we're continuously working with customers to help them design in magnetic systems. As you pointed out, often the magnetic system is a magnet in combination with the sensor. So you're detecting proximity such as whether a door is closed, a seatbelt is latched or something like that or whether a robot has reached its desired position, a robot and effector or actuator. And we provide models for the entire system for our customers. So we're working with customers continuously.

我們有—所以我們一直在與客戶合作，幫助他們設計磁性系統。正如您所指出的，磁性系統通常是磁鐵與感測器的組合。因此，您可以偵測接近度，例如門是否關閉、安全帶是否已係好或類似情況，或者機器人是否已到達其所需位置、機器人和效應器或執行器。並且我們為客戶提供整個系統的模型。因此我們一直在與客戶合作。

And our goal is to have near-term design wins. We also have engineering models on our website. So customers can go there and model a ferrite magnet and one of our sensors and move the magnet around and to simulate the position of the magnet and the sensor and try different sensors and different magnets. So we're working to get design wins in the near term. And we do have design wins that have been customers who come to us and said they need this magnet combination, often a ferrite magnet and we can provide them a solution.

我們的目標是在近期取得設計勝利。我們的網站上也有工程模型。因此，客戶可以去那裡模擬鐵氧體磁鐵和我們的一個感測器，然後移動磁鐵並模擬磁鐵和感測器的位置，並嘗試不同的感測器和不同的磁鐵。因此，我們正在努力在短期內取得設計勝利。我們確實贏得了一些設計訂單，一些客戶來找我們，說他們需要這種磁鐵組合，通常是鐵氧體磁鐵，我們可以為他們提供解決方案。

In some cases, we'll actually sell the magnet. We don't make a lot of revenue on magnets, but we sell them as a courtesy to our customers or they can buy the magnet elsewhere. And particularly if it's a ferrite magnet, they're widely available.

在某些情況下，我們實際上會出售磁鐵。我們沒有從磁鐵上賺到很多錢，但是我們把它們賣給我們的客戶，或者他們也可以從其他地方購買磁鐵。特別是如果它是鐵氧體磁鐵，它們就很容易獲得。

Got you. So it sounds like this is a somewhat normal kind of design cycle in terms of -- there would need to be a board spin to do this, but nothing more complicated than that.

明白了。因此，這聽起來像是一種正常的設計週期——需要進行電路板旋轉才能做到這一點，但不會比這更複雜。

Right. And in some cases, our customers have constraints. So they just need a magnet that drops in. So maybe they need a slightly bigger magnet if it's a ferrite magnet compared to a neodymium magnet, for example. But we can provide them solutions like that, that allow a minimum of redesign.

正確的。在某些情況下，我們的客戶受到限制。所以他們只需要一塊能吸進去的磁鐵。因此，如果是鐵氧體磁鐵，與釹磁鐵相比，可能需要稍大一點的磁鐵。但我們可以為他們提供這樣的解決方案，允許最少的重新設計。

And we are getting more inquiries, as you might expect, about ferrite magnets and more sensitive sensors than we were before when engineers might specify in a rare earth magnet. And now they're starting to think about the supply chain risk of those magnets. And we offer sensors that can detect the lower fields that one gets from a ferrite magnet.

如您所料，我們收到的有關鐵氧體磁鐵和更靈敏的感測器的詢問比以前工程師可能指定使用稀土磁鐵時要多。現在他們開始考慮這些磁鐵的供應鏈風險。我們提供的感測器可以檢測鐵氧體磁鐵產生的較低磁場。

Got you. And then I wanted to ask about the investment in the wafer-scale packaging and trying to just understand how incremental revenue will correlate to that investment. So is this essentially giving you the opportunity to create much smaller parts because of the packaging and people get the sort of double whammy of knowing that the entire supply chain is now US domestic? Or is it really the US domestic supply chain that is the catalyst here? Just walk us through that.

明白了。然後我想問晶圓級封裝的投資情況，並試著了解增量收入與該投資之間的關係。那麼，這是否實際上為您提供了透過包裝來生產更小零件的機會，並且人們得到了雙重打擊，知道整個供應鏈現在都在美國國內？或者美國國內供應鏈才是真正的催化劑？只需向我們介紹一下即可。

And also, do you have to have all the machines in place and up and running to take advantage of this or are there some increments? And just how does that work?

此外，您是否必須讓所有機器都到位並運行才能利用這一點，或者是否有一些增量？那麼它是如何運作的呢？

Good questions. The short answer is it's both to make parts that are smaller. As I mentioned in the prepared remarks, some of these sensors are less than 1,000th of a square inch. So that means that they fit in tight spaces, and it also means that they have more spatial specificity, meaning that you can detect a magnetic field more precisely, as you can imagine, because the sensing area is smaller.

好問題。簡而言之，這兩者都是為了製造更小的零件。正如我在準備好的發言中提到的那樣，其中一些感測器的面積還不到千分之一平方英寸。這意味著它們適合狹小的空間，也意味著它們具有更高的空間特異性，這意味著你可以更精確地偵測磁場，正如你所想像的，因為感應區域更小。

So those are the two main advantages, and we have much of the key equipment already deployed for wafer-level chip scale parts. We've been rolling out a variety of different types of parts. We promoted them at the two recent trade shows that I mentioned, SENSOR+TEST in Germany and Sensors Converge in Silicon Valley. And we're already providing samples and evaluation boards, we are working on developing high-volume production systems, and we'll be working on that in the next couple of quarters through this fiscal year to make sure that we have the capacity as our customers design in these parts.

這是兩個主要優勢，而且我們已經為晶圓級晶片規模部件部署了許多關鍵設備。我們一直在推出各種不同類型的零件。我們在我提到的最近舉行的兩個貿易展會上推廣了它們，即德國的 SENSOR+TEST 和矽谷的 Sensors Converge。我們已經提供了樣品和評估板，我們正在致力於開發大批量生產系統，我們將在本財年接下來的幾個季度內繼續致力於此，以確保我們有能力滿足客戶對這些零件的設計需求。

But right now, we can provide samples and preproduction quantities now, and we're doing that.

但現在，我們可以提供樣品和預生產數量，而且我們正在這樣做。

Got you. Understand. And then last question. We talked a little bit during the quarter about discussion that normal SRAM is going to run out of GAS ECC, I guess, below 2-nanometer kind of line with and people are talking about the potential for spin-orbit torque RAM, SOT RAM is what they're calling it. You guys have some patents. I think it's called in your patent, Vortex Spin Momentum Transfer magnetoresistance devices. And that's a patent issued back in 2011. But is that right? At what point do you think this becomes something where there might be some relevant IP that you guys have? And how do you guys think about trying to capitalize on that?

明白了。理解。最後一個問題。我們在本季度討論了普通 SRAM 將在 2 奈米以下耗盡 GAS ECC 的討論，人們正在談論自旋軌道扭矩 RAM 的潛力，他們稱之為 SOT RAM。你們有一些專利。我認為它在您的專利中被稱為渦旋自旋動量轉移磁阻裝置。這是 2011 年頒發的專利。但這是真的嗎？您認為什麼時候這會成為您們可能擁有的一些相關智慧財產權？你們想如何利用這一點呢？

Our company was founded, and our original name was Nonvolatile Electronics, which refers to Spintronic memory. And so it's important technology to us. We continue to develop the technology, and we make and sell magnetic MRAM, spintronic magnetic MRAM or MRAM parts mostly to -- in anti-tamper applications to make crypto keys and similar security applications where the density is relatively low or the bit count.

我們的公司成立了，原來的名字叫Nonvolatile Electronics，就是自旋電子記憶體。所以這對我們來說是一項重要的技術。我們繼續開發這項技術，並且我們製造和銷售磁性 MRAM、自旋電子磁性 MRAM 或 MRAM 零件，主要用於防篡改應用中製作加密金鑰和類似的安全應用，其中密度相對較低或位元數較少。

We don't plan to scale up for large-scale memory. It just -- it costs billions of dollars to make a memory fab. So that's not part of our business plan, but we continue to develop our intellectual property.

我們不打算擴大大規模記憶體。建造一個內存工廠需要花費數十億美元。所以這不是我們商業計劃的一部分，但我們會繼續開發我們的智慧財產權。

As you mentioned, we have intellectual property and patents on MRAM in general as well as spin torque MRAM, as you alluded to, or Spin Momentum MRAM, as it's sometimes called. And our business model would be to partner with large-scale manufacturers where appropriate to monetize our intellectual property and to help advance the technology.

正如您所提到的，我們擁有 MRAM 以及自旋扭矩 MRAM（有時也稱為自旋動量 MRAM）的智慧財產權和專利。我們的商業模式是與大型製造商在適當的情況下合作，將我們的智慧財產權貨幣化並幫助推動技術進步。

As you mentioned, SRAM and other types of memory run into scaling limitations that MRAM doesn't have. So we do see long-term opportunities there.

正如您所提到的，SRAM 和其他類型的記憶體遇到了 MRAM 所沒有的擴充限制。因此我們確實看到了那裡的長期機會。

The other advantage of spintronic memory, or MRAM, is that it has a combination of speed, non-volatility, and density that combines the best attributes of SRAM, DRAM, and flash or other nonvolatile memory. So it's sometimes been called the universal memory.

自旋電子記憶體 (MRAM) 的另一個優點是，它兼具速度、非揮發性和密度，融合了 SRAM、DRAM 和快閃記憶體或其他非揮發性記憶體的最佳屬性。因此它有時被稱為通用記憶。

And when the density approaches that of conventional memories, it will open up some excellent opportunities. And we're hoping to be able to provide intellectual property to help advance the technology.

當密度接近傳統記憶體的密度時，它將帶來一些絕佳的機會。我們希望能夠提供知識產權來幫助推動技術進步。

Great, thanks for the help today.

太好了，謝謝你今天的幫忙。

Thanks, Jeff. (Event Instructions)

謝謝，傑夫。（活動須知）

Hello. his is [Christopher Trosky], private investor. Can you hear me?

您好，我是 [Christopher Trosky]，私人投資者。你聽得到我嗎？

Yes.

是的。

That's a surprise. Okay. So about the chip-level packaging, can you talk a little bit about what end markets that's going into and whether it's traction in that already?

這真是令人驚訝。好的。那麼關於晶片級封裝，您能否稍微談談它將進入哪些終端市場以及它是否已經具有吸引力？

Yeah. So for wafer-level chip scale parts, the end markets is what you're asking about, and we've identified two end markets. One is medical devices where the miniaturization is important, smaller medical devices, particularly implantable medical devices results in smaller devices, less obtrusive, smaller incisions and all of those benefits.

是的。因此，對於晶圓級晶片規模部件，您所問的是終端市場，我們已經確定了兩個終端市場。一方面是醫療設備，小型化非常重要，較小的醫療設備，特別是可植入醫療設備，可以實現更小的設備、更少的干擾、更小的切口等諸多好處。

The other market is for industrial controls and robotics to allow more precise position sensing. As I mentioned in the answer to a previous question, the parts are not only smaller, but they have more spatial specificity for more precision.

另一個市場是工業控制和機器人，以實現更精確的位置感應。正如我在回答上一個問題時提到的，這些部件不僅更小，而且具有更多的空間特異性，以實現更高的精度。

So those are the two markets that we've identified, and we've sampled parts to customers in both markets. We don't have volume production yet, but we have customers actively evaluating the parts. And so far, the feedback has been quite positive. We're very optimistic about the prospects for these parts.

這是我們確定的兩個市場，我們已經向這兩個市場的客戶提供了零件樣品。我們尚未進行量產，但有客戶正在積極評估這些零件。到目前為止，反饋非常積極。我們對這些地區的前景非常樂觀。

But you're already selling devices into the implantable medical market. Would that be for next generation, or are you going into expanding into new implantable devices?

但您已在向植入式醫療市場銷售設備。這是針對下一代產品，還是您要擴展到新的植入式裝置？

We are looking at new implantable devices. So for example, navigation is an area. So what that means in a medical sense is knowing the position of a small device such as a catheter that would be snaked into the body, and it's important to know the exact position. So one needs -- these are very small catheters. They need a very small sensor that can detect a precise external magnetic field.

我們正在研究新的植入式設備。例如，導航是一個領域。因此，從醫學意義上講，這意味著知道插入體內的導管等小型裝置的位置，並且知道其確切位置非常重要。所以我們需要──這些是非常小的導管。他們需要一個能夠檢測精確外部磁場的非常小的感測器。

The magnetic field helps navigate the catheter much as a magnetic compass helps us navigate on the earth. So that's one example of a potential market where our devices currently as small as they are, are not small enough for that market. And wafer-level chip scale parts will be, we believe.

磁場有助於導管導航，就像磁羅盤幫助我們在地球上導航一樣。這是一個潛在市場的例子，我們目前的設備雖然很小，但對該市場來說還不夠小。我們相信，晶圓級晶片規模零件將會實現。

Okay. That's good to hear. Do you -- when you get those machines working, do you -- will you consider production machines or NRE machines?

好的。聽到這個消息真好。當您讓這些機器運轉時，您會考慮生產機器還是 NRE 機器？

And my question really is if you do not get enough sales in those packages, are we -- is there a danger of kind of looking for -- looking at underutilization charges?

我的問題是，如果這些套餐的銷售量不夠，我們是否會面臨尋找未充分利用費用的風險？

We plan to use the new machinery for both R&D and production. And we -- despite the large investment compared to other semiconductor companies, we are relatively -- we have a relatively low fixed cost and a relatively low amount of equipment for the revenue that we generate. So we justified the equipment based on assumptions that we believe we can meet for increased in incremental sales, but also it's not the type of leverage that one might see in a commodity semiconductor market where if they don't keep the equipment busy, the fixed costs will damage their financials in many cases. We have less risk than that because of the relative low amount of fixed assets that we have for the revenue that we generate. And that's a tribute to the efficiency of our employees and the value of our technology.

我們計劃將新機器用於研發和生產。儘管與其他半導體公司相比我們的投資較大，但相對於我們創造的收入而言，我們的固定成本相對較低，設備數量也相對較低。因此，我們根據我們認為可以滿足增量銷售成長的假設來證明設備是合理的，但這也不是人們在商品半導體市場中可能看到的那種槓桿，如果他們不保持設備繁忙，固定成本在許多情況下會損害他們的財務狀況。由於我們擁有的固定資產相對於我們產生的收入而言相對較低，因此我們的風險較小。這是對我們員工效率和技術價值的讚揚。

That is correct. You have much lower fixed assets than any other semiconductor company I have researched. And I guess another question I had is that lately, just looking at your YouTube channel, you're showing a lot of sensors for devices that use cylinders with like liquid force devices. I'm sorry, the word escaped me.

沒錯。你們的固定資產比我研究過的任何其他半導體公司都要低得多。我想我還有另一個問題，最近，只要看一下您的 YouTube 頻道，您就會展示很多使用帶有類似液體力裝置的圓柱體的設備的傳感器。抱歉，我忘記這個詞了。

I think you're referring to cylinders, pneumatic cylinders.

我認為您指的是氣缸、氣缸。

Yes.

是的。

Yes, you described it very well. Right. So they're using a fluid to push a piston to move something. And that's what a lot of our customers do. So that's what we show on -- we do have a lot of those on YouTube.

是的，你描述的非常好。正確的。所以他們使用流體來推動活塞來移動某物。我們的很多客戶都是這麼做的。這就是我們展示的內容——YouTube 上確實有很多這樣的內容。

Is that a new market because lately, I've just -- I mean, just lately, I've been seeing those.

這是一個新市場嗎？因為最近，我剛剛——我的意思是，最近，我一直在看到這些。

It's a legacy market for us, and we've had customers who make pneumatic cylinder positions or sensors for many years. But we're always finding new and creative uses for those and our customers are as well. So the general category is linear actuators. And we are finding customers that want -- I think some of the newer videos relate to more precise control that we can do with our newer types of sensors.

對我們來說，這是一個傳統市場，多年來我們一直擁有製造氣缸位置或感測器的客戶。但我們一直在尋找新的、有創意的用途，我們的客戶也是如此。所以一般類別是線性執行器。我們正在尋找想要的客戶——我認為一些較新的影片與我們可以使用新型感測器實現的更精確的控制有關。

So we have a new YouTube video, for example, that highlights one of our advanced magnetic switches that I mentioned in the prepared remarks that we introduced at the recent trade shows. And so that allows us to have more precise control of a pneumatic cylinder where we can slow it down at one threshold and then stop it at another. So just like if you're slowing down and stopping a car, you can stop it more precisely like that.

例如，我們有一個新的 YouTube 視頻，重點介紹了我們在最近的貿易展覽會上推出的準備好的發言中提到的一種先進磁性開關。這樣，我們就可以更精確地控制氣缸，我們可以在一個閾值處減慢它的速度，然後在另一個閾值處停止它。就像你減速並停下汽車一樣，你可以更精確地將其停下來。

And so that's an example of the type of demonstration that we have. We've had customers who've been using pneumatic cylinders for many years, but this opens up a new way of controlling them more precisely.

這就是我們所進行的示範類型的一個例子。我們的客戶已經使用氣缸很多年了，但這開闢了一種更精確控制氣缸的新方法。

We also have done some recent videos and demonstrations where some of our folks are very creative in coming up with ways of controlling linear position and familiar devices. We had a device that's playing a piano, moving an actuator around to a precise position and then hitting the key. So there are some of those that we demonstrate -- as well to demonstrate the precision of our sensors in that case, the combination of the precision and the speed.

我們最近也製作了一些影片和演示，其中我們的一些人非常有創造力，想出了控制線性位置和熟悉設備的方法。我們有一個可以彈奏鋼琴的設備，它將執行器移動到精確的位置，然後敲擊琴鍵。因此，我們展示了其中的一些——也展示了我們感測器的精度，即精度和速度的結合。

Okay. That's good to hear that this market is expanding. And finally, I wanted to ask you, for several quarters, we've seen that effect of military orders being very volatile. Have you considered reporting revenue ex military orders? For example, for this quarter, it would be very useful to tell my -- that you have -- that ex military orders, your revenue actually grew, which I think it did.

好的。很高興聽到這個市場正在擴大。最後，我想問您，幾個季度以來，我們已經看到軍事訂單的影響非常不穩定。您是否考慮過報告軍事命令的收入？例如，對於本季度，告訴我——你們有——除軍事訂單外，你們的收入實際上有所增長，我認為確實如此，這將非常有用。

That's true. It did. And we will look at -- we look at that kind of continuously, do we want to report a segment.

這是真的。確實如此。我們會持續關注這個問題，看看我們是否想報告某個片段。

The challenge with that is that to report it consistently, we need to have it audited and we need to break out not just the revenue, but the components of -- or the expenses and costs related to the revenue. So there's a fair amount of infrastructure that we need to do that. But we will look at that and we look at whether we should report certain segments continuously. We're always looking at that. So we'll be looking also at defense spending.

這樣做的挑戰在於，為了一致地報告收入，我們需要對其進行審計，並且我們不僅需要列出收入，還需要列出收入的各個組成部分，或與收入相關的費用和成本。因此我們需要大量的基礎設施來實現這一點。但我們會研究這一點，並考慮是否應該持續報告某些片段。我們一直在關注這一點。因此我們也將關注國防開支。

In the meantime, what we try to do is provide information to our investors as we did on this call to help understand what is behind our top and bottom line.

同時，我們試圖向投資者提供信息，就像我們在這次電話會議上所做的那樣，以幫助他們了解我們的頂線和底線背後的原因。

Okay. That's good to hear. And the information you're providing is that military orders will actually sequentially increase this quarter and the next. Is that correct?

好的。聽到這個消息真好。您提供的資訊是，本季和下個季度的軍事訂單實際上將連續增加。對嗎？

That's what we're expecting now. That's our current expectation, yes.

這正是我們現在所期待的。是的，這是我們目前的期望。

Okay. That's if for me. Good luck.

好的。對我來說就是這樣。祝你好運。

Thank you. Are there any other questions? (Event Instructions)

謝謝。還有其他問題嗎？（活動須知）

Well, if there are no other questions, we were pleased to report strong revenue and earnings. We continue to deploy new equipment and received a new equipment cluster. We look forward to speaking with you in October for our next quarterly call, and we look forward to seeing some of you August 7 at our annual meeting.

好吧，如果沒有其他問題，我們很高興地報告強勁的收入和收益。我們繼續部署新設備並接收新的設備叢集。我們期待在十月的下一次季度電話會議上與您交談，並期待在 8 月 7 日的年度會議上見到你們。

A replay of this call will be available in the Investor Events page of our website that's nve.com and our YouTube channel, that's youtube.com/nvecorporation.

本次電話會議的重播將在我們網站的投資者活動頁面（即 nve.com）和我們的 YouTube 頻道（即 youtube.com/nvecorporation）上提供。