NVE Corp (NVEC) 2026 Q2 法說會逐字稿

Good afternoon and welcome to the NVE Corporation conference call for the quarter ended September 30, 2025. I'm Dan Baker and Vice President and CEO. I'm joined by Daniel Nelson, our principal financial officer, and Pete Eames, Vice President of Advanced Technology.

下午好，歡迎參加 NVE 公司截至 2025 年 9 月 30 日的季度電話會議。我是丹·貝克，副總裁兼執行長。與我一同出席的還有我們的財務長丹尼爾·尼爾森和高級技術副總裁皮特·伊姆斯。

(Operator instructions). After my opening comments, Daniel Nelson will present our financial results. Pete will cover new products and R&D. I'll cover the business, and then we'll open the call to questions. We issued our press release with financial results and filed our quarterly report on Form 10 in the past hour following the close of market. Links to the press release in 10Q are available through our website, the SEC's website, and X, formerly known as Twitter.

（操作說明）在我的開場致詞之後，丹尼爾·尼爾森將介紹我們的財務表現。Pete 將負責新產品和研發方面的工作。我將先介紹一下業務狀況，然後我們會開放提問環節。我們在股市收盤後的一小時內發布了包含財務業績的新聞稿，並提交了季度報告（10 表格）。10Q 中的新聞稿連結可透過我們的網站、美國證券交易委員會的網站以及 X（以前稱為 Twitter）取得。

Please refer to the safe harbour 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 and 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 10K for the year ended March 31, 2025.

請參閱螢幕上的安全港聲明。我們可能對未來計劃、事件、財務結果或業績發表的評論是前瞻性聲明，這些聲明受到某些風險和不確定性的影響，其中包括但不限於與經濟環境和我們所服務行業的不確定性相關的因素，以及相關的風險和不確定性。未來銷售額和收入以及與關稅、海關稅和其他貿易壁壘相關的風險和不確定性，以及我們不時向美國證券交易委員會提交的文件（包括截至 2025 年 3 月 31 日的 10-K 表格年度報告）中列出的風險因素。

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 4% sequential increase in revenue driven by strong increases in distributor and non-defense sales despite an expected decrease in defense sales. Daniel Nelson will cover details of the financials, Daniel.

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作出的前瞻性聲明的義務。我們很高興地宣布，儘管國防銷售額預計會下降，但由於分銷商和非國防銷售額的強勁增長，公司收入環比增長了 4%。丹尼爾·尼爾森將負責介紹財務方面的細節，丹尼爾。

Revenue increased 4% quarter over quarter sequentially, and decreased 6% year over year. The year over year decrease was due to a 68% decrease in contract R&D revenue, partially offset by a 1% increase in product sales. Contract R&D was 3% of revenue. The year over year increase in product sales was due to a 21% increase in non-defense sales, partially offset by a 64% decrease in defense sales, which can be volatile because of defense procurement cycles.

營收季增 4%，年減 6%。年比下降的原因是合約研發收入下降了 68%，但產品銷售額增加了 1%，部分抵消了這一降幅。合約研發費用佔收入的3%。產品銷售額年增主要得益於非國防銷售額成長 21%，但部分被國防銷售額下降 64% 所抵消，而國防銷售額因國防採購週期而波動較大。

Defense product sales were 8% of revenue in the past quarter. Contract R&D is primarily defense or government related, and those revenues can also be uneven. Our defense business is primarily anti-tamber products that protect US technology. It's important to our country and it's profitable business, although it's not part of our growth strategy. The defense business has been steadily recovering this fiscal year, and as expected, defense industry sales increased sequentially in the past quarter. Distributor sales also increased nicely, both sequentially and year over year.

上個季度國防產品銷售額佔總收入的 8%。合約研發主要與國防或政府有關，而且這些收入也可能不穩定。我們的國防業務主要生產保護美國技術的反劫持產品。它對我們國家很重要，而且是一項有利可圖的生意，儘管它不屬於我們的成長策略。本財年國防業務一直在穩步復甦，正如預期的那樣，國防工業銷售額在上一季環比增長。分銷商的銷售額也實現了良好的成長，無論是環比成長還是同比增長。

Gross margin decreased to 78% from 86% the prior year quarter due to a less profitable product mix and strong distributor sales, which tend to have lower margins than direct sales. Total expenses decreased 7% for the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 due to a 3% increase in R&D expense and a 23% decrease in SG&A.

由於產品組合獲利能力下降以及經銷商銷售強勁（分銷商的利潤率通常低於直接銷售），毛利率從去年同期的 86% 下降至 78%。由於研發費用增加 3% 和銷售、一般及行政費用減少 23%，2026 財年第二季總支出比 2025 財年第二季下降 7%。

The increase in R&D was due to increased new product development. The decrease in SG&A was primarily due to the timing of sales and marketing activities and reassignment of some SG&A resources to manufacturing and new product development. Our tax rate increased to 20% for the second quarter of fiscal 2026 compared to 17% for the second quarter of fiscal 2025, primarily due to the non-cash impact of tax law changes on certain tax deductions this fiscal year.

研發投入的增加是因為新產品開發量的增加。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機調整，以及將部分銷售、一般及行政費用資源重新分配到生產製造和新產品開發。由於本財年稅法變更對某些稅收抵扣產生了非現金影響，2026 財年第二季的稅率從 2025 財年第二季的 17% 上升至 20%。

We currently expect a full year tax rate of between 16% and 17% this fiscal year because we expect advanced manufacturing investment tax credits of between $700,000 million and $1 million dollars to offset the effect of auto tax law changes. The advanced manufacturing investment tax credit was extended in a tax bill enacted in July and increases from 25% to 30% in calendar 2026.

我們目前預計本財年的全年稅率將在 16% 到 17% 之間，因為我們預計先進製造業投資稅收抵免額將在 7,000 億美元到 100 萬美元之間，以抵銷汽車稅法變更的影響。7 月頒布的一項稅收法案延長了先進製造業投資稅收抵免政策，並將在 2026 年日曆年內從 25% 提高到 30%。

We currently expect our effective tax rate next fiscal year to also be approximately 16% to 17%. More importantly, the tax law changes will reduce our cash taxes by approximately $1 million over three quarters starting this quarter, the December quarter, by allowing us to accelerate the deduction of previously unamortized R&D expenses.

我們目前預計下一財年的實際稅率也將在 16% 至 17% 左右。更重要的是，稅法變更將允許我們加速扣除以前未攤銷的研發費用，從而在三個季度內（從本季度開始，即 12 月季度）減少我們約 100 萬美元的現金稅款。

After taxes, net income for the second quarter of fiscal 2026 was $3.31 million or $0.68 per diluted share compared to $4.03 million or $0.83 per share for the prior year quarter. The decrease in net income for the quarter was primarily due to decreased revenue, lower margins, and a higher tax rate compared to a year ago, partially offset by decreased expenses. Our profitability metrics remains strong. Operating margin was 58%. Pre-tax margin was 65%, and net margin was 52%.

2026 財年第二季稅後淨收入為 331 萬美元，即每股攤薄收益 0.68 美元，而去年同期為 403 萬美元，即每股收益 0.83 美元。本季淨利下降主要是因為收入減少、利潤率降低以及稅率高於去年同期，部分被支出減少所抵銷。我們的獲利指標依然強勁。營業利益率為58%。稅前利潤率為 65%，淨利潤率為 52%。

For the first six months of fiscal 2026, total revenue was $12.5 million and net income was $6.89 million or $1.42 per diluted share. Adding in approximately $159,000 in unrealized gain on our marketable securities for the fiscal year, comprehensive income for the first half was $7.05 million.

2026 財年上半年，總營收為 1,250 萬美元，淨收入為 689 萬美元，即每股攤薄收益 1.42 美元。加上本財政年度有價證券未實現收益約 159,000 美元，上半年綜合收益為 705 萬美元。

Turn to cash flow items. Cash flow from operations was $7.98 million in the first six months of the fiscal year. Accounts receivable decreased $1.1 million primarily due to the timing of customer payments. Pre-paid expenses and other assets increased by $730,000 primarily due to an increase in accrued bond interest and a decrease in federal and state taxes due.

接下來查看現金流量項目。本財年上半年經營活動產生的現金流量為 798 萬美元。應收帳款減少了 110 萬美元，主要原因是客戶付款時間表。預付費用和其他資產增加了 73 萬美元，主要原因是應計債券利息增加以及聯邦和州稅款減少。

The decrease in taxes due was because we deducted previously un amortized research and development expenses in the past quarter as permitted under the Federal Budget reconciliation bill enacted July 4, 2025. Accrued payroll and other current liabilities decreased $286,000 primarily due to the payments of federal and state taxes balance due as of March 31, 2025.

應繳稅款減少的原因是，根據 2025 年 7 月 4 日頒布的聯邦預算協調法案，我們在上一季扣除了先前未攤銷的研發費用。截至 2025 年 3 月 31 日，應計工資和其他流動負債減少了 286,000 美元，主要原因是支付了聯邦和州稅款餘額。

Fixed asset purchases were $1.13 million for the first half of the fiscal year. Most of that was for a cluster of production equipment which arrived in July. We successfully installed the equipment in the past quarter and hope to complete deployment by the end of this fiscal year.

本財政年度上半年固定資產購置額為 113 萬美元。其中大部分是用於7月運抵的一批生產設備。我們在上個季度成功安裝了設備，並希望在本財年結束前完成部署。

We currently expect to spend an additional $1million to $1.5 million on fixed assets in the last six months of the fiscal year to complete our production expansion. Pete Ames will discuss that equipment shortly. Now I'll turn a call over to Pete Ames, our Vice President of Advanced Technology, to talk about our plans for the new equipment and to cover new products and R&D.

我們目前預計在本財年最後六個月內，將在固定資產上額外投入 100 萬至 150 萬美元，以完成我們的生產擴張。皮特·艾姆斯稍後會討論這套設備。現在我將把電話交給我們的高級技術副總裁皮特·艾姆斯，讓他談談我們對新設備的計劃，並介紹新產品和研發情況。

Thanks Daniel. I'll cover new equipment and R&D. New equipment in the past year will increase our capacity, increase our capabilities, and allow us to do wafer level chip scale packaging in-house. As Daniel said, we completed installation of a new equipment cluster in the past quarter in an expanded production area on the east end of our building.

謝謝你，丹尼爾。我將介紹新設備和研發情況。過去一年引進的新設備將提高我們的產能，增強我們的能力，並使我們能夠在公司內部進行晶圓級晶片封裝。正如丹尼爾所說，上個季度我們在大樓東側擴建的生產區域完成了新設備集群的安裝。

We've begun developing advanced spintronic processes on the new equipment, and wafer level chip scale packaging makes our parts smaller and more precise. Our R&D strategy is to make the world's best electronics for high value markets such as medical devices, electric and autonomous vehicles, advanced factory and humanoid robotics, and highly automated 4th wave factories using artificial intelligence of things. Executing on that strategy, we launched 3 new products in the past quarter a rotation sensor for applications such as networked utility meters and robotics, a new type of data coupler for motor control and energy conversion, and a new wafer level chip scale voltage regulator for ultra miniature and ultra robust power conversion in harsh environments.

我們已開始在新設備上開發先進的自旋電子工藝，晶圓級晶片封裝使我們的零件更小、更精確。我們的研發策略是為醫療器材、電動和自動駕駛汽車、先進工廠和人形機器人以及利用人工智慧物聯網實現高度自動化的第四代工廠等高價值市場製造世界上最好的電子產品。為執行該策略，我們在上個季度推出了 3 款新產品：一款用於聯網公用事業計量表和機器人等應用的旋轉感測器、一款用於電機控制和能量轉換的新型數據耦合器，以及一款用於在惡劣環境下進行超小型化和超強魯棒性電源轉換的新型晶圓級晶片電壓調節器。

There are demonstrations of the new products on our website and on our YouTube channel. Going forward with the ingenuity of our engineers and scientists, the new equipment will continue to accelerate product development and fuel growth. Now I'll turn it back over to Dan.

我們的網站和YouTube頻道上都有新產品的展示。憑藉我們工程師和科學家的聰明才智，新設備將繼續加速產品開發並推動成長。現在我把麥克風交還給丹。

Thanks Pete. I'll cover sales and marketing in our annual meeting. We exhibited at the Medical design and manufacturing trade show the past 2 days in Minneapolis, part of the advanced manufacturing event. Minnesota is a healthcare industry hub, and medical devices are an important market for us. We have a convincing benefit proposition for medical devices with small size, low power, and superb reliability.

謝謝你，皮特。我將在年會上介紹銷售和行銷方面的內容。過去兩天，我們在明尼阿波利斯參加了醫療設計和製造貿易展，這是先進製造業盛會的一部分。明尼蘇達州是醫療保健產業中心，醫療器材對我們來說是一個重要的市場。我們擁有體積小、功耗低、可靠性高的醫療器械，並能提供令人信服的優勢。

At the show we highlighted new wafer level chip scale parts for miniaturization of implantable medical devices and surgical robots, high sensitivity sensors for medical device navigation. Our best in class electrical isolators to ensure the safety of medical instruments. And nano power sensors for battery powered medical devices. We gave away working sensor circuit boards with permanently connected batteries at the show to demonstrate ultra low power performance. It was a popular promotion. We've been following up on some good leads from the show, and we believe our investments and trade shows will pay off in future sales.

在展會上，我們重點介紹了用於微型化植入式醫療設備和手術機器人的新型晶圓級晶片零件，以及用於醫療設備導航的高靈敏度感測器。我們一流的電氣隔離器可確保醫療器材的安全。以及用於電池供電醫療設備的奈米功率感測器。我們在展會上贈送了帶有永久連接電池的工作感測器電路板，以展示其超低功耗性能。這是一項很受歡迎的促銷活動。我們一直在跟進展會上獲得的一些優質線索，我們相信我們的投資和參加展會將在未來的銷售中獲得回報。

We held our annual shareholders meeting in the past quarter here at NVE. Proxy advisory firms recommend in-person annual meetings for good governance. All of our directors and officers attended along with our auditors. We had a chance to meet shareholders, answer questions, do live demos, and provide tours. Shareholders had a chance to see our expanded production area and our new equipment.

上個季度，我們在NVE召開了年度股東大會。為了良好的公司治理，代理顧問公司建議召開面對面的年度股東會。我們所有董事、高階主管以及審計人員都出席了會議。我們有機會與股東見面，回答問題，進行現場演示，並提供參觀服務。股東們有機會參觀了我們擴建後的生產區域和新設備。

We set up a compressor and compressed air tank to demonstrate pneumatic cylinder sensors. Pneumatic cylinders are the muscles of many robots, and our sensors are their eyes. Visitors could try out our new wafer level chip scale sensors and advanced proximity sensors for advanced robotics. In the formal meeting, each director was re-elected, named executive officer compensation was approved, and the selection of our independent registered public accounting firm was ratified.

我們搭建了一台壓縮機和壓縮空氣罐來示範氣壓缸感知器。氣動缸是許多機器人的肌肉，而我們的感應器就是它們的眼睛。參觀者可以體驗我們用於先進機器人技術的新型晶圓級晶片感測器和先進接近感測器。在正式會議上，每位董事均獲得連任，指定執行官的薪酬獲得批准，並且我們選擇的獨立註冊會計師事務所也獲得批准。

We filed the final vote counts in a current report on Form 8. There's a replay of the annual meeting and demonstrations on our website and YouTube channel. Now we'd like to open the call for questions. To ask a question from a phone, press 7 to unmute, or from a browser or the app, click the Raise my hand icon under the meeting chat. That's at the bottom of the left column and unmute yourself to speak.

我們已將最終投票結果以表格 8 的形式提交給相關部門。我們的網站和 YouTube 頻道上有年會和示範的重播。現在我們來徵求大家的問題。若要透過手機提問，請按 7 取消靜音；或透過瀏覽器或應用程式提問，請點擊會議聊天下方的「舉手」圖示。它在左側欄的底部，請取消靜音即可發言。

Please state your name and affiliation before your question, and to prevent background noise, please mute your line after asking your questions.

請在提問前說明您的姓名和單位，為避免背景噪音，請在提問後將麥克風靜音。

Hello, am I on?

你好，請問我在線上嗎？

You are?

你是？

Okay. Well. I have a quick question. It's great that you're installing all this new equipment. Are we, should we expect to see, growth in revenues for this new equipment or is it just growth in capabilities?

好的。出色地。我有個問題想問一下。你們安裝這些新設備真是太好了。我們是否應該期待這種新設備帶來營收成長，還是只是帶來效能提升？

No, part of our goal, as Pete said in the prepared remarks, is to use the new equipment to develop advanced products and to fuel our future growth. So it's both to increase our capabilities and to develop new products.

不，正如皮特在準備好的演講中所說，我們的部分目標是利用新設備開發先進產品，並推動我們未來的發展。所以，這既是為了提升我們的能力，也是為了開發新產品。

Right, and, when should we see that future growth?

沒錯，那麼，我們什麼時候才能看到未來的成長呢？

Well, our goal is always to grow, and in our core market we grew, we had strong growth in the in the past quarter. So, we're starting to see the results of our R&D and our expansion plans already.

我們的目標始終是發展，而我們在核心市場也實現了成長，上個季度我們取得了強勁的成長。所以，我們已經開始看到研發和擴張計畫的成果了。

So you're referring to the sequential growth and also to the non, non-military growth. Is that correct?

所以你指的是循序漸進的成長，也指的是非軍事性的成長。是這樣嗎？

Exactly.

確切地。

Okay, right, and, the chip level scale packaging, when should, when would that ramp up?

好的，對了，晶片級封裝技術何時該、何時才能大規模普及？

Well, we've been sampling the products for several quarters now. We have customer interest and we're continuing to expand that product line, so we expect it to be a significant growth driver going forward.

我們已經對這些產品進行了好幾季的抽樣測試。我們看到了客戶的興趣，我們正在不斷擴大該產品線，因此我們預計它將成為未來重要的成長動力。

Going forward, meaning as soon as this current quarter.

接下來，也就是最早在本季。

Yes, conceivably, in certain markets and industrial markets, that's certainly possible. Our goal is to is to make a design in process as fast as possible in the medical markets, which is one of our core markets. Sometimes the development cycle can be a long time because of regulatory issues. But in the industrial markets, our goal is to get design winds.

是的，理論上來說，在某些市場和產業市場中，這當然是有可能的。我們的目標是在醫療市場（我們的核心市場之一）以最快的速度完成設計流程。有時由於監管問題，開發週期可能會很長。但在工業市場，我們的目標是獲得設計風速。

And can you tell us again what would the advantages of chip level scale packaging be?

您能否再次詳細介紹一下晶片級封裝的優勢？

So the advantages are that the parts are smaller, more precise, they're more precise because they're smaller, and so they have more spatial specificity. And then the other business advantage is that we can do that in-house, so we're less susceptible to supply chain risks and of course the costs associated with those, especially in an environment with uncertain tariffs.

因此，其優點在於零件更小、更精確，因為零件更小所以更精確，因此具有更高的空間特異性。另一個商業優勢是我們可以內部完成這項工作，因此我們不太容易受到供應鏈風險以及相關成本的影響，尤其是在關稅不確定的環境下。

Okay, this is all great to hear. This is all for me and I apologize. Could you remind me how to get off the call, how to mute my line while remaining on the call?

好的，聽到這些真是太好了。以上都是我的個人狀況，我深感抱歉。請問如何結束通話？如何在通話過程中將我的線路靜音？

So *7 should mute or unmute your line.

所以，按 *7 可以靜音或取消靜音你的線。

Okay, thank you.

好的，謝謝。

Thank you for calling.

感謝您打電話。

Hi Dan, it's Jeff Bernstein.

嗨，丹，我是傑夫·伯恩斯坦。

Hi Jeff.

嗨，傑夫。

Couple of questions for you. I'm curious, is wafer scale packaging now allowing you to have a fully domestic supply chain for those, parts, and part two, do you have a fully domestic supply chain for any of your other parts?

我有幾個問題想問你。我很好奇，晶圓級封裝技術現在是否讓你們能夠完全依靠國內供應鏈來生產這些零件？其次，你們的其他零件是否也完全依賴國內供應鏈？

We have, I think it's fair to say, a mostly domestic supply chain. We do buy materials from overseas as most companies do, of course, but we are uniquely well situated in the tariff environment because we are, we're quite self-sufficient. We do the key operations, including front end, which is wafer deposition. And back end, which is test, and with the addition of wafer level chip scale that will eliminate that will bring in-house one of the key elements of the supply chain which is packaging our parts. Most of our traditional parts are packaged overseas, as are most semiconductors, but we are uniquely independent.

我認為可以公平地說，我們的供應鏈主要來自國內。當然，我們和大多數公司一樣，也會從海外購買原材料，但由於我們相當自給自足，因此我們在關稅環境下具有獨特的優勢。我們負責關鍵操作，包括前端工序，即晶圓沉積。後端是測試，加上晶圓級晶片規模化生產，這將消除供應鏈中的關鍵環節——封裝我們的零件——並將其納入內部生產。我們的傳統零件以及大部分半導體產品都是在海外封裝的，但我們卻擁有獨特的獨立性。

Gotcha. But okay, so, but it does sound like these new parts will make you 100% domestic.

明白了。好吧，聽起來這些新零件會讓你的產品100%國產化。

Well, I wouldn't want to say 100%, Jeff, just because there are other materials and chemicals and things that we're relying on supplies, but I really meant.

嗯，傑夫，我不想說百分之百確定，因為我們還需要依賴其他材料、化學品和其他物資的供應，但我的意思是，確實如此。

Yeah, fabrication takes place in.

是的，捏造就在這裡發生。

Right, yes, that's true.

沒錯，確實如此。

Okay. Okay, that that that that's great. And then, I was curious, can you just remind us, you did mention a couple of things about, the functions that you guys provide in medical devices. Can you remind us on hearing aids? I know, Starkey, I think now has a brand new, very high. And, hearing aid product coming out. I would guess that usually this stuff happens, in cycles and that probably Sonova is probably doing the same thing, but just remind us what you do, in that market, and then also in the medical device market, in terms of the part functions that you offer.

好的。好的，那就太好了。然後，我很好奇，您能否提醒我們一下，您之前提到過貴公司在醫療設備方面提供的一些功能。能再提醒我們一下助聽器的相關知識嗎？我知道，斯塔基，我認為他現在處於一個全新的、非常高的水平。而且，助聽器產品即將上市。我猜這種事情通常會週期性地發生，索諾瓦可能也在做同樣的事情，但請您提醒我們一下，您在這個市場以及醫療器材市場中，就您提供的零件功能而言，都做了些什麼。

So in general we enable communications between the device and the outside world for uploading and downloading data, and the uniqueness of our type of solution is that it's very secure and difficult to hack. We probably shouldn't get into the specifics of what our customers do just because it's confidential to them, but the advantages that we offer that are important in those markets are that our parts are small. They are very low power because these are battery devices, battery powered devices, and they're extremely reliable, which for medical devices of course critical.

因此，我們總體上實現了設備與外部世界之間的通信，用於上傳和下載數據，而我們這種解決方案的獨特之處在於它非常安全，難以被駭客攻擊。我們可能不應該透露客戶的具體業務細節，因為這屬於他們的機密信息，但我們在這些市場中提供的重要優勢是我們的零件體積小。它們的功耗非常低，因為這些是電池供電的設備，而且它們非常可靠，這對醫療設備來說當然至關重要。

Got, gotcha. I seem to remember that in hearing aids it was really sort of detecting if somebody is holding a handset by their ear, is that still kind of the main thing?

抓到你了。我記得助聽器的主要功能是檢測是否有人將聽筒放在耳邊，現在這仍然是主要功能嗎？

That's been reported, yes.

是的，已有相關報告。

Got you. Okay, and then in the, in cardiac rhythm management, where your customer Abbott has this sort of revolutionary of your pacemakers, and now they have them for dual implantation, so 2 at a time, 1 in each chamber of the heart, is that a product location thing or is it a communication or what is exactly in in those kinds of CRM applications?

抓到你了。好的，那麼在心臟節律管理方面，你們的客戶雅培公司推出了革命性的起搏器，現在他們推出了雙腔植入式起搏器，一次植入兩個，心臟的每個腔室各一個。這是產品定位方面的問題，還是溝通方面的問題，或者說，這在CRM應用程式中究竟意味著什麼？

Hey, Jeff, this is Pete Ames. I can try to answer that question for you. Of course, we can't get into the specifics, but, yeah, we provide some unique capabilities for implanted medical devices in general. So we're small size and low power, as Dan mentioned, and that's ideal for the small applications and battery-powered applications, among others.

嘿，傑夫，我是皮特·艾姆斯。我可以試著回答你的問題。當然，我們不能透露具體細節，但是，是的，我們為植入式醫療設備提供了一些獨特的功能。正如丹所提到的那樣，我們的產品體積小、功耗低，非常適合小型應用和電池供電應用等。

Okay, that's all I'm going to get, I guess, alright, and then you guys you mentioned, the isolator business and some new products I think there, you got this major move in data centres to 800 volt DC. I think we've talked about before you guys being compatible with some of the silicon carbide, very high power density and high switching speed, ICs that are sets that are coming out now, are you applicable in these data center applications and just talk a little bit about that.

好的，我想這就是我能問的全部了。好的，你們剛才提到了隔離器業務和一些新產品，我想你們也提到了資料中心向800伏特直流電的重大轉變。我們之前討論過，你們的產品與一些碳化矽晶片相容，這些晶片具有非常高的功率密度和開關速度，現在市面上有很多這樣的晶片組。你們的產品是否適用於這些資料中心應用？能否簡單談談這方面？

Yeah, we have some of the highest isolation of voltage ratings in the industry, Jeff, and the voltages that you mentioned for data centers as well within our sweet spot for those applications. So, it is a good application for NVE and it's something that we're excited about.

是的，傑夫，我們在電壓等級隔離度方面在業界名列前茅，而且你提到的資料中心電壓也完全符合我們針對這些應用的理想要求。所以，這對NVE來說是一個很好的應用，我們對此感到非常興奮。

And it seems like there's probably not a huge amount of touch points in that industry to have to go after you. You don't have the same problem of, every engineer having their analog devices or Texas Instruments, sort of website on their browser, how do you guys try to go to market to try and get into that arena?

而且看起來，在這個產業裡，可能沒有太多的接觸點需要你去接觸。你們沒有遇到這樣的問題：每個工程師的瀏覽器上都有模擬設備公司或德州儀器公司的網站，你們是如何進入這個市場並嘗試打入這個領域的呢？

You're right, Jeff. It's a concentrated market which is well suited to us because we can reach those folks. And we reached them through direct outreach through distributors that specialize in those types of energy conversion markets, and through demonstrating our capabilities through our various marketing collaterals such as newsletters, application notes, and videos that show the unique capabilities that we have to convert energy extremely efficiently using those new wide band GAAP devices that you that you mentioned.

你說得對，傑夫。這是一個高度集中的市場，這非常適合我們，因為我們可以接觸到這些人群。我們透過專門從事這類能源轉換市場的經銷商直接聯繫他們，並透過各種行銷資料（如新聞通訊、應用說明和影片）展示我們的能力，從而接觸到他們。這些材料展示了我們使用您提到的那些新型寬頻 GAAP 設備進行高效能能源轉換的獨特能力。

Gotcha. And I would guess you could say the same thing for the EVA market. There there's not a ton of players there, is that basically the same story there and have you actually gotten any design wins in that market?

明白了。我想，對於 EVA 市場來說，情況也是一樣。那裡的玩家不多，情況也差不多嗎？你真的在那塊市場拿下任何設計訂單嗎？

So you're right, that's a concentrated market as well. We target the tier 1 and tier 2 suppliers, so those are the companies that make modules to the to that go into the cars. So, we're not targeting the nameplate car manufacturers because they are buying. These sorts of modules generally from other companies, so we target those customers again we reach them through the marketing means that I mentioned, direct outreach distributors, face to face distributors, and bulletins.

所以你說得對，那也是一個集中度很高的市場。我們的目標是 1 級和 2 級供應商，也就是那些生產汽車零件模組的公司。所以，我們並沒有把目標對準那些名牌汽車製造商，因為他們正在購買。這些模組通常來自其他公司，所以我們再次瞄準這些客戶，透過我提到的營銷手段接觸他們，例如直接外聯分銷商、面對面分銷商和公告。

And newsletters we can point to a number of or several automotive adjacent market design winds, automotive adjacent, I mean by that charging stations, trucks and trains. Cars have a unique qualification process, and we've engaged with companies to go through that process. So, we're optimistic. That we can add considerable value to next generation cars, hybrid electric vehicles and autonomous vehicles.

我們可以指出一些或幾個汽車相關市場設計趨勢，汽車相關，我的意思是充電站、卡車和火車。汽車有其獨特的認證流程，我們已經與一些公司合作，讓他們參與這個流程。所以，我們持樂觀態度。我們可以為下一代汽車、混合動力汽車和自動駕駛汽車增添相當大的價值。

Gotcha. Gotcha. And I'm sorry, I was meaning to ask about EV tolls, the vertical takeoff and landing, electric vehicles, which is a sort of a very small fraternity of players there.

明白了。明白了。抱歉，我原本想問的是電動車收費、垂直起降、電動車，這方面的參與者很少。

We have significant advantages in that type of power control. Obviously, there's a premium on efficiency in that market, on small size, and on and on reliability. So those are the types of markets that that we feel have the high value-added that make them good markets for us.

我們在這類電力控制方面具有顯著優勢。顯然，在這個市場中，效率、小巧的尺寸以及可靠性都是非常重要的。所以，我們認為這些類型的市場具有很高的附加價值，因此對我們來說是很好的市場。

Gotcha. Okay. And then I take it, Dan, that you are not a gamer, but I was really interested in that TDK, press release about TMR sensors, for game controllers to give the gamer, a, an advantage, over other players, and, I actually think that's a really premium market because there are people who will pay anything, to have, the best Nvidia, chips for their systems and these kinds of, game controllers. So, I don't know if that's a market that you guys are able to go after, but.

明白了。好的。丹，我猜你不是遊戲玩家，但我對TDK關於TMR感測器的新聞稿很感興趣，據說TMR感測器可以用於遊戲控制器，讓玩家在與其他玩家的較量中獲得優勢。而且，我認為這確實是一個高端市場，因為有些人願意付出任何代價，只為他們的電腦配備最好的英偉達晶片和這類遊戲控制器。所以，我不知道你們是否能夠開拓這個市場，但是…

I can jump in here again, Jeff. We have looked closely at consumer electronics and in this case, gaming markets. We found the device is much less demanding than our target markets and robotics, industrial internet things and medical. We even did a couple of demos last year, you might have seen, showing the precision and speed of our sensors in comparison to some alternatives. Gamers look for millisecond responses. We demonstrated microsecond responses, thousands of times faster in our promotional videos. So, you can find all this on our YouTube site.

傑夫，我可以再次加入討論。我們密切關注了消費性電子產品市場，特別是遊戲市場。我們發現該設備對我們的目標市場以及機器人、工業物聯網和醫療領域的要求要低得多。去年我們還做了一些演示，您可能已經看到了，展示了我們的感測器與一些替代方案相比的精度和速度。遊戲玩家追求的是毫秒的反應速度。我們在宣傳影片中展示了微秒級的反應速度，比之前的快了數千倍。所以，你可以在我們的 YouTube 頻道上找到所有這些內容。

Got you. Okay, alright, that's great, and then I'm sorry, I think I got on a minute or two late. Did you say anything about the puff market in the quarter? What did it recover or did it not recover in this quarter?

抓到你了。好的，太好了，抱歉，我好像遲到了一兩分鐘。你這季有沒有提到大麻市場？本季哪些方面恢復了，哪些方面沒有恢復？

Yeah, so the puff market, so that's, for us, that's a physical and cloneable function, that is something that we work actively in many of our anti-tamper products use puff technology. We're currently selling these into military systems, and there's many potential commercial applications as well. I think we alluded to the financials on that earlier, and I think Daniel was clear that there's quite a bit of volatility in those sales.

是的，所以對我們來說，煙霧市場是一個物理的、可複製的功能，我們積極致力於在許多防篡改產品中使用煙霧技術。我們目前正將這些產品銷售給軍方系統，它們也有許多潛在的商業應用。我想我們之前已經提到過財務方面的問題，而且我認為丹尼爾也明確表示，這些銷售額波動性相當大。

Got you. And so, were they, did they recover in this quarter from the prior quarter or were they still down?

抓到你了。那麼，它們在本季是否從上一季的水平有所回升，還是仍然處於低迷狀態？

So, we talked about sequential growth but not year over year.

所以，我們討論的是連續成長，而不是同比。

Gotcha. Okay.

明白了。好的。

And as we've said, that's not as well, and as that's not one of the markets, it's an important market to us and we're proud to be a part of that, but it's not really a key part of our growth strategy. We were very pleased to see the non-defense sales grow so strongly.

正如我們所說，情況並非如此，而且由於它不是我們的市場之一，雖然它對我們來說是一個重要的市場，我們很自豪能成為其中的一份子，但它並不是我們成長策略的關鍵部分。我們非常高興地看到非國防銷售額實現瞭如此強勁的成長。

Gotcha. And lastly, then, we talked last quarter about your application of, very high sensitivity sensors to allow people to get rid of rare earth, metal magnets, and I think you guys had said that you had some design wins. I'm just wondering, Kind of how long the turnaround time is to actual production of those kinds of systems and what, if anything has happened in the quarter since, in terms of, design when pace and or getting to production, on some of those design wins.

明白了。最後，上個季度我們談到了你們應用高靈敏度感測器來取代稀土金屬磁鐵，我想你們當時說過你們在一些設計方面取得了成功。我只是想知道，這類系統從設計到實際投產需要多長時間，以及自本季度以來，在設計進度或投產方面，這些設計項目有哪些進展。

Yeah, we've been pleased with the reaction to our sensors, and of course there's been a spotlight on rare earth magnets and materials such as [neodyium and dysprosium], which virtually all come from China and have risky supply chains and the threat of tariffs. So, we've long offered rare earth-free ferrite magnets as well as high sensitivity sensors to detect them. We've been promoting those, we promote them at every trade shows, and we have customers that are interested and customers that remark, I can use one of these regular ferrite magnets on an advanced sensor system, and indeed they can. So, I think it's already translated into sales. It's difficult to characterize, how many of them are replacing rare earth magnets, but I'm sure it's some of them.

是的，我們對感測器的市場反應感到滿意，當然，稀土磁鐵和釹、鏑等材料也受到了關注，這些材料幾乎都來自中國，供應鏈風險很高，而且面臨關稅威脅。因此，我們長期以來一直提供不含稀土的鐵氧體磁鐵以及用於檢測它們的高靈敏度感測器。我們一直在推廣這些產品，我們在每個貿易展覽會上都會推廣它們，我們的客戶對此很感興趣，客戶們也表示，我可以將這些普通的鐵氧體磁鐵用於先進的感測器系統，而實際上他們確實可以這樣做。所以，我認為這已經轉化為銷售額了。很難確定其中有多少磁鐵正在取代稀土磁鐵，但我確信其中肯定有一些。

Okay thanks.

好的，謝謝。

So if there are any other questions, press 7 to unmute or raise my hand from chime.

若還有其他問題，請按 7 取消靜音或舉手示意。

Hi Dan, this is Pete Prevet down in Florida. I'm sorry I wasn't able to make the shareholder meeting this year, but I'm going to try to get there next year. I was excited to hear about the progress you made over the last year. I remember, touring and you guys are doing a little demo of the east side and sounds like you've got that all set up and you got your equipment going. Can you talk a little bit about, space? I know space is a premium there and you were looking at, maybe additional buildings, for future expansion. What, what's the situation with the space that you have there?

嗨，丹，我是身在佛羅裡達的皮特·普雷維特。很抱歉今年我沒能參加股東大會，但我明年會努力爭取參加。得知你過去一年的進步，我感到非常高興。我記得，巡迴的時候，你們正在做東區的演示，聽起來你們已經把一切都安排好了，設備也都運轉起來了。能簡單談談太空嗎？我知道那裡的空間很寶貴，你們可能正在考慮建造額外的建築物，以備將來擴張之需。你那邊的空間狀況如何？

Well, Pete and his team did a fabulous job of freeing up the space that you saw, of course you saw it unfinished when you were here a little more than a year ago, and it's packed right now, but it's working for us. We renewed our lease in order to make it economically viable to expand in this building, and we have additional plans to expand. If need be, so we think this building will hold us, and we also have contingency plans that we hope to be able to execute that would involve moving certain groups into a different building in order to expand our production and other areas. So we have a plan and it didn't involve having to move a lot of equipment from our current building which would have been expensive and potentially disruptive.

嗯，皮特和他的團隊出色地完成了空間的清理工作，你當然也看到了，一年多前你來的時候它還沒完工，現在裡面很擁擠，但這對我們來說很有效。我們續約了租約，以便在這棟大樓裡擴張，這樣在經濟上是可行的，而且我們還有其他擴張計畫。如果需要的話，我們認為這座建築可以容納我們，我們也制定了應急計劃，希望能夠執行，其中包括將某些團隊轉移到另一棟建築中，以便擴大我們的生產和其他領域。所以我們制定了一個計劃，這個計劃不需要從我們目前的建築物中搬遷大量設備，這既昂貴又可能造成乾擾。

Okay, that's great to hear thank you and it it's great about the to hear about the new products certainly getting into the robotic market can you talk a little bit about, is there any potential in the future? I know it might be a little bit lower margin but. Are you able to potentially target the hall effect sensor market, at any point where maybe your price, your cost structure can be reduced, where you can be more competitive, or is that just not a target market at all?

好的，很高興聽到這個消息，謝謝。很高興聽到新產品即將進入機器人市場，可以談談未來發展潛力嗎？我知道利潤率可能會低一些，但是…您是否有可能瞄準霍爾效應感測器市場，在某個階段降低價格和成本結構，從而提高競爭力？或者這根本不是您的目標市場？

The high end of that market is a target market. So, for folks unfamiliar, Hall effect is a type of semiconductor magnetic switch. We make spintronic non-semiconductor switches, so we have a number of advantages that we've talked about repeatedly in terms of the small size, the high reliability, the low power, and the ability to provide smart connections for sophisticated systems. But it's not our goal to compete with commodity switches, but we talked about, for example, Jeff brought up the gaming market, which is a high-end market that's currently hall effect sensors, and if there's a need for folks who have reaction times in the microseconds rather than milliseconds.

該市場的高端部分是我們的目標市場。所以，對於不熟悉的人來說，霍爾效應是一種半導體磁開關。我們製造自旋電子非半導體開關，因此我們有很多優勢，我們已經反覆談到這些優勢，例如尺寸小、可靠性高、功耗低，以及能夠為複雜的系統提供智慧連接。但我們的目標不是與通用開關競爭，而是我們討論過，例如，Jeff 提到了遊戲市場，這是一個高端市場，目前使用的是霍爾效應感測器，以及是否需要反應時間在微秒而不是毫秒級的感測器。

We believe that's the type of market that perhaps we could look at, and there are other types of markets like that where they're using Halifax sensors now and they can improve the performance significantly using our sensors where there are the markets where a Halifax sensor is good enough and they're really cheap versions, those are not markets that we would typically target.

我們認為這可能是我們可以考慮的市場類型，還有其他一些類似的市場，他們現在正在使用哈利法克斯感測器，而使用我們的感測器可以顯著提高性能；還有一些市場，哈利法克斯感測器已經足夠好，而且價格非常便宜，這些不是我們通常會瞄準的市場。

Great. And I think there was an announcement today by Amazon where they want to start replacing a lot of people in their distribution centers with robots. Are those the types of robotic applications where NVE parts would potentially be used?

偉大的。我記得亞馬遜今天宣布，他們打算用機器人取代配送中心的大量員工。NVE零件是否可能應用於這些類型的機器人應用？

They are, those are the types of industrial robots, the industrial internet of things, and the artificial intelligence of things that that are the markets where we have a great benefit proposition. So smart factories, smart warehouses, where they need sensor inputs and they need precision and speed, that's where we can add a lot of value. So those are the types of markets that we are targeting.

沒錯，這些就是工業機器人、工業物聯網和人工智慧等市場領域，而我們在這些領域擁有巨大的利益。因此，智慧工廠、智慧倉庫等需要感測器輸入、需要精確度和速度的場所，正是我們可以創造許多價值的地方。所以，這些就是我們瞄準的目標市場類型。

Great thank you very much appreciate it.

非常感謝，感激不盡。

Thanks Pete.

謝謝你，皮特。

Yeah, Dan, this is Mike Ostermayer.

是的，丹，我是麥克‧奧斯特邁耶。

Hi Mike.

嗨，麥克。

Yeah, hi, quick, I think I believe a couple calls back you folks were thinking of breaking out your product sales by segments, defense in particular is my memory correct on that? On your reports?

是的，你好，簡單問一下，我記得之前你們好像考慮過按細分市場，特別是國防領域，來劃分產品銷售額，我的記憶沒錯吧？你的報告有提到嗎？

Well, we don't break out segments. We do try to give some additional context and color on these calls, which Daniel did. And so, this was a quarter where our underlying core business, the non-defense business, was extremely strong. So, we wanted to provide that level of detail to you, our investors so that you can see what's going on here. So we'll continue to do that, formally putting it in the reports and things, that's a little bit tougher.

我們不進行細分。我們確實會嘗試為這些通話提供一些額外的背景資訊和細節，丹尼爾做到了這一點。因此，本季我們的核心業務，即非國防業務，表現非常強勁。所以，我們希望向我們的投資者提供這種程度的細節，以便你們能夠了解這裡正在發生的事情。所以我們會繼續這樣做，但正式地將其寫入報告之類的文件就有點困難了。

Okay, and then the final, the other question is how much comes, your distributor sales obviously said have lower margins. What's the percentage distributor sales versus direct sales for you guys?

好的，最後一個問題，你的經銷商銷售額有多少，顯然他們的利潤率較低。你們公司的經銷商銷售額佔比和直銷銷售額佔比分別是多少？

So we don't have a breakdown percentage wise, but both are important. Both distributor and direct sales are important to us. The direct sales tend to be more large target, large customers and targeted markets such as medical devices. And distributor sales go to, well, they're distributed. They go to a lot of different customers and tend to have lower order volumes, so we consider them both important, but the uniqueness of the distributor market is that they have a lot of inventory. That's part of the value-added that they provide. So, when there's an industry downturn, The distributor sales, as there was a couple of years ago, the distributor sales tend to be tend to be depressed because they want to bleed down their inventories. And so we were very gratified to see, the recovery and distributor sales that Daniel talked about, Daniel Nelson talked about in the prepared remarks.

所以我們沒有具體的百分比細分數據，但兩者都很重要。分銷和直銷對我們來說都很重要。直銷往往針對大型目標客戶和目標市場，例如醫療器材市場。分銷商的銷售額，嗯，就歸到分銷商那裡了。他們服務於許多不同的客戶，訂單量往往較低，因此我們認為兩者都很重要，但經銷商市場的獨特之處在於他們擁有大量的庫存。這是他們提供的增值服務的一部分。所以，當行業低迷時，分銷商的銷售額，就像幾年前那樣，往往會受到抑制，因為他們想要減少庫存。因此，我們非常高興地看到丹尼爾·尼爾森在準備好的演講稿中提到的復甦和分銷商銷售情況。

Okay, so that tends to be somewhat, okay, roller coaster kind of things possibly by the macro background of it things. Okay, and then the final, I have one other thing, is there an issue, in the past I used to get emails and things about the conference calls and so forth and for some reason all of a sudden that's got shut down. You've been having problems sending out report that.

好吧，從宏觀背景來看，這往往有點像過山車之類的事情。好的，最後一個問題，我還有一件事，是不是有什麼問題？以前我常常收到關於電話會議之類的電子郵件，但不知何故，突然就收不到了。您在發送該報告時遇到問題。

Not that I know of, but I will, our IT team is here, and they were making, they're feverishly making notes to make sure that you get your emails.

據我所知還沒有，但我會盡快處理。我們的 IT 團隊在這裡，他們正在緊張地做筆記，以確保你能收到電子郵件。

Okay, because I can't, I mean, I knew it was coming, but I saw it through other news sites, so that's okay.

好吧，因為我做不到，我的意思是，我知道這件事會發生，但我是從其他新聞網站上看到的，所以沒關係。

We'll check on that, but we know who you are, Mike, and we'll keep you informed.

我們會核實此事，但我們知道你是誰，麥克，我們會隨時向你報告最新情況。

Okay. Good luck.

好的。祝你好運。

Thanks, Mike.

謝謝你，麥克。

Dan, this is Don Geer. I'm a, co-founder and retired CIO of a large wealth management firm. I'm just curious looking through the past reports on the contract R&D, it's been really lumpy over time, but kind of looking through the expense ratio you're dropping a good part of that to the bottom line it looks like. Could you just give a little bit of a color on your approach to contract R&D, the amount of time that it takes and maybe takes away from other projects along the way.

丹，我是唐吉爾。我是一家大型財富管理公司的共同創辦人兼退休資訊長。我只是好奇地查看了以往關於合約研發的報告，發現它一直波動很大，但從費用比率來看，你們似乎把很大一部分費用都轉移到了最終利潤上。能否簡要介紹貴公司在合約研發方面的做法，包括所需時間以及可能對其他項目造成的損失？

Right, so contract R&D tends to be mostly defense related and can be, as you say, lumpy and cyclical, but we view it primarily as a way to facilitate future sales and build our intellectual property portfolio. So particularly for government or government sponsored R&D contracts, we typically own the resultant.

沒錯，合約研發往往主要與國防相關，而且正如你所說，可能會出現波動和週期性變化，但我們主要將其視為促進未來銷售和建構我們智慧財產權組合的一種方式。因此，特別是對於政府或政府資助的研發合同，我們通常擁有最終成果。

Intellectual property. So it's a way to build our intellectual property portfolio without a direct expense hitting the bottom line because as you implied, In the case of contract R&D, the expenses associated with that R&D are considered cost of sales, and so we make a profit on contract, generally on contract R&D. It's not the main reason we do it.

智慧財產.所以，這是一種在不直接影響利潤的情況下構建我們知識產權組合的方法，因為正如你所暗示的，在合約研發的情況下，與該研發相關的費用被視為銷售成本，因此我們通常從合約研發中獲利。這不是我們這樣做的主要原因。

The main reason we do it is to develop new products where we have potential customers, particularly in the defense segment, and to build our intellectual property portfolio. But we consider our R&D team extremely valuable, so we look at that and we look at balancing the opportunity cost of deploying valuable resource resources on contracts versus in-house R&D. And so that that mix can change depending on depending on the contracts available and our internal opportunities.

我們這樣做的主要原因是，為了在潛在客戶群中開發新產品，尤其是在國防領域，並建立我們的智慧財產權組合。但我們認為我們的研發團隊非常寶貴，所以我們會考慮這一點，並權衡將寶貴的資源投入合約研發與內部研發的機會成本。因此，這種組合會根據現有合約和我們內部的機會而改變。

Okay. So basically, they're subsidizing your internal R&D growth, taking away from some of the other expenses you might have incurred and you're using it as a stalking horse for future sales. As you go into periods such as we're in right now with the government shutdown, is that affecting, the upcoming months, and the current period of time, or are you structured that, the contract is in place and just keeps rolling over like an annuity.

好的。所以基本上，他們是在補貼你的內部研發成長，從而減少你可能產生的其他一些費用，而你卻把它當作未來銷售的幌子。當遇到像我們現在所處的政府停擺這樣的時期時，這是否會影響接下來的幾個月以及當前的時期？或者你們的合約結構是否已經考慮到這一點，合約就像年金一樣不斷續約？

Yeah, I can address that, done. The shutdown is probably going to be much shorter term than the typical cycles for contract R&D work, so we're not too concerned about, what looks to be relatively prolonged shutdown.

好的，我可以處理這個問題，搞定了。此次停工時間可能比合約研發工作的典型週期要短得多，因此我們並不太擔心這次看起來會持續較長的停工。

And so, you're expecting a bounce back in the current quarter, or are we kind of flattening out on a on a quarter by quarter basis or quarter over quarter basis?

所以，您預計本季會出現反彈，還是說我們會在季度與季度之間趨於平穩？

Are you talking about revenues?

您指的是收入嗎？

Yes.

是的。

Well, our goal is always to grow, and I think we feel fairly confident that we can grow in the current quarter. Now that's the December quarter, and part of that is because, frankly, last year was a little easier to compare than we sometimes have, but also, we're we feel that we have a good pipeline in most areas of our business. And the industry has recovered, so we're very optimistic about the future and certainly the long-term prospects for growth were very optimistic.

我們的目標始終是發展，我認為我們相當有信心在本季實現成長。現在到了 12 月季度，部分原因是，坦白說，去年同期更容易進行比較，但同時，我們也覺得我們在業務的大多數領域都有良好的發展前景。該行業已經復甦，所以我們對未來非常樂觀，長期成長前景也十分樂觀。

Okay, and the reason I was asking is it looks like any type of bounce back, or had you not seen that, a third basically on a comparison basis year over year, your drop in earnings was pretty much coming from that segment. So, looking into the next quarter or so any sort of bounce back should be positive on a sequential basis to help the underlying earnings.

好的，我這麼問是因為看起來任何形式的反彈，或者如果你沒看到的話，基本上有三分之一的收益同比下降，主要都來自那個板塊。因此，展望接下來的一個季度左右，任何形式的反彈都應該會對環比成長產生正面影響，有助於提升基本獲利。

Yes.

是的。

And then this one kind of a little bit off the wall question, but looking at the interest income, which went up year over year despite, I believe, cash coming down overall, your marketable securities and cash, and, when you add them all together, at least if I did it properly, we're in a period of declining rates. Did you extend your portfolios?

然後還有一個有點離譜的問題，但看看利息收入，儘管我認為現金總額（包括有價證券和現金）都在下降，但利息收入卻逐年上升。而且，如果我計算正確的話，把它們加起來，我們正處於利率下降的時期。你們是否擴大了投資組合？

So this is Daniel here, Don. So, the increase in our interest, income in the past quarter is primarily due to new security purchases, and those securities were purchased at higher interest rates than the ones that we showed in the prior year quarter. And the decrease in our cash and cash equivalents is primarily because we paid more in cash dividends than we generated in cash flows from operations.

唐，這位是丹尼爾。因此，上個季度利息收入的成長主要是由於新證券的購買，而這些證券的購買利率高於我們上個季度所顯示的利率。我們現金及現金等價物減少的主要原因是，我們支付的現金股利超過了我們經營活動產生的現金流量。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Well, we're about out of time. We appreciate the, was there one more question?

好了，我們時間不多了。我們很感激，請問還有其他問題嗎？

It there is if it's open it's chip really asset management. I appreciate the discussion on the contract R&D and just following up on that to confirm that doesn't really have any correlation with product revenue growth over the next year or so it's really targeted just to the DOD. And that's one question. The second question would be, clearly the medical and sensor and robotic markets are great, but you've mentioned a couple times, the defense market is not a target market for you, just curious on your thinking on that, if I heard that correctly and kind of what are your thoughts it seems to be there's a lot of spending in areas that it seems you could take advantage of there. So just kind of those two clarifying questions, thank you very much.

如果它開放，那就是真正的晶片資產管理。我很感謝關於合約研發的討論，我只是想跟進確認一下，這在未來一年左右的時間裡與產品收入增長沒有任何關聯，它實際上只是針對美國國防部的。這是一個問題。第二個問題是，顯然醫療、感測器和機器人市場都很棒，但您曾多次提到，國防市場不是您的目標市場，我只是好奇您對此有何看法。如果我理解正確的話，您似乎認為國防市場有很多投資領域，而您可以利用這些領域。所以，就這兩個需要澄清的問題，非常感謝。

Yeah, thank you for the question. So, on your first question, most of contract R&D, as we said in the prepared remarks is defense related. So, the other part of your question is that we do consider defense an important part of our Business and we seek those contracts and those product sales. However, we don't see it as part of our long-term growth engine.

是的，謝謝你的提問。所以，關於你的第一個問題，正如我們在準備好的演講稿中所說，大部分合約研發都與國防有關。所以，你問題的另一部分是，我們確實將國防視為我們業務的重要組成部分，我們尋求這些合約和產品銷售。然而，我們並不認為它是我們長期成長引擎的一部分。

It's not a fast growing market, but we believe that it also indirectly, as I alluded to in one of the prior questions, it indirectly helps our long-term product sales by building our intellectual property portfolio in a number of areas, some of which have commercial applications for larger markets. In terms of the defense contracts, relating to defense products that can be sometimes we finish an R&D contract and if it's successful, And Pete and his team do a great job. It usually is. Then there's often product sales that are tied to that contract. So, it's not always a blue-sky research or long-term research as one might say. It can be targeted research at a particular problem, and if we can come up with solutions to that problem, we can sell products relatively near term.

雖然市場成長速度並不快，但我們相信，正如我在前面一個問題中提到的那樣，它也能間接地幫助我們實現長期產品銷售，因為它在多個領域構建了我們的知識產權組合，其中一些知識產權組合在更大的市場中具有商業應用價值。就國防合約而言，涉及國防產品，有時我們會完成研發合同，如果成功的話，Pete 和他的團隊會做得非常出色。通常如此。然後，通常還會有與該合約掛鉤的產品銷售。所以，它並不總是像人們常說的那樣是一項不切實際的研究或長期研究。它可以是針對特定問題的研究，如果我們能找到解決該問題的方法，我們就能在相對較短的時間內銷售產品。

Got it and just for clarity, I understand the other markets, especially like robotics and things like that are all white space and big growth, but given your current revenue level and again I don't, I'm not an expert in your company, so it's kind of a one on one question and thank you for indulging, it seems to me if you got spec in on a weapons program, missile drone or something like that or even radar or something like that, the product sales there could be enormous versus your current revenue level too. So again, I know the defense market doesn't grow as fast as the other markets. So just help me clarify that is it revenue you would take or revenue you're not seeking. Thank you.

明白了。為了更清楚說明，我理解其他市場，特別是像機器人之類的領域，都是空白市場，成長潛力巨大。但是，鑑於您目前的收入水平（我再次聲明，我不是貴公司的專家，所​​以這只是一個私人問題，感謝您的耐心解答），在我看來，如果您能參與某個武器項目，比如導彈無人機或者雷達之類的，那麼這些產品的銷售額可能會比您目前的收入水平高得多。所以，我知道國防市場的成長速度不如其他市場快。所以請幫我澄清一下，這是你想要獲得的收入，還是你不追求的收入？謝謝。

Right, so that's a good point. No, we do seek the revenues and we seek large contracts and, we invest in that market, but, and it does have potential, as you say, but we also look at markets that are just historic with their opportunities such as the industrial internet of things and the artificial intelligence of things that we really see as once in a lifetime opportunities and so those are what we tend to prioritize but we also look at defense opportunities and in particular larger volume defense opportunities.

沒錯，你說得很有道理。不，我們確實追求收入，追求大額合同，並且投資於該市場，正如你所說，它確實有潛力，但我們也關注那些具有歷史意義且充滿機遇的市場，例如工業物聯網和人工智能，我們認為這些是千載難逢的機會，因此這些是我們傾向於優先考慮的，但我們也關注國防機會，特別是大批量國防機會。

I think that's all the time we have for today. We were pleased to report strong increases in distributor and non-defense sales. We launched 3 new products and we continued to deploy new equipment to fund and drive future growth. We look forward to speaking with you in January for our next quarterly call. A replay of this call will be available on the investor events page of our website. That's NVE.com, and our YouTube channel, that's youtube.com/NVEcorporation. Thank you again.

我想我們今天的時間就到此為止了。我們很高興地報告，分銷商和非國防銷售額均大幅成長。我們推出了 3 款新產品，並持續部署新設備，為未來的成長提供資金和動力。我們期待在1月與您進行下一次季度電話會議。本次電話會議的錄音回放將在我們網站的投資者活動頁面上提供。這是NVE.com的網址，還有我們的YouTube頻道，網址是youtube.com/NVEcorporation。再次感謝。