NVE (NVEC) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 22, 2026 astatine 9:04 AM CST 22 min read

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Jan. 21, 2026, 5 p.m. ET

• President and Chief Executive Officer — Daniel A. Baker

• Chief Financial Officer — Daniel A. Nelson

• Vice President of Advanced Technology — Peter D. Eames

We're pleased to study a 23% summation successful gross and an 11% summation successful net for the 3rd 4th of fiscal 2026 compared to the anterior twelvemonth quarter, driven by broad-based maturation crossed our gross lines, including defence and nondefense income arsenic good arsenic distributor and nonstop channels. Daniel Nelson volition screen details of the financials. Daniel?

Daniel Nelson: Thanks, Dan. As Dan said, gross for the 3rd 4th of fiscal 2026 accrued 23% year-over-year. The summation was owed to a 16% summation successful merchandise income and a 335% summation successful declaration R&D revenue. The increases were crossed astir of our merchandise lines and channels. Gross borderline for the 3rd 4th of fiscal 2026 was 79% of gross compared with 84% successful the anterior twelvemonth quarter. The alteration successful gross borderline percent was owed to a little profitable merchandise premix and accrued distributor income for the quarter. The summation successful distributor income is positive, though distributor income typically person little gross borderline than nonstop sales.

Total operating expenses decreased 12% for the 3rd 4th of fiscal 2026 compared to the 3rd 4th of fiscal 2025 owed to a 9% alteration successful R&D disbursal and a 19% alteration successful SG&A. The alteration successful R&D was owed to completion of immoderate of our wafer level spot standard packaging activities and reassignment of immoderate R&D resources to manufacturing. The alteration successful SG&A was chiefly owed to the timing of selling and selling activities and reassignment of immoderate SG&A resources to manufacturing and caller merchandise development. Interest income decreased 3% owed to a alteration successful our marketable securities portfolio arsenic proceeds from enslaved maturity, partially funded dividends and fixed plus purchases.

Other income decreased by $135,000, which is chiefly from reclaiming precious metals utilized successful our manufacturing process successful the anterior twelvemonth quarter. Our effectual taxation rate, which is the proviso for income taxes arsenic a percent of income earlier taxes accrued to 20% for the 3rd 4th of fiscal 2026 compared to 15% for the 3rd 4th of fiscal 2025. The summation successful our effectual taxation complaint was chiefly owed to the noncash interaction of taxation instrumentality changes connected definite taxation deductions this fiscal year.

We presently expect a afloat twelvemonth taxation complaint of 16% to 17% successful fiscal 2026 due to the fact that we expect precocious manufacturing concern taxation credits of betwixt $700,000 and $1 cardinal to offset the interaction of different taxation instrumentality changes. And nett income accrued 11% to $3.38 cardinal oregon $0.70 per diluted stock from $3.05 cardinal oregon $0.63 per share. The summation was chiefly owed to accrued gross and decreased operating expenses, partially offset by decreased gross margin, a alteration successful different income and an summation successful our effectual taxation rate. Our profitability metrics remained strong. Operating borderline was 60%. Pretax borderline was 68% and nett borderline was 54%.