NVE(NVEC) - 2026 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements NVE Corporation's Q1 FY2026 unaudited financial statements detail decreased revenue and net income, alongside a strong balance sheet and consistent dividends Balance Sheets NVE's balance sheet as of June 30, 2025, shows a slight decrease in total assets to $63.55 million, with reduced cash offset by increased long-term securities Balance Sheet Summary (as of June 30, 2025 vs. March 31, 2025) | Account | June 30, 2025 ($) | March 31, 2025 ($) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 3,222,552 | 8,036,564 | | Total current assets | 26,167,155 | 33,199,922 | | Net fixed assets | 2,960,024 | 1,986,899 | | Total assets | 63,553,563 | 64,275,862 | | Liabilities & Equity | | | | Total current liabilities | 1,625,459 | 1,168,870 | | Total liabilities | 2,463,940 | 2,007,091 | | Total shareholders' equity | 61,089,623 | 62,268,771 | Statements of Income Q1 FY2026 total revenue decreased 10% to $6.10 million, with net income falling to $3.58 million due to lower product sales Quarterly Income Statement Comparison (Unaudited) | Metric | Q1 FY2026 (Ended June 30, 2025) ($) | Q1 FY2025 (Ended June 30, 2024) ($) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 6,104,644 | 6,783,244 | -10.0 | | Gross Profit | 4,922,121 | 5,807,750 | -15.2 | | Income from Operations | 3,783,250 | 4,388,818 | -13.8 | | Net Income | 3,575,818 | 4,097,587 | -12.7 | | Diluted EPS | 0.74 | 0.85 | -12.9 | | Dividends Declared per Share | 1.00 | 1.00 | 0.0 | Statements of Cash Flows Q1 FY2026 saw $5.19 million in operating cash flow, offset by $5.17 million in investing and $4.84 million in financing activities, leading to a $4.81 million cash decrease Quarterly Cash Flow Summary (Unaudited) | Activity | Q1 FY2026 (Ended June 30, 2025) ($) | Q1 FY2025 (Ended June 30, 2024) ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | 5,190,660 | 5,852,392 | | Net cash used in investing activities | (5,167,506) | (5,296,774) | | Net cash used in financing activities | (4,837,166) | (4,833,676) | | Decrease in cash and cash equivalents | (4,814,012) | (4,278,058) | Notes to Financial Statements Notes detail accounting policies, business description, marketable securities ($47.08 million), stock repurchase authorization, and a $1.00 per share quarterly dividend declaration - The company develops and sells devices using spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information[29] - Total marketable securities and money market funds were approximately $47.08 million, representing about 74% of total assets as of June 30, 2025[36] - The stock repurchase program had a remaining authorization of $3.52 million as of June 30, 2025. No shares were repurchased during the quarter[48] - On July 23, 2025, the Board of Directors declared a quarterly cash dividend of $1.00 per share, payable on August 29, 2025[50] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 FY2026 revenue decline due to product sales, decreased gross margin, reduced operating expenses, and strong liquidity supporting investments and dividends Results of Operations Q1 FY2026 results show a 10% revenue decrease to $6.1 million, an 11% product sales decline, reduced gross margin to 81%, and a 13% net income decrease Q1 FY2026 vs. Q1 FY2025 Performance | Item | Q1 2025 (% of Revenue) | Q1 2024 (% of Revenue) | Quarter-to-Quarter Change (%) | | :--- | :--- | :--- | :--- | | Product sales | 96.8 | 97.5 | -10.7 | | Total revenue | 100.0 | 100.0 | -10.0 | | Gross profit | 80.6 | 85.6 | -15.2 | | Total expenses | 18.7 | 20.9 | -19.7 | | Net income | 58.6 | 60.4 | -12.7 | - The decrease in product sales was primarily due to decreased defense industry sales, which can be highly variable because of procurement cycles[56] - The decrease in R&D expense was due to the completion of some wafer-level chip scale packaging activities and reallocation of resources to manufacturing[58] Liquidity and Capital Resources Cash and cash equivalents decreased by $4.81 million to $3.22 million due to investing and financing activities, with future dividends funded by operating cash flow - Cash and cash equivalents decreased by $4.81 million during the first quarter of fiscal 2026[62] - Investing activities included $10.1 million in marketable securities purchases and $1.06 million in fixed asset purchases, offset by $6.0 million in proceeds from maturing securities[65] - Financing activities consisted of $4.84 million in cash dividends paid to shareholders. A further dividend of $1.00 per share was declared for the next quarter[66] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[69] - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[70] PART II. OTHER INFORMATION Item 1. Legal Proceedings NVE is not aware of any material pending or threatened legal proceedings that would adversely impact its financials - As of the reporting date, NVE is not aware of any material pending or threatened legal proceedings[72] Item 1A. Risk Factors No material changes to risk factors were reported from the Annual Report on Form 10-K for FY2025 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025, were reported[73] Item 4. Mine Safety Disclosures This item is not applicable to the company - This item is not applicable to the company[74] Item 6. Exhibits This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Interactive Data Files - The report includes certifications by the CEO and Principal Financial Officer as required by the Sarbanes-Oxley Act[76] - Inline XBRL documents are included as exhibits for interactive data purposes[76]