NVE(US:NVEC)2025-10-22 20:09Revenue Performance - Total revenue for the quarter ended September 30, 2025, decreased by 6% compared to the same quarter in 2024, primarily due to a 68% decrease in contract research and development revenue[61]. - Product sales accounted for 96.7% of total revenue in the quarter ended September 30, 2025, reflecting a 0.6% increase from the prior year[61]. - Contract research and development revenue represented 3.3% of total revenue for the quarter, down from 9.7% in the prior year, indicating a significant decline in this segment[61]. Gross Margin and Profitability - Gross margin for the second quarter of fiscal 2026 was 78% of revenue, down from 86% in the prior-year quarter, attributed to a less profitable product mix and increased distributor sales[62]. - Net income for the second quarter of fiscal 2026 was 52.2% of revenue, down from 59.6% in the prior-year quarter, primarily due to decreased revenue and increased effective tax rate[66]. Operating Expenses - Total operating expenses decreased by 7% for the second quarter of fiscal 2026, driven by a 23% decrease in selling, general, and administrative expenses[63]. Cash Position and Activities - Cash and cash equivalents were $5,107,481 as of September 30, 2025, a decrease of $2,929,083 from March 31, 2025, due to cash used in investing and financing activities[74]. - Cash used in investing activities included $10,108,982 for marketable securities purchases and $1,128,981 for fixed asset purchases, with expectations of an additional $1,000,000 to $1,500,000 in fixed asset purchases in the last six months of the fiscal year[78]. - Cash dividends paid to shareholders during the first half of fiscal 2026 totaled $9,674,332, with a declared cash dividend of $1.00 per share to be paid on November 28, 2025[79]. Taxation - The effective tax rate increased to 20% for the second quarter of fiscal 2026, compared to 17% for the same quarter in the prior year, primarily due to tax law changes[65].