NVE(US:NVEC)2026-01-21 21:09Revenue Performance - Total revenue for the quarter ended December 31, 2025, increased by 23% compared to the same quarter in 2024, driven by a 16% increase in product sales and a 335% increase in contract research and development revenue [60]. - Contract research and development revenue represented 7.2% of total revenue for the quarter ended December 31, 2025, compared to 2.0% in the prior-year quarter [60]. Gross Margin and Expenses - Gross margin for the third quarter of fiscal 2026 was 79% of revenue, down from 84% in the prior-year quarter, attributed to a less profitable product mix and increased distributor sales [61]. - Total expenses decreased by 12% for the third quarter of fiscal 2026, with research and development expenses down by 9% and selling, general, and administrative expenses down by 19% [62]. Net Income and Tax Rate - Net income for the first nine months of fiscal 2026 decreased by 8% to $10.3 million, or $2.12 per diluted share, primarily due to decreased gross margin and increased effective tax rate [71]. - The effective tax rate increased to 20% for the third quarter of fiscal 2026 from 15% in the prior-year quarter, primarily due to unfavorable non-cash impacts of tax law changes [64]. - The company expects a full-year tax rate of 16% to 17% for fiscal 2026, factoring in anticipated advanced manufacturing investment tax credits [65]. Cash Position and Dividends - Cash and cash equivalents were $3,408,531 as of December 31, 2025, a decrease of $4,628,033 from March 31, 2025, due to net cash used in investing and financing activities [73]. - Cash dividends paid to shareholders during the first nine months of fiscal 2026 totaled $14,511,498, with an additional dividend of $1.00 per share announced for payment on February 27, 2026 [79]. Other Income - Interest income decreased by 3% due to a reduction in the marketable securities portfolio, while other income decreased significantly by $135,057 [63].