Core Viewpoint - NVE Corporation's shares have experienced a 1.5% decline following the release of its second-quarter fiscal 2026 results, despite a 9.7% increase over the past month, indicating investor optimism about future growth prospects despite current revenue challenges [1] Earnings & Revenue Performance - Total revenues for the quarter ended September 30, 2025, were $6.35 million, a 6% decrease from $6.76 million in the prior year, primarily due to a 68% drop in contract R&D revenues, partially offset by a 1% increase in product sales [2] - For the first half of fiscal 2026, total revenues decreased 8% year over year to $12.45 million, with net income down 15% to $6.89 million, or $1.42 per diluted share [3] Operating Trends & Other Key Business Metrics - Gross profit for the quarter declined 14% to $4.97 million, resulting in a gross margin of 78%, down from 86% the previous year due to a less profitable product mix and increased distributor sales [4] - Operating expenses fell 7%, driven by a 23% decrease in SG&A costs, while R&D spending rose by 3% [5] Management Commentary - The CEO highlighted a 4% sequential revenue increase driven by strong growth in distributor and non-defense sales, despite a decline in defense-related business [7] - The company is shifting focus towards medical devices, industrial automation, and robotics markets, leveraging its spintronic sensors and couplers [8] Factors Influencing Performance - Revenue decline was mainly due to cyclical weakness in contract R&D, with a 21% rise in non-defense product sales partially offsetting a 64% decline in defense sales [11] - The lower gross margin was attributed to a shift in sales mix and a 45% year-over-year increase in the cost of sales due to heightened manufacturing activity [12] Outlook - Management is optimistic about continued growth in the December quarter and the second half of fiscal 2026, citing a healthy sales pipeline and favorable tax credits [14] - The company plans to spend an additional $1-$1.5 million on capital expenditures for production expansion [14] Other Developments - The board declared a quarterly cash dividend of $1 per share, payable on November 28, 2025, and reported the completion of new manufacturing equipment installation [16]

NVE (NasdaqCM:NVEC) Q2 2026 Earnings Call October 22, 2025 05:00 PM ET Company ParticipantsPeter Eames - VP of Advanced TechnologyDaniel Nelson - CFODan Baker - President and CEOConference Call ParticipantsNone - Analyst 4None - Analyst 6None - Analyst 5None - Analyst 1None - Analyst 2None - Analyst 3Dan BakerGood afternoon and welcome to the NVE Corporation Conference call for the quarter ended September 30, 2025. I'm Dan Baker, NVE's President and CEO. I'm joined by Daniel Nelson, our Principal Financial ...

NVE (NasdaqCM:NVEC) Q2 2026 Earnings Call October 22, 2025 05:00 PM ET Company ParticipantsPeter Eames - VP of Advanced TechnologyDaniel Nelson - CFODan Baker - President and CEOConference Call ParticipantsNone - Analyst 4None - Analyst 6None - Analyst 5None - Analyst 1None - Analyst 2None - Analyst 3Dan BakerGood afternoon and welcome to the NVE Corporation conference call for the quarter ended September 30, 2025. I'm Dan Baker, NVE's President and CEO. I'm joined by Daniel Nelson, our Principal Financial ...

NVE (NasdaqCM:NVEC) Q2 2026 Earnings Call October 22, 2025 05:00 PM ET Speaker1Good afternoon and welcome to the NVE Corporation Conference call for the quarter ended September 30, 2025. I'm Dan Baker, NVE's President and CEO. I'm joined by Daniel Nelson, our Principal Financial Officer, and Pete Eames, Vice President of Advanced Technology. This call is being webcast live via YouTube and Amazon Chime and being recorded. A replay will be available through our website, nve.com, and our YouTube channel, youtu ...