NVE(US:NVEC)2022-05-05 00:19Financial Data and Key Metrics Changes - Net income for Q4 increased by 22% to $0.79 per diluted share, driven by a 15% revenue increase [3][4] - For the full fiscal year, net income rose 24% to $3 per share, supported by a 26% revenue increase [3][7] - Total revenue for the most recent quarter was $6.75 million, up from $5.87 million in the prior year [4][7] - Gross margin was 77%, slightly down from 78% the previous year [6][8] - Total revenue for the fiscal year increased 26% to $27 million from $21.4 million in the prior year [7][8] Business Line Data and Key Metrics Changes - Product sales increased by 26%, while R&D and contract revenue rose by 36% for the fiscal year [7][8] - SG&A expenses decreased by 15%, partially offset by a 4% increase in R&D expenses [6][7] Market Data and Key Metrics Changes - Lead times for parts from traditional semiconductor competitors have increased to 52 to 90 weeks, compared to 12 to 20 weeks for the company [6] - The company has seen new sales opportunities due to competitors' longer lead times [6] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including new isolators for smart grids and power supplies [20] - Investments have been made to increase production capacity and diversify the supply chain [15] - The company is actively participating in trade shows to showcase new products and engage with potential customers [10][11] Management's Comments on Operating Environment and Future Outlook - The semiconductor supply chain remains fragile, with potential global shortages lasting into 2024 [9] - The company is optimistic about growth opportunities in the automotive market, particularly in hybrid electric vehicles [42][43] - Management believes that the impact of the COVID-19 pandemic on customer demand has lessened, while supply chain disruptions have increased [7] Other Important Information - The company repurchased $154,000 of its stock and declared a quarterly dividend of $1 per share [8][15] - The company has introduced several new products, including a new current sensor and a high sensitivity Smart Magnetometer [14][15] Q&A Session Summary Question: Update on traction in isolators for hybrid high voltage and low-voltage systems - The company is gaining traction with new isolators used for smart grids and power supplies, with modest revenue contributions but excellent growth potential [20] Question: Background on replacing milli and micro ohm resistors in current sensing applications - The company sees significant opportunities in non-contact current sensors that avoid energy waste and provide safety in high-voltage applications [21][22] Question: Size of the current sensing market - The current sensing market is large and fast-growing, driven by energy efficiency mandates [24] Question: Growth in MOSFET drivers for GaN and silicon carbide - The company is well-positioned in the market for MOSFET drivers, enabling more efficient control of motors and battery chargers [26][27] Question: Update on the hearing aid and hearables market - The company is prepared for the over-the-counter hearing aid market and sees growth potential in the broader hearables market, estimated to reach $93 billion by 2026 [30][31] Question: R&D spending rebound - R&D spending has increased due to ramped-up activity related to chemicals and supplies for current and future business [33][34] Question: Normalized tax rate - The tax rate was lower due to tax breaks for foreign sales, with a mix of more foreign source income [35]