NVE Corporation reported a total revenue of $6.2 million for the quarter ended December 31, 2025, marking a 23% increase from $5.1 million in the same quarter of the previous year. This growth was driven by a 16% rise in product sales, which reached $5.8 million, and a significant 335% increase in contract research and development revenue, which totaled $446,102. The company's gross profit for the quarter was $4.9 million, resulting in a gross margin of 79%, down from 84% in the prior year, attributed to a less profitable product mix and increased distributor sales.
For the nine months ending December 31, 2025, NVE's total revenue increased slightly by 0.4% to $18.7 million compared to $18.6 million in the same period of 2024. Product sales accounted for the majority of revenue, with a modest 0.8% increase, while contract research and development revenue decreased by 8%. The gross margin for this period was 79%, down from 85% in the previous year, reflecting similar challenges as seen in the quarterly results. Net income for the nine months was $10.3 million, or $2.12 per diluted share, an 8% decrease from $11.2 million, primarily due to reduced gross margins and increased tax rates.
Operationally, NVE has seen a decrease in total expenses by 12% for the third quarter and 13% for the nine-month period, driven by reductions in both research and development and selling, general, and administrative expenses. The company attributed these reductions to the completion of certain projects and a strategic reassignment of resources. As of December 31, 2025, NVE's cash and cash equivalents stood at $3.4 million, down from $8.0 million at the end of the previous fiscal year, reflecting cash used in investing and financing activities, including $14.5 million in dividends paid to shareholders.
Looking ahead, NVE anticipates a full-year tax rate of 16% to 17% for fiscal 2026, influenced by recent tax law changes and expected advanced manufacturing investment tax credits. The company has declared a cash dividend of $1.00 per share, to be paid on February 27, 2026, indicating a commitment to returning value to shareholders despite the fluctuations in net income. NVE continues to focus on its core business of developing spintronic devices, with ongoing efforts to enhance operational efficiency and manage costs effectively in a competitive market environment.
About NVE CORP /NEW/
NVE Corporation develops and sells spintronics-based devices, including sensors, couplers, and MRAM memory products. Its high-performance magnetic sensors serve industrial, medical, and automation markets, offering smaller, more precise, and reliable solutions. The company designs its own manufacturing processes, distributes globally through partners, and holds extensive intellectual property. Its core value lies in innovative, low-power data acquisition, transmission, and storage technologies.
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