NVE Corporation Reports $6.1 Million Revenue, 10% Decrease in Latest Quarter

NVE Corporation reported a total revenue of $6.1 million for the quarter ended June 30, 2025, marking a 10% decrease from $6.8 million in the same quarter of the previous year. The decline was primarily attributed to an 11% drop in product sales, which was partially offset by a 17% increase in contract research and development revenue. The decrease in product sales was largely due to reduced sales in the defense industry, which can be subject to significant fluctuations based on procurement cycles. Gross profit for the quarter was $4.9 million, resulting in a gross margin of 81%, down from 86% in the prior-year quarter.

Operating expenses decreased by 20% year-over-year, totaling $1.1 million, driven by an 18% reduction in research and development expenses and a 23% decrease in selling, general, and administrative expenses. The reduction in research and development costs was linked to the completion of certain wafer-level chip scale packaging activities and a reallocation of resources towards manufacturing. The decrease in selling, general, and administrative expenses was attributed to the timing of sales and marketing activities. Despite the decrease in revenue, net income for the quarter was $3.6 million, down 13% from $4.1 million in the same quarter last year.

NVE's cash and cash equivalents stood at $3.2 million as of June 30, 2025, a decrease from $8.0 million at the end of the previous fiscal year. This decline was primarily due to $5.2 million used in investing activities, which included $10.1 million in marketable securities purchases and $1.1 million in fixed asset purchases, partially offset by $6.0 million in proceeds from the maturities of marketable securities. The company also paid $4.8 million in cash dividends to shareholders during the quarter, consistent with the previous year.

In terms of operational metrics, NVE's weighted average shares outstanding remained relatively stable, with 4.8 million shares for both the current and prior-year quarters. The company continues to focus on its core business of developing and selling spintronic devices, which utilize nanotechnology for data acquisition, storage, and transmission. The company has not reported any significant changes in its internal controls or accounting policies during the quarter.

Looking ahead, NVE anticipates potential growth in contract research and development revenue, supported by new contracts. However, the company remains cautious about the variability in defense industry sales and the overall economic environment. The effective tax rate for the quarter increased to 17%, reflecting changes in federal tax credits and deductions. NVE plans to continue funding dividends through operating cash flows and marketable securities, with future dividends subject to board approval and dependent on the company's financial performance.