NVE CORP /NEW/ SEC 10-Q Report

NVE Corp, a leader in the development and production of spintronics and nanotechnology-based products, has released its Form 10-Q report for the first quarter of fiscal 2026. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both challenges and strategic initiatives undertaken during the quarter.

Financial Highlights

• Total Revenue, net: $6.1 million, decreased 10% compared to the prior-year quarter due to an 11% decrease in product sales, partially offset by a 17% increase in contract research and development revenue.
• Gross Profit: $4.9 million, representing 80.6% of revenue, down from 85.6% in the prior-year quarter due to a less profitable product mix and increased distributor sales.
• Income from operations: $3.8 million, representing 61.9% of revenue, decreased 13.8% compared to the prior-year quarter.
• Net income: $3.6 million, representing 58.6% of revenue, decreased 12.7% compared to the prior-year quarter due to decreased revenue and gross margin, partially offset by decreased operating expenses.
• Net income per share – basic: $0.74, compared to $0.85 in the prior-year quarter.
• Net income per share – diluted: $0.74, compared to $0.85 in the prior-year quarter.

Business Highlights

• Revenue Segments: The decrease in product sales was primarily due to decreased defense industry sales, which can be highly variable because of procurement cycles. However, there was a 17% increase in contract research and development revenue due to new research and development contracts.
• Operational Efficiency: Gross margin for the first quarter of fiscal 2026 was 81% of revenue, compared to 86% in the prior-year quarter. This decrease was attributed to a less profitable product mix and increased distributor sales.
• Research and Development: Research and development expenses decreased by 18% due to the completion of some wafer-level chip scale packaging activities and the reallocation of resources to manufacturing.
• Selling, General, and Administrative Expenses: These expenses decreased by 23%, primarily due to the timing of sales and marketing activities and the reallocation of some general and administrative resources to manufacturing.
• Future Outlook: The company expects to realize advanced manufacturing investment tax credits of between $700,000 and $800,000 if equipment is deployed as planned in fiscal 2026.
• Cash Flow Management: The company plans to fund dividends through cash provided by operating activities and proceeds from maturities of marketable securities. Future dividends will be subject to Board approval and may be modified or discontinued at any time.

SEC Filing: NVE CORP /NEW/ [ NVEC ] - 10-Q - Jul. 23, 2025