Yahoo Finance NVE Corporation (NASDAQ:NVEC) Q4 2024 Earnings Call Transcript
NVE Corporation (NASDAQ:NVEC) Q4 2024 Earnings Call Transcript May 1, 2024
NVE Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and thank you for standing by. Welcome to the NVE Corporation Conference Call on Fourth Quarter Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand the conference over to Mr. Dan Baker, President and CEO. Please go ahead sir.
Daniel Baker: Good afternoon, and welcome to our conference call for the quarter and fiscal year ended March 31st, 2024. This call is being webcast live and recorded. A replay will be available through our website nve.com. I'm joined by Controller and Principal Financial Officer, Daniel Nelson. After my opening comments, Daniel will present our financial results. I'll cover products, and marketing and we will open the call to questions. We issued our press release with financial results and filed our annual report on Form 10-K in the past hour following the close of market. Links to the press release and 10-K are available through the SEC's website, our website, and on X formerly known as Twitter. Comments we may make that relate to future plans, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties, including, among others, such factors as uncertainties related to the economic environments in the industries we serve, and risks and uncertainties related to future sales and revenue as well as the risks factors listed from time to time in our filings with the SEC, including our just filed annual report on Form 10-K.
Actual results could differ materially from the information provided and we undertake no obligation to update forward-looking statements we may make. We're pleased to report strong earnings despite the decreased revenues from a record shattering quarter a year ago. Daniel Nelson will cover the details of our financials. Daniel?
Daniel Nelson: Thanks, Dan. Total revenue for the fourth quarter ended March 31, 2024 decrease 45% compared to our record prior year quarter. The decrease was due to a 43% decrease in product sales and an 88% decrease in contract research and development revenue with a tough comparison. The decrease in product sales was primarily due to a semiconductor industry downturn. The good news is that the industry is gaining strength and forecasts are for a strong industry recovery in calendar 2024, where semiconductor trade statistics is forecast in the global semiconductor market to grow 13% in 2024 after plummeting 8% in 2023. Our product sales for the most recent quarter increased 11% sequentially from the immediately prior quarter.
As we expected, our product sales to defense market recovered in the past quarter. These sales can fluctuate and were especially weak in the first three quarters of the fiscal year due to procurement cycle timing. Total expenses decreased 6% for the fourth quarter of fiscal 2024 compared to the fourth quarter of fiscal 2023 due to a 37% decrease in SG&A partially offset by a 33% increase in R&D. The decrease in R&D expense was primarily due to an increase in new product development. The decrease in SG&A was primarily due to decrease performance-based compensation accruals. Interest income for the fourth quarter of fiscal 2024 increased 25% due to higher interest rates. Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes increased to 17% for the fourth quarter of fiscal 2024 compared to 12% for the fourth quarter of fiscal 2023.
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