NVE Corporation Q2 FY2027 Earnings Call: Distributor Sales Rise 67%
Source Tradingkey
Key Takeaways
- NVE Corporation’s Q2 FY2027 revenue declined 8% year over year, mainly because product sales fell 9% following a short-term inventory adjustment at a large medical-device customer.
- Distributor sales increased 67% year over year, supported by improving industry conditions and demand for both new and legacy commercial products.
- Net income was $3.17 million, or $0.65 per diluted share, compared with $3.31 million, or $0.68 per share, a year earlier. Net margin was 54% and gross margin was 78%.
- First-half FY2027 revenue rose 36% to $16.9 million. First-half net income reached $9.57 million, or $1.97 per diluted share.
- Management expects medical-device and defense sales to recover in Q3 and projects second-half revenue to be consistent with the first half.
- NVE reported early design wins for its wafer-level chip-scale sensors and growing interest from industrial automation, power conversion and humanoid robotics customers.
Key Financial Data
| Metric | Q2 FY2027 result | Year-over-year change or context |
|---|---|---|
| Total revenue | Not specified | Down 8% |
| Product sales | Not specified | Down 9% |
| Contract R&D revenue | Not specified | Up 25% |
| Distributor sales | Not specified | Up 67% |
| Gross margin | 78% | Remained strong |
| Operating expenses | Not specified | Up 4% |
| SG&A expense | Not specified | Up 44%, driven by higher director option-grant stock prices |
| R&D expense | Not specified | Down 17% |
| Effective tax rate | 14% | Down from 20% |
| Net income | $3.17 million | Down from $3.31 million |
| Diluted EPS | $0.65 | Down from $0.68 |
| Net margin | 54% | Benefited from the lower effective tax rate |
| First-half revenue | $16.9 million | Up 36% |
| First-half net income | $9.57 million | $1.97 per diluted share |
| First-half operating cash flow | $11.1 million | Up from $8 million |
| Cash and marketable securities | $44.4 million | Up from $43.5 million |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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