Wed, Jul 17, 8:10 PM (52 days ago)
NVE Corporation's Q2 FY2025 10-Q report reveals a 23% YoY decrease in total revenue to $6.78 million, attributed to a 24% decline in product sales. However, contract R&D revenue increased by 28%. Gross profit margin improved to 86% from 77%, driven by a more profitable product mix and higher direct sales. Total expenses rose by 3%, mainly due to a 26% increase in R&D expenditure and a 14% rise in SG&A costs. Net income dropped by 7% to $4.10 million, impacted by decreased revenue despite higher gross margins, increased interest income, and a lower effective tax rate of 16%. Cash and cash equivalents fell to $6.01 million from $10.28 million in the previous quarter, primarily due to $4.83 million in dividends and $5.30 million in investing activities. Future operations are expected to focus on increasing production capacity and new product development.