Earnings call transcript: AIC Mines posts record cash flow in Q1 2026

NVE Corporation reported a decline in quarterly revenue by 8% during its fiscal second quarter, despite maintaining strong profitability. The company's net income fell to $3.17 million, or $0.65 per diluted share, from $3.31 million, or $0.68 per share a year earlier. Shares closed the regular session at $103.07, up 1%, but dropped 18.73% after hours to $83.76 following the weaker revenue announcement. Revenue for the quarter ended September 30 fell 8% year over year, while first-half revenue rose 36%.

Gross, operating, and net margins remained high at 78%, 55%, and 54%, respectively. Distributor sales increased by 67% in the quarter, indicating strong demand across various product lines. The company highlighted new sensors for robotics and automation as future growth drivers. NVE's second-quarter performance was mixed, with revenue lower than the previous year, but margins remaining among the strongest in the semiconductor and sensor industry.

Management attributed the quarter's performance to timing issues, such as a short-term inventory adjustment with a large medical-device customer and a significant drop in defense sales due to government procurement cycles. Despite the revenue decline, first-half 2027 revenue reached $16.9 million, a 36% increase from the same period in the previous year.

Cash flow from operations also improved, with cash plus marketable securities rising to $44.4 million. NVE continues to focus on its spintronic technology, which provides a competitive edge in niche markets, and is expanding into medical devices, industrial automation, robotics, and data-center power systems.