Q4 2022 NVE Corp Earnings Call
An increase from 11 $7 million or two point or.
$2 per share for fiscal 'twenty one.
Okay.
Our profit metrics continued to be strong gross margin was 77% operating margin 61%.
Tax margin was 65% and net margin was 54%.
Capital expenditures were $485000 in the fiscal year, the most since fiscal 2018.
Most of that was for the deployment of two new test handlers to increase our production testing capacity and alleviate potential bottlenecks.
We repurpose part of the building to make room for new equipment.
Equipment lead times have stretched out considerably recently at our new equipment purchase this year as a result of procurement efforts started a.
A year ago or more.
We believe our stock is a good investment and we took advantage of buying opportunities in the core.
We repurchased $164000 of our stock.
With the 483 million dollar dividend payments in the quarter, we returned a total of $5 million to shareholders.
In addition to the past quarters, one dollar per share dividend today, we announced that our board declared another quarterly dividend of $1 per share payable may 31 to shareholders of record as of May 16.
Now I will turn the call back to Dan to cover the business.
<unk> end markets.
Yeah.
Thanks, Joe.
Business conditions remained challenging according to the Commerce Department the semiconductor supply chain is very fragile, which is certainly what we're seeing.
Semiconductor insiders have said global semiconductor shortages could last into 2024 discloses both medium term opportunities and threats as Joe said, we took advantage of some of the opportunities by winning business because we have shorter lead times than traditional semiconductors, and we can keep that business by demonstrating we're rely.
Supplier with excellent product performance and quality.
I'd like to recognize our Ukrainian distributor Kavoshgar micro components, which is based in Keith and his represented us for more than 15 years.
Not significant business from us for us for from a financial perspective, but it is inspirational.
The principal continued to represent us even in the immediate aftermath of the invasion. Despite hardships we can't even imagine.
Fedex can't deliver to key but we're doing our best and doing all we can to get them parts, we wish them the best.
And they've helped inspire us to do our damnedest overcomes supply chain shortages.
In person trade shows and conferences are returning last month, one of our Japanese distributors KK rocky exhibited at the embedded in edge computing Expo in Tokyo, which is billed as Japan's largest information technology trade show.
<unk> included several live demonstrations of NV products.
There are links to images and videos from the show on our website as well as our Youtube Twitter and Linkedin social media sites.
We will be represented by distributors at two major trade shows in Germany. Later this month, the two shows our Pcie Europe and sensor plus test.
Both shows reach important target markets for <unk>.
Is billed as the world's leading next exhibition and conference for power electronics, intelligent motion renewable energy and energy management.
Sensor plus tell us claims to be the world's leading forum for sensor measurement and testing technology.
Capping off the Tradeshow season will exhibit at sensors, Comverge and San Jose next month, which showcases the latest sensing technologies. The show was back to its traditional early summer schedule for the first time since June 2019.
We'll be demonstrating several new products and we'll have a new mechatronic demonstration using a musical pitch pipe based on one of our smart sensors.
Demonstrating our sensors with musical instrument robots has been effective in attracting attention and demonstrating the precision robustness and simplicity of our sensors.
We're proud to supply products to some of the world's most demanding customer customers, including Abbott's pacesetter subsidiary.
Abbott is a leading supplier of implantable medical devices in the past quarter, we executed an extension to our supplier partnering agreement with Abbott.
The extension runs through the end of 2022 and includes price increases to help offset our cost increases.
The latest amendment was filed on a current report on form 8-K and incorporated by reference in our just filed 10-K.
It is also available via our website or the SEC's website.
Another example of the extraordinary reliability of our parts is our selection for the Europa Clipper mission.
We were notified in the past quarter that NASA has started integrating the spacecraft.
One of our NASA contacts reminded us that NASA provided research grant <unk>, starting at $19 90 to help us develop spin tronic products and now they're being used for our NASA level, one mission, meaning they're required for successful completion of the missions objectives, which is one of the most demanding applications. There is.
The mission will conduct reconnaissance of Jupiter's Moon Europa.
And investigate whether it could have conditions suitable for life.
The launch is targeted for October 2024 to arrive at Europa in 2030.
Turning to new products, we introduced two new products in the past quarter, our new current sensor.
A high sensitivity smart magnetometer.
<unk>, our vice President of advanced Technology discussed plans for these products on our January call and he and his team enabled these product launches on schedule.
Current sensors can be used to operate electric motors more efficiently.
And motors represent around 50% of worldwide electricity consumption.
The new acte or one as a tunneling Magneto resistance current sensor that can measure lower occurrence and lower voltages than common semiconductor sensors, allowing control of more motor types and sizes.
It also fits in tight spaces and is less than a 10th of an inch square.
Theres a demonstration video on our website and Youtube channel.
The high sensitivity TMR Smart magnetometers smart version of our most sensitive sensor ever which we discussed on our last call.
<unk> measure magnetic fields and can be used for position or current sensing.
The high sensitivity of the new powered allows more precise position control for a more effective robotics or a more precise current measurement for more efficient motors.
Smart sensors are a central element of our internet of things strategy, because they are smart network interfaces that allow many sensors to be connected easily for advanced adaptive factories with ubiquitous sensors.
We demonstrated the new smart magnetometer controlling a mechatronic harmonica player on our website and Youtube channel.
Despite challenges posed by shortages and long lead times fiscal 2022 was a productive year for product development. In addition to the two new sensors I just discussed we introduced several other new products in the past year.
Our most sensitive magnetic sensor ever.
The world's first TMR gear, two sensors with resolutions in the thousands of a degree for ultra precise motor control and robotics.
<unk> low power of magnetic switches for medical devices in <unk> and.
And more parts that transmit power as well as data.
In addition to new products business highlights of the past year include we made significant investments to increase capacity and diversify our supply chain, we maintained an aggressive dividend and repurchase some of our stock we extended our supplier partnering agreement with Abbott, we resumed in person trade shows, which we view as <unk>.
Investment to facilitate future sales.
We completed a spruce up of our building with more production space and a more a pleasant and efficient work environment.
The cost of the improvements was mostly covered by a build out allowance as part of our 2020 lease renewal.
And finally, we welcome Joe Schmitz, our CFO and Jim <unk> to our board of directors.
We're fortunate to have extremely dedicated employees.
We make things so working from home isn't an option our employees have worked through the personal challenges of the pandemic industry shortages and supply chain problems I look forward to thanking them in person tomorrow at our first in person employee meeting of more than two years, we're planning a barbecue to welcome spring here in Minnesota.
And to celebrate the foundation, we built for a bright future.
Now I'd like to open the call for questions.
You are participating by phone you can press star <unk>, 7%.
Yes.
Yes.