NVE Corporation

Thank you for standing by, and welcome to the NVE Corporation's first quarter 2022 fiscal year results. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program may be recorded. I would now like to introduce your host for today's program, Daniel Baker, President and CEO. Please go ahead, sir.

Good afternoon, and welcome to our conference call for the quarter ended June 30th, 2021. With me is our Chief Financial Officer, Kurt Reinders. This call is being webcast live and being recorded. A replay will be available through our website, nve.com. After my opening comments, Kurt will present a financial review of the quarter, and I'll cover the business, and then we'll open the call to questions. We issued our press release with first quarter results and filed our quarterly report on Form 10-Q in the past hour following the close of market. Links to the press release and the 10-Q are available through the SEC's website, our website, and our Twitter timeline. 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 risks and uncertainties related to future sales and revenue, uncertainties related to dividend payments and future stock repurchases, and risks related to the COVID-19 pandemic, as well as the risk factors listed from time to time in our filings with the SEC, including our annual report on Form 10-K for the year ended March 31, 2021, as updated in our just-filed 10-Q. 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 a strong recovery from the pandemic-impacted year-ago quarter. For the quarter, we reported earnings of $0.74 per share versus $0.50 in the year-ago quarter, driven by a 60% increase in product sales. Now, Kurt will cover the details of our financial results. Kurt? Thanks, Dan.

Total revenue for the quarter ended June 30, 2021, increased 56%. to $7.15 million compared to $4.59 million last year due to a 60% increase in product sales, partially offset by a 14% decrease in contract R&D revenue. This was our highest revenue quarter since 2018. The COVID-19 pandemic had a significant impact on revenue in the past year. We believe those effects are subsiding, although risks and uncertainties remain. Expenses increased 3% for the quarter from the prior year due to a 31% increase in SG&A, partially offset by an 8% decrease in R&D. The increase in SG&A was due to increased employee compensation expense. The decrease in R&D expense was due to staffing changes and the completion of some new product developments. Interest income decreased to $290,000 for the most recent quarter from $399,000 in the prior year quarter due to decreases in our available for sale securities and a decrease in the average interest rates on those securities. Net income for the quarter was $3.58 million, or 74 cents per diluted share, compared to $2.41 million, or 50 cents, last year. Gross margin decreased to 75% versus 82% for the prior year quarter due to revenue mix, and net margin was a solid 50%. We paid a $1 per share dividend in the past quarter, and today we announced that our board declared another quarterly dividend of $1 per share payable August 31st to shareholders of record as of August 2nd. Now I'll turn the call back to Dan to cover the business. Dan?