NVE Corporation reported its financial results for the quarter and six months ended September 30, 2024, reflecting a decline in revenue and net income compared to the same periods in the previous fiscal year. Total revenue for the quarter was $6.76 million, down 5% from $7.13 million in the prior year. Product sales specifically decreased by 14% to $6.10 million, attributed to reduced purchases by existing customers. However, contract research and development revenue surged by 3,950% due to the completion of a significant contract during the quarter.
For the six months ended September 30, 2024, total revenue fell 15% to $13.54 million, driven by a 20% decrease in product sales, although this was partially offset by a 457% increase in contract research and development revenue. The gross profit margin improved to 86% for both the quarter and the first half of fiscal 2025, up from 78% and 77%, respectively, in the prior year, indicating a more profitable product mix and a higher proportion of direct sales.
Net income for the quarter was $4.03 million, a decrease of 15% from $4.72 million in the same quarter last year. For the six months, net income was $8.12 million, down 11% from $9.13 million in the prior year. The decline in net income was primarily due to decreased revenue, increased operating expenses, and a higher effective tax rate, which rose to 17% from 8% in the previous year.
Total expenses for the second quarter increased by 55% compared to the same quarter in fiscal 2024, with research and development expenses rising by 24% due to heightened new product development activities. Selling, general, and administrative expenses also increased by 31%, primarily due to enhanced sales and marketing efforts.
As of September 30, 2024, NVE's cash and cash equivalents decreased significantly to $3.10 million from $10.28 million at the end of March 2024. The company reported net cash provided by operating activities of $7.99 million for the first half of fiscal 2025, down from $10.38 million in the same period last year. Additionally, the company declared a cash dividend of $1.00 per share on October 23, 2024, with a payment date set for November 29, 2024.
Overall, NVE Corporation's financial performance in the latest quarter and half-year reflects challenges in product sales, increased operational costs, and a strategic focus on contract research and development, which has shown significant growth.
About NVE CORP /NEW/
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