NVE Corp. (NASDAQ:NVEC) Q1 2021 Earnings Conference Call - Final Transcript
Jul 22, 2020 • 05:00 pm ET
Good afternoon, my name is Jerome, and I will be your conference operator today. At this time, I would like to welcome everyone to the NVE Conference Call on First Quarter Results. [Operator Instructions] And I would now like to turn the call over to our President and CEO, Daniel Baker. The floor is yours.
Daniel A. Baker
Good afternoon, and welcome to our conference call for the quarter ended June 30, 2020. And as always, I'm joined by Curt Reynders, our Chief Financial Officer. This call is being webcast live and being recorded. A replay will be available through our website, nve.com.
After my opening comments, Curt will present our financial review of the quarter, and I'll cover the business and new products. And then we'll open the call to questions. We issued our press release and filed our quarterly report on Form 10-Q in the past hour following the close of market. Links to documents are available through the SEC's website, our website and our Twitter time line.
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, 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 fiscal year ended March 31, 2020, as updated in our just filed Quarterly Report on Form 10-Q. Actual results could differ materially from the information provided, and we undertake no obligation to update forward-looking statements we may make.
As expected, the COVID-19 pandemic had a significant impact on our business the past quarter, but thanks to the dedication and resourcefulness of our employees, suppliers and distributors, NVE has been operating effectively through the pandemic.
Revenue in the most recent quarter decreased 27% and net income decreased 33% compared to the prior year. Minnesota was under a stay-at-home order from late March until mid-May, but NVE continued to operate because we're in several critical sectors. With talented employees, savvy distributors, unique technology and a strong balance sheet, we are well positioned to weather the pandemic. When the world gets back to normal, the people who need pacemakers and hearing aids will still need them, and automated factories will be more important than ever.
Since we believe the long term future is bright, we are preserving our workforce, continuing to invest in new product development and continuing to pay generous dividends.
Now Curt will cover the details of our financial results. Curt?
Curt A. Reynders
Thanks, Dan. As Dan said, total revenue for the quarter ended June 30, 2020, decreased 27% compared to last year due to a 28% decrease in product sales, partially offset by a 10% increase in contract R&D revenue. The increase in contract R&D revenue was due to the timing of progress towards contract completion.
We believe the COVID-19 pandemic had a