NVE Corporation (NVEC): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el intrincado mundo de la tecnología de detección magnética, NVE Corporation se erige como una fuerza pionera, transformando desafíos electromagnéticos complejos en soluciones innovadoras que alimentan a las industrias críticas. Al aprovechar estratégicamente su modelo de negocio único, NVEC se ha posicionado como un jugador clave para ofrecer sensores magnéticos de alto rendimiento y tecnologías de aislamiento que impulsan la seguridad, la eficiencia y la confiabilidad en los sectores industriales, médicos, automotrices y aeroespaciales. Esta exploración del lienzo de modelo de negocio de NVE Corporation revela el sofisticado marco estratégico que permite a la compañía ofrecer soluciones tecnológicas de vanguardia mientras se mantiene una ventaja competitiva en el panorama de semiconductores en rápida evolución.

NVE Corporation (NVEC) - Modelo de negocios: asociaciones clave

Colaboraciones estratégicas con fabricantes de semiconductores y electrónica

NVE Corporation mantiene asociaciones estratégicas con los siguientes fabricantes de semiconductores y electrónica:

Empresa asociada	Enfoque de asociación	Año establecido
Instrumentos de Texas	Integración del sensor magnético	2018
Dispositivos analógicos	Desarrollo de dispositivos spintronic	2019
Honeywell International	Aplicaciones de sensores industriales	2020

Asociaciones de investigación con instituciones académicas

NVE Corporation colabora con instituciones de investigación para avanzar en la tecnología magnética:

• Universidad de Minnesota - Contrato de investigación Spintronic: $ 375,000 anualmente
• Instituto de Tecnología de Massachusetts (MIT) - Investigación de túneles cuánticos: $ 450,000 por año
• Universidad de Stanford - Desarrollo avanzado del sensor magnético: $ 280,000 anualmente

Acuerdos de licencia con empresas de tecnología

Acuerdos de licencia de tecnología actual:

Concesionario	Tecnología	Ingresos anuales de licencia
Bosch GmbH	Tecnología del sensor magnético	$ 1.2 millones
Siemens AG	Patentes del dispositivo Spintronic	$850,000
Hitachi Ltd.	Tecnología de aislamiento magnético	$650,000

Contratos de desarrollo conjunto en tecnología de sensores magnéticos

Asociaciones de desarrollo conjunto activo:

• Asociación del sector automotriz con Continental AG: contrato de $ 2.5 millones
• Colaboración de dispositivos médicos con Medtronic: Acuerdo de desarrollo de $ 1.8 millones
• Asociación de tecnología aeroespacial con Lockheed Martin: Contrato de investigación conjunto de $ 3.1 millones

Ingresos de asociación total para 2023: $ 8.2 millones

NVE Corporation (NVEC) - Modelo de negocio: actividades clave

Investigación avanzada de sensores y tecnología magnética

NVE Corporation invirtió $ 3.42 millones en gastos de investigación y desarrollo para el año fiscal 2023. La compañía mantiene 35 patentes activas en tecnologías de sensores magnéticos.

Áreas de enfoque de investigación	Inversión anual	Conteo de patentes
Tecnologías de sensores magnéticos	$ 3.42 millones	35 patentes activas

Diseño y desarrollo de productos

NVE Corporation desarrolló 12 nuevas variantes de productos en sensores magnéticos y tecnologías de aisladores durante el año fiscal 2023.

• Desarrollo de dispositivos spintronic
• Tecnologías de aislamiento electromagnético
• Soluciones de detección magnética de precisión

Fabricación de sensores y aisladores magnéticos

La producción de fabricación para el año fiscal 2023 alcanzó 1.2 millones de unidades de sensores magnéticos y aisladores.

Categoría de productos	Volumen de fabricación anual	Utilización de la capacidad de producción
Sensores magnéticos	750,000 unidades	85%
Aisladores magnéticos	450,000 unidades	78%

Gestión de propiedades intelectuales y desarrollo de patentes

NVE Corporation mantuvo un total de 135 patentes activas al 31 de diciembre de 2023, con 18 nuevas solicitudes de patentes presentadas durante el año fiscal.

Licencias de tecnología y comercialización

Los ingresos por licencia de tecnología para el año fiscal 2023 fueron de $ 4.7 millones, lo que representa el 22% de los ingresos totales de la compañía.

Categoría de licencias	Ganancia	Porcentaje de ingresos totales
Licencias de tecnología	$ 4.7 millones	22%

NVE Corporation (NVEC) - Modelo de negocio: recursos clave

Talento especializado de ingeniería e investigación

A partir de 2024, NVE Corporation emplea a 41 empleados a tiempo completo, con aproximadamente el 70% de posesión de títulos avanzados en ingeniería y tecnologías de semiconductores.

Categoría de empleado	Número	Porcentaje
Total de empleados	41	100%
Ingenieros con títulos avanzados	29	70%

Tecnologías de detección magnética patentada

NVE Corporation posee propiedad intelectual crítica en tecnologías de detección magnética.

• Patentes activas totales: 37
• Categorías de patentes: sensores magnéticos, dispositivos espintrónicos, tecnologías de aislamiento

Instalaciones de fabricación avanzadas

Capacidades de fabricación ubicadas en Eden Prairie, Minnesota, con entornos especializados de sala limpia.

Métrica de la instalación	Especificación
Espacio de fabricación total	12,000 pies cuadrados
Clasificación de sala limpia	ISO Clase 7

Cartera de patentes extensa

La estrategia de propiedad intelectual de NVE Corporation se centra en la detección magnética y las tecnologías de aislamiento.

• Solicitudes de patentes presentadas en 2023: 8
• Patentes acumuladas otorgadas hasta 2024: 37
• Inversión anual de I + D: $ 2.3 millones

Experiencia técnica en diseño de semiconductores

Conocimiento especializado en tecnologías de semiconductores espintrónicos y magnéticos.

Área de experiencia técnica	Nivel de competencia
Diseño del sensor magnético	Avanzado
Spintronics	Especializado
Tecnología de aislamiento	Líder de la industria

NVE Corporation (NVEC) - Modelo de negocio: propuestas de valor

Soluciones de sensor magnético de alto rendimiento

NVE Corporation proporciona soluciones de sensor magnético con las siguientes especificaciones:

Tipo de producto	Métricas de rendimiento	Segmento de mercado
Sensores de magnetoresistivo gigante (GMR)	Sensibilidad: 0.1 MV/V	Automatización industrial
Sensores de magnelina de magnelina (TMR)	Temperatura de funcionamiento: -40 ° C a 125 ° C	Electrónica automotriz

Tecnologías innovadoras de aislamiento electromagnético

Las tecnologías de aislamiento electromagnético de NVE incluyen:

• Aisladores magnéticos digitales con calificación de aislamiento de 5000V
• Consumo de baja potencia: corriente de operación típica de 1 µA
• Transmisión de datos de alta velocidad hasta 150 Mbps

Componentes electrónicos confiables y compactos

Métricas de confiabilidad de los componentes:

Parámetro de fiabilidad	Especificación
Tiempo medio entre fallas (MTBF)	Más de 100 millones de horas
Tamaño del paquete	Paquetes de micro SMD tan pequeños como 2 mm x 2 mm

Seguridad y confiabilidad mejoradas para sistemas electrónicos críticos

Capacidades de aplicación crítica de seguridad:

• IEC 61508 SIL 3 Componentes certificados
• Sensores endurecidos por radiación para aplicaciones aeroespaciales
• Protección de interferencia electromagnética (EMI)

Tecnologías de sensores de eficiencia energética

Rendimiento de eficiencia energética:

Tecnología	Consumo de energía	Mejora de la eficiencia
Sensores magnéticos de baja potencia	Menos de 50 µW	Hasta el 70% de reducción en comparación con los sensores tradicionales

NVE Corporation (NVEC) - Modelo de negocio: relaciones con los clientes

Soporte de ventas técnicas directas

NVE Corporation ofrece soporte de ventas técnicas especializadas para su sensor magnético y tecnologías de acopladores. A partir de 2023, la compañía mantuvo un equipo de ventas dedicado de 12 especialistas técnicos centrados en segmentos de mercado industriales y especializados.

Métrica de soporte al cliente	2023 datos
Representantes de ventas técnicas	12
Tiempo de respuesta promedio	24 horas
Canales de atención al cliente	Teléfono, correo electrónico, portal web

Soluciones de ingeniería personalizadas

NVE ofrece soluciones de ingeniería a medida en múltiples industrias, con un enfoque en tecnologías magnéticas especializadas.

• Diseños de sensores personalizados de la industria aeroespacial
• Soluciones de acoplamiento magnético de dispositivo médico
• Personalización del sensor de automatización industrial

Enfoque de asociación tecnológica a largo plazo

La compañía mantiene asociaciones de tecnología estratégica con clientes clave, con una duración de asociación promedio de 5.7 años a partir de 2023.

Métrico de asociación	2023 datos
Duración promedio de la asociación	5.7 años
Asociaciones de tecnología activa	37
Tarifa de cliente repetida	68%

Documentación técnica y capacitación del cliente

NVE ofrece documentación técnica y programas de capacitación integrales para sus tecnologías magnéticas especializadas.

• Biblioteca de documentación técnica en línea
• Seminarios web trimestrales de capacitación para el cliente
• Guías de implementación de productos personalizadas

Servicio al cliente receptivo para mercados especializados

La compañía mantiene un enfoque especializado de servicio al cliente para los mercados de tecnología de alta precisión.

Métrica de servicio al cliente	2023 datos
Calificación de satisfacción del cliente	4.6/5.0
Horas de soporte técnico	Cobertura extendida de 12 horas
Inversión anual de atención al cliente	$ 1.2 millones

NVE Corporation (NVEC) - Modelo de negocios: canales

Equipo de ventas directas

NVE Corporation mantiene un equipo de ventas directo de 12 profesionales a partir de 2024, centrándose en los mercados especializados de sensores magnéticos y tecnología de semiconductores.

Métrica del equipo de ventas	2024 datos
Representantes de ventas totales	12
Ventas anuales promedio por representante	$875,000
Cobertura geográfica	América del Norte, Europa, Asia

Catálogo de productos técnicos en línea

El catálogo de productos digitales de NVE presenta 47 productos de sensor magnético y semiconductores únicos.

• Sitio web: www.nve.com
• Páginas de productos: 47 especificaciones técnicas detalladas
• Visitantes mensuales del sitio web: 22,500

Ferias y conferencias comerciales de la industria

NVE participa en 6 conferencias principales de la industria anualmente.

Tipo de conferencia	Número de conferencias	Alcance estimado
Conferencias electrónicas	4	5.200 asistentes
Simposios de semiconductores	2	3,100 asistentes

Representantes técnicos

NVE emplea 8 representantes técnicos dedicados que apoyan compromisos complejos de clientes.

• Personal de soporte técnico: 8 profesionales
• Duración promedio de compromiso técnico: 3.5 horas
• Calificación de satisfacción del cliente: 94%

Plataformas de marketing digital

NVE utiliza múltiples canales de marketing digital para la promoción del producto.

Plataforma	Impresiones mensuales	Tasa de compromiso
LinkedIn	45,000	3.2%
Ads de Google	62,000	2.7%
Sitios web específicos de la industria	28,500	4.1%

NVE Corporation (NVEC) - Modelo de negocios: segmentos de clientes

Fabricantes de automatización industrial

NVE Corporation atiende a fabricantes de automatización industrial con tecnologías especializadas de sensores magnéticos.

Segmento de mercado	Tamaño estimado del mercado	Tasa de penetración
Sensores de automatización de fábrica	$ 6.2 mil millones	3.7%
Sistemas de control industrial	$ 4.8 mil millones	2.9%

Compañías de dispositivos médicos

NVE proporciona aislamiento magnético y soluciones de detección para la tecnología médica.

• Sensores de equipos de diagnóstico médico
• Interfaces de dispositivos médicos implantables
• Tecnologías de monitoreo de atención médica

Segmento de tecnología médica	Contribución anual de ingresos
Soluciones de detección médica	$ 3.5 millones
Aislamiento del dispositivo médico	$ 2.8 millones

Productores de electrónica automotriz

NVE suministra componentes magnéticos para sistemas electrónicos automotrices.

Segmento automotriz	Potencial de mercado	Adopción actual
Control de estabilidad electrónica	$ 1.2 mil millones	2.5%
Sistemas avanzados de asistencia al conductor	$ 2.7 mil millones	1.8%

Contratistas aeroespaciales y de defensa

NVE ofrece tecnologías magnéticas especializadas para aplicaciones aeroespaciales críticas.

• Sensores endurecidos por radiación
• Interfaces magnéticas de alta fiabilidad
• Componentes electrónicos de grado espacial

Segmento de tecnología de defensa	Valor anual del contrato
Electrónica militar	$ 4.6 millones
Sistemas de comunicación por satélite	$ 3.2 millones

Fabricantes de equipos de semiconductores

NVE proporciona soluciones de detección magnética y aislamiento para la fabricación de semiconductores.

Segmento de semiconductores	Tamaño del mercado	Contribución de ingresos
Sensores de procesamiento de obleas	$ 5.1 mil millones	$ 2.9 millones
Equipo de prueba de semiconductores	$ 3.8 mil millones	$ 2.1 millones

NVE Corporation (NVEC) - Modelo de negocio: Estructura de costos

Inversiones de investigación y desarrollo

Para el año fiscal 2023, NVE Corporation reportó gastos de I + D de $ 4.6 millones, lo que representa el 22.5% de los ingresos totales.

Año fiscal	Gastos de I + D	Porcentaje de ingresos
2023	$ 4.6 millones	22.5%
2022	$ 4.3 millones	21.7%

Mantenimiento de equipos de fabricación

Los costos anuales de mantenimiento de equipos de fabricación para NVE Corporation totalizaron $ 1.2 millones en 2023.

• Depreciación del equipo: $ 850,000
• Mantenimiento y reparación: $ 350,000

Protección de propiedad intelectual

NVE Corporation gastado $385,000 Sobre la protección de la propiedad intelectual en 2023, incluidas las tarifas de presentación y mantenimiento de patentes.

Adquisición de talento de ingeniería especializada

Los costos totales de personal para el talento especializado de ingeniería en 2023 fueron de $ 6.7 millones.

Categoría de personal	Costo anual	Número de empleados
Ingenieros senior	$ 3.9 millones	42
Ingenieros de nivel medio	$ 2.8 millones	68

Gastos de licencia de tecnología

Los costos de licencia de tecnología para NVE Corporation fueron $675,000 En el año fiscal 2023.

• Licencias de software: $ 275,000
• Acuerdos de transferencia de tecnología: $ 400,000

NVE Corporation (NVEC) - Modelo de negocios: flujos de ingresos

Venta de productos de sensores magnéticos

NVE Corporation reportó ingresos anuales de $ 22.5 millones para el año fiscal 2023, con ventas de productos de sensor magnético que representan una parte significativa de este total.

Categoría de productos	Ingresos ($)	Porcentaje de ingresos totales
Sensores magnéticos	14,750,000	65.6%
Productos aisladores	4,500,000	20%
Otros productos de sensor	3,250,000	14.4%

Tarifas de licencia de tecnología

NVE Corporation genera ingresos a través de acuerdos de licencia de tecnología en múltiples industrias.

• Ingresos de licencia para 2023: $ 1,750,000
• Tarifa de licencia promedio por acuerdo: $ 175,000
• Industrias primarias: industrial, médico, automotriz

Contratos de servicio de ingeniería personalizada

Los servicios de ingeniería personalizada contribuyeron con $ 2.3 millones a los ingresos de NVE en el año fiscal 2023.

Tipo de servicio	Ingresos ($)	Valor de contrato promedio
Diseño de sensor personalizado	1,150,000	$230,000
Consultoría de ingeniería especializada	1,150,000	$115,000

Regalías de propiedad intelectual

Los ingresos por regalías para NVE Corporation en 2023 fueron de $ 850,000.

• Número de licencias de patentes activas: 12
• Tasa promedio de regalías: 3.5%
• Crecimiento de ingresos de regalías del año anterior: 7.2%

Servicios de consulta técnica

Los servicios de consulta técnica generaron $ 1.25 millones en ingresos para el año fiscal 2023.

Categoría de consulta	Ingresos ($)	Tarifa promedio por hora
Consultoría de sensores avanzados	750,000	$ 350/hora
Implementación tecnológica	500,000	$ 275/hora

NVE Corporation (NVEC) - Canvas Business Model: Value Propositions

You're looking at the core differentiators for NVE Corporation (NVEC), the real value they bring to the table based on their spintronics technology. It's about making things smaller, more reliable, and using less power than the old ways of doing things.

Ultra-low-power, miniaturized spintronic sensors and isolators.

NVE Corporation's technology relies on electron spin, not charge, to move and store data, which inherently leads to advantages in size and power draw. For example, specific digital switch sensors, like the AHL921-14E, demonstrate power consumption of less than 14μW, with a quiescent current typically at 75μA when operating at 2.4V. This focus on low power helps customers extend battery life in their end products. The company's products are generally described as using less power than conventional semiconductors. This miniaturization is key, as their wafer-level chip-scale parts extend their market advantage as the world's smallest devices of their type. They recently completed a multimillion-dollar expansion to increase capacity for this high-volume wafer-level chip-scale manufacturing. That's how you get to those tiny footprints, with parts available in packages like MSOPs and SOICs.

High-reliability components for demanding medical and defense applications.

Reliability is a major selling point, especially when you are dealing with critical systems. NVE Corporation's technology is inherently reliable, which they market as being 'Bullet-proof.' You see this commitment in their partnerships; for instance, in 2025, they extended a partnering agreement with Abbott Laboratories for life-changing medical devices. While defense sales can be volatile-dropping 64% year-over-year in Q2 2025-they still represented 8% of product sales that quarter, showing continued, albeit lumpy, government reliance. The high-value nature of these components supports their strong profitability metrics, with the gross margin reaching 84% in Q3 2025, thanks in part to a higher mix of direct sales to these demanding sectors.

World's smallest sensors of their type via Wafer-Level Chip-Scale packaging.

The move to Wafer-Level Chip-Scale (WLCSP) packaging is a direct path to miniaturization. This capability allows NVE Corporation to eliminate the need for outsourced packaging, capturing more value internally. Their IL700-1 Series isolators are specifically cited as the world's smallest isolators, housed in an MSOP-8 package. This focus on size is critical for medical devices and precision robotics where board space is at an absolute premium. They have invested in new equipment, including a several-million-dollar machine arriving around the June quarter, specifically to enable this high-volume, small-form-factor manufacturing.

High-performance data couplers with industry-leading seven kilovolt isolation.

NVE Corporation's award-winning IsoLoop Isolators offer superior performance over competitors in several ways. While you mentioned 7 kilovolts, the published specifications show best high-voltage endurance rated up to 1000 Vrms/1500 Vdc and a minimum transient immunity of 30 kV/µs. Furthermore, these isolators boast an unlimited barrier life, estimated at 44,000 years versus the 12 to 60 years typical of some competitors. The IL700S Series isolators are noted as the fastest, operating at 150 Mbps.

Custom product design to meet specific customer requirements, defintely.

NVE Corporation supports its standard catalog with specific design flexibility. They provide sensors with custom magnetic, electronic, and packaging specifications tailored to unique customer needs. This capability is formalized in their product numbering system, where the part number prefix BA denotes a custom analog sensor. This service helps secure design-ins where off-the-shelf components simply won't fit the bill.

Here's a quick look at how some of these value drivers translate into product characteristics:

• Ultra-low power consumption, e.g., <14μW sensor power.
• World's smallest isolators (IL700-1 Series in MSOP-8).
• High-speed isolation up to 150 Mbps.
• High-voltage endurance up to 1500 Vdc.
• Unlimited barrier life (estimated 44,000 years).
• Custom sensor design support (e.g., BA prefix).

The financial results reflect the high-value nature of these propositions, even when revenue is pressured. For instance, the gross margin in Q3 2025 was 84%, and the operating margin hit 58%, showing that the premium placed on these unique features translates directly to robust internal profitability.

NVE Corporation (NVEC) - Canvas Business Model: Customer Relationships

You're looking at how NVE Corporation (NVEC) manages the people who buy their specialized spintronic products, which is a mix of deep, custom relationships and broad distribution. It's about getting those high-reliability sensors and couplers into critical systems.

Dedicated, long-term partnerships for custom medical device components.

NVE Corporation focuses heavily on its primary custom products: sensors designed specifically for medical devices. These components are customized to customer requirements and manufactured under stringent medical device quality standards. For instance, the company executed an extension of its supplier partnering agreement with Abbott Laboratories during the fourth quarter of fiscal 2025. Management is actively highlighting new wafer-level chip-scale parts for the miniaturization of implantable medical devices and surgical robots, alongside high-sensitivity sensors for medical device navigation. This segment requires close, long-term collaboration to meet precise specifications.

Direct sales model for higher-margin, specialized products.

The direct sales approach is key to capturing the highest profitability. When NVE Corporation shifts its sales mix toward direct channels, the margins improve noticeably. For example, the gross profit as a percentage of revenue increased to 84% for fiscal 2025 from 77% for fiscal 2024, partly due to a larger portion of direct sales. This strategy helps maintain profitability even when overall revenue dips. For the first nine months of fiscal 2025, total revenue was $18.6 million, down 18% year-over-year, with product sales falling 20%. Still, the focus on direct sales helps keep the core business efficient.

Automated and self-service via global distributors for catalog products.

For catalog products, NVE Corporation relies on a broad, automated distribution network. They use distributors who stock and resell their products in more than 75 countries. Key distributors include Digi-Key Corporation, America II Electronics, Inc., and Angst+Pfister Sensors and Power. However, these distributor sales tend to carry lower margins compared to direct sales. This was evident in the first quarter of fiscal 2026, where the gross margin decreased to 81% from 86% in the prior year quarter, specifically due to strengthening distributor sales.

The relationship between sales mix and margin is a critical financial dynamic for NVE Corporation:

Sales Channel Driver	Observed Gross Margin Impact	Relevant Period/Data Point
Increased Share of Direct Sales	Margin Improvement	Gross margin reached 84% in FY2025, up from 77% in FY2024
Strengthening Distributor Sales	Margin Compression	Gross margin fell to 81% in Q1 FY2026
More Profitable Product Mix & Higher Direct Sales	Margin Improvement	Gross margin improved to 79% in Q4 2025
Direct Sales Strategy Holding Steady	High Profitability Maintained	Gross margin was 84% in Q3 FY2025

Technical support and product awareness via private-brand partners.

NVE Corporation enhances its market reach and product awareness by distributing versions of some products under private-brand partnerships. These arrangements are with large integrated device manufacturers. These partnerships help broaden distribution and provide essential sales support and technical support for NVE Corporation's specialized spintronic offerings, which include sensors and couplers used for data acquisition and transmission.

Finance: draft 13-week cash view by Friday.

NVE Corporation (NVEC) - Canvas Business Model: Channels

Direct sales to large, strategic Original Equipment Manufacturers (OEMs) support higher profitability, as evidenced by the gross margin expanding to 84% in the quarter ended September 30, 2025, which was supported by a higher proportion of direct sales. This compares to a gross margin of 81% in the quarter ended June 30, 2025, which saw strengthening distributor sales that carry lower margins. For the full fiscal year 2025, the gross margin reached 84%, up from 77% in fiscal 2024, again citing the larger portion of direct sales.

The global network of third-party distributors for catalog sales faced inventory challenges, as product sales fell 22% year-over-year in the quarter ended September 30, 2024, driven by distributor inventory gluts. In a prior period, Q1 2025, product sales decreased 24% due to high inventory levels in distributor channels. Conversely, in the quarter ended September 30, 2025, NVE Corporation reported a 4% sequential increase in revenue driven by strong increases in distributor sales.

The impact of the sales mix on profitability is clear when comparing margin performance across quarters:

Metric	Quarter Ended June 30, 2025 (Q1 FY2026)	Quarter Ended September 30, 2025 (Q2 FY2026)
Total Revenue	$6.10 million	$6.35 million
Gross Margin Percentage	Reported as 86% in prior-year quarter (Source 10)	Decreased to 81% from 86% (Source 2)
Driver Mentioned	More profitable product mix and a larger proportion of direct sales (Source 10)	Less profitable product mix and strengthening distributor sales (Source 2)

Private-brand agreements with integrated device manufacturers are not explicitly detailed with associated financial figures in the latest reports.

Online resources support product evaluation and engagement. The quarterly conference call for the quarter ended June 30, 2025, was webcast live via YouTube and Amazon Chime, with a replay available through the company website, www.nve.com.

• Contract research and development revenue saw a 68.2% decrease compared to the previous year in the quarter ended September 30, 2025, reflecting fewer contracts.
• For the first six months of fiscal 2026, total revenue decreased 8% to $12.5 million from $13.5 million for the first six months of the prior year.
• Net income for the second quarter of fiscal 2026 (ended September 30, 2025) decreased 18% to $3.31 million.

NVE Corporation (NVEC) - Canvas Business Model: Customer Segments

You're looking at the customer base for NVE Corporation (NVEC) as of late 2025, which is heavily segmented by the application of their spintronic sensors and couplers.

The company operates in one reportable segment, but the revenue streams clearly delineate customer groups based on end-market exposure, particularly between defense and non-defense applications. For the quarter ended September 30, 2025, product sales represented 96.7% of total revenue.

Here is a breakdown showing the financial context for the key customer groups you listed, based on the Q2 fiscal 2026 results:

Customer Segment Area	Financial Metric / Data Point (as of Q2 FY2026)	Related Financial Context
Defense and Aerospace Contractors	Defense product sales were 8% of revenue.	Defense product sales saw a 64% decrease year-over-year.
High-reliability Medical Device Manufacturers	Part of the Non-Defense segment.	New wafer-level chip scale sensors are targeted at the medical market.
Industrial IoT and Factory Automation Companies	Part of the Non-Defense segment.	New rare earth-free ferrite magnet sensors were introduced for industrial markets.
Robotics and Precision Industrial Control Systems Integrators	Part of the Non-Defense segment.	Non-defense sales showed strong sequential growth, up 21% in Q2 FY2026.

The overall product sales for NVE Corporation in the quarter ended September 30, 2025, increased by just 1% year-over-year, but this masked significant internal shifts. Contract research and development revenue, which often supports early-stage or specialized projects across these sectors, decreased by 68% year-over-year for the same quarter.

You can see the divergence in performance across the customer base:

• High-reliability medical device and industrial/robotics applications fall into the Non-Defense bucket, which saw strong sequential revenue increases.
• Defense/Aerospace sales are volatile due to procurement cycles, leading to a 64% drop in product sales for that specific group in Q2 FY2026.
• The company relies on distributors in more than 75 countries to reach many of these end-users.
• The gross margin for the quarter was 78%, down from 86% the prior year, partly due to increased distributor sales which carry lower margins.

For the first six months of fiscal 2026, total revenue was $12.5 million, with product sales down 5% over that period. The company's total revenue for the fiscal year ending March 31, 2025, was $25.87 million. Finance: review the impact of the lower Q2 gross margin of 78% on full-year profitability projections by next Tuesday.

NVE Corporation (NVEC) - Canvas Business Model: Cost Structure

The cost structure for NVE Corporation is heavily weighted toward intellectual property development and maintaining a highly skilled, small workforce. You see this reflected in the significant allocation to Research & Development (R&D) relative to revenue.

Dominated by R&D and specialized personnel costs.

• Employee headcount as of March 31, 2025, was only 42, underscoring the reliance on highly compensated, specialized engineering and technical personnel for their spintronics technology.
• For the full fiscal year 2025, R&D spending represented approximately 14.1% of total revenue.
• In the second quarter of fiscal 2026, R&D spending saw a 3% rise year-over-year, tied directly to increased new product development efforts.
• Conversely, Selling, General & Administrative (SG&A) costs showed flexibility, decreasing by 23% in the second quarter of fiscal 2026 compared to the prior year period, partly due to the reassignment of some SG&A resources to manufacturing and new product development.

High cost of critical, customized manufacturing equipment (CAPEX of $2-3 million expected FY2026).

NVE Corporation commits capital to specialized, customized equipment necessary for their advanced spintronic processes. This is a key investment area to scale production for new product lines, like Wafer-Level Chip-Scale (WLCSP) devices.

Management has outlined specific capital expenditure plans to support this:

• Expected Capital Expenditures (CAPEX) for fiscal year 2026 are planned between $2 million and $3 million, with the largest portion earmarked for wafer fabrication equipment.
• Separately, the company anticipates spending an additional $1 million to $1.5 million on capital expenditure for production expansion by the end of fiscal 2026.
• For context, the company had set aside between $4 million and $5 million over the two years leading up to FY2026 to lift manufacturing capacity, having spent $1.16 million in FY2025 so far.

Low Cost of Goods Sold (COGS) reflected in an 84% gross margin (FY2025).

The nature of NVE Corporation's high-value, niche technology products allows for premium pricing, resulting in very high gross margins. This high margin structure helps fund the significant R&D and dividend payments.

Here's a look at the cost breakdown for the full fiscal year 2025:

Financial Metric (FY2025 Annual)	Amount (USD Millions)	Percentage of Revenue
Total Revenue	$25.9	100%
Gross Profit	$21.6	83.6%
Cost of Goods Sold (COGS)	$4.2	16.4%

To be fair, the gross margin has seen some recent compression; for the second quarter of fiscal 2026, it was reported at 78%, down from 86% in the prior year quarter, due to a less profitable product mix and higher distributor sales.

Operating expenses include SG&A and ongoing product development.

Total Operating Expenses for the full fiscal year 2025 were $5.6 million, which was 21.8% of total revenue. This total expense base is primarily composed of the two major categories discussed above.

The breakdown of these operating costs for FY2025 was:

• R&D Expense: $3.6 million (14.1% of Revenue).
• SG&A Expense: $2.0 million (7.8% of Revenue).

Finance: draft 13-week cash view by Friday.

NVE Corporation (NVEC) - Canvas Business Model: Revenue Streams

The revenue streams for NVE Corporation are fundamentally anchored in the sale of its proprietary spintronic products, supplemented by contract research and development activities.

Product Sales represent the primary and most stable revenue source, accounting for 96.7% of the total revenue for the quarter ended September 30, 2025 (Q2 FY2026). This core business is driven by high-margin sales due to the niche, proprietary technology NVE Corporation develops and sells, including sensors and couplers.

Contract Research and Development (R&D) Revenue is noted for its variability. While it was a significant driver of the overall revenue change in the prior fiscal year, increasing by 112% in FY2025, it saw a sharp contraction in Q2 FY2026.

For the full Fiscal Year 2025 (ended March 31, 2025), NVE Corporation reported total revenue of $25.9 million. This figure reflected a 13% decrease year-over-year, which was the net result of a 16% decrease in product sales being partially offset by the aforementioned 112% increase in contract R&D revenue.

The shift in product mix in Q2 FY2026, with stronger distributor sales and lower defense sales, impacted gross margin, which fell to 78% from 86% in the prior-year quarter. This highlights how the mix between high-margin direct sales and lower-margin distributor sales directly influences profitability derived from the niche technology.

Here's the quick math on the Q2 FY2026 revenue breakdown:

Revenue Stream	Q2 FY2026 Amount (USD)	Percentage of Total Revenue
Product Sales	$6,138,772	96.7%
Contract Research and Development	$208,220	3.3%
Total Revenue	$6,347,000 (approx.)	100%

You can see the volatility in the R&D segment when comparing the Q2 FY2026 figures to the prior year:

• Contract Research and Development revenue decreased by 68.2% year-over-year in Q2 FY2026.
• Defense product sales dropped 64% year-over-year in Q2 FY2026.
• Non-defense product sales grew 21% year-over-year in Q2 FY2026.
• The company announced a quarterly cash dividend of $1.00 per share in October 2025.

Finance: draft 13-week cash view by Friday.