Mike Austiner's questions to NVE Corp (NVEC) leadership • Q2 2025
Question
Mike Austiner, an individual investor, asked about the business outcomes from the company's recent trade show participation, how increased capital expenditures are affecting cash flow and the dividend, and the expected timeline for the new equipment to become operational.
Answer
President and CEO Daniel Baker responded that the company was pleased with the leads generated from recent trade shows and that the sales team is actively following up on them. Regarding capital spending, Baker explained that much of the cash outflow is for down payments on custom equipment. He reassured that NVE's balance sheet remains strong enough to support both the dividend and the necessary investments for future growth. He reiterated that the new equipment is part of a plan for fiscal years 2025 and 2026, with hopes to begin some production late in the current fiscal year.