NVE Corporation 2027 財年第二季法說會：經銷商銷售額成長 67%

重點摘要

• NVE Corporation 2027 財年第二季營收年減 8%，主因是一家大型醫療器材客戶進行短期庫存調整後，產品銷售額下降了 9%。
• 在產業狀況改善以及對新舊商業產品需求的推動下，代理商銷售額年增 67%。
• 淨利為 317 萬美元，即稀釋後每股盈餘 (EPS) 0.65 美元，上年同期則為 331 萬美元，即每股盈餘 0.68 美元。淨利率為 54%，毛利率為 78%。
• 2027 財年上半年營收成長 36% 至 1,690 萬美元。上半年淨利達到 957 萬美元，即稀釋後每股盈餘 1.97 美元。
• 管理層預計醫療器材和國防產品的銷售將在第三季復甦，並預測下半年營收將與上半年保持一致。
• NVE 報告稱其晶圓級晶片尺寸感測器取得早期設計定案，且來自工業自動化、電源轉換和人形機器人客戶的興趣日益濃厚。

關鍵財務數據

應收帳款因客戶付款時間差而減少 12%，而存貨則受上半年產品銷售增加影響下降 3%。當期營業現金流量足以支付股利與固定資產購置費用。

業務與營運表現

季度營收下降反映的是拉貨時間點，而非出現新的營運中斷。管理層表示，訂單主要是由一家大型醫療器材客戶從第二季提前至第一季拉貨。營收在季末轉強，9 月的表現優於 8 月。

代理商的表現是一項主要的積極指標。第二季代理商銷售額年增 67%，高於管理層先前預估上半年約 40% 的成長率。公司表示，代理商銷售涵蓋了其產品組合的廣泛類型，不過代理商銷售佔比提高相較於直銷可能會帶來較低的毛利率。

NVE 在本季度推出了兩大類產品。其新款晶圓級晶片尺寸感測器面積僅 0.55 平方公釐，結合了小尺寸與高感測度，適用於醫療器材、工業自動化及機器人的精密運動應用。公司還推出了七款齒輪感測器版本，專為工業自動化與機器人的運動、速度及位置感測而設計。

管理層強調電源轉換是另一個成長市場。NVE 表示，隨著電源供應器和電源轉換系統應用電壓的提高，包含法說會中討論的向 800 伏特架構轉型，其高隔離度產品將為此受益。

在醫療器材方面，NVE 持續深耕心律管理應用，同時尋求神經刺激器等其他植入式產品的成長。管理層指出，體積小和功耗低是這些應用的主要優勢。

管理層展望與指引

管理層預計醫療器材與國防產品銷售額將在 2027 財年第三季復甦，並預期本季度將恢復成長。公司預計下半年營收將與上半年一致，並以上半年的營運運轉率作為該展望的基準。

NVE 預計至少在 2027 財年剩餘時間內，有效稅率將保持在 14% 至 16% 之間，這反映了稅法的有利變更。

公司預期直銷與代理商管道、傳統產品及新產品將維持全面成長。然而，管理層強調，早期設計定案通常始於樣品和數千單位的訂單，之後才有機會成長 10 倍。這種量產放量的過程可能需要數個季度的時間。

風險與關注焦點

• NVE 的大部分營收依賴幾家大型客戶，導致季度業績對採購時間點與庫存調整相當敏感。
• 由於政府採購週期的影響，醫療器材的訂購模式可能會造成短期營收波動。
• 管理層通常不追蹤未交貨訂單，這限制了對未來訂單涵蓋率的能見度。
• 晶圓級晶片尺寸感測器與機器人的市場機會仍處於早期送樣、原型設計或系統整合階段，客戶的量產時程仍具不確定性。
• 代理商銷售能增加營收彈性並擴展市場觸角，但可能帶來毛利率較低的銷售組合。
• 公司提到其終端市場經濟環境的不確定性，以及未來銷售與營收的不確定性。

分析師問答重點

管理層表示，晶圓級晶片尺寸產品已取得多個早期設計定案。初始採購通常涉及樣品或數千個單位的數量，在客戶完成系統級整合後才可能出現較大訂單。NVE 表示客戶興趣與訂單規模正在上升，但未提供特定客戶的詳細資訊。

在人形機器人領域，新款齒輪感測器主要針對先進編碼器與伺服系統。管理層報告稱收到了來自西方及全球其他客戶的興趣。NVE 典型感測器的平均售價約為 1 至 2 美元，管理層表示一台人形機器人可能會使用「數十個」感測器。

NVE 表示有能力生產數百萬至數千萬個感測器，並能隨著客戶量產規模擴大而進一步擴產。透過公司擴建所增加的部分產能已開始從研發轉向生產，特別是晶圓級晶片尺寸產品，儘管這一轉變規模目前仍相對較小。

在總裁兼執行長 Peter Eames 的領導下，管理層的長期策略是利用近期擴建的產能，為快速成長的市場開發產品。優先領域包括機器人、電源轉換與人工智慧物聯網 (AIoT)。公司還表示，其專利組合、營業秘密和內部的自旋電子學專業知識構成了進入壁壘。

完整法說會逐字稿

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完整財報電話會議逐字稿

管理層陳述

Peter Eames

Good afternoon, and welcome to the NVE Corporation conference call for the quarter ended September 30, 2026. I'm Pete Eames, NVE's President and CEO. With me on the call is Daniel Nelson, our Principal Financial Officer. This call is being webcast live on YouTube and Google Meet and being recorded. A replay is available through our website, nve.com, and our YouTube channel, uube.com/nveorpor. After my opening comments, Daniel Nelson will present our financial results, then I'll cover the business. I'll also cover the recent leadership transition and Board expansion, and then we'll open the call to questions. We issued our press release with summary financial 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 10-Q are available through our website, the SEC's website. NX, formerly known as Twitter. Please refer to the safe harbor statement on your screen 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 our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues as well as 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, 2026.

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 solid revenue and earnings for the quarter, driven by a 67% increase in distributor sales. Net margins increased to 54% due to a decrease in our effective tax rate. Daniel Nelson will cover the details of the financials. Daniel?

Daniel Nelson

Thanks, Pete. Total revenue for the quarter decreased 8% compared to the prior year quarter. The decrease was due to a 9% decrease in product sales, partially offset a 25% increase in contract R&D revenue. The decrease in product sales was due to a short-term inventory adjustment at one of our large medical device customers. Inventory adjustments by medical device customers can create short-term auto because of government procurement cycles. Looking forward, -- we expect medical device and defense sales to recover in the current quarter, and we expect revenues in the second half of the fiscal year to be consistent with the first half.

Aside from the short-term order flow adjustment in Medical, we saw a 67% increase in distributor sales due to strengthening industry conditions and strong demand for our new and legacy commercial products. The increase in contract R&D revenue in the past quarter was due to progress on existing contracts. Total operating expenses increased 4% for the second quarter of fiscal 2017 compared to the second quarter of fiscal 2026 due to a 44% increase in selling, general and administrative expense, partially offset by a 17% decrease in R&D expense. The increase in SG&A was due to higher director option granted stock prices.

Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes decreased to 14% from 20% in the prior year quarter, primarily due to favorable tax law changes. The decrease is consistent with our previous estimates, and we expect our effective tax rate to be between 14% and 16% for at least the remainder of the fiscal year. Net income for the second quarter of fiscal 2027 was $3.17 million or $0.65 per diluted share compared to $3.31 million or $0.68 per share in the prior year quarter. Our profitability metrics for the quarter remained strong. In adjoin to the 54% net margin, Pete mentioned previously, gross margin was 78% -- for the first 6 months of fiscal 2027, total revenue was $16.9 million, up 36% over the same period in fiscal 2026.

The increase in revenue was due to strong sales across our product portfolio as well as increases in both direct and distributor sales. Net income was $9.57 million, or $1.97 per diluted share for the first 2 quarters of fiscal 2027. Turning to cash flow items. Cash flow from operations was $11.1 million for the first 6 months of fiscal 2020 compared to $8 million for the first 6 months of fiscal 2026. Cash plus marketable securities increased from $43.5 million to $44.4 million as operating cash flow more than cover our dividends and purchases of fixed assets for the first half of the fiscal year.

Receivables decreased 12% due to timing of customers' payments. Inventories decreased 3% due to increased product sales in the first half of the fiscal year and we pay our $1 per share quarterly dividend in the past quarter and declared another dividend to be paid at the end of November. Now I'll turn the call back over to PDM to cover the business, Pete?

Peter Eames

Thanks, Daniel. Our R&D strategy is to transition the world's best technology into the world's best products for high-value markets such as advanced automation and robotics, data centers and highly automated fourth wave factories using the artificial intelligence of things. This quarter, we announced 2 new products. The first is a new design in our series of wafer level chip scale sensors. The sensor provides analog information such as position from the motion or changes of external magnetic fields. These sensors are the smallest products we've ever made at NVE, measuring just 0.55 millimeter square combined with a small size is an extremely high sensitivity -- this combination enables unmatched spatial sensitivity for precision motion applications, including medical devices, industrial automation and robotics.

We are promoting our new products on YouTube with video showing the sensor detecting tiny motions of minute magnets. And you can view these videos on our website. We also released a family of gear sensors in the past quarter for precise motion speed and position sensing in industrial automation and robotics. These sensors are biased by a small magnet and detect the motion of gear teeth as they pass the sensor. 7 different versions of these sensors match common gear sizes in a newly available sensor form factor. The new sensors provide large it in factory automation and robotics, we have videos of these new products on our website and YouTube channel show incredible small size, high precision and versatility of our new sensors.

In addition to these new product launches, we're developing several new products, including even more precise answers for robotics and more power addition isolators and power conversion. Next, I'll cover our recent leadership transition and Board expansion. I was elected Director and appointed President and CEO at our Annual Shareholders' Meeting in August. Former CEO, Dan Baker, replaced Terry Glarner, Chairman. We also elected a new Director, Carolyn Valentine, expanding the board from 5 to 7 directors. The larger Board strengthens our governance. I'm honored to lead NVE as CEO. And -- we have a talented team to customer relationships and many exciting opportunities ahead.

I look forward to building on our momentum to create long-term value for our shareholders through profitable growth and expansion in attractive markets. We see significant opportunities in robotics, power conversion and the artificial intelligence of things. Now we'd like to open the call for questions via Google Meet.

分析師問答

Unknown Analyst

I'd love if you can give some more color on the rescheduled orders here. So you guys attribute the decline to customer rescheduling orders. Were those pushed out into H2 and not necessarily into like next fiscal year. Were they roughly the size of the shortfall or smaller? The quarter-over-quarter shortfall are smaller than that?

Peter Eames

Yes. Sure, Ketan. The order variability was primarily from orders being pulled into quarter 1 from quarter 2. So we don't see any further disruptions looking forward. And as Daniel said in the prepared remarks, it's a relatively short-term effect.

Unknown Analyst

Okay. And following up there, -- it seems just like from shipments look weighted towards September. Would you say that September was the strongest month of the quarter? And do you guys have any other commentary around H2 velocity versus H1?

Peter Eames

Sure. Maybe Daniel can comment on receivables. .

Daniel Nelson

Yes. So in response to that question, we did see revenue increased towards the end of the September quarter. And yes, we did see increase in September compared to the immediate month, which was August.

Unknown Analyst

Got it. Got it. I'll jump back in the queue. I have other questions, but I'll let others ask before me.

If there's not, I'll ask more.

Peter Eames

Please go ahead.

Unknown Analyst

Great. So would you guys give some color around the growth we're seeing in the automation market and then as well as the power conversion markets versus your core medical sales in H1, and can you also give commentary about how that's looking into H2?

Peter Eames

Yes, we're definitely seeing strong growth in both power conversion and in robotics applications. We highlighted some important products in the prepared remarks, especially focused on automation and new sensors that go into robotics applications. So the special sensitivity that we're providing with those devices is unmatched in the industry. And we're optimistic partly because of that -- we also have excellent -- we have a high level of inventory, and we think the market is time right for robotics applications and power conversion applications. So it's driving overall optimism on our part.

Unknown Analyst

Great. Could you give some color on maybe any design wins or design ins that you have that could be driving the growth through H2 and even into the next fiscal year?

Peter Eames

Yes. For the wafer-level chip scale parts that we talked about in the prepared remarks and on the previous investor calls as well, we do have some important small design wins for those products. So it's still early there, but I think the feedback from the industry has been very positive, and we're expecting growth long term from those parts and those technologies in general.

Unknown Analyst

Okay. When you say small design wins, is that small in terms of revenue? Or is that like -- can you maybe describe the size of the customers?

Peter Eames

So when we say small design wins, it's usually in markets that start small with samples and then later move into low 1,000 quantity purchases while they work out system-level integration challenges. That can take some time. Sometimes it takes a couple of quarters, sometimes less -- for those to then translate into larger orders, factors of 10 larger than than the sample orders I described. So it does take some time to ramp up. And I would say that we're certainly within that cycle with several products. And that's why we're we're optimistic.

Unknown Analyst

Okay. So those costs -- when you say small, it's simply given that it's more sampling and prototyping volumes. Would you give any color on customer size, like who these customers are -- is there any directional understanding of like on the robotics side, are these top 5 OEMs on the maybe factory arms or humanoid side? Do you have any additional color you can give on the size of these -- of these potential customers?

Peter Eames

Yes. It's unusual for us to comment specifically on customers, but I can say that there's a variety of customers interested in the technology that spans beyond that, and we like the potential for very high volumes there.

Unknown Analyst

Would you size very high volumes?

Peter Eames

Certainly, yes. We're certainly chasing very high volumes.

Unknown Analyst

Would you be able to put like any like directional numbers to that, like what you guys are targeting?

Peter Eames

Well, we're certainly not unfamiliar with producing millions of sensors and tens of millions of sensors or certainly well within our capacity here, we can easily scale well beyond that as well in the short term and certainly within the time scale that we expect these customers to ramp up.

Unknown Analyst

Got it. Okay. On the power conversion side, on the 800-volt you've discussed that step-ups in voltage kind of raise your dollar content -- and many of the PSUs, if you look, you'd see NDs parts to some degree. Would you be able to give more color on the power conversion side on the progress as data centers are transitioning to 800-volt and your progress with your customers there?

Peter Eames

Happy and happy to highlight the advantages that NV provides as the application voltages continue to increase. We provide the highest isolation in the industry and as voltages increase in power supplies and power conversion applications, that continues to favor NVE's products, and we're continually optimistic for that reason. So we see the trends favoring NVE's technology and we're expecting continued growth there as well.

Unknown Analyst

I like the only person that's going to ask you questions. So Pete, this is Peter calling from Florida. I did a great job on your continued success there. My question is that are NVE sensors applicable to gears for humanoid robots. You mentioned robotics. It could be armed in automation and factories. But what about humanoid robots? Is that something where your sensors can be used? And is that -- are you having any conversations there?

Peter Eames

Yes. Definitely, the new gear sensors that I talked about on the call are especially intended towards robotics -- both industrial and humanoid robotics. They're intended for advanced encoders and servo systems. And those are exactly what are being used in humanoid robotics and elsewhere. So we think that the timing of that introduction is perfect with the growth in the humanoid robotics industry, and we're seeing some strong interest there already. So as Hinesaid previously, we're optimistic about those applications.

Unknown Analyst

I just wanted to ask -- just so I heard you right, you basically said that the second half in terms of top line should be similar to the first half of the year. Is that correct?

Peter Eames

That's correct. That's what we said in the prepared remarks. We do see the order disruptions as a temporary situation and we expect to return to growth in the next quarter.

Unknown Analyst

Got it. And so my follow-up would be, how do these new products and the secular growth market fit into those expectations, if you will. Is this are you guys forecasting the back half based on existing orders? Or is there still orders to go get from these new products and new use cases.

Peter Eames

Yes. We're definitely seeing more orders come in. And as Daniel said in the prepared remarks, the growth is across our product portfolio, including distributors and direct sales and legacy products and also our new products. So we're happy with the growth there, and we expect that to continue.

Unknown Analyst

So I guess asked another way, what would be, call it, upside to those internal expectations of a similar second half? Like what are some things you think could drive upside there?

Peter Eames

Well, generally, I think the market we're seeing is continuing to accelerate. We just got Abbott's numbers this morning, for example, and they project a 10% year-over-year increase. So short term, we're not seeing any further disruptions in our current sales. And I think long term, -- we have impressive products and important customers and long-term growth for those types of customers.

Unknown Analyst

Is there any color you can give on backlog or backlog coverage or any metrics you could share there, that would be helpful.

Peter Eames

Yes. We typically don't track backlog. I'd say we typically have a strong order flow, and we have plenty of inventory to satisfy those expected orders, and I think we're in good shape there.

Unknown Analyst

And then last one for me would be and you'd speak to the capacity expansion and how that's going. I recall last quarter, you mentioned it was mostly R&D for the time being, has that moved into volume production in earnest? Or any color on that would be helpful.

Peter Eames

Yes. There certainly has been some shift towards production capacity with the additional resources from the expansion. I'd say the shift is relatively small now, but as a mentioned previously, there are some important design wins in our wafer level chip scale products. And that capacity is primarily from what we've added from the expansion. So that's good news, and we'll continue to transition capacity in that direction as the order flows increase here.

Unknown Analyst

I remember last quarter, you mentioned that -- there was a bunch of new customers that start out small. I was just wondering if there is any growth in those new customers?

Peter Eames

Yes. In general, I think the trends are definitely moving in the right direction. And as I described earlier, it's common for some of those new customers to start with relatively small orders and grow over time. And we're definitely seeing that. And specifically, in the products that I mentioned in the prepared remarks and in the wafer level chip scale products. We're seeing a continual increase in the interest and increases in order size. So it's definitely moving in the right direction.

Unknown Analyst

And these new customers are mostly in the new industries you were talking about like robotics, correct?

Peter Eames

Yes. Robotics and automation and factory automation and humanoid robotics are 2 important areas where we're seeing that interest.

Unknown Analyst

I am among relatively new independent investor. I just congratulations on your new role and Curious to know, in terms of the long-term horizon of the company over the next 2 to 3 years. What is your sort of vision now for the company? Is it going to defer? Is it going to be a little bit different from what your predecessor was doing? And how should investors think about the company going forward?

Peter Eames

I would say the main focus for me is taking advantage of the recent expansion and leveraging that towards new products and new products in fast-growing markets. So it's a continuation of our previous efforts and my efforts on the expansion in general. But I'd say it's a continuation in the trajectory that was started under Dan's leadership and moving to take advantage of that expansion.

Unknown Analyst

And then on the medical device portion of the revenue, I know that sort of strong percentage of that is coming from Abbott right now. Is there a focus on sort of diversifying that out? Or how do you think about that?

Peter Eames

We definitely work to expand our products throughout the medical device industry. So cardiac rhythm management and Abbott obviously is an important a customer of ours, but we see growth in other areas as well, other implantable medical devices such as neurostimulators, are important growth areas for NV's products as well. And it's because we have the advantages of small size and low power makes us a perfect technology for implantable medical devices.

Unknown Analyst

Final question here for me. Would you say that your humanoid robotics customers are planning to be entering production volumes in 2027 or even in 2026 at the tail end of this year?

Peter Eames

It's hard to say. We talk to our robotics customers regularly, and there is definitely a forecast for growth there. It's hard to speak directly to what their plans are. But we do see increasing production on our side, and we're happy to report that those are moving in to those types of applications, so automation and humanoid robotics. So generally, I think we're aligned well with the industry and the specific needs for the robotics market. And we'll continue to see things move in that direction.

Unknown Analyst

And my final, I guess, question on the human on robotics front, two-pronged here. Would you say most of your humanoid robotics customers are Western OEMs? And would you be able to like size the relative dollar content per robot that you guys are expecting, even if it's a range?

Peter Eames

Sure. Yes. So we have a global distribution network for our robotics customers and our subsystem customers in the robotics marketplace. So we're sort of saying both Western customers and global customers to answer the first part of your question. The second part of your question in terms of the dollar content and there, a typical NV product ASP is perhaps 1 to 2 per sensor. And obviously, there's several sensors used in the precision motion application of human robotics. So we see a potential for several NVE sensors per robot there and that drives a significant revenue from our perspective. So I think there's a big upside.

Unknown Analyst

And by several, do you -- would you say in the tens of sensors or in the hundreds of sense, like just a scale of 20 to 50, like a rough range?

Peter Eames

Certainly, in the tens of centers, I think is fair.

Unknown Analyst

I just had one question. So with the short-term disruption with respect to the second quarter, and some of that revenue getting pulled into the first. Is it fair to -- is it really fair to say when you think about your second half estimates being kind of in line with the first half that you would normalize those first 2 quarters, in other words, it would be somewhere along the midpoint on a quarter-by-quarter basis going forward of the first 2 quarters.

Peter Eames

Yes. That's certainly 1 way to look at it. I think the year-to-date numbers are appropriate, and that's kind of where the estimates came from.

Unknown Analyst

Pete, this is Pete Prevent again. Do you have any more expansion plans? I mean I remember when I was there a few years ago of the new area that you guys expanded. It sounds like you've got equipment selling in that area. Is there a need for additional space? Do you haven't secured any additional buildings where you moved admin into that, and then you're going to use that area in the existing building for production.

Peter Eames

That's right, Pete. Good memory. That is the opt-in that we evaluate. We haven't discussed further expansion plans beyond the space that you saw when you visited. However, that is something obviously that we keep in mind, and we will continue to expand as needed and we'd follow the strategy that you mentioned, which is to move some of the admin off-site and continue to expand by leveraging the infrastructure that we have here within our current building. So we definitely keep those plans of fresh and we'll adapt to them as we need to.

Unknown Analyst

Okay. Great. And it seems like you have a phenomenal Board of Directors are you guys meeting quarterly? And how do you feel they are in supporting your efforts, your growth efforts and any needs that you have in order to continue to grow the company.

Peter Eames

Yes. We have an excellent board, as you mentioned, and we're happy to draw from experience throughout the industry. We expanded our Board to 7. And I think that makes them even stronger. And yes, we meet on a quarterly basis and happy to get the feedback and direction that the Board provides very valuable for the company.

Unknown Analyst

Can you just talk quickly about the contributor sales as effectively -- well, first of all, how has it changed from last quarter? And should I view that as an increase in distributor sales mix being the ability to flex revenue higher but coming at lower margin?

Peter Eames

I think that's a safe assumption. We have a global distribution network, as I mentioned earlier, and they leverage sales for us. So this is a sort of broadest estimate of the sales of the company. It covers the broadest product portfolio for us. And when we see growth there, that's a very good sign for revenue in general. And so we're very happy to see distributor sales increasing and it's a sign of continued attraction of entries products in general, growing -- gaining in the market.

Unknown Analyst

But you're saying as a percent of mix distributor sales had increased quarter-over-quarter?

Peter Eames

It has. It does bob around a little bit and vary from quarter-to-quarter, as you might expect. Certainly, when we have a lower direct customer sales as we did in the last quarter than just our percentage of distributor sales increases. It's common for it to vary somewhat throughout the year. But in general, it's fairly steady usually between something like 1/3 and 2/3 of total revenue.

Unknown Analyst

I just have 2 questions. And first off, congratulations on the new role. I had a question in regards to specifically the distributor sales growth year-over-year and how you see those trends going forward? And then a little bit more color on the first half of the year related to nonmedical sales growth, stripping out Abbott and all those medical sales growth. If you could give any color on that?

Peter Eames

Well, as I mentioned, distributor sales is a pretty broad representation of NVE's product portfolio and when we see growth there, that's a good sign because it's sort of a more general reflection of envies products and sales. And we see that as a very good sign. And then in terms of the distributor sales in general, we're pleased to see that increasing. And I think overall, the growth that we've seen year-to-date and going forward will be a continuation of some of the things we said in the first quarter, and that's growth broadly generally and across NVE's products?

Unknown Analyst

Did I hear correctly that distributor sales grew 67% year-over-year. Did you guys say that in the initial remarks? Or was I mishearing something?

Peter Eames

No, that's correct, Kevin.

Unknown Analyst

Is that for H1? Or is that for Q2?

Peter Eames

That's for Q2.

Unknown Analyst

Do you have an H1 figure for distributor sales year-over-year?

Peter Eames

It's somewhat less than that. I would place it a little bit lower, perhaps in the 40% range.

Unknown Analyst

Okay. So it's -- so distributor sales has accelerated in Q2 versus Q1.

Peter Eames

Correct. Understood. All right. Thank you, Pete.

Unknown Analyst

I have 1 more question. About my question earlier about, I guess, customer diversification. And you were saying how the end of year or the second half of the year's earnings are going to be similar to the first half. Is that correct?

Peter Eames

Correct. Yes.

Unknown Analyst

Is that mix going to be similar to the first half, where it's mostly a few large customers? Or do you believe that the growth is going to come from additional customers like the additional ones that were gained in the first half of the year?

Peter Eames

Yes. We certainly expect revenue to increasingly come from the new customers. And -- that's because the market is continuing to accept our new products, and we'll continue to see growth for that reason -- and so I think there's some short-term optimism as our wafer level chip scale products, new gear centers and others that we've talked about previously continue to grow and and become more representative of the total revenue numbers.

Unknown Analyst

I guess this -- given that, obviously, NVE has very -- I guess, you could say in each technology that isn't very easily replicated and has many applications the biggest barrier to entry or I guess the biggest competitive advantage that NVE and more specifically, the spintronic technology has. And I guess, why other new entrants can't come in and take over in a sense.

Peter Eames

Yes. Barriers to entry include patent portfolio and that prevents competitors from operating in our space. So we have excellent patent coverage in spintronics and -- we think that provides that coverage. We also have trade secrets and expertise within the company that make it very difficult for competitors to do what NVE does and to try to copy the advantages that NVE provides with spintronics. It's a unique technology, we provide benefit using to our customers that's unlike any others. And we think our company is reflective of those advantages.

Okay. Well, the second quarter and excellent growth in revenue for the first half of the year. Our next earnings call will be in January to discuss third quarter results. A replay of this call will be available on the investor events page of our website, www.nve.com and our YouTube channel, youtube.com/nvecorporation.