Total revenue increased 23% YoY in Q3 fiscal 2026, driven by 16% growth in product sales and 335% growth in contract R&D revenue (CFO, prepared)
Gross margin decreased to 79% from 84% in the prior-year quarter, due to less profitable product mix and increased distributor sales (CFO, prepared)
Operating expenses decreased 12%: R&D down 9% (completion of wafer-level chip scale packaging activities, reassignment to manufacturing); SG&A down 19% (timing of selling/marketing, reassignment to manufacturing and new product development) (CFO, prepared)
Net income rose 11% to $3.38M ($0.70/diluted share) from $3.05M ($0.63) a year ago (CFO, prepared)
First 9 months of fiscal 2026: total revenue $18.7M (+0.4% YoY), net income $10.3M ($2.12/diluted share) (−8% YoY) (CFO, prepared)
Cash flow from operations $12.2M in the first 9 months; fixed asset purchases $2.18M (including $1.05M in the December quarter) (CFO, prepared)
New equipment cluster installed and calibrated in past quarter; expects to place into service by March 31 for more precise spintronic deposition (VP Advanced Technology, prepared)
Announced a new wafer-level chip scale sensor 0.65 mm square (≈1/3 the size of conventionally packaged version) (VP Advanced Technology, prepared)
Executed a 2-year extension of supplier partnering agreement with Abbott Laboratories through December 31, 2027, including price increases for 2026 and 2027 (CEO, prepared)
Official Guidance
Full-year fiscal 2026 effective tax rate expected at 16%–17%, with advanced manufacturing investment tax credits of $700,000–$1M offsetting other tax law changes (CFO, prepared)
Expects accelerated deductions of previously unamortized R&D expenses to reduce cash taxes for full fiscal year ending March 31, 2026 by approximately $1.1M (CFO, prepared)
"We're pleased to report a 23% increase in revenue and an 11% increase in earnings for the third quarter of fiscal 2026 compared to the prior year quarter, driven by broad-based growth across our revenue lines." (CEO)
"The decrease in gross margin percentage was due to a less profitable product mix and increased distributor sales for the quarter. The increase in distributor sales is positive, although distributor sales typically have lower gross margin than direct sales." (CFO)
"The new equipment allows extremely precise control of spintronic materials deposition to well within 1 atomic layer." (VP Advanced Technology)
"In the past quarter, we executed an extension to our supplier partnering agreement with Abbott... this extension is for 2 years through December 31, 2027. It provides for price increases for 2026 and 2027." (CEO)
"We believe our investments and shows payoff and future sales. With the success of that show, we'll also exhibit at Medical Device & Manufacturing West for the first time." (CEO)