In Q1 2025, NVE reported a revenue of $6.78 million, down 23% YoY. The gross profit margin improved to 86%, up from 77% in Q1 2024, driven by a more profitable product mix. Operating income was $4.39 million, yielding an operating margin of 65%. Net income saw a minor decrease of 7% YoY to approximately $4.10 million, but the net income margin improved slightly to 60%. The effective tax rate decreased to 16% from 24%, further supporting net income performance. Year-over-year comparisons reveal a significant shift in revenue sources, with R&D contract revenue rising by 28% amid a 24% decrease in product sales due to high inventory levels in distribution channels. This indicates a broadening of revenue streams amidst challenging market conditions.