Dan Baker - President and Chief Executive Officer Curt Reynders - Chief Financial Office.

None.

Good day, ladies and gentlemen and welcome to the NVE conference call on fourth quarter and fiscal year results. [Operator instructions.] I’d like to turn the conference over to your host, Mr. Daniel Baker, president and CEO. Sir, you may begin..

Good afternoon and welcome to our conference call for the quarter and fiscal year ended March 31, 2014. As always, I am joined by Curt Reynders, our chief financial officer. This call is being webcast live and being recorded. A replay will be available through our website, nve.com.

After my opening comments, Curt will review financials for the quarter and fiscal year. I’ll cover business items, and we’ll take questions. We filed our press release with quarter and fiscal year results with the SEC prior to the start of this call. The release and filings are available through our website.

The SEC allows 75 days after the end of a fiscal year to file a 10-K. We’ve often been able to file the day of the press release, but that wasn’t practical this year, because we have new auditors.

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 uncertainties related to the economic environments in the industries we serve, uncertainties relating to future revenue and growth, uncertainties related to future R&D contracts, risks related to developing marketable products, uncertainties relating to the revenue potential of new products, as well as the risk factors listed from time to time in our filings with the SEC.

The company undertakes no obligation to update forward-looking statements we may make. We’re pleased to report solid earnings for the quarter and fiscal year. For the quarter, net income was $0.53 per diluted share. For the fiscal year, product sales increased 4%, gross margins increased to a record 78%, and net income was $2.29 per diluted share.

Now, I’ll turn the call over to Curt for details of our financial results. .

cash and marketable securities increased 93%, nearly doubling. Shareholders’ equity increased more than $47 million, with our consistent earnings and our stock price nearly doubled. Now I’ll turn it over to Dan for his perspective on our business.

Dan?.

a new angle sensor and a family of ultra-miniature couplers in the prior quarter. The new tunneling magneto-resistance, or TMR, angle sensor, model number AAT003, was in response to customer requests. The new part leverages two core advantages of size and precision.

It has the same high accuracy as our older angle sensors, but is easier to interface to conventional electronics. Also known as spin-dependent tunneling, SDT, or magnetic tunnel junction, MTJ, tunneling magneto-resistance is a spintronic effect that produces a dramatic resistance change across a normally insulating barrier.

Industrial applications include motor shaft position sensors. High-volume potential markets include automated consumer meters such as water meters. Miniaturization is one of our key advantages, and customers have asked us for even smaller parts. Last month, we introduced spintronic couplers that are 1/4 the size of conventional devices.

These are the so-called quarter sized packages, or QSOPs. Miniaturization doesn’t mean performance compromises, however. The new parts are billed as the world’s densest high-performance isolators. We’re continuing development of more ultra-miniature QSOP couplers.

Development includes more complex couplers for networks such as the controller area network. These controller area network couplers will be targeted at in-car networks and other applications. We see automotive electronics as a promising large, potential long term market. However innovative they are, new products still need to be marketed and sold.

In the past quarter, we expanded distribution by adding a new distributor for Australia and New Zealand. Active Components has a number of offices in Australia and New Zealand and is considered the largest electronic component distributor in New Zealand.

In the past fiscal year, we’ve also added new distribution, including Newark element14 in North America and distributors in Italy, Turkey, and China. In fiscal 2014, we laid a foundation for growth with new products, new distribution, and new equipment.

New products this past year included current sensor samples, IL800-Series top of the line couplers, smaller couplers such as those we introduced last month, the new angle sensor, and several new and custom medical device sensors. In addition to developing new products, we upgraded several key product specifications to keep our products best-in-class.

These specification upgrades were possible because of tighter process control and more mature manufacturing processes. Specifications that were upgraded included ruggedness specifications such as the ability to withstand high voltage for a very long time and to tolerate extremely fast, high-voltage transience.

We also specified lower power consumption on many of our products for improved energy efficiency. During the last year, we deployed and optimized several new pieces of production equipment, with three goals.

First, increasing capacity to enable future growth, second, improving our efficiency to reduce our product costs, and third, equipment redundancy for reliability of supply, even if there are unanticipated equipment problems. I also want to note that NVE celebrated its 25 year anniversary in the past quarter.

The company was founded in 1989 as Nonvolatile Electronics Incorporated by Dr. James M. Daughton, a spintronics pioneer, in his house. Our first product, a ground-breaking GMR sensor, was introduced in 1994. In the past 25 years, we’ve had a lot of firsts, and we look forward to many more.

Finally, on governance, we filed a current report on Form 8-K reporting that two of our directors, Jim Hartman and Bob Irish, have decided not to stand for reelection. Both will serve until their terms expire at the annual meeting, which is planned for August. Their decisions were not the result of any disagreement with the company.

Jim has served eight years on our board and Bob has served 22 years. We’re grateful for their selfless service to the company. In our upcoming proxy statement, we expect to nominate highly qualified director candidates to fill the vacancies that will result from the expiration of those two terms.

Grant Thornton is auditing our recent financial statements after they were ratified by our shareholders as our independent registered public accounting firm last year, and we plan to file our proxy statement in late June. Before we open the call to questions, we’re very sorry that a familiar voice won’t be on this call.

Steve Crowley, who covered us for many years for Craig Hallum Capital, died in a car accident last month at the age of 50. Steve was a dedicated analyst and a consummate professional. He was always well-prepared and often had the first question. So we’re observing a moment of silence before the first question in Steve’s memory. [Silence] Thank you.

If there’s a listen-only mode in heaven, Steve’s probably on it. Rest in peace, Steve. We’ll miss you. Now let’s open the call for questions.

Operator?.

[Operator instructions.] And I am seeing no questions from the phone line..

Okay. Well, if there are no questions, we can wrap up the call. We are pleased to report solid earnings, product sales growth, and record gross margins for the year and several new products. We look forward to reporting first quarter results in July and to our annual meeting in August. Thank you for participating in the call..