NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., July 22, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2020.

Total revenue for the first quarter of fiscal 2021 decreased 27% to $4.59 million from $6.29 million in the prior-year quarter. The decrease was due to a 28% decrease in product sales partially offset by a 10% increase in contract research and development revenue. Product sales decreased to $4.36 million from $6.09 million in the prior-year quarter. Net income for the first quarter of fiscal 2020 decreased 33% to $2.41 million, or $0.50 per diluted share, compared to $3.61 million, or $0.74 per share, for the prior-year quarter.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2020 to shareholders of record as of August 3, 2020.

"We are pleased to report a solid profit for the quarter despite a significant impact from COVID-19 pandemic on our product sales," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D.

NVE is a leader in the practical commercialization of spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store and transmit information. The company manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.

Statements used in this press release 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 risks and uncertainties related to future sales and revenues and risks related to the COVID-19 pandemic, as well as the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 and other reports filed with the SEC.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS ENDED JUNE 30, 2020 AND 2019 (Unaudited)
	Quarter Ended June 30
	2020				2019
Revenue
Product sales	$	4,358,635			$	6,085,364
Contract research and development	230,627				209,332
Total revenue		4,589,262				6,294,696
Cost of sales	836,422				1,092,037
Gross profit		3,752,840				5,202,659
Expenses
Research and development		880,983				973,067
Selling, general, and administrative	355,011				330,009
Total expenses	1,235,994				1,303,076
Income from operations		2,516,846				3,899,583
Interest income	399,212				459,039
Income before taxes		2,916,058				4,358,622
Provision for income taxes	504,193				751,203
Net income	$	$2,411,865			$	3,607,419
Net income per share – basic	$	0.50			$	0.74
Net income per share – diluted	$	0.50			$	0.74
Cash dividends declared per common share	$	1.00			$	1.00
Weighted average shares outstanding
Basic		4,835,038				4,846,010
Diluted		4,835,157				4,850,388

 
 

NVE CORPORATION BALANCE SHEETS JUNE 30 AND MARCH 31, 2020
	(Unaudited) June 30, 2020				March 31, 2020
ASSETS
Current assets
Cash and cash equivalents	$	6,402,983			$	8,065,594
Marketable securities, short-term		19,179,495				19,084,814
Accounts receivable, net of allowance for uncollectible accounts of $15,000		2,297,850				2,694,018
Inventories		3,943,738				3,884,450
Prepaid expenses and other assets	718,122				655,835
Total current assets		32,542,188				34,384,711
Fixed assets
Machinery and equipment		9,280,062				9,280,062
Leasehold improvements	1,797,245				1,797,245
		11,077,307				11,077,307
Less accumulated depreciation and amortization	10,571,515				10,494,840
Net fixed assets		505,792				582,467
Deferred tax assets	-				108,119
Marketable securities, long-term	45,049,578				43,606,495
Right-of-use asset – operating lease	784,774				816,358
Total assets	$	78,882,332			$	79,498,150
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	180,338			$	186,993
Accrued payroll and other	492,243				482,074
Income taxes payable	406,326				-
Operating lease	120,429				127,134
Total current liabilities		1,199,336				796,201
Deferred tax liabilities		189,523				-
Operating lease	675,928				706,600
Total liabilities	2,064,787				1,502,801
Shareholders' equity
Common stock		48,350				48,350
Additional paid-in capital		19,386,663				19,383,956
Accumulated other comprehensive income		1,759,185				516,523
Retained earnings	55,623,347				58,046,520
Total shareholders' equity	76,817,545				77,995,349
Total liabilities and shareholders' equity	$	78,882,332			$	79,498,150

 

CONTACT: Curt Reynders, Chief Financial Officer, 952-829-9217