NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., Oct. 18, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2023.

Total revenue for the second quarter of fiscal 2024 decreased 33% to $7.12 million from $10.7 million for the prior-year quarter. The decrease was due to a 32% decrease in product sales and a 92% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2024 decreased 22% to $4.72 million, or $0.98 per diluted share, compared to $6.09 million, or $1.26 per share, for the prior-year quarter.

For the first six months of fiscal 2024, total revenue decreased 12% to $16.0 million from $18.1 million for the first six months of the prior year. The decrease was due to a 10% decrease in product sales and a 68% decrease in contract research and development revenue. Net income decreased 11% to $9.13 million, or $1.89 per diluted share, from $10.2 million, or $2.12 per share, for the first half of fiscal 2023.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2023, to shareholders of record as of October 30, 2023.

“We are pleased to report solid earnings for the quarter and six months despite a decrease in defense-related product sales and a semiconductor industry downturn,” 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. NVE has also licensed its spintronic magnetoresistive random access memory technology, commonly known as MRAM.

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 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, risks of credit losses, risks and uncertainties related to future dividend payments, 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, 2023, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (Unaudited)
		Quarter Ended September 30,
		2023				2022
Revenue
Product sales		$	7,117,122			$	10,514,539
Contract research and development			16,154				203,285
Total revenue			7,133,276				10,717,824
Cost of sales			1,599,866				2,402,781
Gross profit			5,533,410				8,315,043
Expenses
Research and development			683,208				669,978
Selling, general, and administrative			433,785				435,625
Provision for credit losses			(202,926	)			-
Total expenses			914,067				1,105,603
Income from operations			4,619,343				7,209,440
Interest income			512,092				351,375
Income before taxes			5,131,435				7,560,815
Provision for income taxes			407,869				1,470,442
Net income		$	4,723,566			$	6,090,373
Net income per share – basic		$	0.98			$	1.26
Net income per share – diluted		$	0.98			$	1.26
Cash dividends declared per common share		$	1.00			$	1.00
Weighted average shares outstanding
Basic			4,833,401				4,830,826
Diluted			4,840,770				4,830,956
		Six Months Ended September 30,
		2023				2022
Revenue
Product sales		$	15,817,214			$	17,587,500
Contract research and development			147,476				466,731
Total revenue			15,964,690				18,054,231
Cost of sales			3,679,489				4,054,628
Gross profit			12,285,201				13,999,603
Expenses
Research and development			1,379,200				1,271,896
Selling, general, and administrative			908,900				806,946
Provision for credit losses			9,514				-
Total expenses			2,297,614				2,078,842
Income from operations			9,987,587				11,920,761
Interest income			948,618				634,436
Income before taxes			10,936,205				12,555,197
Provision for income taxes			1,808,909				2,324,707
Net income		$	9,127,296			$	10,230,490
Net income per share – basic		$	1.89			$	2.12
Net income per share – diluted		$	1.89			$	2.12
Cash dividends declared per common share		$	2.00			$	2.00
Weighted average shares outstanding
Basic			4,832,786				4,830,826
Diluted			4,840,688				4,830,927

 

NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 MARCH 31, 2023
		(Unaudited) September 30, 2023				March 31, 2023
ASSETS
Current assets
Cash and cash equivalents		$	6,953,448			$	1,669,896
Marketable securities, short-term (amortized cost of $7,302,714 as of September 30, 2023, and $15,696,135 as of March 31, 2023)			7,224,056				15,513,095
Accounts receivable, net of allowance for credit losses of $15,000			2,915,762				6,523,344
Inventories			6,967,766				6,417,010
Prepaid expenses and other assets			1,064,853				663,459
Total current assets			25,125,885				30,786,804
Fixed assets
Machinery and equipment			10,501,096				10,484,365
Leasehold improvements			1,956,309				1,956,309
			12,457,405				12,440,674
Less accumulated depreciation and amortization			11,250,170				11,095,236
Net fixed assets			1,207,235				1,345,438
Deferred tax assets			1,395,430				572,038
Marketable securities, long-term (amortized cost of $41,467,512 as of September 30, 2023, and $37,495,846 as of March 31, 2023)			39,623,299				36,125,047
Right-of-use asset – operating lease			358,590				425,843
Total assets		$	67,710,439			$	69,255,170
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	244,236			$	281,712
Accrued payroll and other			539,452				1,375,250
Operating lease			177,585				175,798
Total current liabilities			961,273				1,832,760
Operating lease			260,509				342,908
Total liabilities			1,221,782				2,175,668
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of September 30, 2023, and 4,830,826 as of March 31, 2023			48,334				48,308
Additional paid-in capital			19,529,791				19,295,442
Accumulated other comprehensive loss			(1,502,147	)			(1,213,858	)
Retained earnings			48,412,679				48,949,610
Total shareholders’ equity			66,488,657				67,079,502
Total liabilities and shareholders’ equity		$	67,710,439			$	69,255,170

CONTACT: Daniel Nelson, [phone]