NVE Corp (NVEC) Reports Decreased Revenue and Net Income for Q2 2024
NVE Corp (NASDAQ:NVEC) reports a 33% decrease in total revenue for Q2 2024, down to $7.13 million from $10.7 million in the prior-year quarter.
Net income for Q2 2024 decreased by 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 by 12% to $16.0 million from $18.1 million for the first six months of the prior year.
The company announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2023.
On October 18, 2023, NVE Corp (NASDAQ:NVEC) released its financial results for the quarter and six months ended September 30, 2023. The company reported a decrease in total revenue and net income for the second quarter of fiscal 2024. The decrease in revenue was attributed to a 32% decrease in product sales and a 92% decrease in contract research and development revenue.
Financial Performance
For the second quarter of fiscal 2024, NVE Corp (NASDAQ:NVEC) reported total revenue of $7.13 million, a decrease of 33% from $10.7 million for the prior-year quarter. The decrease was primarily 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 by 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.
Six Months Financial Overview
For the first six months of fiscal 2024, total revenue decreased by 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 by 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.
Dividend Announcement
NVE Corp (NASDAQ:NVEC) 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.
CEO Commentary
NVE President and Chief Executive Officer Daniel A. Baker, Ph.D., commented on the results, stating,
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.
Company Overview
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.
This article first appeared on GuruFocus.
