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NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., July 17, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (NVEC) announced today financial results for the quarter ended June 30, 2019.

Total revenue for the first quarter of fiscal 2020 decreased 11% to $6.29 million from $7.11 million in the prior-year quarter. The decrease was due to a 11% decrease in product sales and a 12% decrease in contract research and development revenue. Product sales decreased to $6.09 million from $6.87 million in the prior-year quarter. Net income for the first quarter of fiscal 2020 decreased 9% to $3.61 million, or $0.74 per diluted share, compared to $3.95 million, or $0.81 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 30, 2019 to shareholders of record as of July 29, 2019.

“We are pleased to report sequential revenue and net income growth, and we launched important new products the past quarter,” 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, risks related to changes in tariffs and other trade barriers, 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, 2019 and other reports filed with the SEC.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2019 AND 2018 (Unaudited)

 
  Quarter Ended June 30
2019   2018
Revenue
Product sales $ 6,085,364     $ 6,870,646  
Contract research and development 209,332     237,260  
Total revenue   6,294,696       7,107,906  
Cost of sales 1,092,037     1,396,005  
Gross profit   5,202,659       5,711,901  
Expenses
Research and development   973,067       989,026  
Selling, general, and administrative 330,009     328,761  
Total expenses 1,303,076     1,317,787  
Income from operations   3,899,583       4,394,114  
Interest income 459,039     424,770  
Income before taxes   4,358,622       4,818,884  
Provision for income taxes 751,203     873,835  
Net income $ 3,607,419     $ 3,945,049  
Net income per share – basic $ 0.74     $ 0.81  
Net income per share – diluted $ 0.74     $ 0.81  
Cash dividends declared per common share $ 1.00     $ 1.00  
Weighted average shares outstanding
Basic   4,846,010       4,842,010  
Diluted   4,850,388       4,850,479  


 

NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2019
  (Unaudited)
June 30, 2019
  March 31, 2019
ASSETS
Current assets
Cash and cash equivalents $ 13,039,292     $ 6,877,304  
Marketable securities, short-term   2,999,689       12,487,821  
Accounts receivable, net of allowance for uncollectible accounts of $15,000   2,746,683       2,995,638  
Inventories   4,219,783       4,264,876  
Prepaid expenses and other assets 646,917     816,045  
Total current assets   23,652,364       27,441,684  
Fixed assets
Machinery and equipment    9,381,906       9,365,806  
Leasehold improvements 1,787,269     1,787,269  
    11,169,175       11,153,075  
Less accumulated depreciation and amortization  10,348,140     10,258,240  
Net fixed assets   821,035       894,835  
Deferred tax assets 194,735     353,735  
Marketable securities, long-term 58,612,189     54,925,633  
Right-of-use asset – operating lease 225,373     -  
Total assets $ 83,505,696     $ 83,615,887  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 237,718     $ 375,188  
Accrued payroll and other 455,814     460,488  
Income taxes payable 442,493     -  
Operating lease 172,796     -  
Total current liabilities   1,308,821       835,676  
               
Operating lease 85,192     -  
Total liabilities 1,394,013     835,676  
 
Shareholders’ equity
Common stock   48,460       48,460  
Additional paid-in capital   19,910,558       19,910,558  
Accumulated other comprehensive income (loss)   487,338       (82,725 )
Retained earnings 61,665,327     62,903,918  
Total shareholders’ equity 82,111,683     82,780,211  
Total liabilities and shareholders’ equity $ 83,505,696     $ 83,615,887  

 

Curt Reynders (Chief Financial Officer) 952-829-9217