NVE Corporation Reports Fourth Quarter and Fiscal Year Results, and Announces Quarterly Dividend

NVE Corporation

Eden Prairie, Minn., May 04, 2022 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2022.

Total revenue for the fourth quarter of fiscal 2022 increased 15% to $6.72 million from $5.86 million for the prior-year quarter. The increase was due to a 12% increase in product sales and a 104% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2022 increased 22% to $3.82 million, or $0.79 per diluted share, compared to $3.13 million, or $0.65 per share, for the prior-year quarter.

For fiscal 2022, total revenue increased 26% to $27.0 million from $21.4 million for the prior fiscal year. The increase was due to a 26% increase in product sales and a 36% increase in contract research and development revenue. Net income increased 24% to $14.5 million, or $3.00 per diluted share, compared to $11.7 million, or $2.42 per share, for fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2022 to shareholders of record as of May 16, 2022.

“We are pleased to report strong revenue and earnings growth for the fourth quarter and fiscal year despite industry supply-chain disruptions,” 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, our dependence on critical suppliers and packaging vendors, and risks related to supply-chain disruptions, 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, 2022.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2022 AND 2021 (Unaudited)
	Quarter Ended March 31
	2022				2021
Revenue
Product sales	$	6,367,082			$	5,690,400
Contract research and development	352,455				172,437
Total revenue		6,719,537				5,862,837
Cost of sales	1,564,370				1,268,704
Gross profit	5,155,167				4,594,133
Expenses
Research and development		813,244				785,590
Selling, general, and administrative	247,428				291,878
Total expenses	1,060,672				1,077,468
Income from operations		4,094,495				3,516,665
Interest income		302,609				332,046
Income before taxes		4,397,104				3,848,711
Provision for income taxes	581,084				714,241
Net income	$	3,816,020			$	3,134,470
Net income per share – basic	$	0.79			$	0.65
Net income per share – diluted	$	0.79			$	0.65
Weighted average shares outstanding
Basic	4,832,630		4,833,232
Diluted	4,833,253		4,835,370

	Year Ended March 31
	2022				2021
Revenue
Product sales	$	25,867,649			$	20,540,557
Contract research and development	1,119,321				825,689
Total revenue		26,986,970				21,366,246
Cost of sales	6,263,090				4,121,461
Gross profit	20,723,880				17,244,785
Expenses
Research and development		2,925,874				3,184,754
Selling, general, and administrative	1,469,321				1,316,427
Total expenses	4,395,195				4,501,181
Income from operations		16,328,685				12,743,604
Interest income		1,171,128				1,498,148
Income before taxes		17,499,813				14,241,752
Provision for income taxes	2,992,312				2,547,368
Net income	$	14,507,501			$	11,694,384
Net income per share – basic	$	3.00			$	2.42
Net income per share – diluted	$	3.00			$	2.42
Weighted average shares outstanding
Basic	4,833,661		4,834,054
Diluted	4,835,639		4,834,462

NVE CORPORATION BALANCE SHEETS MARCH 31, 2022 AND 2021
	March 31, 2022				March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	10,449,510			$	10,427,340
Marketable securities, short-term		20,839,683				7,678,957
Accounts receivable, net of allowance for uncollectible accounts of $15,000		4,704,829				1,964,281
Inventories		5,088,635				3,900,777
Prepaid expenses and other assets		420,520				391,278
Total current assets		41,503,177				24,362,633
Fixed assets
Machinery and equipment		9,739,244				9,254,664
Leasehold improvements	1,810,872				1,810,872
		11,550,116				11,065,536
Less accumulated depreciation and amortization	10,943,731				10,728,853
Net fixed assets		606,385				336,683
Deferred tax assets	483,469				73,538
Marketable securities, long-term	24,314,211				47,038,669
Right-of-use asset – operating lease	560,250				689,216
Total assets	$	67,467,492			$	72,500,739
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	943,535			$	336,591
Accrued payroll and other	1,356,689				540,474
Operating lease	156,121				150,273
Total current liabilities		2,456,345				1,027,338
Operating lease	446,018				581,459
Total liabilities	2,902,363				1,608,797
Shareholders’ equity
Common stock		48,308				48,332
Additional paid-in capital		19,256,485				19,338,127
Accumulated other comprehensive income		(318,120	)			1,101,119
Retained earnings	45,578,456				50,404,364
Total shareholders’ equity	64,565,129				70,891,942
Total liabilities and shareholders’ equity	$	67,467,492			$	72,500,739

CONTACT: Joe Schmitz, CFO 952-829-9217