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

EDEN PRAIRIE, Minn., May 01, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2019.

Total revenue for the fourth quarter of fiscal 2019 decreased 29% to $5.59 million from $7.90 million in the prior-year quarter. The decrease was due to a 29% decrease in product sales and a 28% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2019 decreased 26% to $2.86 million, or $0.59 per diluted share, compared to $3.88 million, or $0.80 per share, for the prior-year quarter.

For fiscal 2019, total revenue decreased 11% to $26.5 million from $29.9 million for the prior fiscal year. The decrease was due to a 7% decrease in product sales and a 54% decrease in contract research and development revenue. Net income for fiscal 2019 increased 4% to $14.5 million, or $2.99 per diluted share, compared to $13.9 million, or $2.87 per diluted share, for fiscal 2018.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2019 to shareholders of record as of May 13, 2019.

“We are pleased to report record earnings for the year despite a decrease in total revenue, due to a decrease in the Federal tax rate,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “Investments in smart sensor product development will drive future growth.”

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 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 AND YEARS ENDED MARCH 31, 2019 AND 2018 (Unaudited)

 
  Quarter Ended March 31
  2019   2018
Revenue
Product sales $ 5,374,442     $ 7,603,226  
Contract research and development 214,509     295,966  
Total revenue   5,588,951       7,899,192  
Cost of sales 1,297,856     1,465,509  
Gross profit 4,291,095     6,433,683  
Expenses
Research and development   1,019,728       913,950  
Selling, general, and administrative 248,857     374,835  
Total expenses 1,268,585     1,288,785  
Income from operations   3,022,510       5,144,898  
Interest income   459,978       403,894  
Income before taxes   3,482,488       5,548,792  
Provision for income taxes 623,616     1,666,372  
Net income $ 2,858,872     $ 3,882,420  
Net income per share – basic $ 0.59     $ 0.80  
Net income per share – diluted $ 0.59     $ 0.80  
Weighted average shares outstanding
Basic 4,844,010 4,842,010  
Diluted 4,850,284 4,847,349  

 

  Year Ended March 31
  2019   2018
Revenue
Product sales $ 25,291,306     $ 27,321,810  
Contract research and development 1,181,031     2,542,071  
Total revenue   26,472,337       29,863,881  
Cost of sales 5,216,112     6,274,744  
Gross profit 21,256,225     23,589,137  
Expenses
Research and development   4,107,692       3,702,918  
Selling, general, and administrative 1,223,971     1,435,592  
Total expenses 5,331,663     5,138,510  
Income from operations   15,924,562       18,450,627  
Interest income   1,785,277       1,558,197  
Income before taxes   17,709,839       20,008,824  
Provision for income taxes 3,201,903     6,096,152  
Net income $ 14,507,936     $ 13,912,672  
Net income per share – basic $ 3.00     $ 2.87  
Net income per share – diluted $ 2.99     $ 2.87  
Weighted average shares outstanding
Basic 4,844,010 4,841,347  
Diluted 4,850,567 4,846,212  

 

NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2019 AND 2018
 
  March 31, 2019   March 31, 2018
ASSETS
Current assets
Cash and cash equivalents $ 6,877,304     $ 4,755,082  
Marketable securities, short-term   12,487,821       20,765,809  
Accounts receivable, net of allowance for uncollectible accounts of $15,000   2,995,638       2,888,779  
Inventories   4,264,876       3,650,439  
Prepaid expenses and other assets 816,045     635,160  
Total current assets   27,441,684       32,695,269  
Fixed assets
Machinery and equipment    9,365,806       9,395,987  
Leasehold improvements 1,787,269     1,749,284  
    11,153,075       11,145,271  
Less accumulated depreciation and amortization  10,258,240     9,819,888  
Net fixed assets   894,835       1,325,383  
Deferred tax assets 353,735     572,655  
Marketable securities, long-term 54,925,633     52,838,158  
Total assets $ 83,615,887     $ 87,431,465  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 375,188     $ 414,970  
Accrued payroll and other 460,488     574,755  
Total current liabilities   835,676       989,725  
 
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized;
4,846,010 issued and outstanding as of March 31, 2019 and 4,842,010 as of March 31, 2018
  48,460       48,420  
Additional paid-in capital   19,910,558       19,599,298  
Accumulated other comprehensive loss   (82,725 )     (915,635 )
Retained earnings 62,903,918     67,709,657  
Total shareholders’ equity 82,780,211     86,441,740  
Total liabilities and shareholders’ equity $ 83,615,887     $ 87,431,465  

 

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