U.S. markets closed
  • S&P Futures

    4,439.00
    +1.00 (+0.02%)
     
  • Dow Futures

    34,640.00
    -4.00 (-0.01%)
     
  • Nasdaq Futures

    15,294.00
    -9.50 (-0.06%)
     
  • Russell 2000 Futures

    2,254.30
    -0.90 (-0.04%)
     
  • Crude Oil

    73.09
    -0.21 (-0.29%)
     
  • Gold

    1,750.10
    +0.30 (+0.02%)
     
  • Silver

    22.58
    -0.06 (-0.25%)
     
  • EUR/USD

    1.1741
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    1.4100
    +0.0740 (+5.54%)
     
  • Vix

    18.63
    -2.24 (-10.73%)
     
  • GBP/USD

    1.3720
    -0.0001 (-0.00%)
     
  • USD/JPY

    110.3380
    +0.0370 (+0.03%)
     
  • BTC-USD

    44,386.14
    +710.30 (+1.63%)
     
  • CMC Crypto 200

    1,109.90
    +0.98 (+0.09%)
     
  • FTSE 100

    7,078.35
    -5.02 (-0.07%)
     
  • Nikkei 225

    30,191.60
    +552.20 (+1.86%)
     

NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Eden Prairie, Minn., Oct. 21, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2020.

Total revenue for the second quarter of fiscal 2021 decreased 33% to $4.38 million from $6.50 million for the the prior-year quarter. The decrease was due to a 33% decrease in product sales and a 29% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2021 decreased 42% to $2.22 million, or $0.46 per diluted share, compared to $3.82 million, or $0.79 per share, for the prior-year quarter.

For the first six months of fiscal 2021, total revenue decreased 30% to $8.97 million from $12.8 million for the first six months of the prior year. The decrease was due to a 31% decrease in product sales and a 14% decrease in contract research and development revenue. Net income decreased 38% to $4.63 million, or $0.96 per diluted share, compared to $7.43 million, or $1.53 per share, for the first half of fiscal 2020.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2020 to shareholders of record as of November 2, 2020.

“We are pleased to report a solid profit for the quarter despite a significant impact from COVID-19 pandemic on our revenue,” 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 the COVID-19 pandemic, risks and uncertainties related to future dividend payments and stock repurchases, 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, 2020 as updated in our Quarterly Reports on Form 10-Q for the quarters ended June 30 and September 30, 2020, and other reports filed with the SEC.

###

NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

Quarter Ended Sept. 30

2020

2019

Revenue

Product sales

$

4,159,173

$

6,187,708

Contract research and development

221,612

314,237

Total revenue

4,380,785

6,501,945

Cost of sales

941,287

1,346,098

Gross profit

3,439,498

5,155,847

Expenses

Research and development

815,965

926,596

Selling, general, and administrative

358,182

368,450

Total expenses

1,174,147

1,295,046

Income from operations

2,265,351

3,860,801

Interest income

401,392

456,309

Income before taxes

2,666,743

4,317,110

Provision for income taxes

444,403

495,048

Net income

$

2,222,340

$

3,822,062

Net income per share – basic

$

0.46

$

0.79

Net income per share – diluted

$

0.46

$

0.79

Cash dividends declared per common share

$

1.00

$

1.00

Weighted average shares outstanding

Basic

4,834,709

4,846,010

Diluted

4,834,809

4,847,881


Six Months Ended Sept. 30

2020

2019

Revenue

Product sales

$

8,517,808

$

12,273,072

Contract research and development

452,239

523,569

Total revenue

8,970,047

12,796,641

Cost of sales

1,777,709

2,438,135

Gross profit

7,192,338

10,358,506

Expenses

Research and development

1,696,948

1,899,663

Selling, general, and administrative

713,193

698,459

Total expenses

2,410,141

2,598,122

Income from operations

4,782,197

7,760,384

Interest income

800,604

915,348

Income before taxes

5,582,801

8,675,732

Provision for income taxes

948,596

1,246,251

Net income

$

4,634,205

$

7,429,481

Net income per share – basic

$

0.96

$

1.53

Net income per share – diluted

$

0.96

$

1.53

Cash dividends declared per common share

$

2.00

$

2.00

Weighted average shares outstanding

Basic

4,834,872

4,846,010

Diluted

4,834,986

4,849,357


NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2020

(Unaudited)
Sept. 30, 2020

March 31, 2020

ASSETS

Current assets

Cash and cash equivalents

$

3,845,070

$

8,065,594

Marketable securities, short-term

23,231,981

19,084,814

Accounts receivable, net of allowance for uncollectible accounts of $15,000

1,922,076

2,694,018

Inventories

3,928,524

3,884,450

Prepaid expenses and other assets

610,635

655,835

Total current assets

33,538,286

34,384,711

Fixed assets

Machinery and equipment

9,280,062

9,280,062

Leasehold improvements

1,797,245

1,797,245

11,077,307

11,077,307

Less accumulated depreciation and amortization

10,648,191

10,494,840

Net fixed assets

429,116

582,467

Deferred tax assets

-

108,119

Marketable securities, long-term

40,777,322

43,606,495

Right-of-use asset – operating lease

752,861

816,358

Total assets

$

75,497,585

$

79,498,150

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

154,566

$

186,993

Accrued payroll and other

424,957

482,074

Operating lease

113,666

127,134

Total current liabilities

693,189

796,201

Deferred tax liabilities

141,990

-

Operating lease

644,987

706,600

Total liabilities

1,480,166

1,502,801

Shareholders’ equity

Common stock

48,332

48,350

Additional paid-in capital

19,329,577

19,383,956

Accumulated other comprehensive income

1,628,861

516,523

Retained earnings

53,010,649

58,046,520

Total shareholders’ equity

74,017,419

77,995,349

Total liabilities and shareholders’ equity

$

75,497,585

$

79,498,150


CONTACT: Curt Reynders (Chief Financial Officer), 952-829-9217