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NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

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EDEN PRAIRIE, Minn., Oct. 20, 2021 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2021.

Total revenue for the second quarter of fiscal 2022 increased 56% to $6.82 million from $4.38 million in the prior-year quarter. The increase was due to a 59% increase in product sales partially offset by a 13% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2022 increased 64% to $3.65 million, or $0.75 per diluted share, compared to $2.22 million, or $0.46 per share, for the prior-year quarter.

For the first six months of fiscal 2022, total revenue increased 56% to $14.0 million from $8.97 million for the first six months of the prior year. The increase was due to a 59% increase in product sales partially offset by a 13% decrease in contract research and development revenue. Net income increased 56% to $7.23 million, or $1.49 per diluted share, from $4.63 million, or $0.96 per share, for the first half of fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2021 to shareholders of record as of November 1, 2021.

“We are pleased to report our second consecutive quarter of large year-over-year increases in product sales, total revenue, and earnings,” 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 and risks related to the COVID-19 pandemic, 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, 2021 and other reports filed with the SEC.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited)

Quarter Ended Sept. 30

2021

2020

Revenue

Product sales

$

6,630,012

$

4,159,173

Contract research and development

193,450

221,612

Total revenue

6,823,462

4,380,785

Cost of sales

1,544,134

941,287

Gross profit

5,279,328

3,439,498

Expenses

Research and development

707,997

815,965

Selling, general, and administrative

483,116

358,182

Total expenses

1,191,113

1,174,147

Income from operations

4,088,215

2,265,351

Interest income

294,858

401,392

Income before taxes

4,383,073

2,666,743

Provision for income taxes

736,566

444,403

Net income

$

3,646,507

$

2,222,340

Net income per share – basic

$

0.75

$

0.46

Net income per share – diluted

$

0.75

$

0.46

Cash dividends declared per common share

$

1.00

$

1.00

Weighted average shares outstanding

Basic

4,833,232

4,834,709

Diluted

4,836,603

4,834,809

NVE CORPORATION
STATEMENTS OF INCOME
SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited)

Six Months Ended Sept. 30

2021

2020

Revenue

Product sales

$

13,583,778

$

8,517,808

Contract research and development

392,847

452,239

Total revenue

13,976,625

8,970,047

Cost of sales

3,313,715

1,777,709

Gross profit

10,662,910

7,192,338

Expenses

Research and development

1,516,139

1,696,948

Selling, general, and administrative

949,734

713,193

Total expenses

2,465,873

2,410,141

Income from operations

8,197,037

4,782,197

Interest income

584,578

800,604

Income before taxes

8,781,615

5,582,801

Provision for income taxes

1,555,542

948,596

Net income

$

7,226,073

$

4,634,205

Net income per share – basic

$

1.50

$

0.96

Net income per share – diluted

$

1.49

$

0.96

Cash dividends declared per common share

$

2.00

$

2.00

Weighted average shares outstanding

Basic

4,833,232

4,834,872

Diluted

4,836,621

4,834,986

NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2021

(Unaudited) Sept. 30, 2021

March 31, 2021

ASSETS

Current assets

Cash and cash equivalents

$

11,145,156

$

10,427,340

Marketable securities, short-term

22,660,959

7,678,957

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

2,876,102

1,964,281

Inventories

3,982,771

3,900,777

Prepaid expenses and other assets

752,764

391,278

Total current assets

41,417,752

24,362,633

Fixed assets

Machinery and equipment

9,328,581

9,254,664

Leasehold improvements

1,810,872

1,810,872

11,139,453

11,065,536

Less accumulated depreciation and amortization

10,855,501

10,728,853

Net fixed assets

283,952

336,683

Deferred tax assets

137,439

73,538

Marketable securities, long-term

27,544,468

47,038,669

Right-of-use asset – operating lease

625,829

689,216

Total assets

$

70,009,440

$

72,500,739

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

411,218

$

336,591

Accrued payroll and other

701,705

540,474

Operating lease

151,955

150,273

Total current liabilities

1,264,878

1,027,338

Operating lease

515,973

581,459

Total liabilities

1,780,851

1,608,797

Shareholders’ equity

Common stock

48,332

48,332

Additional paid-in capital

19,402,364

19,338,127

Accumulated other comprehensive income

813,920

1,101,119

Retained earnings

47,963,973

50,404,364

Total shareholders’equity

68,228,589

70,891,942

Total liabilities and shareholders’ equity

$

70,009,440

$

72,500,739

CONTACT: Jon Larson, Corporate Controller, (952) 829-9217