U.S. Markets open in 4 hrs 23 mins

NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., Oct. 23, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (NVEC) announced today financial results for the quarter and six months ended September 30, 2019.

Total revenue for the second quarter of fiscal 2020 decreased 13% to $6.50 million from $7.51 million in the prior-year quarter. The decrease was due to a 12% decrease in product sales and a 30% decrease in contract research and development revenue. Product sales decreased to $6.19 million from $7.05 million in the prior-year quarter. Net income for the second quarter of fiscal 2020 decreased 11% to $3.82 million, or $0.79 per diluted share, compared to $4.28 million, or $0.88 per share, for the prior-year quarter.

For the first six months of fiscal 2020, total revenue decreased 12% to $12.8 million from $14.6 million for the first six months of the prior year. The decrease was due to a 12% decrease in product sales and a 24% decrease in contract research and development revenue. Net income decreased 10% to $7.43 million, or $1.53 per diluted share, compared to $8.23 million, or $1.70 per share, for the first half of fiscal 2019.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 29, 2019 to shareholders of record as of November 4, 2019.

“We are pleased to report solid earnings and a second consecutive quarter of sequential revenue and net income growth,” 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, uncertainties related to the impacts of the Federal Tax Reform Act eneacted in 2017, 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.

###  

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

 
  Quarter Ended September 30
2019   2018
Revenue
Product sales $ 6,187,708     $ 7,054,977  
Contract research and development 314,237     451,098  
Total revenue   6,501,945       7,506,075  
Cost of sales 1,346,098     1,352,845  
Gross profit   5,155,847       6,153,230  
Expenses
Research and development   926,596       971,963  
Selling, general, and administrative 368,450     377,448  
Total expenses 1,295,046     1,349,411  
Income from operations   3,860,801       4,803,819  
Interest income 456,309     443,325  
Income before taxes   4,317,110       5,247,144  
Provision for income taxes 495,048     964,534  
Net income $ 3,822,062     $ 4,282,610  
Net income per share – basic $ 0.79     $ 0.88  
Net income per share – diluted $ 0.79     $ 0.88  
Cash dividends declared per common share $ 1.00     $ 1.00  
Weighted average shares outstanding
Basic   4,846,010       4,843,032  
Diluted   4,847,881       4,852,644  

 

NVE CORPORATION
STATEMENTS OF INCOME
SIX MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (Unaudited)

 
  Six Months  Ended September 30
2019   2018
Revenue
Product sales $ 12,273,072     $ 13,925,623  
Contract research and development 523,569     688,358  
Total revenue   12,796,641       14,613,981  
Cost of sales 2,438,135     2,748,850  
Gross profit   10,358,506       11,865,131  
Expenses
Research and development   1,899,663       1,960,989  
Selling, general, and administrative 698,459     706,209  
Total expenses 2,598,122     2,667,198  
Income from operations   7,760,384       9,197,933  
Interest income 915,348     868,095  
Income before taxes   8,675,732       10,066,028  
Provision for income taxes 1,246,251     1,838,369  
Net income $ 7,429,481     $ 8,227,659  
Net income per share – basic $ 1.53     $ 1.70  
Net income per share – diluted $ 1.53     $ 1.70  
Cash dividends declared per common share $ 2.00     $ 2.00  
Weighted average shares outstanding
Basic   4,846,010       4,842,524  
Diluted   4,849,357       4,851,072  

 

NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2019
  (Unaudited)
September 30, 2019
  March 31, 2019
ASSETS
Current assets
Cash and cash equivalents $ 14,076,290     $ 6,877,304  
Marketable securities, short-term   -       12,487,821  
Accounts receivable, net of allowance for uncollectible accounts of $15,000   3,215,785       2,995,638  
Inventories   4,355,332       4,264,876  
Prepaid expenses and other assets 847,259     816,045  
Total current assets   22,494,666       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  10,438,174     10,258,240  
Net fixed assets   731,001       894,835  
Deferred tax assets 68,495     353,735  
Marketable securities, long-term 52,798,500     54,925,633  
Right-of-use asset – operating lease 188,743     -  
Total assets $ 82,281,405     $ 83,615,887  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 324,413     $ 375,188  
Accrued payroll and other 425,547     460,488  
Operating lease 173,852     -  
Total current liabilities   923,812       835,676  
               
Operating lease 42,782     -  
Total liabilities 966,594     835,676  
 
Shareholders’ equity
Common stock   48,460       48,460  
Additional paid-in capital   19,958,918       19,910,558  
Accumulated other comprehensive income (loss)   666,054       (82,725 )
Retained earnings 60,641,379     62,903,918  
Total shareholders’ equity 81,314,811     82,780,211  
Total liabilities and shareholders’ equity $ 82,281,405     $ 83,615,887  

 

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