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NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

EDEN PRARIE, Minn., Jan. 23, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (NVEC) announced today financial results for the quarter and nine months ended December 31, 2018.


Total revenue for the third quarter of fiscal 2019 decreased 15% to $6.27 million from $7.36 million in the prior-year quarter. The decrease was due to a 7% decrease in product sales and a 69% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2019 decreased 4% to $3.42 million, or $0.71 per diluted share, compared to $3.57 million, or $0.74 per share, for the prior-year quarter.

For the first nine months of fiscal 2019, total revenue decreased 5% to $20.9 million from $22.0 million for the first nine months of the prior year. The decrease was primarily due to a 57% decrease in contract research and development revenue. Net income increased 16% to $11.6 million, or $2.40 per diluted share, for the first nine months of fiscal 2019 compared to $10.0 million, or $2.07 per share, for the first nine months of fiscal 2018.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2019 to shareholders of record as of February 4, 2019.

“We are pleased to report strong earnings for the quarter despite a large increase in research and development expense for new product development including smart sensors,” 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. 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, risks and uncertainties related to future sales and revenue, uncertainties related to the impact of Federal tax reform, 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, 2018 and other reports filed with the SEC.


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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2018 AND 2017 (Unaudited)


  Quarter Ended Dec. 31
2018   2017
Revenue
Product sales $ 5,991,241     $ 6,448,831  
Contract research and development 278,164     911,958  
Total revenue   6,269,405       7,360,789  
Cost of sales 1,169,406     1,657,700  
Gross profit   5,099,999       5,703,089  
Expenses
Research and development   1,126,975       852,739  
Selling, general, and administrative 268,905     313,033  
Total expenses 1,395,880     1,165,772  
Income from operations   3,704,119       4,537,317  
Interest income 457,204     404,665  
Income before taxes   4,161,323       4,941,982  
Provision for income taxes 739,918     1,370,380  
Net income $ 3,421,405     $ 3,571,602  
Net income per share – basic $ 0.71     $ 0.74  
Net income per share – diluted $ 0.71     $ 0.74  
Cash dividends declared per common share $ 1.00     $ 1.00  
Weighted average shares outstanding
Basic   4,845,010       4,841,369  
Diluted   4,850,507       4,847,290  

 

  Nine Months Ended Dec. 31
2018   2017
Revenue
Product sales $ 19,916,864     $ 19,718,584  
Contract research and development 966,522     2,246,105  
Total revenue   20,883,386       21,964,689  
Cost of sales 3,918,256     4,809,235  
Gross profit   16,965,130       17,155,454  
Expenses
Research and development   3,087,964       2,788,968  
Selling, general, and administrative 975,114     1,060,757  
Total expenses 4,063,078     3,849,725  
Income from operations   12,902,052       13,305,729  
Interest income 1,325,299     1,154,303  
Income before taxes   14,227,351       14,460,032  
Provision for income taxes 2,578,287     4,429,780  
Net income $ 11,649,064     $ 10,030,252  
Net income per share – basic $ 2.41     $ 2.07  
Net income per share – diluted $ 2.40     $ 2.07  
Cash dividends declared per common share $ 3.00     $ 3.00  
Weighted average shares outstanding
Basic   4,843,355       4,841,130  
Diluted   4,850,120       4,846,036  

 

NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2018

  (Unaudited)
Dec. 31, 2018
  March 31, 2018
ASSETS
Current assets
Cash and cash equivalents $ 6,206,549     $ 4,755,082  
Marketable securities, short-term   17,445,586       20,765,809  
Accounts receivable, net of allowance for uncollectible accounts of $15,000   2,717,728       2,888,779  
Inventories   4,141,481       3,650,439  
Prepaid expenses and other assets 755,806     635,160  
Total current assets   31,267,150       32,695,269  
Fixed assets
Machinery and equipment    9,426,267       9,395,987  
Leasehold improvements 1,787,269     1,749,284  
    11,213,536       11,145,271  
Less accumulated depreciation and amortization  10,192,504     9,819,888  
Net fixed assets   1,021,032       1,325,383  
Deferred tax assets 590,391     572,655  
Marketable securities, long-term 51,907,552     52,838,158  
Total assets $ 84,786,125     $ 87,431,465  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 313,116     $ 414,970  
Accrued payroll and other 552,834     574,755  
Total current liabilities   865,950       989,725  
 
Shareholders’ equity
Common stock   48,460       48,420  
Additional paid-in capital   19,910,558       19,599,298  
Accumulated other comprehensive loss   (929,899 )     (915,635 )
Retained earnings 64,891,056     67,709,657  
Total shareholders’ equity 83,920,175     86,441,740  
Total liabilities and shareholders’ equity $ 84,786,125     $ 87,431,465  

 

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