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NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., Jan. 22, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (NVEC) announced today financial results for the quarter and nine months ended December 31, 2019.

Total revenue for the third quarter of fiscal 2020 increased 3% to $6.46 million from $6.27 million in the prior-year quarter. The increase was due to a 3% increase in product sales and a 9% increase in contract research and development revenue. Product sales increased to $6.16 million from $5.99 million in the prior-year quarter. Net income for the third quarter of fiscal 2020 increased 9% to $3.73 million, or $0.77 per diluted share, compared to $3.42 million, or $0.71 per share, for the prior-year quarter.

For the first nine months of fiscal 2020, total revenue decreased 8% to $19.3 million from $20.9 million for the first nine months of the prior year. The decrease was due to a 7% decrease in product sales and a 14% decrease in contract research and development revenue. Net income decreased 4% to $11.2 million, or $2.30 per diluted share, compared to $11.6 million, or $2.40 per diluted share, for the first nine months of fiscal 2019.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2020 to shareholders of record as of February 3, 2020.

“We are pleased to report solid growth in revenue and net income for the quarter,” 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 enacted 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.
 

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED DECEMBER 31, 2019 AND 2018 (Unaudited)

 
  Quarter Ended Dec. 31
2019   2018
Revenue
Product sales $ 6,160,967     $ 5,991,241  
Contract research and development 303,629     278,164  
Total revenue   6,464,596       6,269,405  
Cost of sales 1,263,806     1,169,406  
Gross profit   5,200,790       5,099,999  
Expenses
Research and development   771,468       1,126,975  
Selling, general, and administrative 327,989     268,905  
Total expenses 1,099,457     1,395,880  
Income from operations   4,101,333       3,704,119  
Interest income 443,478     457,204  
Income before taxes   4,544,811       4,161,323  
Provision for income taxes 814,147     739,918  
Net income $ 3,730,664     $ 3,421,405  
Net income per share – basic $ 0.77     $ 0.71  
Net income per share – diluted $ 0.77     $ 0.71  
Weighted average shares outstanding
Basic   4,846,010       4,845,010  
Diluted   4,847,436       4,850,507  



NVE CORPORATION
STATEMENTS OF INCOME
NINE MONTHS ENDED DECEMBER 31, 2019 AND 2018 (Unaudited)

 
  Nine Months Ended Dec. 31
2019   2018
Revenue
Product sales $ 18,434,039     $ 19,916,864  
Contract research and development 827,198     966,522  
Total revenue   19,261,237       20,883,386  
Cost of sales 3,701,941     3,918,256  
Gross profit   15,559,296       16,965,130  
Expenses
Research and development   2,671,131       3,087,964  
Selling, general, and administrative 1,026,448     975,114  
Total expenses 3,697,579     4,063,078  
Income from operations   11,861,717       12,902,052  
Interest income 1,358,826     1,325,299  
Income before taxes   13,220,543       14,227,351  
Provision for income taxes 2,060,398     2,578,287  
Net income $ 11,160,145     $ 11,649,064  
Net income per share – basic $ 2.30     $ 2.41  
Net income per share – diluted $ 2.30     $ 2.40  
Weighted average shares outstanding
Basic   4,846,010       4,843,355  
Diluted   4,848,506       4,850,120  

 
 

NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2019
  (Unaudited)
Dec. 31, 2019
  March 31, 2019
ASSETS
Current assets
Cash and cash equivalents $ 10,153,173     $ 6,877,304  
Marketable securities, short-term   12,055,363       12,487,821  
Accounts receivable, net of allowance for uncollectible accounts of $15,000   2,119,037       2,995,638  
Inventories   4,159,742       4,264,876  
Prepaid expenses and other assets 845,194     816,045  
Total current assets   29,332,509       27,441,684  
Fixed assets
Machinery and equipment    9,381,906       9,365,806  
Leasehold improvements 1,797,245     1,787,269  
    11,179,151       11,153,075  
Less accumulated depreciation and amortization  10,529,317     10,258,240  
Net fixed assets   649,834       894,835  
Deferred tax assets 63,467     353,735  
Marketable securities, long-term 50,920,291     54,925,633  
Right-of-use asset – operating lease 151,749     -  
Total assets $ 81,117,850     $ 83,615,887  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 153,470     $ 375,188  
Accrued payroll and other 558,762     460,488  
Operating lease 174,916     -  
Total current liabilities   887,148       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)   697,291       (82,725 )
Retained earnings 59,526,033     62,903,918  
Total shareholders’ equity 80,230,702     82,780,211  
Total liabilities and shareholders’ equity $ 81,117,850     $ 83,615,887  


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