NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend


EDEN PRAIRIE, Minn., Jan. 17, 2024 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2023.

Total revenue for the third quarter of fiscal 2024 decreased 9% to $6.76 million from $7.40 million for the prior-year quarter. The decrease was due to a 12% decrease in product sales, partially offset by a 94% increase in contract research and development revenue. Net income for the third quarter of fiscal 2024 decreased 1% to $4.18 million, or $0.87 per diluted share, compared to $4.23 million, or $0.88 per share, for the prior-year quarter.

For the first nine months of fiscal 2024, total revenue decreased 11% to $22.7 million from $25.5 million for the first nine months of the prior year. The decrease was due to an 11% decrease in product sales and a 20% decrease in contract research and development revenue. Net income decreased 8% to $13.3 million, or $2.75 per diluted share, from $14.5 million, or $2.99 per share, for the first nine months of fiscal 2023.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2024, to shareholders of record as of January 29, 2024.

“We are pleased to report solid earnings for the quarter and nine months despite a decrease in defense-related product sales and a semiconductor industry downturn,” 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 our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues, risks of credit losses, risks and uncertainties related to future dividend payments, 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, 2023, as updated in our Quarterly Reports on Form 10-Q for the quarters ended December 31 and June 30, 2023.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2023 AND 2022
(Unaudited)
   Quarter Ended December 31, 
  2023  2022 
Revenue        
Product sales $6,366,009  $7,200,385 
Contract research and development  390,251   201,293 
Total revenue  6,756,260   7,401,678 
Cost of sales  1,355,067   1,478,372 
Gross profit  5,401,193   5,923,306 
Expenses        
Research and development  540,895   700,609 
Selling, general, and administrative  389,311   403,449 
Total expenses  930,206   1,104,058 
Income from operations  4,470,987   4,819,248 
Interest income  491,671   406,092 
Income before taxes  4,962,658   5,225,340 
Provision for income taxes  778,236   994,016 
Net income $4,184,422  $4,231,324 
Net income per share – basic $0.87  $0.88 
Net income per share – diluted $0.87  $0.88 
Cash dividends declared per common share $1.00  $1.00 
Weighted average shares outstanding        
Basic  4,833,401   4,830,826 
Diluted  4,837,230   4,832,368 
 

 
 Nine Months Ended Dec. 31, 
  2023  2022 
Revenue        
Product sales $22,183,223  $24,787,885 
Contract research and development  537,727   668,024 
Total revenue  22,720,950   25,455,909 
Cost of sales  5,034,556   5,533,000 
Gross profit  17,686,394   19,922,909 
Expenses        
Research and development  1,920,095   1,972,505 
Selling, general, and administrative  1,298,211   1,210,395 
Provision for credit losses  9,514   - 
Total expenses  3,227,820   3,182,900 
Income from operations  14,458,574   16,740,009 
Interest income  1,440,289   1,040,528 
Income before taxes  15,898,863   17,780,537 
Provision for income taxes  2,587,145   3,318,723 
Net income $13,311,718  $14,461,814 
Net income per share – basic $2.75  $2.99 
Net income per share – diluted $2.75  $2.99 
Cash dividends declared per common share $3.00  $3.00 
Weighted average shares outstanding        
Basic  4,832,992   4,830,826 
Diluted  4,839,725   4,831,168 

 

 NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2023
  (Unaudited)
Dec. 31,
2023
  March 31,
2023
 
ASSETS        
Current assets        
Cash and cash equivalents $4,684,910  $1,669,896 
Marketable securities, short-term (amortized cost of $14,556,450
as of December 31, 2023, and $15,696,135 as of March 31, 2023)
  14,335,619   15,513,095 
Accounts receivable, net of allowance for credit losses of $15,000  2,245,728   6,523,344 
Inventories  7,349,811   6,417,010 
Prepaid expenses and other assets  597,305   663,459 
Total current assets  29,213,373   30,786,804 
Fixed assets        
Machinery and equipment  10,501,096   10,484,365 
Leasehold improvements  1,956,309   1,956,309 
   12,457,405   12,440,674 
Less accumulated depreciation and amortization  11,326,985   11,095,236 
Net fixed assets  1,130,420   1,345,438 
Deferred tax assets  1,290,284   572,038 
Marketable securities, long-term (amortized cost of $36,414,391
as of December 31, 2023, and $37,495,846 as of March 31, 2023)
  35,670,914   36,125,047 
Right-of-use asset – operating lease  324,451   425,843 
Total assets $67,629,442  $69,255,170 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities        
Accounts payable $170,701  $281,712 
Accrued payroll and other  460,414   1,375,250 
Operating lease  178,490   175,798 
Total current liabilities  809,605   1,832,760 
Operating lease  218,785   342,908 
Total liabilities  1,028,390   2,175,668 
         
Shareholders’ equity        
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of December 31, 2023, and 4,830,826 as of March 31, 2023  48,334   48,308 
Additional paid-in capital  19,542,335   19,295,442 
Accumulated other comprehensive loss  (753,317)  (1,213,858)
Retained earnings  47,763,700   48,949,610 
Total shareholders’ equity  66,601,052   67,079,502 
Total liabilities and shareholders’ equity $67,629,442  $69,255,170 
 

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