EDEN PRAIRIE, Minn., May 01, 2024 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2024.
Total revenue for the fourth quarter of fiscal 2024 decreased 45% to $7.08 million from $12.8 million for the prior-year quarter. The decrease was due to a 43% decrease in product sales and an 88% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2024 decreased 54% to $3.81 million, or $0.79 per diluted share, compared to $8.23 million, or $1.70 per diluted share, for the prior-year quarter.
For fiscal 2024, total revenue decreased 22% to $29.8 million, compared to $38.3 million in the prior year. The decrease was due to a 21% decrease in product sales and a 45% decrease in contract research and development revenue. Net income for fiscal 2024 decreased 25% to $17.1 million, or $3.54 per diluted share, from $22.7 million, or $4.70 per share, for fiscal 2023.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2024 to shareholders of record as of May 13, 2024.
“We are pleased to report solid earnings for the quarter and fiscal year despite 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 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, 2024.
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| NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2024 AND 2023 | |||||||
| Quarter Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | |||||||
| Product sales | $ | 7,034,840 | $ | 12,408,832 | |||
| Contract research and development | 48,389 | 388,851 | |||||
| Total revenue | 7,083,229 | 12,797,683 | |||||
| Cost of sales | 1,737,977 | 2,529,311 | |||||
| Gross profit | 5,345,252 | 10,268,372 | |||||
| Expenses | |||||||
| Research and development | 811,339 | 611,489 | |||||
| Selling, general, and administrative | 473,622 | 752,710 | |||||
| Total expenses | 1,284,961 | 1,364,199 | |||||
| Income from operations | 4,060,291 | 8,904,173 | |||||
| Interest income | 508,431 | 408,127 | |||||
| Income before taxes | 4,568,722 | 9,312,300 | |||||
| Provision for income taxes | 755,741 | 1,079,656 | |||||
| Net income | $ | 3,812,981 | $ | 8,232,644 | |||
| Net income per share – basic | $ | 0.79 | $ | 1.70 | |||
| Net income per share – diluted | $ | 0.79 | $ | 1.70 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,833,610 | 4,830,826 | |||||
| Diluted | 4,839,556 | 4,836,365 | |||||
| Year Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | |||||||
| Product sales | $ | 29,218,063 | $ | 37,196,717 | |||
| Contract research and development | 586,116 | 1,056,875 | |||||
| Total revenue | 29,804,179 | 38,253,592 | |||||
| Cost of sales | 6,772,533 | 8,062,311 | |||||
| Gross profit | 23,031,646 | 30,191,281 | |||||
| Expenses | |||||||
| Research and development | 2,731,434 | 2,583,994 | |||||
| Selling, general, and administrative | 1,771,833 | 1,963,105 | |||||
| Credit loss expense | 9,514 | - | |||||
| Total expenses | 4,512,781 | 4,547,099 | |||||
| Income from operations | 18,518,865 | 25,644,182 | |||||
| Interest income | 1,948,720 | 1,448,655 | |||||
| Income before taxes | 20,467,585 | 27,092,837 | |||||
| Provision for income taxes | 3,342,886 | 4,398,379 | |||||
| Net income | $ | 17,124,699 | $ | 22,694,458 | |||
| Net income per share – basic | $ | 3.54 | $ | 4.70 | |||
| Net income per share – diluted | $ | 3.54 | $ | 4.70 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,833,146 | 4,830,826 | |||||
| Diluted | 4,839,705 | 4,832,096 | |||||
| NVE CORPORATION BALANCE SHEETS MARCH 31, 2024 AND 2023 | |||||||
| March 31, 2024 | March 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 10,283,550 | $ | 1,669,896 | |||
| Marketable securities, short-term (amortized cost of $12,283,630 as of March 31, 2024 and $15,696,135 as of March 31, 2023 ) | 11,917,779 | 15,513,095 | |||||
| Accounts receivable, net of allowance for credit losses of $15,000 | 3,144,833 | 6,523,344 | |||||
| Inventories | 7,158,585 | 6,417,010 | |||||
| Prepaid expenses and other assets | 689,349 | 663,459 | |||||
| Total current assets | 33,194,096 | 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 | 11,403,383 | 11,095,236 | |||||
| Net fixed assets | 1,054,022 | 1,345,438 | |||||
| Deferred tax assets | 1,453,704 | 572,038 | |||||
| Marketable securities, long-term (amortized cost of $31,417,890 as of March 31, 2024, and $37,495,846 as of March 31, 2023) | 30,788,301 | 36,125,047 | |||||
| Right-of-use asset – operating lease | 289,910 | 425,843 | |||||
| Total assets | $ | 66,780,033 | $ | 69,255,170 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 127,154 | $ | 281,712 | |||
| Accrued payroll and other | 729,215 | 1,375,250 | |||||
| Operating lease | 179,372 | 175,798 | |||||
| Total current liabilities | 1,035,741 | 1,832,760 | |||||
| Operating lease | 175,775 | 342,908 | |||||
| Total liabilities | 1,211,516 | 2,175,668 | |||||
| Shareholders’ equity | |||||||
| Common stock | 48,337 | 48,308 | |||||
| Additional paid-in capital | 19,554,812 | 19,295,442 | |||||
| Accumulated other comprehensive income | (777,637 | ) | (1,213,858 | ) | |||
| Retained earnings | 46,743,005 | 48,949,610 | |||||
| Total shareholders’ equity | 65,568,517 | 67,079,502 | |||||
| Total liabilities and shareholders’ equity | $ | 66,780,033 | $ | 69,255,170 | |||
