NVE Corporation Reports Fourth Quarter and Fiscal Year Results and Announces Quarterly Dividend


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 
 

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