EDEN PRAIRIE, Minn., Oct. 18, 2023 (GLOBE NEWSWIRE) — NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2023.
Total revenue for the second quarter of fiscal 2024 decreased 33% to $7.12 million from $10.7 million for the prior-year quarter. The decrease was due to a 32% decrease in product sales and a 92% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2024 decreased 22% to $4.72 million, or $0.98 per diluted share, compared to $6.09 million, or $1.26 per share, for the prior-year quarter.
For the first six months of fiscal 2024, total revenue decreased 12% to $16.0 million from $18.1 million for the first six months of the prior year. The decrease was due to a 10% decrease in product sales and a 68% decrease in contract research and development revenue. Net income decreased 11% to $9.13 million, or $1.89 per diluted share, from $10.2 million, or $2.12 per share, for the first half of fiscal 2023.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2023, to shareholders of record as of October 30, 2023.
“We are pleased to report solid earnings for the quarter and six 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. 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, 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 Report on Form 10-Q for the quarter ended June 30, 2023.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
(Unaudited)
Quarter Ended September 30, 2023 2022 Revenue Product sales $7,117,122 $10,514,539 Contract research and development 16,154 203,285 Total revenue 7,133,276 10,717,824 Cost of sales 1,599,866 2,402,781 Gross profit 5,533,410 8,315,043 Expenses Research and development 683,208 669,978 Selling, general, and administrative 433,785 435,625 Provision for credit losses (202,926) – Total expenses 914,067 1,105,603 Income from operations 4,619,343 7,209,440 Interest income 512,092 351,375 Income before taxes 5,131,435 7,560,815 Provision for income taxes 407,869 1,470,442 Net income $4,723,566 $6,090,373 Net income per share – basic $0.98 $1.26 Net income per share – diluted $0.98 $1.26 Cash dividends declared per common share $1.00 $1.00 Weighted average shares outstanding Basic 4,833,401 4,830,826 Diluted 4,840,770 4,830,956
Six Months Ended September 30, 2023 2022 Revenue Product sales $15,817,214 $17,587,500 Contract research and development 147,476 466,731 Total revenue 15,964,690 18,054,231 Cost of sales 3,679,489 4,054,628 Gross profit 12,285,201 13,999,603 Expenses Research and development 1,379,200 1,271,896 Selling, general, and administrative 908,900 806,946 Provision for credit losses 9,514 – Total expenses 2,297,614 2,078,842 Income from operations 9,987,587 11,920,761 Interest income 948,618 634,436 Income before taxes 10,936,205 12,555,197 Provision for income taxes 1,808,909 2,324,707 Net income $9,127,296 $10,230,490 Net income per share – basic $1.89 $2.12 Net income per share – diluted $1.89 $2.12 Cash dividends declared per common share $2.00 $2.00 Weighted average shares outstanding Basic 4,832,786 4,830,826 Diluted 4,840,688 4,830,927
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 MARCH 31, 2023
(Unaudited)
September 30,
2023 March 31,
2023 ASSETS Current assets Cash and cash equivalents $6,953,448 $1,669,896 Marketable securities, short-term
(amortized cost of $7,302,714 as of September 30, 2023, and $15,696,135 as of March 31, 2023) 7,224,056 15,513,095 Accounts receivable, net of allowance for credit losses of $15,000 2,915,762 6,523,344 Inventories 6,967,766 6,417,010 Prepaid expenses and other assets 1,064,853 663,459 Total current assets 25,125,885 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 11,250,170 11,095,236 Net fixed assets 1,207,235 1,345,438 Deferred tax assets 1,395,430 572,038 Marketable securities, long-term
(amortized cost of $41,467,512 as of September 30, 2023, and $37,495,846 as of March 31, 2023) 39,623,299 36,125,047 Right-of-use asset – operating lease 358,590 425,843 Total assets $67,710,439 $69,255,170 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable $244,236 $281,712 Accrued payroll and other 539,452 1,375,250 Operating lease 177,585 175,798 Total current liabilities 961,273 1,832,760 Operating lease 260,509 342,908 Total liabilities 1,221,782 2,175,668 Shareholders’ equity Common stock, $0.01 par value, 6,000,000 shares authorized;
4,833,401 issued and outstanding as of September 30, 2023, and 4,830,826 as of March 31, 2023 48,334 48,308 Additional paid-in capital 19,529,791 19,295,442 Accumulated other comprehensive loss (1,502,147) (1,213,858)Retained earnings 48,412,679 48,949,610 Total shareholders’ equity 66,488,657 67,079,502 Total liabilities and shareholders’ equity $67,710,439 $69,255,170 CONTACT: Daniel Nelson, (952) 829-9217
