EDEN PRAIRIE, Minn., May 01, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2019.
Total revenue for the fourth quarter of fiscal 2019 decreased 29% to $5.59 million from $7.90 million in the prior-year quarter. The decrease was due to a 29% decrease in product sales and a 28% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2019 decreased 26% to $2.86 million, or $0.59 per diluted share, compared to $3.88 million, or $0.80 per share, for the prior-year quarter.
For fiscal 2019, total revenue decreased 11% to $26.5 million from $29.9 million for the prior fiscal year. The decrease was due to a 7% decrease in product sales and a 54% decrease in contract research and development revenue. Net income for fiscal 2019 increased 4% to $14.5 million, or $2.99 per diluted share, compared to $13.9 million, or $2.87 per diluted share, for fiscal 2018.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2019 to shareholders of record as of May 13, 2019.
“We are pleased to report record earnings for the year despite a decrease in total revenue, due to a decrease in the Federal tax rate,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “Investments in smart sensor product development will drive future growth.”
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 risks and uncertainties related to future sales and revenues, risks related to changes in tariffs and other trade barriers, 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 AND YEARS ENDED MARCH 31, 2019 AND 2018 (Unaudited) | |||||||
| Quarter Ended March 31 | |||||||
| 2019 | 2018 | ||||||
| Revenue | |||||||
| Product sales | $ | 5,374,442 | $ | 7,603,226 | |||
| Contract research and development | 214,509 | 295,966 | |||||
| Total revenue | 5,588,951 | 7,899,192 | |||||
| Cost of sales | 1,297,856 | 1,465,509 | |||||
| Gross profit | 4,291,095 | 6,433,683 | |||||
| Expenses | |||||||
| Research and development | 1,019,728 | 913,950 | |||||
| Selling, general, and administrative | 248,857 | 374,835 | |||||
| Total expenses | 1,268,585 | 1,288,785 | |||||
| Income from operations | 3,022,510 | 5,144,898 | |||||
| Interest income | 459,978 | 403,894 | |||||
| Income before taxes | 3,482,488 | 5,548,792 | |||||
| Provision for income taxes | 623,616 | 1,666,372 | |||||
| Net income | $ | 2,858,872 | $ | 3,882,420 | |||
| Net income per share – basic | $ | 0.59 | $ | 0.80 | |||
| Net income per share – diluted | $ | 0.59 | $ | 0.80 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,844,010 | 4,842,010 | |||||
| Diluted | 4,850,284 | 4,847,349 | |||||
| Year Ended March 31 | |||||||
| 2019 | 2018 | ||||||
| Revenue | |||||||
| Product sales | $ | 25,291,306 | $ | 27,321,810 | |||
| Contract research and development | 1,181,031 | 2,542,071 | |||||
| Total revenue | 26,472,337 | 29,863,881 | |||||
| Cost of sales | 5,216,112 | 6,274,744 | |||||
| Gross profit | 21,256,225 | 23,589,137 | |||||
| Expenses | |||||||
| Research and development | 4,107,692 | 3,702,918 | |||||
| Selling, general, and administrative | 1,223,971 | 1,435,592 | |||||
| Total expenses | 5,331,663 | 5,138,510 | |||||
| Income from operations | 15,924,562 | 18,450,627 | |||||
| Interest income | 1,785,277 | 1,558,197 | |||||
| Income before taxes | 17,709,839 | 20,008,824 | |||||
| Provision for income taxes | 3,201,903 | 6,096,152 | |||||
| Net income | $ | 14,507,936 | $ | 13,912,672 | |||
| Net income per share – basic | $ | 3.00 | $ | 2.87 | |||
| Net income per share – diluted | $ | 2.99 | $ | 2.87 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,844,010 | 4,841,347 | |||||
| Diluted | 4,850,567 | 4,846,212 | |||||
| NVE CORPORATION BALANCE SHEETS MARCH 31, 2019 AND 2018 | |||||||
| March 31, 2019 | March 31, 2018 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 6,877,304 | $ | 4,755,082 | |||
| Marketable securities, short-term | 12,487,821 | 20,765,809 | |||||
| Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 2,995,638 | 2,888,779 | |||||
| Inventories | 4,264,876 | 3,650,439 | |||||
| Prepaid expenses and other assets | 816,045 | 635,160 | |||||
| Total current assets | 27,441,684 | 32,695,269 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 9,365,806 | 9,395,987 | |||||
| Leasehold improvements | 1,787,269 | 1,749,284 | |||||
| 11,153,075 | 11,145,271 | ||||||
| Less accumulated depreciation and amortization | 10,258,240 | 9,819,888 | |||||
| Net fixed assets | 894,835 | 1,325,383 | |||||
| Deferred tax assets | 353,735 | 572,655 | |||||
| Marketable securities, long-term | 54,925,633 | 52,838,158 | |||||
| Total assets | $ | 83,615,887 | $ | 87,431,465 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 375,188 | $ | 414,970 | |||
| Accrued payroll and other | 460,488 | 574,755 | |||||
| Total current liabilities | 835,676 | 989,725 | |||||
| Shareholders’ equity | |||||||
| Common stock, $0.01 par value, 6,000,000 shares authorized; 4,846,010 issued and outstanding as of March 31, 2019 and 4,842,010 as of March 31, 2018 | 48,460 | 48,420 | |||||
| Additional paid-in capital | 19,910,558 | 19,599,298 | |||||
| Accumulated other comprehensive loss | (82,725 | ) | (915,635 | ) | |||
| Retained earnings | 62,903,918 | 67,709,657 | |||||
| Total shareholders’ equity | 82,780,211 | 86,441,740 | |||||
| Total liabilities and shareholders’ equity | $ | 83,615,887 | $ | 87,431,465 | |||