EDEN PRAIRIE, Minn., May 06, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2020.
Total revenue for the fourth quarter of fiscal 2020 increased 10% to $6.15 million from $5.59 million in the prior-year quarter. The increase was due to a 11% increase in product sales, partially offset by a 14% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2020 increased 18% to $3.37 million, or $0.69 per diluted share, compared to $2.86 million, or $0.59 per share, for the prior-year quarter.
For fiscal 2020, total revenue decreased 4% to $25.41 million from $26.47 million for the prior fiscal year. The decrease was due to a 4% decrease in product sales and a 14% decrease in contract research and development revenue. Net income for fiscal 2020 increased to $14.53 million, or $3.00 per diluted share, compared to $14.51 million, or $2.99 per diluted share, for fiscal 2019.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 29, 2020 to shareholders of record as of May 18, 2020.
“We are pleased to report solid growth in revenue and net income for the quarter, and record net income for the fiscal year,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “The COVID-19 pandemic will challenge us in coming quarters, but NVE has been operating effectively and serving our critical sectors thanks to the dedication and resourcefulness of our employees, suppliers, and distributors.”
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 risks and uncertainties related to future sales and revenues, risks and uncertainties related to changes in tariffs and other trade barriers, risks related to the COVID-19 pandemic, 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, 2020 and other reports filed with the SEC.
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| NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2020 AND 2019 (Unaudited) | |||||||
| Quarter Ended March 31 | |||||||
| 2020 | 2019 | ||||||
| Revenue | |||||||
| Product sales | $ | 5,966,153 | $ | 5,374,442 | |||
| Contract research and development | 184,773 | 214,509 | |||||
| Total revenue | 6,150,926 | 5,588,951 | |||||
| Cost of sales | 1,187,354 | 1,297,856 | |||||
| Gross profit | 4,963,572 | 4,291,095 | |||||
| Expenses | |||||||
| Research and development | 1,019,408 | 1,019,728 | |||||
| Selling, general, and administrative | 291,095 | 248,857 | |||||
| Total expenses | 1,310,503 | 1,268,585 | |||||
| Income from operations | 3,653,069 | 3,022,510 | |||||
| Interest income | 428,291 | 459,978 | |||||
| Income before taxes | 4,081,360 | 3,482,488 | |||||
| Provision for income taxes | 714,863 | 623,616 | |||||
| Net income | $ | 3,366,497 | $ | 2,858,872 | |||
| Net income per share – basic | $ | 0.69 | $ | 0.59 | |||
| Net income per share – diluted | $ | 0.69 | $ | 0.59 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,844,470 | 4,844,010 | |||||
| Diluted | 4,845,922 | 4,850,284 | |||||
| Year Ended March 31 | |||||||
| 2020 | 2019 | ||||||
| Revenue | |||||||
| Product sales | $ | 24,400,192 | $ | 25,291,306 | |||
| Contract research and development | 1,011,971 | 1,181,031 | |||||
| Total revenue | 25,412,163 | 26,472,337 | |||||
| Cost of sales | 4,889,295 | 5,216,112 | |||||
| Gross profit | 20,522,868 | 21,256,225 | |||||
| Expenses | |||||||
| Research and development | 3,690,539 | 4,107,692 | |||||
| Selling, general, and administrative | 1,317,543 | 1,223,971 | |||||
| Total expenses | 5,008,082 | 5,331,663 | |||||
| Income from operations | 15,514,786 | 15,924,562 | |||||
| Interest income | 1,787,117 | 1,785,277 | |||||
| Income before taxes | 17,301,903 | 17,709,839 | |||||
| Provision for income taxes | 2,775,261 | 3,201,903 | |||||
| Net income | $ | 14,526,642 | $ | 14,507,936 | |||
| Net income per share – basic | $ | 3.00 | $ | 3.00 | |||
| Net income per share – diluted | $ | 3.00 | $ | 2.99 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,845,627 | 4,844,010 | |||||
| Diluted | 4,847,294 | 4,850,567 | |||||
| NVE CORPORATION BALANCE SHEETS MARCH 31, 2020 AND 2019 | |||||||
| March 31, 2020 | March 31, 2019 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 8,065,594 | $ | 6,877,304 | |||
| Marketable securities, short-term | 19,084,814 | 12,487,821 | |||||
| Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 2,694,018 | 2,995,638 | |||||
| Inventories | 3,884,450 | 4,264,876 | |||||
| Prepaid expenses and other assets | 655,835 | 816,045 | |||||
| Total current assets | 34,384,711 | 27,441,684 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 9,280,062 | 9,365,806 | |||||
| Leasehold improvements | 1,797,245 | 1,787,269 | |||||
| 11,077,307 | 11,153,075 | ||||||
| Less accumulated depreciation and amortization | 10,494,840 | 10,258,240 | |||||
| Net fixed assets | 582,467 | 894,835 | |||||
| Deferred tax assets | 108,119 | 353,735 | |||||
| Marketable securities, long-term | 43,606,495 | 54,925,633 | |||||
| Right-of-use asset – operating lease | 816,358 | - | |||||
| Total assets | $ | 79,498,150 | $ | 83,615,887 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 186,993 | $ | 375,188 | |||
| Accrued payroll and other | 482,074 | 460,488 | |||||
| Operating lease | 127,134 | - | |||||
| Total current liabilities | 796,201 | 835,676 | |||||
| Operating lease | 706,600 | - | |||||
| Total liabilities | 1,502,801 | 835,676 | |||||
| Shareholders’ equity | |||||||
| Common stock, $0.01 par value, 6,000,000 shares authorized; 4,835,038 issued and outstanding as of March 31, 2020 and 4,846,010 as of March 31, 2019 | 48,350 | 48,460 | |||||
| Additional paid-in capital | 19,383,956 | 19,910,558 | |||||
| Accumulated other comprehensive income (loss) | 516,523 | (82,725 | ) | ||||
| Retained earnings | 58,046,520 | 62,903,918 | |||||
| Total shareholders’ equity | 77,995,349 | 82,780,211 | |||||
| Total liabilities and shareholders’ equity | $ | 79,498,150 | $ | 83,615,887 | |||