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

Eden Prairie, Minnesota, UNITED STATES


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 development184,773  214,509 
Total revenue 6,150,926   5,588,951 
Cost of sales1,187,354  1,297,856 
Gross profit4,963,572  4,291,095 
Expenses
Research and development 1,019,408   1,019,728 
Selling, general, and administrative291,095  248,857 
Total expenses1,310,503  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 taxes714,863  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
Basic4,844,4704,844,010 
Diluted4,845,9224,850,284 

 

 Year Ended March 31
 2020 2019
Revenue
Product sales$24,400,192  $25,291,306 
Contract research and development1,011,971  1,181,031 
Total revenue 25,412,163   26,472,337 
Cost of sales4,889,295  5,216,112 
Gross profit20,522,868  21,256,225 
Expenses
Research and development 3,690,539   4,107,692 
Selling, general, and administrative1,317,543  1,223,971 
Total expenses5,008,082  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 taxes2,775,261  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
Basic4,845,6274,844,010 
Diluted4,847,2944,850,567 

 

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 assets655,835  816,045 
Total current assets 34,384,711   27,441,684 
Fixed assets
Machinery and equipment  9,280,062   9,365,806 
Leasehold improvements1,797,245  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 assets108,119  353,735 
Marketable securities, long-term43,606,495  54,925,633 
Right-of-use asset – operating lease816,358  - 
Total assets$79,498,150  $83,615,887 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$186,993  $375,188 
Accrued payroll and other482,074  460,488 
Operating lease127,134  - 
Total current liabilities 796,201   835,676 
        
Operating lease706,600  - 
Total liabilities1,502,801  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 earnings58,046,520  62,903,918 
Total shareholders’ equity77,995,349  82,780,211 
Total liabilities and shareholders’ equity$79,498,150  $83,615,887 

 


        

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