NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

Eden Prairie, Minnesota, UNITED STATES

EDEN PRAIRIE, Minn., July 22, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2020.

Total revenue for the first quarter of fiscal 2021 decreased 27% to $4.59 million from $6.29 million in the prior-year quarter. The decrease was due to a 28% decrease in product sales partially offset by a 10% increase in contract research and development revenue. Product sales decreased to $4.36 million from $6.09 million in the prior-year quarter. Net income for the first quarter of fiscal 2020 decreased 33% to $2.41 million, or $0.50 per diluted share, compared to $3.61 million, or $0.74 per share, for the prior-year quarter.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2020 to shareholders of record as of August 3, 2020.

"We are pleased to report a solid profit for the quarter despite a significant impact from COVID-19 pandemic on our product sales," 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 risks and uncertainties related to future sales and revenues and 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.


QUARTERS ENDED JUNE 30, 2020 AND 2019 (Unaudited)

 Quarter Ended June 30
2020 2019
Product sales$4,358,635  $6,085,364 
Contract research and development230,627  209,332 
Total revenue 4,589,262   6,294,696 
Cost of sales836,422  1,092,037 
Gross profit 3,752,840   5,202,659 
Research and development 880,983   973,067 
Selling, general, and administrative355,011  330,009 
Total expenses1,235,994  1,303,076 
Income from operations 2,516,846   3,899,583 
Interest income399,212  459,039 
Income before taxes 2,916,058   4,358,622 
Provision for income taxes504,193  751,203 
Net income$$2,411,865  $3,607,419 
Net income per share – basic$0.50  $0.74 
Net income per share – diluted$0.50  $0.74 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding
Basic 4,835,038   4,846,010 
Diluted 4,835,157   4,850,388 


JUNE 30 AND MARCH 31, 2020
June 30, 2020
 March 31, 2020
Current assets
Cash and cash equivalents$6,402,983  $8,065,594 
Marketable securities, short-term 19,179,495   19,084,814 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,297,850   2,694,018 
Inventories 3,943,738   3,884,450 
Prepaid expenses and other assets718,122  655,835 
Total current assets 32,542,188   34,384,711 
Fixed assets
Machinery and equipment  9,280,062   9,280,062 
Leasehold improvements1,797,245  1,797,245 
  11,077,307   11,077,307 
Less accumulated depreciation and amortization 10,571,515  10,494,840 
Net fixed assets 505,792   582,467 
Deferred tax assets-  108,119 
Marketable securities, long-term45,049,578  43,606,495 
Right-of-use asset – operating lease784,774  816,358 
Total assets$78,882,332  $79,498,150 
Current liabilities
Accounts payable$180,338  $186,993 
Accrued payroll and other492,243  482,074 
Income taxes payable406,326  - 
Operating lease120,429  127,134 
Total current liabilities 1,199,336   796,201 
Deferred tax liabilities 189,523   - 
Operating lease675,928  706,600 
Total liabilities2,064,787  1,502,801 
Shareholders' equity
Common stock 48,350   48,350 
Additional paid-in capital 19,386,663   19,383,956 
Accumulated other comprehensive income 1,759,185   516,523 
Retained earnings55,623,347  58,046,520 
Total shareholders' equity76,817,545  77,995,349 
Total liabilities and shareholders' equity$78,882,332  $79,498,150 



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