NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

Eden Prairie, Minnesota, UNITED STATES


Eden Prairie, Minn., Oct. 21, 2020 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2020.

Total revenue for the second quarter of fiscal 2021 decreased 33% to $4.38 million from $6.50 million for the the prior-year quarter. The decrease was due to a 33% decrease in product sales and a 29% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2021 decreased 42% to $2.22 million, or $0.46 per diluted share, compared to $3.82 million, or $0.79 per share, for the prior-year quarter.

For the first six months of fiscal 2021, total revenue decreased 30% to $8.97 million from $12.8 million for the first six months of the prior year. The decrease was due to a 31% decrease in product sales and a 14% decrease in contract research and development revenue. Net income decreased 38% to $4.63 million, or $0.96 per diluted share, compared to $7.43 million, or $1.53 per share, for the first half of fiscal 2020.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2020 to shareholders of record as of November 2, 2020.

“We are pleased to report a solid profit for the quarter despite a significant impact from COVID-19 pandemic on our revenue,” 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, risks related to the COVID-19 pandemic, risks and uncertainties related to future dividend payments and stock repurchases, 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 as updated in our Quarterly Reports on Form 10-Q for the quarters ended June 30 and September 30, 2020, and other reports filed with the SEC.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

 
 Quarter Ended Sept. 30
2020 2019
Revenue
Product sales$4,159,173  $6,187,708 
Contract research and development221,612  314,237 
Total revenue 4,380,785   6,501,945 
Cost of sales941,287  1,346,098 
Gross profit 3,439,498   5,155,847 
Expenses
Research and development 815,965   926,596 
Selling, general, and administrative358,182  368,450 
Total expenses1,174,147  1,295,046 
Income from operations 2,265,351   3,860,801 
Interest income401,392  456,309 
Income before taxes 2,666,743   4,317,110 
Provision for income taxes444,403  495,048 
Net income$2,222,340  $3,822,062 
Net income per share – basic$0.46  $0.79 
Net income per share – diluted$0.46  $0.79 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding
Basic 4,834,709   4,846,010 
Diluted 4,834,809   4,847,881 

 
 

 Six Months Ended Sept. 30
2020 2019
Revenue
Product sales$8,517,808  $12,273,072 
Contract research and development452,239  523,569 
Total revenue 8,970,047   12,796,641 
Cost of sales1,777,709  2,438,135 
Gross profit 7,192,338   10,358,506 
Expenses
Research and development 1,696,948   1,899,663 
Selling, general, and administrative713,193  698,459 
Total expenses2,410,141  2,598,122 
Income from operations 4,782,197   7,760,384 
Interest income800,604  915,348 
Income before taxes 5,582,801   8,675,732 
Provision for income taxes948,596  1,246,251 
Net income$4,634,205  $7,429,481 
Net income per share – basic$0.96  $1.53 
Net income per share – diluted$0.96  $1.53 
Cash dividends declared per common share$2.00  $2.00 
Weighted average shares outstanding
Basic 4,834,872   4,846,010 
Diluted 4,834,986   4,849,357 

 
 

NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2020
 (Unaudited)
Sept. 30, 2020
 March 31, 2020
ASSETS
Current assets
Cash and cash equivalents$3,845,070  $8,065,594 
Marketable securities, short-term 23,231,981   19,084,814 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,922,076   2,694,018 
Inventories 3,928,524   3,884,450 
Prepaid expenses and other assets610,635  655,835 
Total current assets 33,538,286   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 10,648,191  10,494,840 
Net fixed assets 429,116   582,467 
Deferred tax assets-  108,119 
Marketable securities, long-term40,777,322  43,606,495 
Right-of-use asset – operating lease752,861  816,358 
Total assets$75,497,585  $79,498,150 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$154,566  $186,993 
Accrued payroll and other424,957  482,074 
Operating lease113,666  127,134 
Total current liabilities 693,189   796,201 
Deferred tax liabilities 141,990   - 
Operating lease644,987  706,600 
Total liabilities1,480,166  1,502,801 
 
Shareholders’ equity
Common stock 48,332   48,350 
Additional paid-in capital 19,329,577   19,383,956 
Accumulated other comprehensive income 1,628,861   516,523 
Retained earnings53,010,649  58,046,520 
Total shareholders’ equity74,017,419  77,995,349 
Total liabilities and shareholders’ equity$75,497,585  $79,498,150 


 

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