NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

Eden Prairie, Minnesota, UNITED STATES


EDEN PRAIRIE, Minn., Jan. 20, 2021 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2020.

Total revenue for the third quarter of fiscal 2021 increased 1% to $6.53 million from $6.46 million for the the prior-year quarter. The increase was due to a 3% increase in product sales, partially offset by a 34% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2021 increased 5% to $3.93 million, or $0.81 per diluted share, compared to $3.73 million, or $0.77 per share, for the prior-year quarter.

For the first nine months of fiscal 2021, total revenue decreased 20% to $15.5 million from $19.3 million for the first nine months of the prior year. The decrease was due to a 19% decrease in product sales and a 21% decrease in contract research and development revenue. Net income decreased 23% to $8.56 million, or $1.77 per diluted share, compared to $11.2 million, or $2.30 per share, for the first nine months of fiscal 2020.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 26, 2021 to shareholders of record as of February 1, 2021.

“We are pleased to report growth in product sales, total revenue, and net income despite the impact of the COVID-19 pandemic,” 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 as updated in our Quarterly Reports on Form 10-Q for the quarters ended June 30, September 30, December 31, 2020 and other reports filed with the SEC.


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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2020 AND 2019 (Unaudited)

 
 Quarter Ended Dec. 31
2020 2019
Revenue
Product sales$6,332,349  $6,160,967 
Contract research and development201,013  303,629 
Total revenue 6,533,362   6,464,596 
Cost of sales1,075,048  1,263,806 
Gross profit 5,458,314   5,200,790 
Expenses
Research and development 702,216   771,468 
Selling, general, and administrative311,356  327,989 
Total expenses1,013,572  1,099,457 
Income from operations 4,444,742   4,101,333 
Interest income365,498  443,478 
Income before taxes 4,810,240   4,544,811 
Provision for income taxes884,531  814,147 
Net income$3,925,709  $3,730,664 
Net income per share – basic$0.81  $0.77 
Net income per share – diluted$0.81  $0.77 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding
Basic 4,833,232   4,846,010 
Diluted 4,833,261   4,847,436 

 
 

 Nine Months Ended Dec. 31
2020 2019
Revenue
Product sales$14,850,157  $18,434,039 
Contract research and development653,252  827,198 
Total revenue 15,503,409   19,261,237 
Cost of sales2,852,757  3,701,941 
Gross profit 12,650,652   15,559,296 
Expenses
Research and development 2,399,164   2,671,131 
Selling, general, and administrative1,024,549  1,026,448 
Total expenses3,423,713  3,697,579 
Income from operations 9,226,939   11,861,717 
Interest income1,166,102  1,358,826 
Income before taxes 10,393,041   13,220,543 
Provision for income taxes1,833,127  2,060,398 
Net income$8,559,914  $11,160,145 
Net income per share – basic$1.77  $2.30 
Net income per share – diluted$1.77  $2.30 
Cash dividends declared per common share$3.00  $3.00 
Weighted average shares outstanding
Basic 4,834,324   4,846,010 
Diluted 4,834,411   4,848,506 

 
 

NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2020
 
 (Unaudited)
Dec. 31, 2020
 March 31, 2020
ASSETS
Current assets
Cash and cash equivalents$13,988,308  $8,065,594 
Marketable securities, short-term 11,115,094   19,084,814 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,161,308   2,694,018 
Inventories 3,842,477   3,884,450 
Prepaid expenses and other assets570,018  655,835 
Total current assets 32,677,205   34,384,711 
Fixed assets
Machinery and equipment  9,280,062   9,280,062 
Leasehold improvements1,810,872  1,797,245 
  11,090,934   11,077,307 
Less accumulated depreciation and amortization 10,724,866  10,494,840 
Net fixed assets 366,068   582,467 
Deferred tax assets-  108,119 
Marketable securities, long-term40,656,967  43,606,495 
Right-of-use asset – operating lease720,618  816,358 
Total assets$74,420,858  $79,498,150 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$136,673  $186,993 
Accrued payroll and other505,428  482,074 
Operating lease106,843  127,134 
Total current liabilities 748,944   796,201 
Deferred tax liabilities 89,420   - 
Operating lease613,775  706,600 
Total liabilities1,452,139  1,502,801 
 
Shareholders’ equity
Common stock 48,332   48,350 
Additional paid-in capital 19,333,852   19,383,956 
Accumulated other comprehensive income 1,483,409   516,523 
Retained earnings52,103,126  58,046,520 
Total shareholders’ equity72,968,719  77,995,349 
Total liabilities and shareholders’ equity$74,420,858  $79,498,150 

 

 

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