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 development | 201,013 | 303,629 | |||||
| Total revenue | 6,533,362 | 6,464,596 | |||||
| Cost of sales | 1,075,048 | 1,263,806 | |||||
| Gross profit | 5,458,314 | 5,200,790 | |||||
| Expenses | |||||||
| Research and development | 702,216 | 771,468 | |||||
| Selling, general, and administrative | 311,356 | 327,989 | |||||
| Total expenses | 1,013,572 | 1,099,457 | |||||
| Income from operations | 4,444,742 | 4,101,333 | |||||
| Interest income | 365,498 | 443,478 | |||||
| Income before taxes | 4,810,240 | 4,544,811 | |||||
| Provision for income taxes | 884,531 | 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 development | 653,252 | 827,198 | |||||
| Total revenue | 15,503,409 | 19,261,237 | |||||
| Cost of sales | 2,852,757 | 3,701,941 | |||||
| Gross profit | 12,650,652 | 15,559,296 | |||||
| Expenses | |||||||
| Research and development | 2,399,164 | 2,671,131 | |||||
| Selling, general, and administrative | 1,024,549 | 1,026,448 | |||||
| Total expenses | 3,423,713 | 3,697,579 | |||||
| Income from operations | 9,226,939 | 11,861,717 | |||||
| Interest income | 1,166,102 | 1,358,826 | |||||
| Income before taxes | 10,393,041 | 13,220,543 | |||||
| Provision for income taxes | 1,833,127 | 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 assets | 570,018 | 655,835 | |||||
| Total current assets | 32,677,205 | 34,384,711 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 9,280,062 | 9,280,062 | |||||
| Leasehold improvements | 1,810,872 | 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-term | 40,656,967 | 43,606,495 | |||||
| Right-of-use asset – operating lease | 720,618 | 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 other | 505,428 | 482,074 | |||||
| Operating lease | 106,843 | 127,134 | |||||
| Total current liabilities | 748,944 | 796,201 | |||||
| Deferred tax liabilities | 89,420 | - | |||||
| Operating lease | 613,775 | 706,600 | |||||
| Total liabilities | 1,452,139 | 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 earnings | 52,103,126 | 58,046,520 | |||||
| Total shareholders’ equity | 72,968,719 | 77,995,349 | |||||
| Total liabilities and shareholders’ equity | $ | 74,420,858 | $ | 79,498,150 | |||