NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

Eden Prairie, Minnesota, UNITED STATES

EDEN PRAIRIE, Minn, July 21, 2021 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2021.

Total revenue for the first quarter of fiscal 2022 increased 56% to $7.15 million from $4.59 million in the prior-year quarter. The increase was due to a 60% increase in product sales partially offset by a 14% decrease in contract research and development revenue. Product sales increased to $6.95 million from $4.36 million in the prior-year quarter. Net income for the first quarter of fiscal 2022 increased 48% to $3.58 million, or $0.74 per diluted share, compared to $2.41 million, or $0.50 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, 2021 to shareholders of record as of August 2, 2021.

“We are pleased to report large increases in product sales, total revenue, and earnings for the quarter as the effects of the COVID-19 pandemic on our revenue subsided,” 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, 2021 and other reports filed with the SEC.



QUARTERS ENDED JUNE 30, 2021 AND 2020 (Unaudited)

 Quarter Ended June 30
2021 2020
Product sales$6,953,766  $4,358,635 
Contract research and development199,397  230,627 
Total revenue 7,153,163   4,589,262 
Cost of sales1,769,581  836,422 
Gross profit 5,383,582   3,752,840 
Research and development 808,142   880,983 
Selling, general, and administrative466,618  355,011 
Total expenses1,274,760  1,235,994 
Income from operations 4,108,822   2,516,846 
Interest income289,720  399,212 
Income before taxes 4,398,542   2,916,058 
Provision for income taxes818,976  504,193 
Net income$3,579,566  $2,411,865 
Net income per share – basic$0.74  $0.50 
Net income per share – diluted$0.74  $0.50 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding
Basic 4,833,232   4,835,038 
Diluted 4,836,821   4,835,157 


JUNE 30 AND MARCH 31, 2021
June 30, 2021
 March 31, 2021
Current assets
Cash and cash equivalents$8,868,823  $10,427,340 
Marketable securities, short-term 17,061,711   7,678,957 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,319,838   1,964,281 
Inventories 3,670,026   3,900,777 
Prepaid expenses and other assets658,238  391,278 
Total current assets 33,578,636   24,362,633 
Fixed assets
Machinery and equipment  9,280,343   9,254,664 
Leasehold improvements1,810,872  1,810,872 
  11,091,215   11,065,536 
Less accumulated depreciation and amortization 10,791,821  10,728,853 
Net fixed assets 299,394   336,683 
Deferred tax assets101,660  73,538 
Marketable securities, long-term37,463,037  47,038,669 
Right-of-use asset – operating lease657,662  689,216 
Total assets$72,100,389  $72,500,739 
Current liabilities
Accounts payable$359,394  $336,591 
Accrued payroll and other651,194  540,474 
Income taxes payable834,483  - 
Operating lease151,110  150,273 
Total current liabilities 1,996,181   1,027,338 
Operating lease548,859  581,459 
Total liabilities2,545,040  1,608,797 
Shareholders’ equity
Common stock 48,332   48,332 
Additional paid-in capital 19,345,365   19,338,127 
Accumulated other comprehensive income 1,010,954   1,101,119 
Retained earnings49,150,698  50,404,364 
Total shareholders’ equity69,555,349  70,891,942 
Total liabilities and shareholders’ equity$72,100,389  $72,500,739 



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