EDEN PRAIRIE, Minn., July 17, 2019 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2019.

Total revenue for the first quarter of fiscal 2020 decreased 11% to $6.29 million from $7.11 million in the prior-year quarter. The decrease was due to a 11% decrease in product sales and a 12% decrease in contract research and development revenue. Product sales decreased to $6.09 million from $6.87 million in the prior-year quarter. Net income for the first quarter of fiscal 2020 decreased 9% to $3.61 million, or $0.74 per diluted share, compared to $3.95 million, or $0.81 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 30, 2019 to shareholders of record as of July 29, 2019.

“We are pleased to report sequential revenue and net income growth, and we launched important new products the past quarter,” 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 changes in tariffs and other trade barriers, 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, 2019 and other reports filed with the SEC.


QUARTERS ENDED JUNE 30, 2019 AND 2018 (Unaudited)

 Quarter Ended June 30
2019 2018
Product sales$6,085,364  $6,870,646 
Contract research and development209,332  237,260 
Total revenue 6,294,696   7,107,906 
Cost of sales1,092,037  1,396,005 
Gross profit 5,202,659   5,711,901 
Research and development 973,067   989,026 
Selling, general, and administrative330,009  328,761 
Total expenses1,303,076  1,317,787 
Income from operations 3,899,583   4,394,114 
Interest income459,039  424,770 
Income before taxes 4,358,622   4,818,884 
Provision for income taxes751,203  873,835 
Net income$3,607,419  $3,945,049 
Net income per share – basic$0.74  $0.81 
Net income per share – diluted$0.74  $0.81 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding
Basic 4,846,010   4,842,010 
Diluted 4,850,388   4,850,479 


JUNE 30 AND MARCH 31, 2019
June 30, 2019
 March 31, 2019
Current assets
Cash and cash equivalents$13,039,292  $6,877,304 
Marketable securities, short-term 2,999,689   12,487,821 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,746,683   2,995,638 
Inventories 4,219,783   4,264,876 
Prepaid expenses and other assets646,917  816,045 
Total current assets 23,652,364   27,441,684 
Fixed assets
Machinery and equipment  9,381,906   9,365,806 
Leasehold improvements1,787,269  1,787,269 
  11,169,175   11,153,075 
Less accumulated depreciation and amortization 10,348,140  10,258,240 
Net fixed assets 821,035   894,835 
Deferred tax assets194,735  353,735 
Marketable securities, long-term58,612,189  54,925,633 
Right-of-use asset – operating lease225,373  - 
Total assets$83,505,696  $83,615,887 
Current liabilities
Accounts payable$237,718  $375,188 
Accrued payroll and other455,814  460,488 
Income taxes payable442,493  - 
Operating lease172,796  - 
Total current liabilities 1,308,821   835,676 
Operating lease85,192  - 
Total liabilities1,394,013  835,676 
Shareholders’ equity
Common stock 48,460   48,460 
Additional paid-in capital 19,910,558   19,910,558 
Accumulated other comprehensive income (loss) 487,338   (82,725)
Retained earnings61,665,327  62,903,918 
Total shareholders’ equity82,111,683  82,780,211 
Total liabilities and shareholders’ equity$83,505,696  $83,615,887 


Curt Reynders (Chief Financial Officer) 952-829-9217