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 development | 221,612 | 314,237 | |||||
| Total revenue | 4,380,785 | 6,501,945 | |||||
| Cost of sales | 941,287 | 1,346,098 | |||||
| Gross profit | 3,439,498 | 5,155,847 | |||||
| Expenses | |||||||
| Research and development | 815,965 | 926,596 | |||||
| Selling, general, and administrative | 358,182 | 368,450 | |||||
| Total expenses | 1,174,147 | 1,295,046 | |||||
| Income from operations | 2,265,351 | 3,860,801 | |||||
| Interest income | 401,392 | 456,309 | |||||
| Income before taxes | 2,666,743 | 4,317,110 | |||||
| Provision for income taxes | 444,403 | 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 development | 452,239 | 523,569 | |||||
| Total revenue | 8,970,047 | 12,796,641 | |||||
| Cost of sales | 1,777,709 | 2,438,135 | |||||
| Gross profit | 7,192,338 | 10,358,506 | |||||
| Expenses | |||||||
| Research and development | 1,696,948 | 1,899,663 | |||||
| Selling, general, and administrative | 713,193 | 698,459 | |||||
| Total expenses | 2,410,141 | 2,598,122 | |||||
| Income from operations | 4,782,197 | 7,760,384 | |||||
| Interest income | 800,604 | 915,348 | |||||
| Income before taxes | 5,582,801 | 8,675,732 | |||||
| Provision for income taxes | 948,596 | 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 assets | 610,635 | 655,835 | |||||
| Total current assets | 33,538,286 | 34,384,711 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 9,280,062 | 9,280,062 | |||||
| Leasehold improvements | 1,797,245 | 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-term | 40,777,322 | 43,606,495 | |||||
| Right-of-use asset – operating lease | 752,861 | 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 other | 424,957 | 482,074 | |||||
| Operating lease | 113,666 | 127,134 | |||||
| Total current liabilities | 693,189 | 796,201 | |||||
| Deferred tax liabilities | 141,990 | - | |||||
| Operating lease | 644,987 | 706,600 | |||||
| Total liabilities | 1,480,166 | 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 earnings | 53,010,649 | 58,046,520 | |||||
| Total shareholders’ equity | 74,017,419 | 77,995,349 | |||||
| Total liabilities and shareholders’ equity | $ | 75,497,585 | $ | 79,498,150 | |||