NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

Eden Prairie, Minnesota, UNITED STATES


EDEN PRAIRIE, Minn., Oct. 20, 2021 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2021.

Total revenue for the second quarter of fiscal 2022 increased 56% to $6.82 million from $4.38 million in the prior-year quarter. The increase was due to a 59% increase in product sales partially offset by a 13% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2022 increased 64% to $3.65 million, or $0.75 per diluted share, compared to $2.22 million, or $0.46 per share, for the prior-year quarter.

For the first six months of fiscal 2022, total revenue increased 56% to $14.0 million from $8.97 million for the first six months of the prior year. The increase was due to a 59% increase in product sales partially offset by a 13% decrease in contract research and development revenue. Net income increased 56% to $7.23 million, or $1.49 per diluted share, from $4.63 million, or $0.96 per share, for the first half of fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2021 to shareholders of record as of November 1, 2021.

“We are pleased to report our second consecutive quarter of large year-over-year increases in product sales, total revenue, and earnings,” 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.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited)

 
 Quarter Ended Sept. 30
2021 2020
Revenue
Product sales$6,630,012  $4,159,173 
Contract research and development 193,450   221,612 
Total revenue 6,823,462   4,380,785 
Cost of sales 1,544,134   941,287 
Gross profit 5,279,328   3,439,498 
Expenses       
Research and development 707,997   815,965 
Selling, general, and administrative 483,116   358,182 
Total expenses 1,191,113   1,174,147 
Income from operations 4,088,215   2,265,351 
Interest income 294,858   401,392 
Income before taxes 4,383,073   2,666,743 
Provision for income taxes 736,566   444,403 
Net income$3,646,507  $2,222,340 
Net income per share – basic$0.75  $0.46 
Net income per share – diluted$0.75  $0.46 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding       
Basic 4,833,232   4,834,709 
Diluted 4,836,603   4,834,809 

 

NVE CORPORATION
STATEMENTS OF INCOME
SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited)

 
 Six Months  Ended Sept. 30
2021 2020
Revenue
Product sales$13,583,778  $8,517,808 
Contract research and development 392,847   452,239 
Total revenue 13,976,625   8,970,047 
Cost of sales 3,313,715   1,777,709 
Gross profit 10,662,910   7,192,338 
Expenses       
Research and development 1,516,139   1,696,948 
Selling, general, and administrative 949,734   713,193 
Total expenses 2,465,873   2,410,141 
Income from operations 8,197,037   4,782,197 
Interest income 584,578   800,604 
Income before taxes 8,781,615   5,582,801 
Provision for income taxes 1,555,542   948,596 
Net income$7,226,073  $4,634,205 
Net income per share – basic$1.50  $0.96 
Net income per share – diluted$1.49  $0.96 
Cash dividends declared per common share$2.00  $2.00 
Weighted average shares outstanding       
Basic 4,833,232   4,834,872 
Diluted 4,836,621   4,834,986 

 

NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2021
 
 
  (Unaudited) Sept. 30, 2021  March 31, 2021 
ASSETS        
Current assets        
Cash and cash equivalents $11,145,156  $10,427,340 
Marketable securities, short-term  22,660,959   7,678,957 
Accounts receivable, net of allowance for uncollectible accounts of $15,000  2,876,102   1,964,281 
Inventories  3,982,771   3,900,777 
Prepaid expenses and other assets  752,764   391,278 
Total current assets  41,417,752   24,362,633 
Fixed assets        
Machinery and equipment  9,328,581   9,254,664 
Leasehold improvements  1,810,872   1,810,872 
   11,139,453   11,065,536 
Less accumulated depreciation and amortization  10,855,501   10,728,853 
Net fixed assets  283,952   336,683 
Deferred tax assets  137,439   73,538 
Marketable securities, long-term  27,544,468   47,038,669 
Right-of-use asset – operating lease  625,829   689,216 
Total assets $70,009,440  $72,500,739 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities        
Accounts payable $411,218  $336,591 
Accrued payroll and other  701,705   540,474 
Operating lease  151,955   150,273 
Total current liabilities  1,264,878   1,027,338 
Operating lease  515,973   581,459 
Total liabilities  1,780,851   1,608,797 
         
Shareholders’ equity        
Common stock  48,332   48,332 
Additional paid-in capital  19,402,364   19,338,127 
Accumulated other comprehensive income  813,920   1,101,119 
Retained earnings  47,963,973   50,404,364 
Total shareholders’equity  68,228,589   70,891,942 
Total liabilities and shareholders’ equity $70,009,440  $72,500,739 

 

 

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