EDEN PRAIRIE, Minn., May 03, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2023.
Total revenue for the fourth quarter of fiscal 2023 increased 91% to $12.8 million from $6.72 million for the prior-year quarter. The increase was due to a 95% increase in product sales and a 10% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2023 increased 116% to $8.23 million, or $1.70 per diluted share, compared to $3.82 million, or $0.79 per share, for the prior-year quarter.
For fiscal 2023, total revenue increased 42% to $38.3 million, compared to $27 million in the prior year. The increase was due to a 44% increase in product sales, partially offset by a 6% decrease in contract research and development revenue. Net income for the year increased 56% from the prior year to a record $22.7 million, or $4.70 per diluted share, from $14.5 million, or $3.00 per share, for fiscal 2022.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2023 to shareholders of record as of May 15, 2023.
“We are pleased to report record revenue and earnings for the quarter and fiscal year,” 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 our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues, risks and uncertainties related to future stock repurchases and dividend payments, 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, 2023.
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| NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2023 AND 2022 | |||||||
| Quarter Ended March 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue | |||||||
| Product sales | $ | 12,408,832 | $ | 6,367,082 | |||
| Contract research and development | 388,851 | 352,455 | |||||
| Total revenue | 12,797,683 | 6,719,537 | |||||
| Cost of sales | 2,529,311 | 1,564,370 | |||||
| Gross profit | 10,268,372 | 5,155,167 | |||||
| Expenses | |||||||
| Research and development | 611,489 | 813,244 | |||||
| Selling, general, and administrative | 752,710 | 247,428 | |||||
| Total expenses | 1,364,199 | 1,060,672 | |||||
| Income from operations | 8,904,173 | 4,094,495 | |||||
| Interest income | 408,127 | 302,609 | |||||
| Income before taxes | 9,312,300 | 4,397,104 | |||||
| Provision for income taxes | 1,079,656 | 581,084 | |||||
| Net income | $ | 8,232,644 | $ | 3,816,020 | |||
| Net income per share – basic | $ | 1.70 | $ | 0.79 | |||
| Net income per share – diluted | $ | 1.70 | $ | 0.79 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,830,826 | 4,832,630 | |||||
| Diluted | 4,836,365 | 4,833,253 | |||||
| | |||||||
| Year Ended March 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue | |||||||
| Product sales | $ | 37,196,717 | $ | 25,867,649 | |||
| Contract research and development | 1,056,875 | 1,119,321 | |||||
| Total revenue | 38,253,592 | 26,986,970 | |||||
| Cost of sales | 8,062,311 | 6,263,090 | |||||
| Gross profit | 30,191,281 | 20,723,880 | |||||
| Expenses | |||||||
| Research and development | 2,583,994 | 2,925,874 | |||||
| Selling, general, and administrative | 1,963,105 | 1,469,321 | |||||
| Total expenses | 4,547,099 | 4,395,195 | |||||
| Income from operations | 25,644,182 | 16,328,685 | |||||
| Interest income | 1,448,655 | 1,171,128 | |||||
| Income before taxes | 27,092,837 | 17,499,813 | |||||
| Provision for income taxes | 4,398,379 | 2,992,312 | |||||
| Net income | $ | 22,694,458 | $ | 14,507,501 | |||
| Net income per share – basic | $ | 4.70 | $ | 3.00 | |||
| Net income per share – diluted | $ | 4.70 | $ | 3.00 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,830,826 | 4,833,661 | |||||
| Diluted | 4,832,096 | 4,835,639 | |||||
| NVE CORPORATION BALANCE SHEETS MARCH 31, 2023 AND 2022 | |||||||
| March 31, 2023 | March 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 1,669,896 | $ | 10,449,510 | |||
| Marketable securities, short-term | 15,513,095 | 20,839,683 | |||||
| Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 6,523,344 | 4,704,829 | |||||
| Inventories | 6,417,010 | 5,088,635 | |||||
| Prepaid expenses and other assets | 663,459 | 420,520 | |||||
| Total current assets | 30,786,804 | 41,503,177 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 10,484,365 | 9,739,244 | |||||
| Leasehold improvements | 1,956,309 | 1,810,872 | |||||
| 12,440,674 | 11,550,116 | ||||||
| Less accumulated depreciation and amortization | 11,095,236 | 10,943,731 | |||||
| Net fixed assets | 1,345,438 | 606,385 | |||||
| Deferred tax assets | 572,038 | 483,469 | |||||
| Marketable securities, long-term | 36,125,047 | 24,314,211 | |||||
| Right-of-use asset – operating lease | 425,843 | 560,250 | |||||
| Total assets | $ | 69,255,170 | $ | 67,467,492 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 281,712 | $ | 943,535 | |||
| Accrued payroll and other | 1,375,250 | 1,356,689 | |||||
| Operating lease | 175,798 | 156,121 | |||||
| Total current liabilities | 1,832,760 | 2,456,345 | |||||
| Operating lease | 342,908 | 446,018 | |||||
| Total liabilities | 2,175,668 | 2,902,363 | |||||
| Shareholders’ equity | |||||||
| Common stock | 48,308 | 48,308 | |||||
| Additional paid-in capital | 19,295,442 | 19,256,485 | |||||
| Accumulated other comprehensive income | (1,213,858 | ) | (318,120 | ) | |||
| Retained earnings | 48,949,610 | 45,578,456 | |||||
| Total shareholders’ equity | 67,079,502 | 64,565,129 | |||||
| Total liabilities and shareholders’ equity | $ | 69,255,170 | $ | 67,467,492 | |||
