 |
EARNINGS REPORT |
NVE Corporation Reports Third Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 17, 2024—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter and nine months ended December 31,
2023.
Total revenue for the third quarter of fiscal 2024 decreased 9% to $6.76 million
from $7.40 million for the prior-year quarter. The decrease was due to a
12% decrease in product sales, partially offset by a 94% increase in contract
research and development revenue. Net income for the third quarter of fiscal 2024
decreased 1% to $4.18 million, or $0.87 per diluted share, compared to
$4.23 million, or $0.88 per share, for the prior-year quarter.
For the first nine months of fiscal 2024, total revenue decreased 11% to
$22.7 million from $25.5 million for the first nine months of the prior year.
The decrease was due to an 11% decrease in product sales and a 20% decrease in contract research
and development revenue. Net income decreased 8% to $13.3 million, or $2.75 per
diluted share, from $14.5 million, or $2.99 per share, for the first nine months
of fiscal 2023.
The company also announced a quarterly cash dividend to shareholders of $1.00 per
share of common stock, payable February 28, 2024, to shareholders of record
as of January 29, 2024.
“We are pleased to report solid earnings for the quarter and nine months
despite a decrease in defense-related product sales and a semiconductor industry
downturn,” 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 of credit losses, risks and uncertainties
related to future 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, as updated in our Quarterly Reports
on Form 10-Q for the quarters ended December 31 and June 30, 2023.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED DECEMBER 31, 2023 AND 2022
(unaudited)
|
| |
Quarter Ended December 31, |
| |
2023 |
|
2022 |
| Revenue |
|
Product sales |
$ |
6,366,009 |
|
|
$ |
7,200,385 |
|
|
Contract research and development |
|
390,251 |
|
|
|
201,293 |
|
| Total revenue |
|
6,756,260 |
|
|
|
7,401,678 |
|
| Cost of sales |
|
1,355,067 |
|
|
|
1,478,372 |
|
| Gross profit |
|
5,401,193 |
|
|
|
5,923,306 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development |
|
540,895 |
|
|
|
700,609 |
|
|
Selling, general, and administrative |
|
389,311 |
|
|
|
403,449 |
|
| Total expenses |
|
930,206 |
|
|
|
1,104,058 |
|
| |
|
|
|
|
|
|
|
| Income from operations |
|
4,470,987 |
|
|
|
4,819,248 |
|
| Interest income |
|
491,671 |
|
|
|
406,092 |
|
| Income before taxes |
|
4,962,658 |
|
|
|
5,225,340 |
|
| Provision for income taxes |
|
778,236 |
|
|
|
994,016 |
|
| Net income |
$ |
4,184,422 |
|
|
$ |
4,231,324 |
|
| Net income per share – basic |
$ |
0.87 |
|
|
$ |
0.88 |
|
| Net income per share – diluted |
$ |
0.87 |
|
|
$ |
0.88 |
|
| Cash dividends declared per common share |
$ |
1.00 |
|
|
$ |
1.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
4,833,401 |
|
|
|
4,830,826 |
|
|
Diluted |
|
4,837,230 |
|
|
|
4,832,368 |
|
NVE CORPORATION
STATEMENTS OF INCOME
NINE MONTHS ENDED DECEMBER 31, 2023 AND 2022
(unaudited)
|
| |
Nine Months Ended December 31, |
| |
2023 |
|
2022 |
| Revenue |
|
Product sales |
$ |
22,183,223 |
|
|
$ |
24,787,885 |
|
|
Contract research and development |
|
537,727 |
|
|
|
668,024 |
|
| Total revenue |
|
22,720,950 |
|
|
|
25,455,909 |
|
| Cost of sales |
|
5,034,556 |
|
|
|
5,533,000 |
|
| Gross profit |
|
17,686,394 |
|
|
|
19,922,909 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development |
|
1,920,095 |
|
|
|
1,972,505 |
|
|
Selling, general, and administrative |
|
1,298,211 |
|
|
|
1,210,395 |
|
|
Credit loss expense |
|
9,514 |
|
|
|
- |
|
| Total expenses |
|
3,227,820 |
|
|
|
3,182,900 |
|
| |
|
|
|
|
|
|
|
| Income from operations |
|
14,458,574 |
|
|
|
16,740,009 |
|
| Interest income |
|
1,440,289 |
|
|
|
1,040,528 |
|
| Income before taxes |
|
15,898,863 |
|
|
|
17,780,537 |
|
| Provision for income taxes |
|
2,587,145 |
|
|
|
3,318,723 |
|
| Net income |
$ |
13,311,718 |
|
|
$ |
14,461,814 |
|
| Net income per share – basic |
$ |
2.75 |
|
|
$ |
2.99 |
|
| Net income per share – diluted |
$ |
2.75 |
|
|
$ |
2.99 |
|
| Cash dividends declared per common share |
$ |
3.00 |
|
|
$ |
3.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
4,832,992 |
|
|
|
4,830,826 |
|
|
Diluted |
|
4,839,725 |
|
|
|
4,831,168 |
|
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2023 |
| |
(unaudited) |
|
|
| |
December 31, 2023 |
|
March 31, 2023 |
| ASSETS |
|
Current assets |
|
Cash and cash equivalents |
$ |
4,684,910 |
|
|
$ |
1,669,896 |
|
|
Marketable securities, short-term
(amortized cost of $14,556,450 as of December 31, 2023, and $15,696,135 as of March 31, 2023) |
|
14,335,619 |
|
|
|
15,513,095 |
|
|
Accounts receivable, net of allowance for credit
losses of $15,000 |
|
2,245,728 |
|
|
|
6,523,344 |
|
|
Inventories |
|
7,349,811 |
|
|
|
6,417,010 |
|
|
Prepaid expenses and other assets |
|
597,305 |
|
|
|
663,459 |
|
| Total current assets |
|
29,213,373 |
|
|
|
30,786,804 |
|
| Fixed assets |
|
|
|
|
|
|
|
|
Machinery and equipment |
|
10,501,096 |
|
|
|
10,484,365 |
|
|
Leasehold improvements |
|
1,956,309 |
|
|
|
1,956,309 |
|
| |
|
12,457,405 |
|
|
|
12,440,674 |
|
|
Less accumulated depreciation and amortization |
|
11,326,985 |
|
|
|
11,095,236 |
|
| Net fixed assets |
|
1,130,420 |
|
|
|
1,345,438 |
|
| Deferred tax assets |
|
1,290,284 |
|
|
|
572,038 |
|
Marketable securities, long-term
(amortized cost of $36,414,391
as of December 31, 2023, and $37,495,846 as of March 31, 2023) |
|
35,670,914 |
|
|
|
36,125,047 |
|
| Right-of-use asset – operating lease |
|
324,451 |
|
|
|
425,843 |
|
| Total assets |
$ |
67,629,442 |
|
|
$ |
69,255,170 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable |
$ |
170,701 |
|
|
$ |
281,712 |
|
|
Accrued payroll and other |
|
460,414 |
|
|
|
1,375,250 |
|
|
Operating lease |
|
178,490 |
|
|
|
175,798 |
|
| Total current liabilities |
|
809,605 |
|
|
|
1,832,760 |
|
| Operating lease |
|
218,785 |
|
|
|
342,908 |
|
| Total liabilities |
|
1,028,390 |
|
|
|
2,175,668 |
|
| |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 6,000,000 shares
authorized; 4,833,401 issued
and outstanding as of December 31, 2023, and 4,830,826 as of
March 31, 2023 |
|
48,334 |
|
|
|
48,308 |
|
|
Additional paid-in capital |
|
19,542,335 |
|
|
|
19,295,442 |
|
|
Accumulated other comprehensive income |
|
(753,317 |
) |
|
|
(1,213,858 |
) |
|
Retained earnings |
|
47,763,700 |
|
|
|
48,949,610 |
|
| Total shareholders’ equity |
|
66,601,052 |
|
|
|
67,079,502 |
|
| Total liabilities and shareholders’ equity |
$ |
67,629,442 |
|
|
$ |
69,255,170 |
|
|
