 |
EARNINGS REPORT |
NVE Corporation Reports Third Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 22, 2020—NVE Corporation
(Nasdaq: NVEC) announced today financial results for the quarter and nine months
ended December 31, 2019.
Total revenue for the third quarter of fiscal 2020 increased 3% to $6.46 million
from $6.27 million in the prior-year quarter. The increase was due to a 3%
increase in product sales and a 9% increase in contract research and development
revenue. Product sales increased to $6.16 million from $5.99 million
in the prior-year quarter. Net income for the third quarter of fiscal 2020 increased
9% to $3.73 million, or $0.77 per diluted share, compared to $3.42 million,
or $0.71 per share, for the prior-year quarter.
For the first nine months of fiscal 2020, total revenue decreased 8% to $19.3 million
from $20.9 million for the first nine months of the prior year. The decrease
was due to a 7% decrease in product sales and a 14% decrease in contract research
and development revenue. Net income decreased 4% to $11.2 million, or $2.30 per
diluted share, compared to $11.6 million, or $2.40 per diluted share,
for the first nine months of fiscal 2019.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable February 28, 2020 to shareholders of record
as of February 3, 2020.
“We are pleased to report solid growth in revenue and net income for
the 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, uncertainties related to the impacts of the
Federal Tax Reform Act enacted in 2017, 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.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED DECEMBER 31, 2019 AND 2018 (Unaudited)
|
|
Quarter Ended Dec. 31 |
| 2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
6,160,967 |
|
|
$ |
5,991,241 |
|
|
Contract research and development
|
303,629 |
|
|
278,164 |
|
| Total revenue |
|
6,464,596 |
|
|
|
6,269,405 |
|
| Cost of sales |
1,263,806 |
|
|
1,169,406 |
|
| Gross profit |
|
5,200,790 |
|
|
|
5,099,999 |
|
| Expenses |
|
Research and development
|
|
771,468 |
|
|
|
1,126,975 |
|
|
Selling, general, and administrative
|
327,989 |
|
|
268,905 |
|
| Total expenses |
1,099,457 |
|
|
1,395,880 |
|
| Income from operations |
|
4,101,333 |
|
|
|
3,704,119 |
|
| Interest income |
443,478 |
|
|
457,204 |
|
| Income before taxes |
|
4,544,811 |
|
|
|
4,161,323 |
|
| Provision for income taxes |
814,147 |
|
|
739,918 |
|
| Net income |
$ |
3,730,664 |
|
|
$ |
3,421,405 |
|
| Net income per share – basic |
$ |
0.77 |
|
|
$ |
0.71 |
|
| Net income per share – diluted |
$ |
0.77 |
|
|
$ |
0.71 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,846,010 |
|
|
|
4,845,010 |
|
|
Diluted
|
|
4,847,436 |
|
|
|
4,850,507 |
|
NVE CORPORATION
STATEMENTS OF INCOME
NINE MONTHS ENDED DECEMBER 31, 2019 AND 2018 (Unaudited)
|
|
Nine Months Ended Dec. 31 |
| 2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
18,434,039 |
|
|
$ |
19,916,864 |
|
|
Contract research and development
|
827,198 |
|
|
966,522 |
|
| Total revenue |
|
19,261,237 |
|
|
|
20,883,386 |
|
| Cost of sales |
3,701,941 |
|
|
3,918,256 |
|
| Gross profit |
|
15,559,296 |
|
|
|
16,965,130 |
|
| Expenses |
|
Research and development
|
|
2,671,131 |
|
|
|
3,087,964 |
|
|
Selling, general, and administrative
|
1,026,448 |
|
|
975,114 |
|
| Total expenses |
3,697,579 |
|
|
4,063,078 |
|
| Income from operations |
|
11,861,717 |
|
|
|
12,902,052 |
|
| Interest income |
1,358,826 |
|
|
1,325,299 |
|
| Income before taxes |
|
13,220,543 |
|
|
|
14,227,351 |
|
| Provision for income taxes |
2,060,398 |
|
|
2,578,287 |
|
| Net income |
$ |
11,160,145 |
|
|
$ |
11,649,064 |
|
| Net income per share – basic |
$ |
2.30 |
|
|
$ |
2.41 |
|
| Net income per share – diluted |
$ |
2.30 |
|
|
$ |
2.40 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,846,010 |
|
|
|
4,843,355 |
|
|
Diluted
|
|
4,848,506 |
|
|
|
4,850,120 |
|
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2019
|
|
(Unaudited)
Dec. 31, 2019 |
|
March
31, 2019 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
10,153,173 |
|
|
$ |
6,877,304 |
|
|
Marketable securities, short-term
|
|
12,055,363 |
|
|
|
12,487,821 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
2,119,037 |
|
|
|
2,995,638 |
|
|
Inventories
|
|
4,159,742 |
|
|
|
4,264,876 |
|
|
Prepaid expenses and other assets
|
845,194 |
|
|
816,045 |
|
| Total current assets |
|
29,332,509 |
|
|
|
27,441,684 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,381,906 |
|
|
|
9,365,806 |
|
|
Leasehold improvements
|
1,797,245 |
|
|
1,787,269 |
|
|
|
11,179,151 |
|
|
|
11,153,075 |
|
|
Less accumulated depreciation and amortization
|
10,529,317 |
|
|
10,258,240 |
|
| Net fixed assets |
|
649,834 |
|
|
|
894,835 |
|
| Deferred tax assets |
63,467 |
|
|
353,735 |
|
| Marketable securities, long-term |
50,920,291 |
|
|
54,925,633 |
|
| Right-of-use asset – operating lease |
151,749 |
|
|
- |
|
| Total assets |
$ |
81,117,850 |
|
|
$ |
83,615,887 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
153,470 |
|
|
$ |
375,188 |
|
|
Accrued payroll and other
|
558,762 |
|
|
460,488 |
|
|
Operating lease
|
174,916 |
|
|
- |
|
| Total current liabilities |
|
887,148 |
|
|
|
835,676 |
|
|
|
|
|
|
|
|
|
| Shareholders’ equity |
|
Common stock
|
|
48,460 |
|
|
|
48,460 |
|
|
Additional paid-in capital
|
|
19,958,918 |
|
|
|
19,910,558 |
|
|
Accumulated other comprehensive income (loss)
|
|
697,291 |
|
|
|
(82,725 |
) |
|
Retained earnings
|
59,526,033 |
|
|
62,903,918 |
|
| Total shareholders’ equity |
80,230,702 |
|
|
82,780,211 |
|
| Total liabilities and shareholders’ equity |
$ |
81,117,850 |
|
|
$ |
83,615,887 |
|
|
