 |
EARNINGS REPORT |
NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 22, 2025—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter ended December 31, 2024.
Total revenue for the third quarter of fiscal 2025 decreased 25% to $5.06 million
from $6.76 million for the prior-year quarter. The decrease was due to a 22% decrease
in product sales and a 74% decrease in contract research and development revenue.
Net income for the third quarter of fiscal 2025 decreased 27% to $3.05 million,
or $0.63 per diluted share, compared to $4.18 million, or $0.87 per share, for
the prior-year quarter.
For the first nine months of fiscal 2025, total revenue decreased 18% to $18.6 million
from $22.7 million for the first nine months of the prior year. The decrease
was due to a 20% decrease in product sales, partially offset by a 72% increase
in contract research and development revenue. Net income decreased 16% to $11.2 million,
or $2.31 per diluted share, from $13.3 million, or $2.75 per share, for
the first nine months of fiscal 2024.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable February 28, 2025, to shareholders of record
as of February 3, 2025.
“We are pleased to report solid earnings for the quarter and first nine months
of the fiscal year, despite challenging industry conditions,” 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
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, 2024.
###
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED DECEMBER 31, 2024 AND 2023
(unaudited)
|
| |
Quarter Ended Dec. 31, |
| |
2024 |
|
2023 |
| Revenue |
|
Product sales
|
$ |
4,960,488 |
|
|
$ |
6,366,009 |
|
|
Contract research and development
|
|
102,557 |
|
|
|
390,251 |
|
| Total revenue |
|
5,063,045 |
|
|
|
6,756,260 |
|
| Cost of sales |
|
797,622 |
|
|
|
1,355,067 |
|
| Gross profit |
|
4,265,423 |
|
|
|
5,401,193 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
869,677 |
|
|
|
540,895 |
|
|
Selling, general, and administrative
|
|
434,783 |
|
|
|
389,311 |
|
| Total expenses |
|
1,304,460 |
|
|
|
930,206 |
|
| Income from operations |
|
2,960,963 |
|
|
|
4,470,987 |
|
| Interest income |
|
474,180 |
|
|
|
491,671 |
|
| Other income |
|
135,057 |
|
|
|
- |
|
| Income before taxes |
|
3,570,200 |
|
|
|
4,962,658 |
|
| Provision for income taxes |
|
521,790 |
|
|
|
778,236 |
|
| Net income |
$ |
3,048,410 |
|
|
$ |
4,184,422 |
|
| Net income per share – basic |
$ |
0.63 |
|
|
$ |
0.87 |
|
| Net income per share – diluted |
$ |
0.63 |
|
|
$ |
0.87 |
|
| Cash dividends declared per common share |
$ |
1.00 |
|
|
$ |
1.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic
|
|
4,835,262 |
|
|
|
4,833,401 |
|
|
Diluted
|
|
4,839,124 |
|
|
|
4,837,230 |
|
|
NVE CORPORATION
STATEMENTS OF INCOME
NINE MONTHS ENDED DECEMBER 31, 2024 AND 2023
(unaudited)
|
| |
Nine Months Ended Dec. 31, |
| |
2024 |
|
2023 |
| Revenue |
|
Product sales
|
$ |
17,680,780 |
|
|
$ |
22,183,223 |
|
|
Contract research and development
|
|
924,199 |
|
|
|
537,727 |
|
| Total revenue |
|
18,604,979 |
|
|
|
22,720,950 |
|
| Cost of sales |
|
2,720,370 |
|
|
|
5,034,556 |
|
| Gross profit |
|
15,884,609 |
|
|
|
17,686,394 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
2,595,808 |
|
|
|
1,920,095 |
|
|
Selling, general, and administrative
|
|
1,543,428 |
|
|
|
1,298,211 |
|
|
Provision for credit losses
|
|
- |
|
|
|
9,514 |
|
| Total expenses |
|
4,139,236 |
|
|
|
3,227,820 |
|
| Income from operations |
|
11,745,373 |
|
|
|
14,458,574 |
|
| Interest income |
|
1,432,568 |
|
|
|
1,440,289 |
|
| Other income |
|
135,057 |
|
|
|
- |
|
| Income before taxes |
|
13,312,998 |
|
|
|
15,898,863 |
|
| Provision for income taxes |
|
2,140,856 |
|
|
|
2,587,145 |
|
| Net income |
$ |
11,172,142 |
|
|
$ |
13,311,718 |
|
| Net income per share – basic |
$ |
2.31 |
|
|
$ |
2.75 |
|
| Net income per share – diluted |
$ |
2.31 |
|
|
$ |
2.75 |
|
| Cash dividends declared per common share |
$ |
3.00 |
|
|
$ |
3.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic
|
|
4,834,382 |
|
|
|
4,832,992 |
|
|
Diluted
|
|
4,839,247 |
|
|
|
4,839,725 |
|
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2024
|
| |
Dec. 31,
2024 |
|
March 31,
2024 |
| ASSETS |
|
Current assets
|
|
Cash and cash equivalents
|
$ |
5,485,684 |
|
|
$ |
10,283,550 |
|
|
Marketable securities, short-term
(amortized cost of $14,993,163 as of December 31,
2024, and $12,283,630 as of March 31, 2024)
|
|
14,907,252 |
|
|
|
11,917,779 |
|
|
Accounts receivable, net of allowance for credit
losses of $15,000
|
|
1,355,064 |
|
|
|
3,144,833 |
|
|
Inventories
|
|
7,787,624 |
|
|
|
7,158,585 |
|
|
Prepaid expenses and other assets
|
|
736,481 |
|
|
|
689,349 |
|
| Total current assets |
|
30,272,105 |
|
|
|
33,194,096 |
|
| Fixed assets |
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
11,663,886 |
|
|
|
10,501,096 |
|
|
Leasehold improvements
|
|
1,956,309 |
|
|
|
1,956,309 |
|
| |
|
13,620,195 |
|
|
|
12,457,405 |
|
|
Less accumulated depreciation and amortization
|
|
11,645,199 |
|
|
|
11,403,383 |
|
| Net fixed assets |
|
1,974,996 |
|
|
|
1,054,022 |
|
| Deferred tax assets |
|
1,689,207 |
|
|
|
1,453,704 |
|
Marketable securities, long-term
(amortized cost of $29,996,231 as of December 31,
2024, and $31,417,890 as of March 31, 2024)
|
|
29,704,367 |
|
|
|
30,788,301 |
|
| Right-of-use asset – operating lease |
|
947,889 |
|
|
|
289,910 |
|
| Total assets |
$ |
64,588,564 |
|
|
$ |
66,780,033 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
154,683 |
|
|
$ |
127,154 |
|
|
Accrued payroll and other
|
|
511,589 |
|
|
|
729,215 |
|
|
Operating lease |
|
84,838 |
|
|
|
179,372 |
|
| Total current liabilities |
|
751,110 |
|
|
|
1,035,741 |
|
| Operating lease |
|
864,966 |
|
|
|
175,775 |
|
| Total liabilities |
|
1,616,076 |
|
|
|
1,211,516 |
|
| |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
|
|
|
|
|
Common stock
|
|
48,372 |
|
|
|
48,337 |
|
|
Additional paid-in capital
|
|
19,806,845 |
|
|
|
19,554,812 |
|
|
Accumulated other comprehensive income
|
|
(295,358 |
) |
|
|
(777,637 |
) |
|
Retained earnings
|
|
43,412,629 |
|
|
|
46,743,005 |
|
| Total shareholders’ equity |
|
62,972,488 |
|
|
|
65,568,517 |
|
| Total liabilities and shareholders’ equity |
$ |
64,588,564 |
|
|
$ |
66,780,033 |
|
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