 |
EARNINGS REPORT |
NVE Corporation Reports Third Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 25, 2023—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter and nine months ended December 31,
2022.
Total revenue for the third quarter of fiscal 2023 increased 18% to $7.40 million from $6.29 million for the prior-year quarter. The increase was due to a 22% increase in product sales, partially offset by a 46% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2023 increased 22% to $4.23 million, or $0.88 per diluted share, compared to $3.47 million, or $0.72 per share, for the prior-year quarter.
For the first nine months of fiscal 2023, total revenue increased 26% to $25.5 million from $20.3 million for the first nine months of the prior year. The increase was due to a 27% increase in product sales, partially offset by a 13% decrease in contract research and development revenue. Net income increased 35% to $14.5 million, or $2.99 per diluted share, from $10.7 million, or $2.21 per share, for the first nine months of fiscal 2022.
The company also announced a quarterly cash dividend to shareholders of $1.00 per
share of common stock, payable February 28, 2023 to shareholders of record
as of January 30, 2023.
“We are pleased to report strong revenue and earnings growth for the quarter
and nine months,” 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, our dependence on critical
suppliers and packaging vendors, and risks related to supply-chain disruptions,
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, 2022
as updated in our Quarterly Report for the Quarter ended December 31, 2022.
###
NVE
CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021 (Unaudited)
|
| |
Quarter
Ended December 31, |
| |
2022 |
|
2021 |
| Revenue |
| Product sales |
$ |
7,200,385 |
|
|
$ |
5,916,790 |
|
| Contract research and development |
|
201,293 |
|
|
|
374,019 |
|
| Total revenue |
|
7,401,678 |
|
|
|
6,290,809 |
|
| Cost of sales |
|
1,478,372 |
|
|
|
1,385,006 |
|
| Gross profit |
|
5,923,306 |
|
|
|
4,905,803 |
|
| Expenses |
|
|
|
|
|
|
|
| Research and development |
|
700,609 |
|
|
|
596,492 |
|
| Selling, general, and administrative |
|
403,449 |
|
|
|
272,159 |
|
| Total expenses |
|
1,104,058 |
|
|
|
868,651 |
|
| Income from operations |
|
4,819,248 |
|
|
|
4,037,152 |
|
| Interest income |
|
406,092 |
|
|
|
283,940 |
|
| Income before taxes |
|
5,225,340 |
|
|
|
4,321,092 |
|
| Provision for income taxes |
|
994,016 |
|
|
|
855,685 |
|
| Net income |
$ |
4,231,324 |
|
|
$ |
3,465,407 |
|
| Net income per share - basic |
$ |
0.88 |
|
|
$ |
0.72 |
|
| Net income per share - diluted |
$ |
0.88 |
|
|
$ |
0.72 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
4,830,826 |
|
|
|
4,833,604 |
|
| Diluted |
|
4,832,368 |
|
|
|
4,835,770 |
|
|
| |
Nine
Months Ended December 31, |
| 2022 |
|
2021 |
| Revenue |
| Product sales |
$ |
24,787,885 |
|
|
$ |
19,500,567 |
|
| Contract research and development |
|
668,024 |
|
|
|
766,866 |
|
| Total revenue |
|
25,455,909 |
|
|
|
20,267,433 |
|
| Cost of sales |
|
5,533,000 |
|
|
|
4,698,720 |
|
| Gross profit |
|
19,922,909 |
|
|
|
15,568,713 |
|
| Expenses |
|
|
|
|
|
|
|
| Research and development |
|
1,972,505 |
|
|
|
2,112,630 |
|
| Selling, general, and administrative |
|
1,210,395 |
|
|
|
1,221,893 |
|
| Total expenses |
|
3,182,900 |
|
|
|
3,334,523 |
|
| Income from operations |
|
16,740,009 |
|
|
|
12,234,190 |
|
| Interest income |
|
1,040,528 |
|
|
|
868,519 |
|
| Income before taxes |
|
17,780,537 |
|
|
|
13,102,709 |
|
| Provision for income taxes |
|
3,318,723 |
|
|
|
2,411,228 |
|
| Net income |
$ |
14,461,814 |
|
|
$ |
10,691,481 |
|
| Net income per share - basic |
$ |
2.99 |
|
|
$ |
2.21 |
|
| Net income per share - diluted |
$ |
2.99 |
|
|
$ |
2.21 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
4,830,826 |
|
|
|
4,833,356 |
|
| Diluted |
|
4,831,168 |
|
|
|
4,835,781 |
|
NVE
CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2022 |
| |
|
|
|
| |
Dec.
31, 2022 |
|
March
31, 2022 |
| ASSETS |
| Current assets |
| Cash and cash equivalents |
$ |
2,029,714 |
|
|
$ |
10,449,510 |
|
| Marketable securities, short-term |
|
10,337,621 |
|
|
|
20,839,683 |
|
| Accounts receivable, net of allowance for
uncollectible accounts of $15,000 |
|
2,097,274 |
|
|
|
4,704,829 |
|
| Inventories |
|
6,459,227 |
|
|
|
5,088,635 |
|
| Prepaid expenses and other assets |
|
924,161 |
|
|
|
420,520 |
|
| Total current assets |
|
21,847,997 |
|
|
|
41,503,177 |
|
| Fixed assets |
|
|
|
|
|
|
|
| Machinery and equipment |
|
10,486,161 |
|
|
|
9,739,244 |
|
| Leasehold improvements |
|
1,926,334 |
|
|
1,810,872 |
|
| |
|
12,412,495 |
|
|
|
11,550,116 |
|
| Less accumulated depreciation and amortization |
|
11,018,857 |
|
|
10,943,731 |
|
| Net fixed assets |
|
1,393,638 |
|
|
|
606,385 |
|
| Deferred tax assets |
|
862,424 |
|
|
483,469 |
|
| Marketable securities, long-term |
|
41,167,242 |
|
|
24,314,211 |
|
| Right-of-use asset - operating lease |
|
459,032 |
|
|
560,250 |
|
| Total assets |
$ |
65,730,333 |
|
|
$ |
67,467,492 |
|
| |
| LIABILITIES AND SHAREHOLDERS'
EQUITY |
| Current liabilities |
| Accounts payable |
$ |
470,929 |
|
|
$ |
943,535 |
|
| Accrued payroll and other |
|
1,245,390 |
|
|
1,356,689 |
|
| Operating lease |
|
161,271 |
|
|
156,121 |
|
| Total current liabilities |
|
1,877,590 |
|
|
|
2,456,345 |
|
| Operating lease |
|
397,303 |
|
|
446,018 |
|
| Total liabilities |
|
2,274,893 |
|
|
2,902,363 |
|
| |
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
|
|
|
|
|
| Common stock |
|
48,308 |
|
|
|
48,308 |
|
| Additional paid-in capital |
|
19,310,703 |
|
|
|
19,256,485 |
|
| Accumulated other comprehensive income |
|
(1,451,362 |
) |
|
|
(318,120 |
) |
| Retained earnings |
|
45,547,791 |
|
|
45,578,456 |
|
| Total shareholders' equity |
|
63,455,440 |
|
|
64,565,129 |
|
| Total liabilities and shareholders' equity |
$ |
65,730,333 |
|
|
$ |
67,467,492 |
|
|
