NVE Corporation EARNINGS REPORT


NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn.—July 17, 2024—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2024.

Total revenue for the first quarter of fiscal 2025 decreased 23% to $6.78 million from $8.83 million for the prior-year quarter. The decrease was due to a 24% decrease in product sales partially offset by a 28% increase in contract research and development revenue. Net income for the first quarter of fiscal 2025 decreased 7% to $4.10 million, or $0.85 per diluted share, compared to $4.40 million, or $0.91 per share, for the prior-year quarter.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 30, 2024, to shareholders of record as of July 29, 2024.

“We are pleased to report solid earnings for the quarter despite a challenging industry environment,” 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 JUNE 30, 2024 AND 2023
 
  Quarter Ended June 30,
  2024   2023
Revenue
Product sales
$    6,615,859       $    8,700,092  
Contract research and development
  167,385       131,322
 
Total revenue   6,783,244       8,831,414  
Cost of sales   975,494       2,079,623  
Gross profit   5,807,750       6,751,791  
Expenses          
Research and development
  878,528       695,992  
Selling, general, and administrative
  540,404       475,115  
Credit loss expense
  -       212,440  
Total expenses   1,418,932       1,383,547  
           
Income from operations   4,388,818       5,368,244  
Interest income   493,959       436,526  
Income before taxes   4,882,777       5,804,770  
Provision for income taxes   785,190       1,401,040  
Net income $ 4,097,587     $ 4,403,730  
Net income per share – basic $ 0.85     $ 0.91  
Net income per share – diluted $ 0.85     $ 0.91  
Weighted average shares outstanding          
Basic
  4,833,676       4,832,166  
Diluted
  4,838,995       4,840,571  


NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2024
 
  June 30, 2024   March 31, 2024
ASSETS
Current assets
Cash and cash equivalents
$ 6,005,492       $ 10,283,550  
Marketable securities, short-term
(amortized cost of $16,022,057 as of June 30, 2024, and $12,283,630 as of March 31, 2024)
  15,670,927       11,917,779  
Accounts receivable, net of allowance for credit losses of $15,000
  2,100,018       3,144,833  
Inventories
  7,164,632       7,158,585  
Prepaid expenses and other assets
  515,383       689,349  
Total current assets   31,456,452       33,194,096  
Fixed assets          
Machinery and equipment 
  11,417,730       10,501,096  
Leasehold improvements
  1,956,309       1,956,309  
    13,374,039       12,457,405  
Less accumulated depreciation and amortization 
  11,478,977       11,403,383  
Net fixed assets   1,895,062       1,054,022  
Deferred tax assets   1,593,506       1,453,704  
Marketable securities, long-term
(amortized cost of $32,112,822 as of June 30, 2024, and $31,417,890 as of March 31, 2024)
  30,788,301       30,788,301  
Right-of-use asset – operating lease   289,910       289,910  
Total assets $  66,780,033     $  66,780,033  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 174,243     $ 127,154  
Accrued payroll and other
  1,338,811       729,215  
Operating lease
  180,262       179,372  
Total current liabilities   1,693,316       1,035,741  
Operating lease   132,388       175,775  
Total liabilities   1,825,704       1,211,516  
               
Shareholders’ equity              
Common stock
  48,337       48,337  
Additional paid-in capital
  19,573,254       19,554,812  
Accumulated other comprehensive income
  (748,927 )     (777,637 )
Retained earnings
  46,006,916       46,743,005  
Total shareholders’ equity   64,879,580       65,568,517  
Total liabilities and shareholders’ equity $ 66,705,284     $ 66,780,033