 |
EARNINGS REPORT |
NVE Corporation Reports First Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—July 23, 2025—NVE Corporation (Nasdaq: NVEC) announced
today financial results for the quarter ended June 30, 2025.
Total revenue for the first quarter of fiscal 2026 decreased 10% to $6.10 million
from $6.78 million for the prior-year quarter. The decrease was due to an 11%
decrease in product sales, partially offset by a 17% increase in contract research
and development revenue. Net income for the first quarter of fiscal 2026 decreased
13% to $3.58 million, or $0.74 per diluted share, compared to $4.10 million, or
$0.85 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 29, 2025 to shareholders of record as
of August 4, 2025.
“We’re pleased to report strong revenue and earnings despite a decrease
in defense product sales,” said NVE President and Chief Executive Officer
Daniel A. Baker, Ph.D.
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, 2025.
###
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2025 AND 2024
(unaudited)
|
| |
Quarter Ended June 30, |
| |
2025 |
|
2024 |
| Revenue |
|
Product sales
|
$ |
5,908,570 |
|
|
$ |
6,615,859 |
|
|
Contract research and development
|
|
196,074 |
|
|
|
167,385 |
|
| Total revenue, net |
|
6,104,644 |
|
|
|
6,783,244 |
|
| Cost of sales |
|
1,182,523 |
|
|
|
975,494 |
|
| Gross profit |
|
4,922,121 |
|
|
|
5,807,750 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
720,231 |
|
|
|
878,528 |
|
|
Selling, general, and administrative
|
|
418,640 |
|
|
|
540,404 |
|
| Total expenses |
|
1,138,871 |
|
|
|
1,418,932 |
|
| Income from operations |
|
3,783,250 |
|
|
|
4,388,818 |
|
| Interest income |
|
498,208 |
|
|
|
493,959 |
|
| Other income |
|
811 |
|
|
|
- |
|
| Income before taxes |
|
4,282,269 |
|
|
|
4,882,777 |
|
| Provision for income taxes |
|
706,451 |
|
|
|
785,190 |
|
| Net income |
$ |
3,575,818 |
|
|
$ |
4,097,587 |
|
| Net income per share – basic |
$ |
0.74 |
|
|
$ |
0.85 |
|
| Net income per share – diluted |
$ |
0.74 |
|
|
$ |
0.85 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic
|
|
4,837,166 |
|
|
|
4,833,676 |
|
|
Diluted
|
|
4,838,877 |
|
|
|
4,838,995 |
|
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2025 |
| |
(unaudited)
June 30, 2025 |
|
March 31,
2025 |
| ASSETS |
|
Current assets
|
|
Cash and cash equivalents
|
$ |
3,222,552 |
|
|
$ |
8,036,564 |
|
|
Marketable securities, short-term
(amortized cost of $12,610,115 as of June 30,
2025, and $13,730,266 as of March 31, 2025)
|
|
12,607,242 |
|
|
|
13,691,593 |
|
|
Accounts receivable, net of allowance for credit
losses of $15,000
|
|
2,253,821 |
|
|
|
3,589,268 |
|
|
Inventories, net
|
|
7,453,369 |
|
|
|
7,449,083 |
|
|
Prepaid expenses and other assets
|
|
630,171 |
|
|
|
433,414 |
|
| Total current assets |
|
26,167,155 |
|
|
|
33,199,922 |
|
| Fixed assets |
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
12,816,729 |
|
|
|
11,758,205 |
|
|
Leasehold improvements
|
|
1,956,309 |
|
|
|
1,956,309 |
|
| |
|
14,773,038 |
|
|
|
13,714,514 |
|
|
Less accumulated depreciation and amortization
|
|
11,813,014 |
|
|
|
11,727,615 |
|
| Net fixed assets |
|
2,960,024 |
|
|
|
1,986,899 |
|
| Deferred tax assets |
|
1,849,001 |
|
|
|
1,867,069 |
|
Marketable securities, long-term
(amortized cost of $31,679,330 as of as of June 30, 2025, and $26,353,692 as of March 31, 2025)
|
|
31,690,932 |
|
|
|
26,304,623 |
|
| Right-of-use asset – operating lease |
|
886,451 |
|
|
|
917,349 |
|
| Total assets |
$ |
63,553,563 |
|
|
$ |
64,275,862 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
177,214 |
|
|
$ |
214,691 |
|
|
Accrued payroll and other
|
|
1,394,428 |
|
|
|
871,169 |
|
|
Operating lease
|
|
53,817 |
|
|
|
83,010 |
|
| Total current liabilities |
|
1,625,459 |
|
|
|
1,168,870 |
|
| Operating lease |
|
838,481 |
|
|
|
838,221 |
|
| Total liabilities |
|
2,463,940 |
|
|
|
2,007,091 |
|
| |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
|
|
|
|
|
Common stock
|
|
48,372 |
|
|
|
48,372 |
|
|
Additional paid-in capital
|
|
19,827,944 |
|
|
|
19,821,106 |
|
|
Accumulated other comprehensive loss
|
|
6,818 |
|
|
|
(68,544 |
) |
|
Retained earnings
|
|
41,206,489 |
|
|
|
42,467,837 |
|
| Total shareholders’ equity |
|
61,089,623 |
|
|
|
62,268,771 |
|
| Total liabilities and shareholders’ equity |
$ |
63,553,563 |
|
|
$ |
64,275,862 |
|
|
