 |
EARNINGS REPORT |
NVE Corporation Reports Fourth Quarter and Fiscal Year Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—May
1, 2019—NVE Corporation (Nasdaq: NVEC) announced today financial results
for the quarter and fiscal year ended March 31, 2019.
Total revenue for the fourth quarter of fiscal 2019 decreased 29% to $5.59 million
from $7.90 million in the prior-year quarter. The decrease was due to a 29%
decrease in product sales and a 28% decrease in contract research and development
revenue. Net income for the fourth quarter of fiscal 2019 decreased 26% to $2.86 million,
or $0.59 per diluted share, compared to $3.88 million, or $0.80 per share,
for the prior-year quarter.
For fiscal 2019, total revenue decreased 11% to $26.5 million from $29.9 million
for the prior fiscal year. The decrease was due to a 7% decrease in product sales
and a 54% decrease in contract research and development revenue. Net income for
fiscal 2019 increased 4% to $14.5 million, or $2.99 per diluted share, compared
to $13.9 million, or $2.87 per diluted share, for fiscal 2018.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable May 31, 2019 to shareholders of record
as of May 13, 2019.
“We are pleased to report record earnings for the year despite a decrease
in total revenue, due to a decrease in the Federal tax rate,” said NVE President
and Chief Executive Officer Daniel A. Baker, Ph.D. “Investments in smart
sensor product development will drive future growth.”
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. NVE
has also licensed its spintronic magnetoresistive random access memory technology,
commonly known as MRAM.
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, 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 AND YEARS ENDED MARCH 31, 2019 AND 2018 (Unaudited)
|
|
Quarter
Ended March 31 |
|
2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
5,374,442 |
|
|
$ |
7,603,226 |
|
|
Contract research and development
|
214,509 |
|
|
295,966 |
|
| Total revenue |
|
5,588,951 |
|
|
|
7,899,192 |
|
| Cost of sales |
1,297,856 |
|
|
1,465,509 |
|
| Gross profit |
4,291,095 |
|
|
6,433,683 |
|
| Expenses |
|
Research and development
|
|
1,019,728 |
|
|
|
913,950 |
|
|
Selling, general, and administrative
|
248,857 |
|
|
374,835 |
|
| Total expenses |
1,268,585 |
|
|
1,288,785 |
|
| Income from operations |
|
3,022,510 |
|
|
|
5,144,898 |
|
| Interest income |
|
459,978 |
|
|
|
403,894 |
|
| Income before taxes |
|
3,482,488 |
|
|
|
5,548,792 |
|
| Provision for income taxes |
623,616 |
|
|
1,666,372 |
|
| Net income |
$ |
2,858,872 |
|
|
$ |
3,882,420 |
|
| Net income per share – basic |
$ |
0.59 |
|
|
$ |
0.80 |
|
| Net income per share – diluted |
$ |
0.59 |
|
|
$ |
0.80 |
|
| Weighted average shares outstanding |
|
Basic
|
4,844,010 |
4,842,010 |
|
|
Diluted
|
4,850,284 |
4,847,349 |
|
|
Year
Ended March 31 |
|
2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
25,291,306 |
|
|
$ |
27,321,810 |
|
|
Contract research and development
|
1,181,031 |
|
|
2,542,071 |
|
| Total revenue |
|
26,472,337 |
|
|
|
29,863,881 |
|
| Cost of sales |
5,216,112 |
|
|
6,274,744 |
|
| Gross profit |
21,256,225 |
|
|
23,589,137 |
|
| Expenses |
|
Research and development
|
|
4,107,692 |
|
|
|
3,702,918 |
|
|
Selling, general, and administrative
|
1,223,971 |
|
|
1,435,592 |
|
| Total expenses |
5,331,663 |
|
|
5,138,510 |
|
| Income from operations |
|
15,924,562 |
|
|
|
18,450,627 |
|
| Interest income |
|
1,785,277 |
|
|
|
1,558,197 |
|
| Income before taxes |
|
17,709,839 |
|
|
|
20,008,824 |
|
| Provision for income taxes |
3,201,903 |
|
|
6,096,152 |
|
| Net income |
$ |
14,507,936 |
|
|
$ |
13,912,672 |
|
| Net income per share – basic |
$ |
3.00 |
|
|
$ |
2.87 |
|
| Net income per share – diluted |
$ |
2.99 |
|
|
$ |
2.87 |
|
| Weighted average shares outstanding |
|
Basic
|
4,844,010 |
4,841,347 |
|
|
Diluted
|
4,850,567 |
4,846,212 |
|
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2019 AND 2018
|
|
March
31, 2019 |
|
March
31, 2018 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
6,877,304 |
|
|
$ |
4,755,082 |
|
|
Marketable securities, short-term
|
|
12,487,821 |
|
|
|
20,765,809 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
2,995,638 |
|
|
|
2,888,779 |
|
|
Inventories
|
|
4,264,876 |
|
|
|
3,650,439 |
|
|
Prepaid expenses and other assets
|
816,045 |
|
|
635,160 |
|
| Total current assets |
|
27,441,684 |
|
|
|
32,695,269 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,365,806 |
|
|
|
9,395,987 |
|
|
Leasehold improvements
|
1,787,269 |
|
|
1,749,284 |
|
| |
|
11,153,075 |
|
|
|
11,145,271 |
|
|
Less accumulated depreciation and amortization
|
10,258,240 |
|
|
9,819,888 |
|
| Net fixed assets |
|
894,835 |
|
|
|
1,325,383 |
|
| Deferred tax assets |
353,735 |
|
|
572,655 |
|
| Marketable securities, long-term |
54,925,633 |
|
|
52,838,158 |
|
| Total assets |
$ |
83,615,887 |
|
|
$ |
87,431,465 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
375,188 |
|
|
$ |
414,970 |
|
|
Accrued payroll and other
|
460,488 |
|
|
574,755 |
|
| Total current liabilities |
|
835,676 |
|
|
|
989,725 |
|
| |
| Shareholders’ equity |
|
Common stock, $0.01 par value,
6,000,000 shares authorized;
4,846,010 issued and outstanding as of March 31, 2019 and 4,842,010 as of
March 31, 2018
|
|
48,460 |
|
|
|
48,420 |
|
|
Additional paid-in capital
|
|
19,910,558 |
|
|
|
19,599,298 |
|
|
Accumulated other comprehensive loss
|
|
(82,725 |
) |
|
|
(915,635 |
) |
|
Retained earnings
|
62,903,918 |
|
|
67,709,657 |
|
| Total shareholders’ equity |
82,780,211 |
|
|
86,441,740 |
|
| Total liabilities and shareholders’ equity |
$ |
83,615,887 |
|
|
$ |
87,431,465 |
|
|
