NVE Corporation EARNINGS REPORT


NVE Corporation Reports Fourth Quarter and Fiscal Year Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn.—May 4, 2022—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2022.

Total revenue for the fourth quarter of fiscal 2022 increased 15% to $6.72 million from $5.86 million for the prior-year quarter. The increase was due to a 12% increase in product sales and a 104% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2022 increased 22% to $3.82 million, or $0.79 per diluted share, compared to $3.13 million, or $0.65 per share, for the prior-year quarter.

For fiscal 2022, total revenue increased 26% to $27.0 million from $21.4 million for the prior fiscal year. The increase was due to a 26% increase in product sales and a 36% increase in contract research and development revenue. Net income increased 24% to $14.5 million, or $3.00 per diluted share, compared to $11.7 million, or $2.42 per share, for fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2022 to shareholders of record as of May 16, 2022.

“We are pleased to report strong revenue and earnings growth for the fourth quarter and fiscal year despite industry supply-chain disruptions,” 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.
 
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2022 AND 2021 (Unaudited)

 
Quarter Ended March 31
2022 2021
Revenue
Product sales
$ 6,367,082 $ 5,690,400
Contract research and development
352,455   172,437  
Total revenue   6,719,537 5,862,837
Cost of sales 1,564,370   1,268,704  
Gross profit 5,155,167 4,594,133
Expenses
Research and development
  813,244   785,590
Selling, general, and administrative
247,428   291,878  
Total expenses 1,060,672   1,077,468  
Income from operations   4,094,495   3,516,665
Interest income   302,609     332,046  
Income before taxes   4,397,104   3,848,711
Provision for income taxes 581,084   714,241  
Net income $ 3,816,020   $ 3,134,470  
Net income per share – basic $ 0.79   $ 0.65  
Net income per share – diluted $ 0.79   $ 0.65  
Weighted average shares outstanding
Basic
4,832,630 4,833,232  
Diluted
4,833,253 4,835,370  
 
 
Year Ended March 31
2022 2021
Revenue
Product sales
$ 25,867,649 $ 20,540,557
Contract research and development
1,119,321   825,689  
Total revenue   26,986,970   21,366,246
Cost of sales 6,263,090   4,121,461  
Gross profit 20,723,880 17,244,785
Expenses
Research and development
  2,925,874   3,184,754
Selling, general, and administrative
1,469,321   1,316,427  
Total expenses 4,395,195   4,501,181  
Income from operations   16,328,685   12,743,604
Interest income   1,171,128     1,498,148  
Income before taxes   17,499,813   14,241,752
Provision for income taxes 2,992,312   2,547,368  
Net income $ 14,507,501   $ 11,694,384  
Net income per share – basic $ 3.00   $ 2.42  
Net income per share – diluted $ 3.00   $ 2.42  
Weighted average shares outstanding
Basic
4,833,661 4,834,054  
Diluted
4,835,639 4,834,462  
 
 
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2022 AND 2021
March 31, 2022 March 31, 2021
ASSETS
Current assets
Cash and cash equivalents
$ 10,449,510     $ 10,427,340
Marketable securities, short-term
20,839,683     7,678,957
Accounts receivable, net of allowance for uncollectible accounts of $15,000
  4,704,829       1,964,281
Inventories
  5,088,635       3,900,777
Prepaid expenses and other assets
  420,520       391,278  
Total current assets   41,503,177       24,362,633  
Fixed assets              
Machinery and equipment 
  9,739,244       9,254,664
Leasehold improvements
1,810,872     1,810,872  
  11,550,116       11,065,536
Less accumulated depreciation and amortization 
10,943,731     10,728,853  
Net fixed assets   606,385       336,683
Deferred tax assets 483,469   73,538  
Marketable securities, long-term 24,314,211   47,038,669
Right-of-use asset – operating lease 560,250     689,216  
Total assets $ 67,467,492     $ 72,500,739  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 943,535     $ 336,591
Accrued payroll and other
1,356,689     540,474
Operating lease
156,121     150,273
Total current liabilities   2,456,345       1,027,338
Operating lease 446,018     581,459  
Total liabilities 2,902,363 1,608,797
               
Shareholders’ equity              
Common stock
  48,308 48,332
Additional paid-in capital
  19,256,485   19,338,127
Accumulated other comprehensive income
  (318,120 )   1,101,119  
Retained earnings
45,578,456   50,404,364  
Total shareholders’ equity 64,565,129   70,891,942  
Total liabilities and shareholders’ equity $ 67,467,492   $ 72,500,739