 |
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.
###
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 |
|
|
