NVE Corporation EARNINGS REPORT

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

EDEN PRAIRIE, Minn.—May 5, 2021—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2021.

Total revenue for the fourth quarter of fiscal 2021 decreased 5% to $5.86 million from $6.15 million for the prior-year quarter. The decrease was due to a 5% decrease in product sales and a 7% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2021 decreased 7% to $3.13 million, or $0.65 per diluted share, compared to $3.37 million, or $0.69 per share, for the prior-year quarter.

For fiscal 2021, total revenue decreased 16% to $21.4 million from $25.4 million for the prior fiscal year. The decrease was due to a 16% decrease in product sales and an 18% decrease in contract research and development revenue. Net income decreased 19% to $11.7 million, or $2.42 per diluted share, compared to $14.5 million, or $3.00 per share, for fiscal 2020.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2021 to shareholders of record as of May 17, 2021.

“We are pleased to report solid earnings for the fourth quarter and fiscal year despite the impact of the COVID-19 pandemic,” 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 and risks related to the COVID-19 pandemic, 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, 2021 and other reports filed with the SEC.
 
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2021 AND 2020 (Unaudited)
 
Quarter Ended March 31
2021 2020
Revenue
Product sales
 $ 5,690,400 $ 5,966,153
Contract research and development
 172,437   184,773  
Total revenue 5,862,837 6,150,926
Cost of sales 1,268,704   1,187,354  
Gross profit 4,594,133 4,963,572
Expenses
Research and development
   785,590   1,019,408
Selling, general, and administrative
 291,878   291,095  
Total expenses 1,077,468   1,310,503  
Income from operations   3,516,665   3,653,069
Interest income   332,046     428,291  
Income before taxes   3,848,711   4,081,360
Provision for income taxes 714,241   714,863  
Net income $ 3,134,470   $ 3,366,497  
Net income per share – basic $ 0.65   $ 0.69  
Net income per share – diluted $ 0.65   $ 0.69  
Weighted average shares outstanding
Basic
 4,833,232 4,844,470  
Diluted
 4,835,370 4,845,922  
 
 
Year Ended March 31
2021 2020
Revenue
Product sales
 $ 20,540,557 $ 24,400,192
Contract research and development
 825,689   1,011,971  
Total revenue   21,366,246 25,412,163
Cost of sales 4,121,461   4,889,295  
Gross profit 17,244,785 20,522,868
Expenses
Research and development
   3,184,754 3,690,539
Selling, general, and administrative
 1,316,427   1,317,543  
Total expenses 4,501,181   5,008,082  
Income from operations   12,743,604   15,514,786
Interest income   1,498,148     1,787,117  
Income before taxes   14,241,752   17,301,903
Provision for income taxes 2,547,368   2,775,261  
Net income $ 11,694,384   $ 14,526,642  
Net income per share – basic $ 2.42   $ 3.00  
Net income per share – diluted $ 2.42   $ 3.00  
Weighted average shares outstanding
Basic
 4,834,054 4,845,627  
Diluted
 4,834,462 4,847,294  
 
 
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2021 AND 2020 
March 31, 2021   March 31, 2020
ASSETS
Current assets
Cash and cash equivalents
 $ 10,427,340     $ 8,065,594  
Marketable securities, short-term
 7,678,957       19,084,814
Accounts receivable, net of allowance for uncollectible accounts of $15,000
   1,964,281       2,694,018
Inventories
   3,900,777       3,884,450
Prepaid expenses and other assets
 391,278     655,835  
Total current assets   24,362,633     34,384,711  
Fixed assets
Machinery and equipment 
   9,254,664     9,280,062
Leasehold improvements
 1,810,872     1,797,245  
  11,065,536       11,077,307
Less accumulated depreciation and amortization 
 10,728,853     10,494,840  
Net fixed assets   336,683       582,467
Deferred tax assets 73,538   108,119  
Marketable securities, long-term 47,038,669   43,606,495
Right-of-use asset – operating lease 689,216     816,358  
Total assets $ 72,500,739     $ 79,498,150  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
 $ 336,591     $ 186,993
Accrued payroll and other
 540,474     482,074
Operating lease
 150,273     127,134
Total current liabilities   1,027,338       796,201
Operating lease 581,459     706,600  
Total liabilities 1,608,797 1,502,801
 
Shareholders’ equity
Common stock
 48,332 48,350
Additional paid-in capital
   19,338,127 19,383,956
Accumulated other comprehensive income
   1,101,119   516,523  
Retained earnings
 50,404,364   58,046,520  
Total shareholders’ equity 70,891,942   77,995,349  
Total liabilities and shareholders’ equity $ 72,500,739   $ 79,498,150