 |
EARNINGS REPORT |
NVE Corporation Reports Fourth Quarter and Fiscal Year Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—May 6, 2020—NVE Corporation (Nasdaq: NVEC) announced
today financial results for the quarter and fiscal year ended March 31, 2020.
Total revenue for the fourth quarter of fiscal 2020 increased 10% to $6.15
million from $5.59 million in the prior-year quarter. The increase was due to
a 11% increase in product sales, partially offset by a 14% decrease in contract
research and development revenue. Net income for the fourth quarter of fiscal
2020 increased 18% to $3.37 million, or $0.69 per diluted share, compared to $2.86
million, or $0.59 per share, for the prior-year quarter.
For fiscal 2020, total revenue decreased 4% to $25.41 million from $26.47 million
for the prior fiscal year. The decrease was due to a 4% decrease in product sales
and a 14% decrease in contract research and development revenue. Net income for
fiscal 2020 increased to $14.53 million, or $3.00 per diluted share, compared
to $14.51 million, or $2.99 per diluted share, for fiscal 2019.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable May 29, 2020 to shareholders of record as of
May 18, 2020.
“We are pleased to report solid growth in revenue and net income for the
quarter, and record net income for the fiscal year,” said NVE President and
Chief Executive Officer Daniel A. Baker, Ph.D. “The COVID-19 pandemic will
challenge us in coming quarters, but NVE has been operating effectively and serving
our critical sectors thanks to the dedication and resourcefulness of our employees,
suppliers, and distributors.”
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, risks and uncertainties
related to changes in tariffs and other trade barriers, 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, 2020 and other reports filed with the SEC.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2020 AND 2019 (Unaudited)
|
|
Quarter
Ended March 31 |
|
2020 |
|
2019 |
| Revenue |
|
Product sales
|
$ |
5,966,153 |
|
|
$ |
5,374,442 |
|
|
Contract research and development
|
184,773 |
|
|
214,509 |
|
| Total revenue |
|
6,150,926 |
|
|
|
5,588,951 |
|
| Cost of sales |
1,187,354 |
|
|
1,297,856 |
|
| Gross profit |
4,963,572 |
|
|
4,291,095 |
|
| Expenses |
|
Research and development
|
|
1,019,408 |
|
|
|
1,019,728 |
|
|
Selling, general, and administrative
|
291,095 |
|
|
248,857 |
|
| Total expenses |
1,310,503 |
|
|
1,268,585 |
|
| Income from operations |
|
3,653,069 |
|
|
|
3,022,510 |
|
| Interest income |
|
428,291 |
|
|
|
459,978 |
|
| Income before taxes |
|
4,081,360 |
|
|
|
3,482,488 |
|
| Provision for income taxes |
714,863 |
|
|
623,616 |
|
| Net income |
$ |
3,366,497 |
|
|
$ |
2,858,872 |
|
| Net income per share – basic |
$ |
0.69 |
|
|
$ |
0.59 |
|
| Net income per share – diluted |
$ |
0.69 |
|
|
$ |
0.59 |
|
| Weighted average shares outstanding |
|
Basic
|
4,844,470 |
4,844,010 |
|
|
Diluted
|
4,845,922 |
4,850,284 |
|
|
Year
Ended March 31 |
|
2020 |
|
2019 |
| Revenue |
|
Product sales
|
$ |
24,400,192 |
|
|
$ |
25,291,306 |
|
|
Contract research and development
|
1,011,971 |
|
|
1,181,031 |
|
| Total revenue |
|
25,412,163 |
|
|
|
26,472,337 |
|
| Cost of sales |
4,889,295 |
|
|
5,216,112 |
|
| Gross profit |
20,522,868 |
|
|
21,256,225 |
|
| Expenses |
|
Research and development
|
|
3,690,539 |
|
|
|
4,107,692 |
|
|
Selling, general, and administrative
|
1,317,543 |
|
|
1,223,971 |
|
| Total expenses |
5,008,082 |
|
|
5,331,663 |
|
| Income from operations |
|
15,514,786 |
|
|
|
15,924,562 |
|
| Interest income |
|
1,787,117 |
|
|
|
1,785,277 |
|
| Income before taxes |
|
17,301,903 |
|
|
|
17,709,839 |
|
| Provision for income taxes |
2,775,261 |
|
|
3,201,903 |
|
| Net income |
$ |
14,526,642 |
|
|
$ |
14,507,936 |
|
| Net income per share – basic |
$ |
3.00 |
|
|
$ |
3.00 |
|
| Net income per share – diluted |
$ |
3.00 |
|
|
$ |
2.99 |
|
| Weighted average shares outstanding |
|
Basic
|
4,845,627 |
4,844,010 |
|
|
Diluted
|
4,847,294 |
4,850,567 |
|
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2020 AND 2019
|
|
March
31, 2020 |
|
March
31, 2019 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
8,065,594 |
|
|
$ |
6,877,304 |
|
|
Marketable securities, short-term
|
|
19,084,814 |
|
|
|
12,487,821 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
2,694,018 |
|
|
|
2,995,638 |
|
|
Inventories
|
|
3,884,450 |
|
|
|
4,264,876 |
|
|
Prepaid expenses and other assets
|
655,835 |
|
|
816,045 |
|
| Total current assets |
|
34,384,711 |
|
|
|
27,441,684 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,280,062 |
|
|
|
9,365,806 |
|
|
Leasehold improvements
|
1,797,245 |
|
|
1,787,269 |
|
| |
|
11,077,307 |
|
|
|
11,153,075 |
|
|
Less accumulated depreciation and amortization
|
10,494,840 |
|
|
10,258,240 |
|
| Net fixed assets |
|
582,467 |
|
|
|
894,835 |
|
| Deferred tax assets |
108,119 |
|
|
353,735 |
|
| Marketable securities, long-term |
43,606,495 |
|
|
54,925,633 |
|
| Right-of-use asset – operating lease |
816,358 |
|
|
- |
|
| Total assets |
$ |
79,498,150 |
|
|
$ |
83,615,887 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
186,993 |
|
|
$ |
375,188 |
|
|
Accrued payroll and other
|
482,074 |
|
|
460,488 |
|
|
Operating lease
|
127,134 |
|
|
- |
|
| Total current liabilities |
|
796,201 |
|
|
|
835,676 |
|
|
|
|
|
|
|
|
|
| Operating lease |
706,600 |
|
|
- |
|
| Total liabilities |
1,502,801 |
|
|
835,676 |
|
| |
| Shareholders’ equity |
|
Common stock, $0.01 par value,
6,000,000 shares authorized; 4,835,038 issued and outstanding as of March 31,
2020 and 4,846,010 as of March 31, 2019
|
|
48,350 |
|
|
|
48,460 |
|
|
Additional paid-in capital
|
|
19,383,956 |
|
|
|
19,910,558 |
|
|
Accumulated other comprehensive income (loss)
|
|
516,523 |
|
|
|
(82,725 |
) |
|
Retained earnings
|
58,046,520 |
|
|
62,903,918 |
|
| Total shareholders’ equity |
77,995,349 |
|
|
82,780,211 |
|
| Total liabilities and shareholders’ equity |
$ |
79,498,150 |
|
|
$ |
83,615,887 |
|
|
