 |
EARNINGS REPORT |
NVE Corporation Reports Second Quarter
Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—October 15, 2018—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter and six months ended September 30,
2018.
Total revenue for the second quarter of fiscal 2019 increased 7% to $7.51 million
from $7.00 million in the prior-year quarter. The increase was due a 10%
increase in product sales, partially offset by a 26% decrease in contract research
and development revenue. Net income for the second quarter of fiscal 2019 increased
35% to $4.28 million, or $0.88 per diluted share, compared to $3.16 million,
or $0.65 per share, for the prior-year quarter.
For the first six months of fiscal 2019, total revenue increased to $14.61 million
from $14.60 million for the first six months of the prior year, as a 5% increase
in product sales more than offset a 48% decrease in contract research and development
revenue. Net income increased 27% to $8.23 million, or $1.70 per diluted
share, compared to $6.46 million, or $1.33 per share, for the first half
of fiscal 2018.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable November 30, 2018 to shareholders of record
as of October 29, 2018.
“We are pleased to report strong product sales growth, record net income,
and record earnings per share for the quarter,” 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. 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, risks and uncertainties
related to future sales and revenue, uncertainties related to the impact of Federal
tax reform, 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, 2018 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited)
|
Quarter Ended Sept. 30 |
| 2018 |
|
2017 |
| Revenue |
|
Product sales
|
$ |
7,054,977 |
|
|
$ |
6,387,080 |
|
|
Contract research and development
|
451,098 |
|
|
609,154 |
|
| Total revenue |
|
7,506,075 |
|
|
|
6,996,234 |
|
| Cost of sales |
1,352,845 |
|
|
1,353,169 |
|
| Gross profit |
|
6,153,230 |
|
|
|
5,643,065 |
|
| Expenses |
|
Research and development
|
|
971,963 |
|
|
|
1,030,504 |
|
|
Selling, general, and administrative
|
377,448 |
|
|
348,363 |
|
| Total expenses |
1,349,411 |
|
|
1,378,867 |
|
| Income from operations |
|
4,803,819 |
|
|
|
4,264,198 |
|
| Interest income |
443,325 |
|
|
387,860 |
|
| Income before taxes |
|
5,247,144 |
|
|
|
4,652,058 |
|
| Provision for income taxes |
964,534 |
|
|
1,491,023 |
|
| Net income |
$ |
4,282,610 |
|
|
$ |
3,161,035 |
|
| Net income per share – basic |
$ |
0.88 |
|
|
$ |
0.65 |
|
| Net income per share – diluted |
$ |
0.88 |
|
|
$ |
0.65 |
|
| Cash dividends declared per common share |
$ |
1.00 |
|
|
$ |
1.00 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,843,032 |
|
|
|
4,841,010 |
|
|
Diluted
|
|
4,852,644 |
|
|
|
4,845,632 |
|
|
Six Months Ended Sept. 30 |
| 2018 |
|
2017 |
| Revenue |
|
Product sales
|
$ |
13,925,623 |
|
|
$ |
13,269,753 |
|
|
Contract research and development
|
688,358 |
|
|
1,334,147 |
|
| Total revenue |
|
14,613,981 |
|
|
|
14,603,900 |
|
| Cost of sales |
2,748,850 |
|
|
3,151,535 |
|
| Gross profit |
|
11,865,131 |
|
|
|
11,452,365 |
|
| Expenses |
|
Research and development
|
|
1,960,989 |
|
|
|
1,936,229 |
|
|
Selling, general, and administrative
|
706,209 |
|
|
747,724 |
|
| Total expenses |
2,667,198 |
|
|
2,683,953 |
|
| Income from operations |
|
9,197,933 |
|
|
|
8,768,412 |
|
| Interest income |
868,095 |
|
|
749,638 |
|
| Income before taxes |
|
10,066,028 |
|
|
|
9,518,050 |
|
| Provision for income taxes |
1,838,369 |
|
|
3,059,400 |
|
| Net income |
$ |
8,227,659 |
|
|
$ |
6,458,650 |
|
| Net income per share – basic |
$ |
1.70 |
|
|
$ |
1.33 |
|
| Net income per share – diluted |
$ |
1.70 |
|
|
$ |
1.33 |
|
| Cash dividends declared per common share |
$ |
2.00 |
|
|
$ |
2.00 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,842,524 |
|
|
|
4,841,010 |
|
|
Diluted
|
|
4,851,072 |
|
|
|
4,845,907 |
|
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2018
|
(Unaudited)
Sept. 30, 2018 |
|
March
31, 2018 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
6,047,918 |
|
|
$ |
4,755,082 |
|
|
Marketable securities, short-term
|
|
23,941,749 |
|
|
|
20,765,809 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
3,045,230 |
|
|
|
2,888,779 |
|
|
Inventories
|
|
3,575,963 |
|
|
|
3,650,439 |
|
|
Prepaid expenses and other assets
|
650,748 |
|
|
635,160 |
|
| Total current assets |
|
37,261,608 |
|
|
|
32,695,269 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,395,987 |
|
|
|
9,395,987 |
|
|
Leasehold improvements
|
1,787,269 |
|
|
1,749,284 |
|
| |
|
11,183,256 |
|
|
|
11,145,271 |
|
|
Less accumulated depreciation and amortization
|
10,066,677 |
|
|
9,819,888 |
|
| Net fixed assets |
|
1,116,579 |
|
|
|
1,325,383 |
|
| Deferred tax assets |
625,024 |
|
|
572,655 |
|
| Marketable securities, long-term |
46,860,152 |
|
|
52,838,158 |
|
| Total assets |
$ |
85,863,363 |
|
|
$ |
87,431,465 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
253,702 |
|
|
$ |
414,970 |
|
|
Accrued payroll and other
|
462,262 |
|
|
574,755 |
|
| Total current liabilities |
|
715,964 |
|
|
|
989,725 |
|
| |
| Shareholders’ equity |
|
Common stock, $0.01 par value,
6,000,000 shares authorized;
4,844,010 issued and outstanding as of Sept. 30, 2018 and 4,842,010 as of
March 31, 2018
|
|
48,440 |
|
|
|
48,420 |
|
|
Additional paid-in capital
|
|
19,817,088 |
|
|
|
19,599,298 |
|
|
Accumulated other comprehensive loss
|
|
(1,031,790 |
) |
|
|
(915,635 |
) |
|
Retained earnings
|
66,313,661 |
|
|
67,709,657 |
|
| Total shareholders’ equity |
85,147,399 |
|
|
86,441,740 |
|
| Total liabilities and shareholders’ equity |
$ |
85,863,363 |
|
|
$ |
87,431,465 |
|
|
