NVE Corporation EARNINGS REPORT

NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn.—October 19, 2022—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2022.

Total revenue for the second quarter of fiscal 2023 increased 57% to $10.7 million from $6.82 million for the prior-year quarter. The increase was due to a 59% increase in product sales and a 5% increase in contract research and development revenue. Net income for the second quarter of fiscal 2023 increased 67% to $6.09 million, or $1.26 per diluted share, compared to $3.65 million, or $0.75 per share, for the prior-year quarter.

For the first six months of fiscal 2023, total revenue increased 29% to $18.1 million from $14.0 million for the first six months of the prior year. The increase was due to a 29% increase in product sales and a 19% increase in contract research and development revenue. Net income increased 42% to $10.2 million, or $2.12 per diluted share, from $7.23 million, or $1.49 per share, for the first half of fiscal 2022.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2022 to shareholders of record as of October 31, 2022.

“We are pleased to report record revenue and earnings 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.

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 SIX MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (Unaudited)
 
Quarter Ended Sept. 30
2022 2021
Revenue
Product sales
 $ 10,514,539 $ 6,630,012
Contract research and development
   203,285     193,450  
Total revenue   10,717,824   6,823,462
Cost of sales   2,402,781     1,544,134  
Gross profit   8,315,043   5,279,328
Expenses              
Research and development
   669,978   707,997
Selling, general, and administrative
   435,625     483,116  
Total expenses   1,105,603     1,191,113  
Income from operations   7,209,440   4,088,215
Interest income   351,375     294,858  
Income before taxes   7,560,815   4,383,073
Provision for income taxes   1,470,442     736,566  
Net income $ 6,090,373   $ 3,646,507  
Net income per share – basic $ 1.26   $ 0.75  
Net income per share – diluted $ 1.26   $ 0.75  
Weighted average shares outstanding              
Basic
   4,830,826       4,833,232  
Diluted
   4,830,956       4,836,603  
 
 
Six Months  Ended Sept. 30
2022 2021
Revenue
Product sales
 $ 17,587,500 $ 13,583,778  
Contract research and development
   466,731     392,847  
Total revenue   18,054,231   13,976,625
Cost of sales   4,054,628     3,313,715  
Gross profit   13,999,603   10,662,910
Expenses              
Research and development
   1,271,896   1,516,139
Selling, general, and administrative
   806,946     949,734  
Total expenses   2,078,842     2,465,873  
Income from operations   11,920,761   8,197,037
Interest income   634,436     584,578  
Income before taxes   12,555,197   8,781,615
Provision for income taxes   2,324,707     1,555,542  
Net income $ 10,230,490     $ 7,226,073  
Net income per share – basic $ 2.12     $ 1.50  
Net income per share – diluted $ 2.12     $ 1.49  
Weighted average shares outstanding              
Basic
   4,830,826   4,833,232
Diluted
   4,830,927   4,836,621
 
 
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2022
Sept. 30, 2022 March 31, 2022
ASSETS
Current assets
Cash and cash equivalents
 $ 3,583,539     $ 10,449,510
Marketable securities, short-term
   10,326,647     20,839,683
Accounts receivable, net of allowance for uncollectible accounts of $15,000
   5,860,414       4,704,829
Inventories
   5,794,849       5,088,635
Prepaid expenses and other assets
   600,913       420,520  
Total current assets   26,166,362       41,503,177  
Fixed assets              
Machinery and equipment 
   9,603,049       9,739,244
Leasehold improvements
   1,826,334     1,810,872  
  11,429,383       11,550,116
Less accumulated depreciation and amortization 
   10,990,224     10,943,731  
Net fixed assets   439,159       606,385
Deferred tax assets 894,045   483,469  
Marketable securities, long-term 39,514,685   24,314,211
Right-of-use asset – operating lease 494,070     560,250  
Total assets $ 67,508,321     $ 67,467,492  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
 $ 399,263     $ 943,535
Accrued payroll and other
   2,861,151     1,356,689
Operating lease
   157,830     156,121
Total current liabilities   3,418,244       2,456,345
Operating lease   374,941     446,018  
Total liabilities   3,793,185 2,902,363
               
Shareholders’ equity              
Common stock
   48,308   48,308
Additional paid-in capital
   19,303,570   19,256,485
Accumulated other comprehensive income
   (1,784,035 )   (318,120 )
Retained earnings
   46,147,293   45,578,456  
Total shareholders’ equity   63,715,136   64,565,129  
Total liabilities and shareholders’ equity $ 67,508,321   $ 67,467,492