 |
EARNINGS REPORT |
NVE Corporation Reports Second Quarter
Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—October 22, 2025—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter ended September 30, 2025.
Total revenue for the second quarter
of fiscal 2026 decreased 6% to $6.35 million from $6.76 million for
the prior-year quarter. The decrease was due to a 68% decrease in contract research
and development revenue, partially offset by a 1% increase in product sales. Net
income for the second quarter of fiscal 2026 decreased 18% to $3.31 million,
or $0.68 per diluted share, compared to $4.03 million, or $0.83 per
share, for the prior-year quarter.
For the first six months of fiscal 2026, total revenue decreased 8% to $12.5 million
from $13.5 million for the first six months of the prior year. The decrease
was due to a 5% decrease in product sales and a 51% decrease in contract research
and development revenue. Net income decreased 15% to $6.89 million, or $1.42 per
diluted share, from $8.12 million, or $1.68 per share, for the first half of fiscal
2025.
The company also announced a quarterly
cash dividend to shareholders of $1.00 per share of common stock, payable
November 28, 2025 to shareholders of record as of November 3, 2025.
“We’re pleased to report a 4% sequential increase in revenue driven by strong
increases in distributor and non-defense sales, despite an expected decrease in
defense sales,” 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 our
reliance on several large customers for a significant percentage of revenue, uncertainties
related to the economic environments in the industries we serve, uncertainties
related to future sales and revenues, risks and uncertainties related to future
dividend payments, 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, 2025.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2025 AND 2024
(unaudited)
|
| |
Quarter Ended September 30, |
| |
2025 |
|
2024 |
| Revenue |
|
Product sales
|
$ |
6,138,772 |
|
|
$ |
6,104,433 |
|
|
Contract research and development
|
|
208,220 |
|
|
|
654,257 |
|
| Total revenue, net |
|
6,346,992 |
|
|
|
6,758,690 |
|
| Cost of sales |
|
1,378,494 |
|
|
|
947,254 |
|
| Gross profit |
|
4,968,498 |
|
|
|
5,811,436 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
873,470 |
|
|
|
847,603 |
|
|
Selling, general, and administrative
|
|
436,919 |
|
|
|
568,241 |
|
| Total expenses |
|
1,310,389 |
|
|
|
1,415,844 |
|
| Income from operations |
|
3,658,109 |
|
|
|
4,395,592 |
|
| Interest income |
|
484,330 |
|
|
|
464,429 |
|
| Other income |
|
3,094 |
|
|
|
- |
|
| Income before taxes |
|
4,145,533 |
|
|
|
4,860,021 |
|
| Provision for income taxes |
|
834,695 |
|
|
|
833,876 |
|
| Net income |
$ |
3,310,838 |
|
|
$ |
4,026,145 |
|
| Net income per share – basic |
$ |
0.68 |
|
|
$ |
0.83 |
|
| Net income per share – diluted |
$ |
0.68 |
|
|
$ |
0.83 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
Basic
|
|
4,837,166 |
|
|
|
4,833,401 |
|
|
Diluted
|
|
4,839,243 |
|
|
|
4,840,770 |
|
| |
|
| |
Six
Month Ended Sept. 30, |
| |
2025 |
|
2024 |
| Revenue |
| Product sales
|
$
|
12,047,342 |
|
|
$
|
12,720,292 |
|
| Contract research
and development
|
|
404,294 |
|
|
|
821,642 |
|
| Total revenue, net
|
|
12,451,636 |
|
|
|
13,541,934 |
|
| Cost of sales
|
|
2,561,017 |
|
|
|
1,922,748 |
|
| Gross profit
|
|
9,890,619 |
|
|
|
11,619,186 |
|
| Expenses
|
|
|
|
|
|
|
|
Research and development
|
|
1,593,701 |
|
|
|
1,726,131 |
|
Selling, general,
and administrative
|
|
855,559 |
|
|
|
1,108,645 |
|
| Total expenses
|
|
2,449,260 |
|
|
|
2,834,776 |
|
| Income from operations
|
|
7,441,359 |
|
|
|
8,784,410 |
|
| Interest income
|
|
982,538 |
|
|
|
958,388 |
|
| Other income
|
|
3,905 |
|
|
|
- |
|
| Income before taxes
|
|
8,427,802 |
|
|
|
9,742,798 |
|
| Provision for income taxes
|
|
1,541,146 |
|
|
|
1,619,066 |
|
| Net income
|
$
|
6,886,656 |
|
|
$
|
8,123,732 |
|
| Net income per share – basic |
$
|
1.42 |
|
|
$
|
1.68 |
|
| Net income per share – diluted |
$
|
1.42 |
|
|
$
|
1.68 |
|
| Weighted average shares outstanding
|
|
|
|
|
|
|
|
| Basic
|
|
4,837,166 |
|
|
|
4,833,766 |
|
| Diluted
|
|
4,839,049 |
|
|
|
4,839,145 |
|
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2025 |
| |
(unaudited)
September 30, 2025 |
|
March 31,
2025 |
| ASSETS |
Current assets
|
|
Cash and cash equivalents
|
$ |
5,107,481 |
|
|
$ |
8,036,564 |
|
|
Marketable securities, short-term
(amortized cost of $12,610,115 as of September 30,
2025, and $13,730,266 as of March 31, 2025)
|
|
12,640,185 |
|
|
|
13,691,593 |
|
|
Accounts receivable, net of allowance for credit
losses of $15,000
|
|
2,440,856 |
|
|
|
3,589,268 |
|
|
Inventories, net
|
|
7,418,843 |
|
|
|
7,449,083 |
|
|
Prepaid expenses and other assets
|
|
1,163,093 |
|
|
|
433,414 |
|
| Total current assets |
|
28,770,458 |
|
|
|
33,199,922 |
|
| Fixed assets |
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
12,783,642 |
|
|
|
11,758,205 |
|
|
Leasehold improvements
|
|
2,059,853 |
|
|
|
1,956,309 |
|
| |
|
14,843,495 |
|
|
|
13,714,514 |
|
|
Less accumulated depreciation and amortization
|
|
11,902,066
|
|
|
|
11,727,615 |
|
| Net fixed assets |
|
2,941,429 |
|
|
|
1,986,899 |
|
| Deferred tax assets |
|
1,079,733 |
|
|
|
1,867,069 |
|
Marketable securities, long-term
(amortized cost of $31,679,330 as of September 30,
2025, and $26,353,692 as of March 31, 2025)
|
|
27,844,069 |
|
|
|
26,304,623 |
|
| Right-of-use asset – operating lease |
|
854,529 |
|
|
|
917,349 |
|
| Total assets |
$ |
61,490,218 |
|
|
$ |
64,275,862 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQU |
| Current liabilities |
|
Accounts payable
|
$ |
229,526 |
|
|
$ |
214,691 |
|
|
Accrued payroll and other
|
|
585,395 |
|
|
|
871,169 |
|
|
Operating lease
|
|
155,800 |
|
|
|
83,010 |
|
| Total current liabilities |
|
970,721 |
|
|
|
1,168,870 |
|
| Operating lease |
|
806,542 |
|
|
|
838,221 |
|
| Total liabilities |
|
1,777,263 |
|
|
|
2,007,091 |
|
| |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
|
|
|
|
Common stock
|
|
48,372 |
|
|
|
48,372 |
|
|
Additional paid-in capital
|
|
19,894,256 |
|
|
|
19,821,106 |
|
|
Accumulated other comprehensive loss
|
|
90,166 |
|
|
|
(68,544 |
) |
|
Retained earnings
|
|
39,680,161 |
|
|
|
42,467,837 |
|
| Total shareholders’ equity |
|
59,712,955 |
|
|
|
62,268,771 |
|
| Total liabilities and shareholders’ equity |
$ |
61,490,218 |
|
|
$ |
64,275,862 |
|
|
