 |
EARNINGS REPORT |
NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—October 23,
2019—NVE Corporation (Nasdaq: NVEC) announced today financial results for
the quarter and six months ended September 30, 2019.
Total revenue for the second quarter of fiscal 2020 decreased 13% to $6.50 million
from $7.51 million in the prior-year quarter. The decrease was due to a 12%
decrease in product sales and a 30% decrease in contract research and development
revenue. Product sales decreased to $6.19 million from $7.05 million
in the prior-year quarter. Net income for the second quarter of fiscal 2020 decreased
11% to $3.82 million, or $0.79 per diluted share, compared to $4.28 million,
or $0.88 per share, for the prior-year quarter.
For the first six months of fiscal 2020, total revenue decreased 12% to $12.8 million
from $14.6 million for the first six months of the prior year. The decrease
was due to a 12% decrease in product sales and a 24% decrease in contract research
and development revenue. Net income decreased 10% to $7.43 million, or $1.53 per
diluted share, compared to $8.23 million, or $1.70 per share, for the
first half of fiscal 2019.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable November 29, 2019 to shareholders of record
as of November 4, 2019.
“We are pleased to report solid earnings and a second consecutive quarter
of sequential revenue and net income growth,” 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, risks related to changes
in tariffs and other trade barriers, uncertainties related to the impacts of the
Federal Tax Reform Act eneacted in 2017, 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, 2019 and other reports filed with the
SEC.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2019 AND 2018 (Unaudited)
|
|
Quarter Ended September 30 |
| 2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
6,187,708 |
|
|
$ |
7,054,977 |
|
|
Contract research and development
|
314,237 |
|
|
451,098 |
|
| Total revenue |
|
6,501,945 |
|
|
|
7,506,075 |
|
| Cost of sales |
1,346,098 |
|
|
1,352,845 |
|
| Gross profit |
|
5,155,847 |
|
|
|
6,153,230 |
|
| Expenses |
|
Research and development
|
|
926,596 |
|
|
|
971,963 |
|
|
Selling, general, and administrative
|
368,450 |
|
|
377,448 |
|
| Total expenses |
1,295,046 |
|
|
1,349,411 |
|
| Income from operations |
|
3,860,801 |
|
|
|
4,803,819 |
|
| Interest income |
456,309 |
|
|
443,325 |
|
| Income before taxes |
|
4,317,110 |
|
|
|
5,247,144 |
|
| Provision for income taxes |
495,048 |
|
|
964,534 |
|
| Net income |
$ |
3,822,062 |
|
|
$ |
4,282,610 |
|
| Net income per share – basic |
$ |
0.79 |
|
|
$ |
0.88 |
|
| Net income per share – diluted |
$ |
0.79 |
|
|
$ |
0.88 |
|
| Cash dividends declared per common share |
$ |
1.00 |
|
|
$ |
1.00 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,846,010 |
|
|
|
4,843,032 |
|
|
Diluted
|
|
4,847,881 |
|
|
|
4,852,644 |
|
NVE CORPORATION
STATEMENTS OF INCOME
SIX MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (Unaudited)
|
|
Six
Months Ended September 30 |
| 2019 |
|
2018 |
| Revenue |
|
Product sales
|
$ |
12,273,072 |
|
|
$ |
13,925,623 |
|
|
Contract research and development
|
523,569 |
|
|
688,358 |
|
| Total revenue |
|
12,796,641 |
|
|
|
14,613,981 |
|
| Cost of sales |
2,438,135 |
|
|
2,748,850 |
|
| Gross profit |
|
10,358,506 |
|
|
|
11,865,131 |
|
| Expenses |
|
Research and development
|
|
1,899,663 |
|
|
|
1,960,989 |
|
|
Selling, general, and administrative
|
698,459 |
|
|
706,209 |
|
| Total expenses |
2,598,122 |
|
|
2,667,198 |
|
| Income from operations |
|
7,760,384 |
|
|
|
9,197,933 |
|
| Interest income |
915,348 |
|
|
868,095 |
|
| Income before taxes |
|
8,675,732 |
|
|
|
10,066,028 |
|
| Provision for income taxes |
1,246,251 |
|
|
1,838,369 |
|
| Net income |
$ |
7,429,481 |
|
|
$ |
8,227,659 |
|
| Net income per share – basic |
$ |
1.53 |
|
|
$ |
1.70 |
|
| Net income per share – diluted |
$ |
1.53 |
|
|
$ |
1.70 |
|
| Cash dividends declared per common share |
$ |
2.00 |
|
|
$ |
2.00 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,846,010 |
|
|
|
4,842,524 |
|
|
Diluted
|
|
4,849,357 |
|
|
|
4,851,072 |
|
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2019
|
|
(Unaudited)
September 30, 2019 |
|
March
31, 2019 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
14,076,290 |
|
|
$ |
6,877,304 |
|
|
Marketable securities, short-term
|
|
- |
|
|
|
12,487,821 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
3,215,785 |
|
|
|
2,995,638 |
|
|
Inventories
|
|
4,355,332 |
|
|
|
4,264,876 |
|
|
Prepaid expenses and other assets
|
847,259 |
|
|
816,045 |
|
| Total current assets |
|
22,494,666 |
|
|
|
27,441,684 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,381,906 |
|
|
|
9,365,806 |
|
|
Leasehold improvements
|
1,787,269 |
|
|
1,787,269 |
|
|
|
11,169,175 |
|
|
|
11,153,075 |
|
|
Less accumulated depreciation and amortization
|
10,438,174 |
|
|
10,258,240 |
|
| Net fixed assets |
|
731,001 |
|
|
|
894,835 |
|
| Deferred tax assets |
68,495 |
|
|
353,735 |
|
| Marketable securities, long-term |
52,798,500 |
|
|
54,925,633 |
|
| Right-of-use asset – operating lease |
188,743 |
|
|
- |
|
| Total assets |
$ |
82,281,405 |
|
|
$ |
83,615,887 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
324,413 |
|
|
$ |
375,188 |
|
|
Accrued payroll and other
|
425,547 |
|
|
460,488 |
|
|
Operating lease
|
173,852 |
|
|
- |
|
| Total current liabilities |
|
923,812 |
|
|
|
835,676 |
|
|
|
|
|
|
|
|
|
| Operating lease |
42,782 |
|
|
- |
|
| Total liabilities |
966,594 |
|
|
835,676 |
|
| |
| Shareholders’ equity |
|
Common stock
|
|
48,460 |
|
|
|
48,460 |
|
|
Additional paid-in capital
|
|
19,958,918 |
|
|
|
19,910,558 |
|
|
Accumulated other comprehensive income (loss)
|
|
666,054 |
|
|
|
(82,725 |
) |
|
Retained earnings
|
60,641,379 |
|
|
62,903,918 |
|
| Total shareholders’ equity |
81,314,811 |
|
|
82,780,211 |
|
| Total liabilities and shareholders’ equity |
$ |
82,281,405 |
|
|
$ |
83,615,887 |
|
|
