 |
EARNINGS REPORT |
NVE Corporation Reports Second Quarter Results and Announces Quarterly
Dividend
EDEN PRAIRIE, Minn.—October 23, 2024—NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter ended September 30, 2024.
Total revenue for the second quarter of fiscal 2025 decreased 5% to $6.76 million
from $7.13 million for the prior-year quarter. The decrease was due to a 14% decrease
in product sales partially offset by a 3,950% increase in contract research and
development revenue. Net income for the second quarter of fiscal 2025 decreased
15% to $4.03 million, or $0.83 per diluted share, compared to $4.72 million, or
$0.98 per share, for the prior-year quarter.
For the first six months of fiscal 2025, total revenue decreased 15% to $13.5
million from $16.0 million for the first six months of the prior year. The decrease
was due to a 20% decrease in product sales partially offset by a 457% increase
in contract research and development revenue. Net income decreased 11% to $8.12
million, or $1.68 per diluted share, from $9.13 million, or $1.89 per share, for
the first half of fiscal 2024.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable November 29, 2024, to shareholders of record
as of November 4, 2024.
“We are pleased to report solid earnings for the quarter despite a slow
industry recovery,” 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, 2024.
###
|
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED SEPTEMBER 30, 2024 AND 2023
(unaudited)
|
| |
Quarter Ended Sept. 30, |
| |
2024 |
|
2023 |
| Revenue |
|
Product sales
|
$ |
6,104,433 |
|
|
$ |
7,117,122 |
|
|
Contract research and development
|
|
654,257 |
|
|
|
16,154 |
|
| Total revenue |
|
6,758,690 |
|
|
|
7,133,276 |
|
| Cost of sales |
|
947,254 |
|
|
|
1,599,866 |
|
| Gross profit |
|
5,811,436 |
|
|
|
5,533,410 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
847,603 |
|
|
|
683,208 |
|
|
Selling, general, and administrative
|
|
568,241 |
|
|
|
433,785 |
|
|
Recovery of credit losses
|
|
- |
|
|
|
(202,926 |
) |
| Total expenses |
|
1,415,844 |
|
|
|
914,067 |
|
| Income from operations |
|
4,395,592 |
|
|
|
4,619,343 |
|
| Interest income |
|
464,429 |
|
|
|
512,092 |
|
| Income before taxes |
|
4,860,021 |
|
|
|
5,131,435 |
|
| Provision for income taxes |
|
833,876 |
|
|
|
407,869 |
|
| Net income |
$ |
4,026,145 |
|
|
$ |
4,723,566 |
|
| Net income per share – basic |
$ |
0.83 |
|
|
$ |
0.98 |
|
| Net income per share – diluted |
$ |
0.83 |
|
|
$ |
0.98 |
|
| Cash dividends declared per common share |
$ |
1.00 |
|
|
$ |
1.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic
|
|
4,833,855 |
|
|
|
4,833,401 |
|
|
Diluted
|
|
4,839,291 |
|
|
|
4,840,770 |
|
|
NVE CORPORATION
STATEMENTS OF INCOME
SIX MONTHS ENDED SEPTEMBER 30, 2024AND 2023
(unaudited)
|
| |
Six Months Ended Sept. 30, |
| |
2024 |
|
2023 |
| Revenue |
|
Product sales
|
$ |
12,720,292 |
|
|
$ |
15,817,214 |
|
|
Contract research and development
|
|
821,642 |
|
|
|
147,476 |
|
| Total revenue |
|
13,541,934 |
|
|
|
15,964,690 |
|
| Cost of sales |
|
1,922,748 |
|
|
|
3,679,489 |
|
| Gross profit |
|
11,619,186 |
|
|
|
12,285,201 |
|
| Expenses |
|
|
|
|
|
|
|
|
Research and development
|
|
1,726,131 |
|
|
|
1,379,200 |
|
|
Selling, general, and administrative
|
|
1,108,645 |
|
|
|
908,900 |
|
|
Provision for credit losses
|
|
- |
|
|
|
9,514 |
|
| Total expenses |
|
2,834,776 |
|
|
|
2,297,614 |
|
| Income from operations |
|
8,784,410 |
|
|
|
9,987,587 |
|
| Interest income |
|
958,388 |
|
|
|
948,618 |
|
| Income before taxes |
|
4,882,777 |
|
|
|
10,936,205 |
|
| Provision for income taxes |
|
1,619,066 |
|
|
|
1,808,909 |
|
| Net income |
$ |
8,123,732 |
|
|
$ |
9,127,296 |
|
| Net income per share – basic |
$ |
1.68 |
|
|
$ |
1.89 |
|
| Net income per share – diluted |
$ |
1.68 |
|
|
$ |
1.89 |
|
| Cash dividends declared per common share |
$ |
2.00 |
|
|
$ |
2.00 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic
|
|
4,833,766 |
|
|
|
4,832,786 |
|
|
Diluted
|
|
4,839,145 |
|
|
|
4,840,688 |
|
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2024
|
| |
Sept. 30,
2024 |
|
March 31,
2024 |
| ASSETS |
|
Current assets
|
|
Cash and cash equivalents
|
$ |
3,096,179 |
|
|
$ |
10,283,550 |
|
|
Marketable securities, short-term
(amortized cost of $20,002,199 as of September
30, 2024, and $12,283,630 as of March 31, 2024)
|
|
19,836,293 |
|
|
|
11,917,779 |
|
|
Accounts receivable, net of allowance for credit
losses of $15,000
|
|
2,952,431 |
|
|
|
3,144,833 |
|
|
Inventories
|
|
7,417,611 |
|
|
|
7,158,585 |
|
|
Prepaid expenses and other assets
|
|
533,233 |
|
|
|
689,349 |
|
| Total current assets |
|
33,835,747 |
|
|
|
33,194,096 |
|
| Fixed assets |
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
11,626,533 |
|
|
|
10,501,096 |
|
|
Leasehold improvements
|
|
1,956,309 |
|
|
|
1,956,309 |
|
| |
|
13,582,842 |
|
|
|
12,457,405 |
|
|
Less accumulated depreciation and amortization
|
|
11,560,984 |
|
|
|
11,403,383 |
|
| Net fixed assets |
|
2,021,858 |
|
|
|
1,054,022 |
|
| Deferred tax assets |
|
1,518,646 |
|
|
|
1,453,704 |
|
Marketable securities, long-term
(amortized cost of $28,203,595 as of September
30, 2024, and $31,417,890 as of March 31, 2024)
|
|
28,281,803 |
|
|
|
30,788,301 |
|
| Right-of-use asset – operating lease |
|
219,747 |
|
|
|
289,910 |
|
| Total assets |
$ |
65,877,801 |
|
|
$ |
66,780,033 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
170,077 |
|
|
$ |
127,154 |
|
|
Accrued payroll and other
|
|
580,274 |
|
|
|
729,215 |
|
|
Operating lease |
|
181,159 |
|
|
|
179,372 |
|
| Total current liabilities |
|
931,510 |
|
|
|
1,035,741 |
|
| Operating lease |
|
88,651 |
|
|
|
175,775 |
|
| Total liabilities |
|
1,020,161 |
|
|
|
1,211,516 |
|
| |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
|
|
|
|
|
Common stock
|
|
48,340 |
|
|
|
48,337 |
|
|
Additional paid-in capital
|
|
19,678,425 |
|
|
|
19,554,812 |
|
|
Accumulated other comprehensive income
|
|
(68,510 |
) |
|
|
(777,637 |
) |
|
Retained earnings
|
|
45,199,385 |
|
|
|
46,743,005 |
|
| Total shareholders’ equity |
|
64,857,640 |
|
|
|
65,568,517 |
|
| Total liabilities and shareholders’ equity |
$ |
65,877,801 |
|
|
$ |
66,780,033 |
|
|
|
