Minnesota | 41-1424202 |
State or other jurisdiction of incorporation or organization | (I.R.S.Employer Identification No.) |
11409 Valley View Road, Eden Prairie, Minnesota | 55344 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common stock, $0.01 par value | The NASDAQ Stock Market, LLC |
Large accelerated filer [ ] | Accelerated filer [X] | |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company | |
Emerging growth company [ ] |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Common Stock, $0.01 par value | NVEC | The NASDAQ Stock Market, LLC |
• | ||
• | ||
• | new current sensors for | |
• | lower-power sensors and couplers; | |
• | private-label couplers; and | |
• | new antitamper sensors. |
• | ||
• | biosensors for enhancing food | |
• |
• | technological innovations by us or our competitors; | |
• | the announcement of new products, product enhancements, | |
• | delays in our introduction of new products or technologies or market acceptance of these products or technologies; | |
• | loss of customers, decreases in customers’ purchases, or decreases in customers’ purchase prices; | |
• | changes in demand for our customers’ products; | |
• | quarterly variations in our | |
• | speculation in the press or analyst community about our business, potential revenue, or potential earnings; | |
• | general economic conditions or market conditions specific to industries we or our customers serve or may serve; | |
• | legal proceedings involving us, including intellectual property litigation or class action litigation; | |
• | changes in Federal corporate income tax rates or changes in other tax provisions; | |
• | changes in tariffs, customs, duties, or other trade barriers in foreign jurisdictions where we purchase raw materials or sell our products; and | |
• | our stock repurchase and dividend policies and decisions. |
Quarter Ended | ||||||||||||||||||||||||
3/31/17 | 12/31/16 | 9/30/16 | 6/30/16 | 3/31/16 | 12/31/15 | 9/30/15 | 6/30/15 | |||||||||||||||||
Market price range of common stock | ||||||||||||||||||||||||
High | $ | 88.34 | $ | 71.69 | $ | 60.48 | $ | 59.37 | $ | 57.87 | $ | 62.93 | $ | 81.55 | $ | 78.88 | ||||||||
Low | $ | 70.29 | $ | 55.00 | $ | 52.50 | $ | 52.16 | $ | 45.47 | $ | 47.37 | $ | 46.50 | $ | 65.70 | ||||||||
Dividends per share | ||||||||||||||||||||||||
Declared | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||
Paid | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 |
3/31/2012 | 3/31/2013 | 3/31/2014 | 3/31/2015 | 3/31/2016 | 3/31/2017 | ||||||||||||
NASDAQ Industrial Index | $ | 100.00 | $ | 116.34 | $ | 145.82 | $ | 158.77 | $ | 195.17 | $ | 194.46 | |||||
SmallTimes Index | $ | 100.00 | $ | 105.28 | $ | 122.06 | $ | 128.29 | $ | 122.45 | $ | 138.45 | |||||
NVE Corporation | $ | 100.00 | $ | 106.45 | $ | 107.62 | $ | 134.24 | $ | 117.51 | $ | 181.89 |
Balance Sheet Data as of March 31 | ||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||
Cash, cash equivalents, and marketable securities | $ | 84,602,120 | $ | 92,927,312 | $ | 100,450,357 | $ | 95,644,701 | $ | 85,260,969 | ||||
Total assets | $ | 93,774,806 | $ | 100,854,056 | $ | 110,089,196 | $ | 105,242,043 | $ | 95,765,496 | ||||
Total shareholders’ equity | $ | 92,679,485 | $ | 99,264,587 | $ | 108,327,534 | $ | 103,704,641 | $ | 93,984,608 | ||||
Income Statement Data for Years Ended March 31 | ||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||
Revenue | ||||||||||||||
Product sales | $ | 26,182,453 | $ | 24,410,391 | $ | 29,894,045 | $ | 25,512,028 | $ | 24,434,823 | ||||
Contract research and development | 2,143,743 | 3,306,887 | 690,043 | 422,879 | 2,598,596 | |||||||||
Total revenue | $ | 28,326,196 | $ | 27,717,278 | $ | 30,584,088 | $ | 25,934,907 | $ | 27,033,419 | ||||
Income from operations | $ | 17,445,203 | $ | 16,286,280 | $ | 19,251,951 | $ | 14,393,816 | $ | 15,196,854 | ||||
Net income | $ | 12,948,869 | $ | 12,292,315 | $ | 14,368,354 | $ | 11,135,875 | $ | 11,828,838 | ||||
Net income per share – diluted | $ | 2.68 | $ | 2.53 | $ | 2.95 | $ | 2.29 | $ | 2.43 | ||||
Cash dividends declared per share | $ | 4.00 | $ | 4.00 | $ | 2.06 | $ | - | $ | - |
Percentage of Revenue Year Ended March 31 | Year-to-Year Change Years Ended March 31 | Percentage of Revenue Year Ended March 31 | Year- to-Year Change | |||||||||||||||||||
2017 | 2016 | 2015 | 2016 to 2017 | 2015 to 2016 | 2019 | 2018 | Revenue | |||||||||||||||
Product sales | 92.4 | % | 88.1 | % | 97.7 | % | 7.3 | % | (18.3 | )% | 95.5 | % | 91.5 | % | (7.4 | )% | ||||||
Contract research and development | 7.6 | % | 11.9 | % | 2.3 | % | (35.2 | )% | 379.2 | % | 4.5 | % | 8.5 | % | (53.5 | )% | ||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 2.2 | % | (9.4 | )% | 100.0 | % | 100.0 | % | (11.4 | )% | ||||||
Cost of sales | 21.5 | % | 23.9 | % | 19.7 | % | (8.1 | )% | 9.9 | % | 19.7 | % | 21.0 | % | (16.9 | )% | ||||||
Gross profit | 78.5 | % | 76.1 | % | 80.3 | % | 5.4 | % | (14.1 | )% | 80.3 | % | 79.0 | % | (9.9 | )% | Expenses | |||||
Research and development | 15.5 | % | 12.4 | % | 10.9 | % | ||||||||||||||||
Selling, general, and administrative | 5.1 | % | 6.3 | % | 7.6 | % | (16.8 | )% | (24.2 | )% | 4.6 | % | 4.8 | % | (14.7 | )% | ||||||
Research and development | 11.8 | % | 11.0 | % | 9.8 | % | 9.2 | % | 2.0 | % | ||||||||||||
Total expenses | 16.9 | % | 17.3 | % | 17.4 | % | (0.2 | )% | (9.4 | )% | 20.1 | % | 17.2 | % | 3.8 | % | ||||||
Income from operations | 61.6 | % | 58.8 | % | 62.9 | % | 7.1 | % | (15.4 | )% | 60.2 | % | 61.8 | % | (13.7 | )% | ||||||
Interest income | 5.8 | % | 6.8 | % | 7.2 | % | (12.7 | )% | (13.6 | )% | 6.7 | % | 5.2 | % | 14.6 | % | ||||||
Income before taxes | 67.4 | % | 65.6 | % | 70.1 | % | 5.1 | % | (15.2 | )% | 66.9 | % | 67.0 | % | (11.5 | )% | ||||||
Income tax provision | 21.7 | % | 21.3 | % | 23.1 | % | 4.5 | % | (16.8 | )% | 12.1 | % | 20.4 | % | (47.5 | )% | ||||||
Net income | 45.7 | % | 44.3 | % | 47.0 | % | 5.3 | % | (14.4 | )% | 54.8 | % | 46.6 | % | 4.3 | % |
Payments Due by Period | ||||||||||||
Contractual obligations | Total | <1 Year | 1-3 Years | 3-5 Years | ||||||||
Operating lease obligations | $ | 1,080,903 | $ | 283,494 | $ | 577,113 | $ | 220,296 | ||||
Purchase obligations | 499,880 | 499,880 | - | - | ||||||||
Total | $ | 1,580,783 | $ | 783,374 | $ | 577,113 | $ | 220,296 |
Unaudited; Quarter Ended | |||||||||||
March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | ||||||||
Revenue | |||||||||||
Product sales | $ | 6,399,924 | $ | 7,116,931 | $ | 6,814,384 | $ | 5,851,214 | |||
Contract research and development | 453,282 | 345,748 | 488,155 | 856,558 | |||||||
Total revenue | 6,853,206 | 7,462,679 | 7,302,539 | 6,707,772 | |||||||
Cost of sales | 1,449,454 | 1,502,848 | 1,740,814 | 1,385,178 | |||||||
Gross profit | 5,403,752 | 5,959,831 | 5,561,725 | 5,322,594 | |||||||
Expenses | |||||||||||
Selling, general, and administrative | 340,673 | 384,322 | 343,688 | 389,915 | |||||||
Research and development | 990,729 | 826,816 | 768,188 | 758,368 | |||||||
Total expenses | 1,331,402 | 1,211,138 | 1,111,876 | 1,148,283 | |||||||
Income from operations | 4,072,350 | 4,748,693 | 4,449,849 | 4,174,311 | |||||||
Income before taxes | 4,459,234 | 5,143,900 | 4,880,832 | 4,612,045 | |||||||
Net income | $ | 3,027,383 | $ | 3,483,744 | $ | 3,305,19 | $ | 3,132,545 | |||
Net income per share – diluted | $ | 0.62 | $ | 0.72 | $ | 0.68 | $ | 0.65 | |||
Unaudited; Quarter Ended | |||||||||||
March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | ||||||||
Revenue | |||||||||||
Product sales | $ | 5,212,813 | $ | 5,025,041 | $ | 6,436,672 | $ | 7,735,865 | |||
Contract research and development | 887,774 | 990,974 | 843,085 | 585,054 | |||||||
Total revenue | 6,100,587 | 6,016,015 | 7,279,757 | 8,320,919 | |||||||
Cost of sales | 1,470,049 | 1,508,361 | 1,644,514 | 1,993,928 | |||||||
Gross profit | 4,630,538 | 4,507,654 | 5,635,243 | 6,326,991 | |||||||
Expenses | |||||||||||
Selling, general, and administrative | 336,891 | 406,676 | 524,631 | 484,764 | |||||||
Research and development | 1,012,564 | 738,657 | 628,962 | 681,001 | |||||||
Total expenses | 1,349,455 | 1,145,333 | 1,153,593 | 1,165,765 | |||||||
Income from operations | 3,281,083 | 3,362,321 | 4,481,650 | 5,161,226 | |||||||
Income before taxes | 3,749,204 | 3,830,688 | 4,950,181 | 5,647,024 | |||||||
Net income | $ | 2,600,843 | $ | 2,577,451 | $ | 3,310,795 | $ | 3,803,226 | |||
Net income per share – diluted | $ | 0.54 | $ | 0.53 | $ | 0.68 | $ | 0.78 |
Name | Title | Date |
/s/Terrence W. Glarner Terrence W. Glarner | Director and Chairman of the Board | May |
/s/Daniel A. Baker Daniel A. Baker | Director, President & Chief Executive Officer (Principal Executive Officer) | May |
/s/Curt A. Reynders Curt A. Reynders | Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) | May |
/s/Patricia M. Hollister Patricia M. Hollister | Director | May |
/s/Richard W. Kramp Richard W. Kramp | Director | May |
/s/Gary R. Maharaj Gary R. Maharaj | Director | May |
March 31, 2017 | March 31, 2016 | March 31, 2019 | March 31, 2018 | ASSETS | Current assets | |||||||||
Cash and cash equivalents | $ | 8,199,364 | $ | 7,534,593 | $ | 6,877,304 | $ | 4,755,082 | ||||||
Marketable securities, short-term | 19,591,833 | 19,697,384 | 12,487,821 | 20,765,809 | ||||||||||
Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 3,436,802 | 2,244,086 | 2,995,638 | 2,888,779 | ||||||||||
Inventories | 3,358,298 | 3,205,233 | 4,264,876 | 3,650,439 | ||||||||||
Prepaid expenses and other assets | 607,283 | 734,524 | 816,045 | 635,160 | ||||||||||
Total current assets | 35,193,580 | 33,415,820 | 27,441,684 | 32,695,269 | Fixed assets | |||||||||
Machinery and equipment | 9,007,455 | 8,840,033 | 9,365,806 | 9,395,987 | ||||||||||
Leasehold improvements | 1,644,419 | 1,539,965 | 1,787,269 | 1,749,284 | ||||||||||
10,651,874 | 10,379,998 | 11,153,075 | 11,145,271 | |||||||||||
Less accumulated depreciation and amortization | 9,238,626 | 8,688,285 | 10,258,240 | 9,819,888 | ||||||||||
Net fixed assets | 1,413,248 | 1,691,713 | 894,835 | 1,325,383 | ||||||||||
Long-term deferred tax assets | 357,055 | 51,188 | ||||||||||||
Deferred tax assets | 353,735 | 572,655 | ||||||||||||
Marketable securities, long-term | 56,810,923 | 65,695,335 | 54,925,633 | 52,838,158 | ||||||||||
Total assets | $ | 93,774,806 | $ | 100,854,056 | $ | 83,615,887 | $ | 87,431,465 | LIABILITIES AND SHAREHOLDERS’ EQUITY | Current liabilities | ||||
Accounts payable | $ | 376,275 | $ | 317,990 | $ | 375,188 | $ | 414,970 | ||||||
Accrued payroll and other | 576,313 | 556,674 | 460,488 | 574,755 | ||||||||||
Deferred revenue | 142,733 | 714,805 | ||||||||||||
Total current liabilities | 1,095,321 | 1,589,469 | 835,676 | 989,725 | Shareholders’ equity | |||||||||
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,841,010 issued and outstanding as of March 31, 2017 and 4,835,010 issued and outstanding as of March 31, 2016 | 48,410 | 48,350 | ||||||||||||
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,846,010 issued and outstanding as of March 31, 2019 and 4,842,010 as of March 31, 2018 | 48,460 | 48,420 | ||||||||||||
Additional paid-in capital | 19,507,348 | 19,205,682 | 19,910,558 | 19,599,298 | ||||||||||
Accumulated other comprehensive (loss) income | (38,298 | ) | 451,359 | |||||||||||
Accumulated other comprehensive loss | (82,725 | ) | (915,635 | ) | ||||||||||
Retained earnings | 73,162,025 | 79,559,196 | 62,903,918 | 67,709,657 | ||||||||||
Total shareholders’ equity | 92,679,485 | 99,264,587 | 82,780,211 | 86,441,740 | ||||||||||
Total liabilities and shareholders’ equity | $ | 93,774,806 | $ | 100,854,056 | $ | 83,615,887 | $ | 87,431,465 |
Year Ended March 31 | Year Ended March 31 | |||||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | Revenue | |||||||||||||
Product sales | $ | 26,182,453 | $ | 24,410,391 | $ | 29,894,045 | $ | 25,291,306 | $ | 27,321,810 | ||||||||
Contract research and development | 2,143,743 | 3,306,887 | 690,043 | 1,181,031 | 2,542,071 | |||||||||||||
Total revenue | 28,326,196 | 27,717,278 | 30,584,088 | 26,472,337 | 29,863,881 | |||||||||||||
Cost of sales | 6,078,294 | 6,616,852 | 6,019,868 | 5,216,112 | 6,274,744 | |||||||||||||
Gross profit | 22,247,902 | 21,100,426 | 24,564,220 | 21,256,225 | 23,589,137 | Expenses | ||||||||||||
Research and development | 4,107,692 | 3,702,918 | ||||||||||||||||
Selling, general, and administrative | 1,458,598 | 1,752,962 | 2,312,076 | 1,223,971 | 1,435,592 | |||||||||||||
Research and development | 3,344,101 | 3,061,184 | 3,000,193 | |||||||||||||||
Total expenses | 4,802,699 | 4,814,146 | 5,312,269 | 5,331,663 | 5,138,510 | |||||||||||||
Income from operations | 17,445,203 | 16,286,280 | 19,251,951 | 15,924,562 | 18,450,627 | |||||||||||||
Interest income | 1,650,808 | 1,890,817 | 2,187,723 | 1,785,277 | 1,558,197 | |||||||||||||
Income before taxes | 19,096,011 | 18,177,097 | 21,439,674 | 17,709,839 | 20,008,824 | |||||||||||||
Provision for income taxes | 6,147,142 | 5,884,782 | 7,071,320 | 3,201,903 | 6,096,152 | |||||||||||||
Net income | $ | 12,948,869 | $ | 12,292,315 | $ | 14,368,354 | $ | 14,507,936 | $ | 13,912,672 | ||||||||
Net income per share – basic | $ | 2.68 | $ | 2.53 | $ | 2.96 | $ | 3.00 | $ | 2.87 | ||||||||
Net income per share – diluted | $ | 2.68 | $ | 2.53 | $ | 2.95 | $ | 2.99 | $ | 2.87 | ||||||||
Cash dividends declared per common share | $ | 4.00 | $ | 4.00 | $ | 2.06 | $ | 4.00 | $ | 4.00 | Weighted average shares outstanding | |||||||
Basic | 4,836,602 | 4,850,209 | 4,855,504 | 4,844,010 | 4,841,347 | |||||||||||||
Diluted | 4,838,389 | 4,852,602 | 4,871,935 | 4,850,567 | 4,846,212 |
Year Ended March 31 | Year Ended March 31 | |||||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | ||||||||||||||
Net income | $ | 12,948,869 | $ | 12,292,315 | $ | 14,368,354 | $ | 14,507,936 | $ | 13,912,672 | ||||||||
Unrealized loss from marketable securities, net of tax | (489,657 | ) | (295,088 | ) | (131,410 | ) | ||||||||||||
Unrealized gain (loss) from marketable securities, net of tax | 893,275 | (877,337 | ) | |||||||||||||||
Comprehensive income | $ | 12,459,212 | $ | 11,997,227 | $ | 14,236,944 | $ | 15,401,211 | $ | 13,035,335 |
| Additional Paid-In Capital | Accumulated Other Comprehen- sive Income (Loss) | Retained Earnings | | Additional Paid-In Capital | Accumulated Other Comprehen- sive Income (Loss) | Retained Earnings | Common Stock | ||||||||||||||||||||||||||||||||
Shares | Amount | Total | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||
Balance as of March 31, 2014 | 4,851,043 | $ | 48,510 | $ | 20,464,883 | $ | 877,857 | $ | 82,313,391 | $ | 103,704,641 | |||||||||||||||||||||||||||||
Balance as of March 31, 2017 | 4,841,010 | $ | 48,410 | $ | 19,507,348 | $ | (38,298 | ) | $ | 73,162,025 | $ | 92,679,485 | ||||||||||||||||||||||||||||
Exercise of stock options | 6,910 | 70 | 302,631 | 302,701 | 1,000 | 10 | 51,030 | 51,040 | Comprehensive income: | |||||||||||||||||||||||||||||||
Unrealized loss on marketable securities, net of tax | (131,410 | ) | (131,410 | ) | (877,337 | ) | (877,337 | ) | ||||||||||||||||||||||||||||||||
Net income | 14,368,354 | 14,368,354 | 13,912,672 | 13,912,672 | ||||||||||||||||||||||||||||||||||||
Total comprehensive income | 14,236,944 | 13,035,335 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 58,960 | 58,960 | 40,920 | 40,920 | ||||||||||||||||||||||||||||||||||||
Tax benefit of stock- based compensation | 24,288 | 24,288 | ||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($2.06 per share of common stock) | (10,000,000 | ) | (10,000,000 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2015 | 4,857,953 | 48,580 | 20,850,762 | 746,447 | 86,681,745 | 108,327,534 | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($4.00 per share of common stock) | (19,365,040 | ) | (19,365,040 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2018 | 4,842,010 | 48,420 | 19,599,298 | (915,635 | ) | 67,709,657 | 86,441,740 | |||||||||||||||||||||||||||||||||
Exercise of stock options | 18,090 | 181 | 292,728 | 292,909 | 4,000 | 40 | 217,900 | 217,940 | ||||||||||||||||||||||||||||||||
Repurchase of common stock | (41,033 | ) | (411 | ) | (2,311,262 | ) | (2,311,673 | ) | Comprehensive income: | |||||||||||||||||||||||||||||||
Unrealized loss on marketable securities, net of tax | (295,088 | ) | (295,088 | ) | ||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities, net of tax | 893,275 | 893,275 | ||||||||||||||||||||||||||||||||||||||
Net income | 12,292,315 | 12,292,315 | 14,507,936 | 14,507,936 | ||||||||||||||||||||||||||||||||||||
Total comprehensive income | 11,997,227 | 15,401,211 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 21,160 | 21,160 | 93,360 | 93,360 | ||||||||||||||||||||||||||||||||||||
Tax benefit of stock- based compensation | 352,294 | 352,294 | ||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($4.00 per share of common stock) | (19,414,864 | ) | (19,414,864 | ) | (19,374,040 | ) | (19,374,040 | ) | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2016 | 4,835,010 | 48,350 | 19,205,682 | 451,359 | 79,559,196 | 99,264,587 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | 6,000 | 60 | 247,050 | 247,110 | ||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities, net of tax | (489,657 | ) | (489,657 | ) | ||||||||||||||||||||||||||||||||||||
Net income | 12,948,869 | 12,948,869 | ||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 12,459,212 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 22,000 | 22,000 | ||||||||||||||||||||||||||||||||||||||
Tax benefit of stock- based compensation | 32,616 | 32,616 | ||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($4.00 per share of common stock) | (19,346,040 | ) | (19,346,040 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2017 | 4,841,010 | $ | 48,410 | $ | 19,507,348 | $ | (38,298 | ) | $ | 73,162,025 | $ | 92,679,485 | ||||||||||||||||||||||||||||
Cumulative effect of accounting change | (60,365 | ) | 60,365 | |||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 4,846,010 | $ | 48,460 | $ | 19,910,558 | $ | (82,725 | ) | $ | 62,903,918 | $ | 82,780,211 |
Year Ended March 31 | |||||||
2019 | 2018 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 14,507,936 | $ | 13,912,672 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 705,197 | 979,652 | |||||
Stock-based compensation | 93,360 | 40,920 | |||||
Deferred income taxes | (31,269 | ) | 96,275 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (106,859 | ) | 548,023 | ||||
Inventories | (614,437 | ) | (292,141 | ) | |||
Prepaid expenses and other assets | (180,885 | ) | (27,877 | ) | |||
Accounts payable and accrued expenses | (154,049 | ) | 37,137 | ||||
Deferred revenue | - | (142,733 | ) | ||||
Net cash provided by operating activities | 14,218,994 | 15,151,928 | |||||
INVESTING ACTIVITIES | |||||||
Purchases of fixed assets | (68,265 | ) | (604,800 | ) | |||
Purchases of marketable securities | (13,672,407 | ) | (18,217,410 | ) | |||
Proceeds from maturities and sales of marketable securities | 20,800,000 | 19,540,000 | |||||
Net cash provided by investing activities | 7,059,328 | 717,790 | |||||
FINANCING ACTIVITIES | |||||||
Proceeds from sale of common stock | 217,940 | 51,040 | |||||
Payment of dividends to shareholders | (19,374,040 | ) | (19,365,040 | ) | |||
Net cash used in financing activities | (19,156,100 | ) | (19,314,000 | ) | |||
Increase (decrease) in cash and cash equivalents | 2,122,222 | (3,444,282 | ) | ||||
Cash and cash equivalents at beginning of year | 4,755,082 | 8,199,364 | |||||
Cash and cash equivalents at end of year | $ | 6,877,304 | $ | 4,755,082 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the year for income taxes | $ | 3,426,045 | $ | 5,966,425 |
Year Ended March 31 | |||||||||||
2017 | 2016 | 2015 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 12,948,869 | $ | 12,292,315 | $ | 14,368,354 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,147,451 | 850,970 | 934,371 | ||||||||
Stock-based compensation | 22,000 | 21,160 | 58,960 | ||||||||
Excess tax benefits | (32,616 | ) | (352,294 | ) | (24,288 | ) | |||||
Deferred income taxes | 6,144 | 295,827 | 155,713 | ||||||||
Changes in operating assets and liabilities | |||||||||||
Accounts receivable | (1,192,716 | ) | 719,888 | (632,400 | ) | ||||||
Inventories | (153,065 | ) | 537,259 | (535,159 | ) | ||||||
Prepaid expenses and other assets | 127,241 | (159,611 | ) | 241,363 | |||||||
Accounts payable and accrued expenses | 77,924 | (611,290 | ) | 303,152 | |||||||
Deferred revenue | (572,072 | ) | 714,805 | - | |||||||
Net cash provided by operating activities | 12,379,160 | 14,309,029 | 14,870,066 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of fixed assets | (519,835 | ) | (287,275 | ) | (185,007 | ) | |||||
Purchases of marketable securities | (11,528,240 | ) | (14,568,089 | ) | (8,997,086 | ) | |||||
Proceeds from maturities of marketable securities | 19,400,000 | 19,725,000 | 12,160,000 | ||||||||
Net cash provided by investing activities | 7,351,925 | 4,869,636 | 2,977,907 | ||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from sale of common stock | 247,110 | 292,909 | 302,701 | ||||||||
Excess tax benefits | 32,616 | 352,294 | 24,288 | ||||||||
Repurchase of common stock | - | (2,311,673 | ) | - | |||||||
Payment of dividends to shareholders | (19,346,040 | ) | (19,414,864 | ) | (10,000,000 | ) | |||||
Net cash used in financing activities | (19,066,314 | ) | (21,081,334 | ) | (9,673,011 | ) | |||||
Increase (decrease) in cash and cash equivalents | 664,771 | (1,902,669 | ) | 8,174,962 | |||||||
Cash and cash equivalents at beginning of year | 7,534,593 | 9,437,262 | 1,262,300 | ||||||||
Cash and cash equivalents at end of year | $ | 8,199,364 | $ | 7,534,593 | $ | 9,437,262 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the year for income taxes | $ | 6,040,000 | $ | 5,810,000 | $ | 6,800,000 |
Year Ended March 31 | Year Ended March 31 | |||||||
2017 | 2016 | 2015 | 2019 | 2018 | ||||
Weighted average common shares outstanding – basic | 4,836,602 | 4,850,209 | 4,855,504 | 4,844,010 | 4,841,347 | |||
Dilutive effect of stock options | 1,787 | 2,393 | 16,431 | 6,557 | 4,865 | |||
Shares used in computing net income per share – diluted | 4,838,389 | 4,852,602 | 4,871,935 | 4,850,567 | 4,846,212 |
Total | <1 Year | 1–3 Years | 3–5 Years | |||||||
$ | 74,117,263 | $ | 19,191,630 | $ | 26,733,361 | $ | 28,192,272 |
As of March 31, 2019 | As of March 31, 2018 | ||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||
Money market funds | $ | 6,703,809 | $ | - | $ | 6,703,809 | $ | 3,951,032 | $ | - | $ | 3,951,032 | |||||
Corporate bonds | - | 67,413,454 | 67,413,454 | 54,517,969 | 19,085,998 | 73,603,967 | |||||||||||
Total | $ | 6,703,809 | $ | 67,413,454 | $ | 74,117,263 | $ | 58,469,001 | $ | 19,085,998 | $ | 77,554,999 |
As of March 31, 2019 | As of March 31, 2018 | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||
Money market funds | $ | 6,703,809 | $ | - | $ | - | $ | 6,703,809 | $ | 3,951,032 | $ | - | $ | - | $ | 3,951,032 | |||||||||
Corporate bonds | 67,519,350 | 315,902 | (421,798 | ) | 67,413,454 | 74,853,327 | - | (1,249,360 | ) | 73,603,967 | |||||||||||||||
Total | $ | 74,223,159 | $ | 315,902 | $ | (421,798 | ) | $ | 74,117,263 | $ | 78,804,359 | $ | - | $ | (1,249,360 | ) | $ | 77,554,999 |
Total | <1 Year | 1–3 Years | 3–5 Years | |||||||
$ | 76,402,756 | $ | 19,591,833 | $ | 33,461,493 | $ | 23,349,430 |
As of March 31, 2017 | As of March 31, 2016 | ||||||||||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | ||||||||||||||||||
Corporate bonds | $ | 75,158,087 | $ | 187,001 | $ | (246,935 | ) | $ | 75,098,153 | $ | 83,339,487 | $ | 717,206 | $ | (10,824 | ) | $ | 84,045,869 | |||||||
Municipal bonds | 1,304,817 | - | (214 | ) | 1,304,603 | 1,344,328 | 2,522 | - | 1,346,850 | ||||||||||||||||
Total | $ | 76,462,904 | $ | 187,001 | $ | (247,149 | ) | $ | 76,402,756 | $ | 84,683,815 | $ | 719,728 | $ | (10,824 | ) | $ | 85,392,719 |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||
Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | Fair Market Value | Gross Unrealized Losses | ||||||||||||||||
As of March 31, 2017 | |||||||||||||||||||||
Corporate bonds | $ | 32,198,766 | $ | (246,935 | ) | $ | - | $ | - | $ | 32,198,766 | $ | (246,935 | ) | |||||||
Municipal bonds | 1,304,603 | (214 | ) | - | - | 1,304,603 | (214 | ) | |||||||||||||
Total | $ | 33,503,369 | $ | (247,149 | ) | $ | - | $ | - | $ | 33,503,369 | $ | (247,149 | ) | |||||||
As of March 31, 2016 | |||||||||||||||||||||
Corporate bonds | $ | 3,003,606 | $ | (6,703 | ) | $ | 2,599,870 | $ | (4,121 | ) | $ | 5,603,476 | $ | (10,824 | ) | ||||||
Municipal bonds | - | - | - | - | - | - | |||||||||||||||
Total | $ | 3,003,606 | $ | (6,703 | ) | $ | 2,599,870 | $ | (4,121 | ) | $ | 5,603,476 | $ | (10,824 | ) |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||
Estimated Fair Value | Gross Unrealized Holding Losses | Estimated Fair Value | Gross Unrealized Holding Losses | Estimated Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||
Corporate bonds | $ | - | $ | - | $ | 51,413,428 | $ | (421,798 | ) | $ | 51,413,428 | $ | (421,798 | ) | |||||||
Total | $ | - | $ | - | $ | 51,413,428 | $ | (421,798 | ) | $ | 51,413,428 | $ | (421,798 | ) | |||||||
As of March 31, 2018 | |||||||||||||||||||||
Corporate bonds | $ | 61,731,248 | $ | (1,003,849 | ) | $ | 9,072,719 | $ | (245,511 | ) | $ | 70,803,967 | $ | (1,249,360 | ) | ||||||
Total | $ | 61,731,248 | $ | (1,003,849 | ) | $ | 9,072,719 | $ | (245,511 | ) | $ | 70,803,967 | $ | (1,249,360 | ) |
March 31 | March 31 | |||||||||
2017 | 2016 | 2019 | 2018 | |||||||
Raw materials | $ | 786,775 | $ | 810,987 | $ | 1,130,917 | $ | 1,084,030 | ||
Work in process | 1,968,990 | 1,653,800 | 2,325,238 | 1,828,492 | ||||||
Finished goods | 602,533 | 740,446 | 808,721 | 737,917 | ||||||
Total inventories | $ | 3,358,298 | $ | 3,205,233 | $ | 4,264,876 | $ | 3,650,439 |
Year Ended March 31 | Year Ended March 31 | ||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | |||||||||
Risk-free interest rate | 1.0 | % | 1.6 | % | 1.6 | % | 2.9 | % | 1.8 | % | |||
Expected volatility | 27 | % | 26 | % | 24 | % | 33 | % | 28 | % | |||
Expected life (years) | 4.3 | 4.3 | 4.2 | 4.5 | 4.4 | ||||||||
Dividend yield | 7.0 | % | 7.1 | % | 0 | % | 3.7 | % | 5.3 | % |
Ranges of Exercise Prices | Number Outstanding | Weighted Average Exercise Price | Weighted Remaining Contractual Life (years) | ||||
$ 42.45 - 54.11 | 5,000 | $ | 49.70 | 4.0 | |||
56.76 - 67.69 | 14,000 | 60.30 | 7.8 | ||||
19,000 | $ | 57.51 | 6.8 |
Ranges of Exercise Prices | Number Outstanding | Weighted Average Exercise Price | Weighted Remaining Contractual Life (years) | ||||
$49.86 - $67.69 | 14,000 | $ | 58.83 | 5.5 | |||
$76.13 - $107.86 | 8,000 | 92.00 | 8.9 | ||||
22,000 | $ | 70.89 | 6.7 |
Option Shares Reserved | Options Outstanding | Weighted Average Option Exercise Price | Warrants Outstanding | Weighted Average Warrant Exercise Price | Option Shares Reserved | Options Outstanding | Weighted Average Option Exercise Price | |||||||||||||||
At March 31, 2014 | 155,230 | 38,000 | $ | 31.78 | 2,000 | $ | 37.38 | |||||||||||||||
At March 31, 2017 | 143,230 | 19,000 | $ | 57.51 | ||||||||||||||||||
Granted | (4,000 | ) | 4,000 | $ | 67.69 | - | - | (4,000 | ) | 4,000 | $ | 76.13 | ||||||||||
Exercised | - | (6,910 | ) | $ | 43.81 | - | - | - | (1,000 | ) | $ | 51.04 | ||||||||||
Terminated | - | - | $ | - | (2,000 | ) | 37.38 | |||||||||||||||
At March 31, 2015 | 151,230 | 35,090 | $ | 33.51 | - | $ | - | |||||||||||||||
At March 31, 2018 | 139,230 | 22,000 | $ | 61.19 | ||||||||||||||||||
Granted | (4,000 | ) | 4,000 | $ | 56.76 | - | - | (4,000 | ) | 4,000 | $ | 107.86 | ||||||||||
Exercised | - | (18,090 | ) | $ | 16.19 | - | - | - | (4,000 | ) | $ | 54.49 | ||||||||||
Terminated | - | - | $ | - | - | - | ||||||||||||||||
At March 31, 2016 | 147,230 | 21,000 | $ | 52.85 | - | $ | - | |||||||||||||||
Granted | (4,000 | ) | 4,000 | $ | 57.46 | - | - | |||||||||||||||
Exercised | - | (6,000 | ) | $ | 41.19 | - | - | |||||||||||||||
Terminated | - | - | $ | - | - | - | ||||||||||||||||
At March 31, 2017 | 143,230 | 19,000 | $ | 57.51 | - | $ | - | |||||||||||||||
At March 31, 2019 | 135,230 | 22,000 | $ | 70.89 |
Year Ended March 31 | Year Ended March 31 | |||||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | Current taxes | |||||||||||||
Federal | $ | 6,034,924 | $ | 5,754,428 | $ | 6,608,923 | $ | 3,107,376 | $ | 5,899,574 | ||||||||
State | 138,689 | 186,822 | 330,971 | 125,796 | 160,670 | Deferred taxes | ||||||||||||
Federal | (25,196 | ) | (55,254 | ) | 125,070 | (30,012 | ) | 31,800 | ||||||||||
State | (1,275 | ) | (1,214 | ) | 6,356 | (1,257 | ) | 4,108 | ||||||||||
Income tax provision | $ | 6,147,142 | $ | 5,884,782 | $ | 7,071,320 | $ | 3,201,903 | $ | 6,096,152 |
Year Ended March 31 | Year Ended March 31 | |||||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | ||||||||||||||
Tax expense at U.S. statutory rate | $ | 6,645,733 | $ | 6,272,341 | $ | 7,503,886 | $ | 3,719,066 | $ | 6,282,771 | ||||||||
State income taxes, net of Federal benefit | 83,116 | 118,057 | 216,518 | 95,430 | 103,240 | |||||||||||||
Domestic manufacturing deduction | (536,063 | ) | (476,932 | ) | (600,207 | ) | - | (495,361 | ) | |||||||||
Foreign-derived intangible income deduction | (555,256 | ) | - | |||||||||||||||
Municipal interest | (4,207 | ) | (4,171 | ) | (11,489 | ) | - | (1,378 | ) | |||||||||
Tax Reform Act effect on deferred tax assets | - | 206,693 | ||||||||||||||||
Other | (41,437 | ) | (24,513 | ) | (37,388 | ) | (57,337 | ) | 187 | |||||||||
Income tax provision | $ | 6,147,142 | $ | 5,884,782 | $ | 7,071,320 | $ | 3,201,903 | $ | 6,096,152 |
March 31 | March 31 | |||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||
Vacation accrual | $ | 109,298 | $ | 118,611 | ||||||||||
Paid time off accrual | $ | 55,900 | $ | 59,171 | ||||||||||
Inventory reserve | 81,743 | 90,825 | 41,572 | 41,572 | ||||||||||
Depreciation and amortization | 52,378 | (30,174 | ) | 112,125 | 81,385 | |||||||||
Stock-based compensation deductions | 86,335 | 115,257 | 62,671 | 55,886 | ||||||||||
Unrealized loss (gain) on marketable securities | 21,852 | (257,545 | ) | |||||||||||
Unrealized loss on marketable securities | 23,170 | 273,360 | ||||||||||||
Other | 5,449 | 14,214 | 58,297 | 61,281 | ||||||||||
Long-term deferred tax assets | $ | 357,055 | $ | 51,188 | ||||||||||
Deferred tax assets | $ | 353,735 | $ | 572,655 |
% of Revenue for Year Ended March 31 | |||||
2017 | 2016 | 2015 | |||
Customer A | 22% | 23% | 20% | ||
Customer B | 20% | 20% | 16% | ||
Customer C | * | * | 14% | ||
Customer D | * | * | 12% |
% of Revenue for Year Ended March 31 | |||
2019 | 2018 | ||
Customer A | 21% | 18% | |
Customer B | 18% | 19% |
Year Ended March 31 | ||||||||
2017 | 2016 | 2015 | ||||||
United States | $ | 13,600,236 | $ | 12,392,053 | $ | 11,919,548 | ||
Europe, the Middle East, and Africa | 9,612,883 | 11,392,046 | 13,779,392 | |||||
Asia-Pacific | 4,200,934 | 3,113,484 | 4,318,209 | |||||
Rest of World | 912,143 | 819,695 | 566,939 | |||||
Total Revenue | $ | 28,326,196 | $ | 27,717,278 | $ | 30,584,088 |
Year Ending March 31 | Year Ending March 31 | Year Ending March 31 | ||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Total | |||||||||||||||||||||||||||
2020 | 2020 | 2021 | 2022 | 2023 | 2024 | Total | ||||||||||||||||||||||||||
$ | 283,494 | $ | 286,590 | $ | 290,523 | $ | 220,296 | $ | - | $ | 1,080,903 | 295,436 | $ | 223,981 | $ | - | $ | - | $ | - | $ | 519,417 |
Exhibit # | Description |
23 | Consent of Grant Thornton LLP. |
31.1 | Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a). |
31.2 | Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a). |
32 | Certification by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C. Section 1350. |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |