 | PRESS RELEASE
For immediate release |
NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—October 18, 2017—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2017.
Total revenue for the second quarter of fiscal 2018 decreased 4% to $7.00 million from $7.30 million in the prior-year quarter. The decrease was due to a 6% decrease in product sales, partially offset by a 25% increase in contract research and development revenue. Net income for the second quarter of fiscal 2018 decreased 4% to $3.16 million, or $0.65 per diluted share, compared to $3.31 million, or $0.68 per share, for the prior-year quarter.
For the first six months of fiscal 2018, total revenue increased 4% to $14.6 million from $14.0 million for the first six months of the prior year. The increase was primarily due to a 5% increase in product sales. Net income increased slightly to $6.46 million, or $1.33 per diluted share, for the first half of fiscal 2018 compared to $6.44 million, or $1.33 per share, for the first half of fiscal 2017.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2017 to shareholders of record as of October 30, 2017.
“We are pleased to report solid 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. NVE has also licensed its spintronic magnetoresistive random access memory technology, commonly known as MRAM.
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 related to 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 contract research and development revenue, uncertainties related to future stock repurchases and 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, 2017 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 (Unaudited)
Quarter Ended September 30
2017 2016
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Revenue
Product sales $ 6,387,080 $ 6,814,384
Contract research and development 609,154 488,155
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Total revenue 6,996,234 7,302,539
Cost of sales 1,353,169 1,740,814
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Gross profit 5,643,065 5,561,725
Expenses
Selling, general, and administrative 348,363 343,688
Research and development 1,030,504 768,188
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Total expenses 1,378,867 1,111,876
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Income from operations 4,264,198 4,449,849
Interest income 387,860 430,983
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Income before taxes 4,652,058 4,880,832
Provision for income taxes 1,491,023 1,575,635
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Net income $ 3,161,035 $ 3,305,197
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Net income per share - basic $ 0.65 $ 0.68
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Net income per share - diluted $ 0.65 $ 0.68
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Weighted average shares outstanding
Basic 4,841,010 4,835,564
Diluted 4,845,632 4,837,819
Six Months Ended September 30
2017 2016
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Revenue
Product sales $ 13,269,753 $ 12,665,598
Contract research and development 1,334,147 1,344,713
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Total revenue 14,603,900 14,010,311
Cost of sales 3,151,535 3,125,992
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Gross profit 11,452,365 10,884,319
Expenses
Selling, general, and administrative 747,724 733,603
Research and development 1,936,229 1,526,556
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Total expenses 2,683,953 2,260,159
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Income from operations 8,768,412 8,624,160
Interest income 749,638 868,717
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Income before taxes 9,518,050 9,492,877
Provision for income taxes 3,059,400 3,055,135
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Net income $ 6,458,650 $ 6,437,742
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Net income per share - basic $ 1.33 $ 1.33
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Net income per share - diluted $ 1.33 $ 1.33
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Weighted average shares outstanding
Basic 4,841,010 4,835,289
Diluted 4,845,907 4,837,293
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2017
(Unaudited)
Sept. 30, 2017 March 31, 2017
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ASSETS
Current assets
Cash and cash equivalents $ 5,108,313 $ 8,199,364
Marketable securities, short term 16,921,738 19,591,833
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 2,659,618 3,436,802
Inventories 3,504,478 3,358,298
Prepaid expenses and other assets 523,190 607,283
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Total current assets 28,717,337 35,193,580
Fixed assets
Machinery and equipment 9,447,726 9,007,455
Leasehold improvements 1,730,525 1,644,419
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11,178,251 10,651,874
Less accumulated
depreciation and amortization 9,555,119 9,238,626
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Net fixed assets 1,623,132 1,413,248
Long-term deferred tax assets 432,106 357,055
Marketable securities, long term 59,622,760 56,810,923
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Total assets $ 90,395,335 $ 93,774,806
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 249,697 $ 376,275
Accrued payroll and other 580,838 576,313
Deferred revenue - 142,733
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Total current liabilities 830,535 1,095,321
Shareholders' equity
Common stock 48,410 48,410
Additional paid-in capital 19,548,268 19,507,348
Accumulated
other comprehensive income (loss) 29,467 (38,298)
Retained earnings 69,938,655 73,162,025
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Total shareholders' equity 89,564,800 92,679,485
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Total liabilities and shareholders' equity $ 90,395,335 $ 93,774,806
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