NVE (NVEC) 8-K NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

PRESS RELEASE
For immediate release

NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

 
EDEN PRAIRIE, Minn.—October 19, 2022—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2022.

Total revenue for the second quarter of fiscal 2023 increased 57% to $10.7 million from $6.82 million for the prior-year quarter. The increase was due to a 59% increase in product sales and a 5% increase in contract research and development revenue. Net income for the second quarter of fiscal 2023 increased 67% to $6.09 million, or $1.26 per diluted share, compared to $3.65 million, or $0.75 per share, for the prior-year quarter.

For the first six months of fiscal 2023, total revenue increased 29% to $18.1 million from $14.0 million for the first six months of the prior year. The increase was due to a 29% increase in product sales and a 19% increase in contract research and development revenue. Net income increased 42% to $10.2 million, or $2.12 per diluted share, from $7.23 million, or $1.49 per share, for the first half of fiscal 2022.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2022 to shareholders of record as of October 31, 2022.

“We are pleased to report record revenue and 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.

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, our dependence on critical suppliers and packaging vendors, and risks related to supply-chain disruptions, 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, 2022.
 

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (Unaudited)
	Quarter Ended Sept. 30
	2022		2021
Revenue
Product sales	$	10,514,539	$	6,630,012
Contract research and development		203,285		193,450
Total revenue		10,717,824		6,823,462
Cost of sales		2,402,781		1,544,134
Gross profit		8,315,043		5,279,328
Expenses
Research and development		669,978		707,997
Selling, general, and administrative		435,625		483,116
Total expenses		1,105,603		1,191,113
Income from operations		7,209,440		4,088,215
Interest income		351,375		294,858
Income before taxes		7,560,815		4,383,073
Provision for income taxes		1,470,442		736,566
Net income	$	6,090,373	$	3,646,507
Net income per share – basic	$	1.26	$	0.75
Net income per share – diluted	$	1.26	$	0.75
Weighted average shares outstanding
Basic		4,830,826		4,833,232
Diluted		4,830,956		4,836,603
	Six Months  Ended Sept. 30
	2022		2021
Revenue
Product sales	$	17,587,500	$	13,583,778
Contract research and development		466,731		392,847
Total revenue		18,054,231		13,976,625
Cost of sales		4,054,628		3,313,715
Gross profit		13,999,603		10,662,910
Expenses
Research and development		1,271,896		1,516,139
Selling, general, and administrative		806,946		949,734
Total expenses		2,078,842		2,465,873
Income from operations		11,920,761		8,197,037
Interest income		634,436		584,578
Income before taxes		12,555,197		8,781,615
Provision for income taxes		2,324,707		1,555,542
Net income	$	10,230,490	$	7,226,073
Net income per share – basic	$	2.12	$	1.50
Net income per share – diluted	$	2.12	$	1.49
Weighted average shares outstanding
Basic		4,830,826		4,833,232
Diluted		4,830,927		4,836,621

NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2022
	Sept. 30, 2022			March 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	3,583,539		$	10,449,510
Marketable securities, short-term		10,326,647			20,839,683
Accounts receivable, net of allowance for uncollectible accounts of $15,000		5,860,414			4,704,829
Inventories		5,794,849			5,088,635
Prepaid expenses and other assets		600,913			420,520
Total current assets		26,166,362			41,503,177
Fixed assets
Machinery and equipment		9,603,049			9,739,244
Leasehold improvements		1,826,334		1,810,872
		11,429,383			11,550,116
Less accumulated depreciation and amortization		10,990,224		10,943,731
Net fixed assets		439,159			606,385
Deferred tax assets		894,045		483,469
Marketable securities, long-term		39,514,685		24,314,211
Right-of-use asset – operating lease		494,070		560,250
Total assets	$	67,508,321		$	67,467,492
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	399,263		$	943,535
Accrued payroll and other		2,861,151		1,356,689
Operating lease		157,830		156,121
Total current liabilities		3,418,244			2,456,345
Operating lease		374,941		446,018
Total liabilities		3,793,185		2,902,363
Shareholders’ equity
Common stock		48,308			48,308
Additional paid-in capital		19,303,570			19,256,485
Accumulated other comprehensive income		(1,784,035	)		(318,120	)
Retained earnings		46,147,293		45,578,456
Total shareholders’ equity		63,715,136		64,565,129
Total liabilities and shareholders’ equity	$	67,508,321		$	67,467,492