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

 

NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

 
EDEN PRAIRIE, Minn.—January 17, 2024—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2023.

Total revenue for the third quarter of fiscal 2024 decreased 9% to $6.76 million from $7.40 million for the prior-year quarter. The decrease was due to a 12% decrease in product sales, partially offset by a94% increase in contract research and development revenue. Net income for the third quarter of fiscal 2024 decreased 1% to $4.18 million, or $0.87 per diluted share, compared to $4.23 million, or $0.88 per share, for the prior-year quarter.

For the first nine months of fiscal 2024, total revenue decreased 11% to $22.7 million from $25.5 million for the first nine months of the prior year. The decrease was due to an 11% decrease in product sales and a 20% decrease in contract research and development revenue. Net income decreased 8% to $13.3 million, or $2.75 per diluted share, from $14.5 million, or $2.99 per share, for the first nine months of fiscal 2023.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2024, to shareholders of record as of January 29, 2024.

“We are pleased to report solid earnings for the quarter and nine months despite a decrease in defense-related product sales and a semiconductor industry downturn,” 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 of credit losses, 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, 2023, as updated in our Quarterly Reports on Form 10-Q for the quarters ended December 31 and June 30, 2023.
 

###

NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2023 AND 2022
(Unaudited)
 

	Quarter Ended December 31,
	2023		2022
Revenue
Product sales	$	6,366,009	$	7,200,385
Contract research and development		390,251		201,293
Total revenue		6,756,260		7,401,678
Cost of sales		1,355,067		1,478,372
Gross profit		5,401,193		5,923,306
Expenses
Research and development		540,895		700,609
Selling, general, and administrative		389,311		403,449
Total expenses		930,206		1,104,058
Income from operations		4,470,987		4,819,248
Interest income		491,671		406,092
Income before taxes		4,962,658		5,225,340
Provision for income taxes		778,236		994,016
Net income	$	4,184,422	$	4,231,324
Net income per share – basic	$	0.87	$	0.88
Net income per share – diluted	$	0.87	$	0.88
Cash dividends declared per common share	$	1.00	$	1.00
Weighted average shares outstanding
Basic		4,833,401		4,830,826
Diluted		4,837,230		4,832,368
	Nine Months Ended Dec. 31,
	2023		2022
Revenue
Product sales	$	22,183,223	$	24,787,885
Contract research and development		537,727		668,024
Total revenue		22,720,950		25,455,909
Cost of sales		5,034,556		5,533,000
Gross profit		17,686,394		19,922,909
Expenses
Research and development		1,920,095		1,972,505
Selling, general, and administrative		1,298,211		1,210,395
Provision for credit losses		9,514		-
Total expenses		3,227,820		3,182,900
Income from operations		14,458,574		16,740,009
Interest income		1,440,289		1,040,528
Income before taxes		15,898,863		17,780,537
Provision for income taxes		2,587,145		3,318,723
Net income	$	13,311,718	$	14,461,814
Net income per share – basic	$	2.75	$	2.99
Net income per share – diluted	$	2.75	$	2.99
Cash dividends declared per common share	$	3.00	$	3.00
Weighted average shares outstanding
Basic		4,832,992		4,830,826
Diluted		4,839,725		4,831,168

NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2023

	(Unaudited) Dec. 31, 2023			March 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	4,684,910		$	1,669,896
Marketable securities, short-term (amortized cost of $14,556,450 as of December 31, 2023, and $15,696,135 as of March 31, 2023)		14,335,619			15,513,095
Accounts receivable, net of allowance for credit losses of $15,000		2,245,728			6,523,344
Inventories		7,349,811			6,417,010
Prepaid expenses and other assets		597,305			663,459
Total current assets		29,213,373			30,786,804
Fixed assets
Machinery and equipment		10,501,096			10,484,365
Leasehold improvements		1,956,309			1,956,309
		12,457,405			12,440,674
Less accumulated depreciation and amortization		11,326,985			11,095,236
Net fixed assets		1,130,420			1,345,438
Deferred tax assets		1,290,284			572,038
Marketable securities, long-term (amortized cost of $36,414,391 as of December 31, 2023, and $37,495,846 as of March 31, 2023)		35,670,914			36,125,047
Right-of-use asset – operating lease		324,451			425,843
Total assets	$	67,629,442		$	69,255,170
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	170,701		$	281,712
Accrued payroll and other		460,414			1,375,250
Operating lease		178,490			175,798
Total current liabilities		809,605			1,832,760
Operating lease		218,785			342,908
Total liabilities		1,028,390			2,175,668
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of December 31, 2023, and 4,830,826 as of March 31, 2023		48,334			48,308
Additional paid-in capital		19,542,335			19,295,442
Accumulated other comprehensive loss		(753,317	)		(1,213,858	)
Retained earnings		47,763,700			48,949,610
Total shareholders’ equity		66,601,052			67,079,502
Total liabilities and shareholders’ equity	$	67,629,442		$	69,255,170