GlobeNewswire

NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

2022-01-19T21:05:00Z

EDEN PRAIRIE, Minn., Jan. 19, 2022 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2021.

Total revenue for the third quarter of fiscal 2022 decreased 4% to $6.29 million from $6.53 million in the prior-year quarter. The decrease was due to a 7% decrease in product sales partially offset by an 86% increase in contract research and development revenue. Net income for the third quarter of fiscal 2022 decreased 12% to $3.47 million, or $0.72 per diluted share, compared to $3.93 million, or $0.81 per share, for the prior-year quarter.

For the first nine months of fiscal 2022, total revenue increased 31% to $20.3 million from $15.5 million for the first nine months of the prior year. The increase was due to a 31% increase in product sales and a 17% increase in contract research and development revenue. Net income increased 25% to $10.7 million, or $2.21 per diluted share, from $8.56 million, or $1.77 per share, for the nine months of fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2022 to shareholders of record as of January 31, 2022.

“We are pleased to report solid earnings for the quarter despite supply-chain disruptions that delayed product shipments,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “We ended the quarter well-positioned with work-in-process product inventories.”

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 the COVID-19 pandemic, 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, 2021 and other reports filed with the SEC.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED DECMBER 31, 2021 AND 2020 (Unaudited)

 
 Quarter Ended Dec. 31
2021 2020
Revenue
Product sales$5,916,790  $6,332,349 
Contract research and development 374,019  201,013 
Total revenue 6,290,809   6,533,362 
Cost of sales 1,385,006  1,075,048 
Gross profit 4,905,803   5,458,314 
Expenses       
Research and development 596,492   702,216 
Selling, general, and administrative 272,159  311,356 
Total expenses 868,651  1,013,572 
Income from operations 4,037,152   4,444,742 
Interest income 283,940  365,498 
Income before taxes 4,321,092   4,810,240 
Provision for income taxes 855,685  884,531 
Net income$3,465,407  $3,925,709 
Net income per share – basic$0.72  $0.81 
Net income per share – diluted$0.72  $0.81 
Cash dividends declared per common share$1.00  $1.00 
Weighted average shares outstanding       
Basic 4,833,604   4,833,232 
Diluted 4,835,770   4,833,261 

 

NVE CORPORATION
STATEMENTS OF INCOME
NINE MONTHS ENDED DECEMBER 31, 2021 AND 2020 (Unaudited)

 
 Nine Months  Ended Dec. 31
2021 2020
Revenue
Product sales$19,500,567  $14,850,157 
Contract research and development 766,866  653,252 
Total revenue 20,267,433   15,503,409 
Cost of sales 4,698,720  2,852,757 
Gross profit 15,568,713   12,650,652 
Expenses       
Research and development 2,112,630   2,399,164 
Selling, general, and administrative 1,221,893  1,024,549 
Total expenses 3,334,523  3,423,713 
Income from operations 12,234,190   9,226,939 
Interest income 868,519  1,166,102 
Income before taxes 13,102,709   10,393,041 
Provision for income taxes 2,411,228  1,833,127 
Net income$10,691,481  $8,559,914 
Net income per share – basic$2.21  $1.77 
Net income per share – diluted$2.21  $1.77 
Cash dividends declared per common share$3.00  $3.00 
Weighted average shares outstanding       
Basic 4,833,356   4,834,324 
Diluted 4,835,781   4,834,411 

 

NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2021
 (Unaudited)
Dec. 31, 2021
 March 31, 2021
ASSETS
Current assets
Cash and cash equivalents$8,967,657  $10,427,340 
Marketable securities, short-term 22,482,494   7,678,957 
Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,038,203   1,964,281 
Inventories 4,367,675   3,900,777 
Prepaid expenses and other assets 921,846   391,278 
Total current assets 39,777,875   24,362,633 
Fixed assets       
Machinery and equipment  9,312,982   9,254,664 
Leasehold improvements1,810,872  1,810,872 
  11,123,854   11,065,536 
Less accumulated depreciation and amortization 10,886,378  10,728,853 
Net fixed assets 237,476   336,683 
Deferred tax assets260,134  73,538 
Marketable securities, long-term27,179,552  47,038,669 
Right-of-use asset – operating lease593,715  689,216 
Total assets$68,048,752  $72,500,739 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$111,243  $336,591 
Accrued payroll and other812,502  540,474 
Operating lease152,807  150,273 
Total current liabilities 1,076,552   1,027,338 
Operating lease482,798  581,459 
Total liabilities1,559,350  1,608,797 
        
Shareholders’ equity       
Common stock 48,337   48,332 
Additional paid-in capital 19,411,158   19,338,127 
Accumulated other comprehensive income 433,759   1,101,119 
Retained earnings46,596,148  50,404,364 
Total shareholders’ equity66,489,402  70,891,942 
Total liabilities and shareholders’ equity$68,048,752  $72,500,739 


CONTACT: Daniel A. Baker, President & CEO, (952) 829-9217