145 0 Kommentare NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn., Oct. 18, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2023.

Total revenue for the second quarter of fiscal 2024 decreased 33% to $7.12 million from $10.7 million for the prior-year quarter. The decrease was due to a 32% decrease in product sales and a 92% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2024 decreased 22% to $4.72 million, or $0.98 per diluted share, compared to $6.09 million, or $1.26 per share, for the prior-year quarter.

For the first six months of fiscal 2024, total revenue decreased 12% to $16.0 million from $18.1 million for the first six months of the prior year. The decrease was due to a 10% decrease in product sales and a 68% decrease in contract research and development revenue. Net income decreased 11% to $9.13 million, or $1.89 per diluted share, from $10.2 million, or $2.12 per share, for the first half of fiscal 2023.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2023, to shareholders of record as of October 30, 2023.

“We are pleased to report solid earnings for the quarter and six 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. 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 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 Report on Form 10-Q for the quarter ended June 30, 2023.

NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (Unaudited)
	Quarter Ended September 30,
	2023			2022
Revenue
Product sales	$	7,117,122		$	10,514,539
Contract research and development		16,154			203,285
Total revenue		7,133,276			10,717,824
Cost of sales		1,599,866			2,402,781
Gross profit		5,533,410			8,315,043
Expenses
Research and development		683,208			669,978
Selling, general, and administrative		433,785			435,625
Provision for credit losses		(202,926	)		-
Total expenses		914,067			1,105,603
Income from operations		4,619,343			7,209,440
Interest income		512,092			351,375
Income before taxes		5,131,435			7,560,815
Provision for income taxes		407,869			1,470,442
Net income	$	4,723,566		$	6,090,373
Net income per share – basic	$	0.98		$	1.26
Net income per share – diluted	$	0.98		$	1.26
Cash dividends declared per common share	$	1.00		$	1.00
Weighted average shares outstanding
Basic		4,833,401			4,830,826
Diluted		4,840,770			4,830,956
	Six Months Ended September 30,
	2023			2022
Revenue
Product sales	$	15,817,214		$	17,587,500
Contract research and development		147,476			466,731
Total revenue		15,964,690			18,054,231
Cost of sales		3,679,489			4,054,628
Gross profit		12,285,201			13,999,603
Expenses
Research and development		1,379,200			1,271,896
Selling, general, and administrative		908,900			806,946
Provision for credit losses		9,514			-
Total expenses		2,297,614			2,078,842
Income from operations		9,987,587			11,920,761
Interest income		948,618			634,436
Income before taxes		10,936,205			12,555,197
Provision for income taxes		1,808,909			2,324,707
Net income	$	9,127,296		$	10,230,490
Net income per share – basic	$	1.89		$	2.12
Net income per share – diluted	$	1.89		$	2.12
Cash dividends declared per common share	$	2.00		$	2.00
Weighted average shares outstanding
Basic		4,832,786			4,830,826
Diluted		4,840,688			4,830,927

NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 MARCH 31, 2023
	(Unaudited) September 30, 2023			March 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	6,953,448		$	1,669,896
Marketable securities, short-term (amortized cost of $7,302,714 as of September 30, 2023, and $15,696,135 as of March 31, 2023)		7,224,056			15,513,095
Accounts receivable, net of allowance for credit losses of $15,000		2,915,762			6,523,344
Inventories		6,967,766			6,417,010
Prepaid expenses and other assets		1,064,853			663,459
Total current assets		25,125,885			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		11,250,170			11,095,236
Net fixed assets		1,207,235			1,345,438
Deferred tax assets		1,395,430			572,038
Marketable securities, long-term (amortized cost of $41,467,512 as of September 30, 2023, and $37,495,846 as of March 31, 2023)		39,623,299			36,125,047
Right-of-use asset – operating lease		358,590			425,843
Total assets	$	67,710,439		$	69,255,170

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	244,236		$	281,712
Accrued payroll and other		539,452			1,375,250
Operating lease		177,585			175,798
Total current liabilities		961,273			1,832,760
Operating lease		260,509			342,908
Total liabilities		1,221,782			2,175,668

Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of September 30, 2023, and 4,830,826 as of March 31, 2023		48,334			48,308
Additional paid-in capital		19,529,791			19,295,442
Accumulated other comprehensive loss		(1,502,147	)		(1,213,858	)
Retained earnings		48,412,679			48,949,610
Total shareholders’ equity		66,488,657			67,079,502
Total liabilities and shareholders’ equity	$	67,710,439		$	69,255,170