NVE Corporation Reports Fourth Quarter and Fiscal Year Results and Announces Quarterly Dividend

NVE Corporation

EDEN PRAIRIE, Minn., May 03, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC)  announced today financial results for the quarter and fiscal year ended March 31, 2023.

Total revenue for the fourth quarter of fiscal 2023 increased 91% to $12.8 million from $6.72 million for the prior-year quarter. The increase was due to a 95% increase in product sales and a 10% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2023 increased 116% to $8.23 million, or $1.70 per diluted share, compared to $3.82 million, or $0.79 per share, for the prior-year quarter.

For fiscal 2023, total revenue increased 42% to $38.3 million, compared to $27 million in the prior year. The increase was due to a 44% increase in product sales, partially offset by a 6% decrease in contract research and development revenue. Net income for the year increased 56% from the prior year to a record $22.7 million, or $4.70 per diluted share, from $14.5 million, or $3.00 per share, for fiscal 2022.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2023 to shareholders of record as of May 15, 2023.

“We are pleased to report record revenue and earnings for the quarter and fiscal year,” 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 and 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, 2023.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2023 AND 2022
	Quarter Ended March 31,
	2023				2022
Revenue
Product sales	$	12,408,832			$	6,367,082
Contract research and development		388,851				352,455
Total revenue		12,797,683				6,719,537
Cost of sales		2,529,311				1,564,370
Gross profit		10,268,372				5,155,167
Expenses
Research and development		611,489				813,244
Selling, general, and administrative		752,710				247,428
Total expenses		1,364,199				1,060,672
Income from operations		8,904,173				4,094,495
Interest income		408,127				302,609
Income before taxes		9,312,300				4,397,104
Provision for income taxes		1,079,656				581,084
Net income	$	8,232,644			$	3,816,020
Net income per share – basic	$	1.70			$	0.79
Net income per share – diluted	$	1.70			$	0.79
Weighted average shares outstanding
Basic		4,830,826				4,832,630
Diluted		4,836,365				4,833,253
	Year Ended March 31,
	2023				2022
Revenue
Product sales	$	37,196,717			$	25,867,649
Contract research and development		1,056,875				1,119,321
Total revenue		38,253,592				26,986,970
Cost of sales		8,062,311				6,263,090
Gross profit		30,191,281				20,723,880
Expenses
Research and development		2,583,994				2,925,874
Selling, general, and administrative		1,963,105				1,469,321
Total expenses		4,547,099				4,395,195
Income from operations		25,644,182				16,328,685
Interest income		1,448,655				1,171,128
Income before taxes		27,092,837				17,499,813
Provision for income taxes		4,398,379				2,992,312
Net income	$	22,694,458			$	14,507,501
Net income per share – basic	$	4.70			$	3.00
Net income per share – diluted	$	4.70			$	3.00
Weighted average shares outstanding
Basic		4,830,826				4,833,661
Diluted		4,832,096				4,835,639

NVE CORPORATION BALANCE SHEETS MARCH 31, 2023 AND 2022
	March 31, 2023				March 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	1,669,896			$	10,449,510
Marketable securities, short-term		15,513,095				20,839,683
Accounts receivable, net of allowance for uncollectible accounts of $15,000		6,523,344				4,704,829
Inventories		6,417,010				5,088,635
Prepaid expenses and other assets		663,459				420,520
Total current assets		30,786,804				41,503,177
Fixed assets
Machinery and equipment		10,484,365				9,739,244
Leasehold improvements		1,956,309			1,810,872
		12,440,674				11,550,116
Less accumulated depreciation and amortization		11,095,236			10,943,731
Net fixed assets		1,345,438				606,385
Deferred tax assets		572,038			483,469
Marketable securities, long-term		36,125,047			24,314,211
Right-of-use asset – operating lease		425,843			560,250
Total assets	$	69,255,170			$	67,467,492
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	281,712			$	943,535
Accrued payroll and other		1,375,250			1,356,689
Operating lease		175,798			156,121
Total current liabilities		1,832,760				2,456,345
Operating lease		342,908			446,018
Total liabilities		2,175,668			2,902,363
Shareholders’ equity
Common stock		48,308				48,308
Additional paid-in capital		19,295,442				19,256,485
Accumulated other comprehensive income		(1,213,858	)			(318,120	)
Retained earnings		48,949,610			45,578,456
Total shareholders’ equity		67,079,502			64,565,129
Total liabilities and shareholders’ equity	$	69,255,170			$	67,467,492

CONTACT: Joe Schmitz, CFO (952) 829-9217