NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

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NVE Corporation
NVE Corporation

EDEN PRAIRIE, Minn., Jan. 25, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2022.

Total revenue for the third quarter of fiscal 2023 increased 18% to $7.40 million from $6.29 million for the prior-year quarter. The increase was due to a 22% increase in product sales, partially offset by a 46% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2023 increased 22% to $4.23 million, or $0.88 per diluted share, compared to $3.47 million, or $0.72 per share, for the prior-year quarter.

For the first nine months of fiscal 2023, total revenue increased 26% to $25.5 million from $20.3 million for the first nine months of the prior year. The increase was due to a 27% increase in product sales, partially offset by a 13% decrease in contract research and development revenue. Net income increased 35% to $14.5 million, or $2.99 per diluted share, from $10.7 million, or $2.21 per share, for the first nine months of fiscal 2022.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2023 to shareholders of record as of January 30, 2023.

“We are pleased to report strong revenue and earnings growth for the quarter and nine months,” 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 as updated in our Quarterly Report for the Quarter ended December 31, 2022.

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021 (Unaudited)

 

Quarter Ended December 31,

 

2022

 

2021

Revenue

Product sales

$

7,200,385

 

 

$

5,916,790

 

Contract research and development

 

201,293

 

 

 

374,019

 

Total revenue

 

7,401,678

 

 

 

6,290,809

 

Cost of sales

 

1,478,372

 

 

 

1,385,006

 

Gross profit

 

5,923,306

 

 

 

4,905,803

 

Expenses

 

 

 

 

 

 

 

Research and development

 

700,609

 

 

 

596,492

 

Selling, general, and administrative

 

403,449

 

 

 

272,159

 

Total expenses

 

1,104,058

 

 

 

868,651

 

Income from operations

 

4,819,248

 

 

 

4,037,152

 

Interest income

 

406,092

 

 

 

283,940

 

Income before taxes

 

5,225,340

 

 

 

4,321,092

 

Provision for income taxes

 

994,016

 

 

 

855,685

 

Net income

$

4,231,324

 

 

$

3,465,407

 

Net income per share – basic

$

0.88

 

 

$

0.72

 

Net income per share – diluted

$

0.88

 

 

$

0.72

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

4,830,826

 

 

 

4,833,604

 

Diluted

 

4,832,368

 

 

 

4,835,770

 


 

Nine Months Ended December 31,

2022

 

2021

Revenue

Product sales

$

24,787,885

 

 

$

19,500,567

 

Contract research and development

 

668,024

 

 

 

766,866

 

Total revenue

 

25,455,909

 

 

 

20,267,433

 

Cost of sales

 

5,533,000

 

 

 

4,698,720

 

Gross profit

 

19,922,909

 

 

 

15,568,713

 

Expenses

 

 

 

 

 

 

 

Research and development

 

1,972,505

 

 

 

2,112,630

 

Selling, general, and administrative

 

1,210,395

 

 

 

1,221,893

 

Total expenses

 

3,182,900

 

 

 

3,334,523

 

Income from operations

 

16,740,009

 

 

 

12,234,190

 

Interest income

 

1,040,528

 

 

 

868,519

 

Income before taxes

 

17,780,537

 

 

 

13,102,709

 

Provision for income taxes

 

3,318,723

 

 

 

2,411,228

 

Net income

$

14,461,814

 

 

$

10,691,481

 

Net income per share – basic

$

2.99

 

 

$

2.21

 

Net income per share – diluted

$

2.99

 

 

$

2.21

 

Weighted average shares outstanding

 

 

 

 

 

 

 

Basic

 

4,830,826

 

 

 

4,833,356

 

Diluted

 

4,831,168

 

 

 

4,835,781

 


NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2022

 

 

 

 

 

Dec. 31, 2022

 

March 31, 2022

ASSETS

Current assets

Cash and cash equivalents

$

2,029,714

 

 

$

10,449,510

 

Marketable securities, short-term

 

10,337,621

 

 

 

20,839,683

 

Accounts receivable, net of allowance for uncollectible accounts of $15,000

 

2,097,274

 

 

 

4,704,829

 

Inventories

 

6,459,227

 

 

 

5,088,635

 

Prepaid expenses and other assets

 

924,161

 

 

 

420,520

 

Total current assets

 

21,847,997

 

 

 

41,503,177

 

Fixed assets

 

 

 

 

 

 

 

Machinery and equipment

 

10,486,161

 

 

 

9,739,244

 

Leasehold improvements

 

1,926,334

 

 

1,810,872

 

 

 

12,412,495

 

 

 

11,550,116

 

Less accumulated depreciation and amortization

 

11,018,857

 

 

10,943,731

 

Net fixed assets

 

1,393,638

 

 

 

606,385

 

Deferred tax assets

 

862,424

 

 

483,469

 

Marketable securities, long-term

 

41,167,242

 

 

24,314,211

 

Right-of-use asset – operating lease

 

459,032

 

 

560,250

 

Total assets

$

65,730,333

 

 

$

67,467,492

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

470,929

 

 

$

943,535

 

Accrued payroll and other

 

1,245,390

 

 

1,356,689

 

Operating lease

 

161,271

 

 

156,121

 

Total current liabilities

 

1,877,590

 

 

 

2,456,345

 

Operating lease

 

397,303

 

 

446,018

 

Total liabilities

 

2,274,893

 

 

2,902,363

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock

 

48,308

 

 

 

48,308

 

Additional paid-in capital

 

19,310,703

 

 

 

19,256,485

 

Accumulated other comprehensive income

 

(1,451,362

)

 

 

(318,120

)

Retained earnings

 

45,547,791

 

 

45,578,456

 

Total shareholders’ equity

 

63,455,440

 

 

64,565,129

 

Total liabilities and shareholders’ equity

$

65,730,333

 

 

$

67,467,492

 

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