EDEN PRAIRIE, Minn., Jan. 17, 2024 (GLOBE NEWSWIRE) — 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 a 94% 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.
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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