EDEN PRAIRIE, Minn., July 19, 2023 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2023.
Total revenue for the first quarter of fiscal 2024 increased 20% to $8.83 million from $7.34 million for the prior-year quarter. The increase was due to a 23% increase in product sales partially offset by a 50% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2024 increased 6% to $4.40 million, or $0.91 per diluted share, compared to $4.14 million, or $0.86 per share, for the prior-year quarter.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2023, to shareholders of record as of July 31, 2023.
"We are pleased to report strong revenue growth for the quarter compared to the prior 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 of credit losses, 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, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.
###
| NVE CORPORATION STATEMENTS OF INCOME QUARTERS ENDED JUNE 30, 2023 AND 2022 (unaudited) | |||||||
| Quarter Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| Revenue | |||||||
| Product sales | $ | 8,700,092 | $ | 7,072,961 | |||
| Contract research and development | 131,322 | 263,446 | |||||
| Total revenue | 8,831,414 | 7,336,407 | |||||
| Cost of sales | 2,079,623 | 1,651,847 | |||||
| Gross profit | 6,751,791 | 5,684,560 | |||||
| Expenses | |||||||
| Research and development | 695,992 | 601,918 | |||||
| Selling, general, and administrative | 475,115 | 371,320 | |||||
| Credit loss expense | 212,440 | - | |||||
| Total expenses | 1,383,547 | 973,238 | |||||
| Income from operations | 5,368,244 | 4,711,322 | |||||
| Interest income | 436,526 | 283,059 | |||||
| Income before taxes | 5,804,770 | 4,994,381 | |||||
| Provision for income taxes | 1,401,040 | 854,265 | |||||
| Net income | $ | 4,403,730 | $ | 4,140,116 | |||
| Net income per share - basic | $ | 0.91 | $ | 0.86 | |||
| Net income per share - diluted | $ | 0.91 | $ | 0.86 | |||
| Cash dividends declared per common share | $ | 1.00 | $ | 1.00 | |||
| Weighted average shares outstanding | |||||||
| Basic | 4,832,166 | 4,830,826 | |||||
| Diluted | 4,840,571 | 4,830,871 | |||||
| NVE CORPORATION BALANCE SHEETS JUNE 30 AND MARCH 31, 2023 | |||||||
| (unaudited) | |||||||
| June 30, 2023 | March 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 1,439,933 | $ | 1,669,896 | |||
| Marketable securities, short-term (amortized cost of $12,300,315 as of June 30, 2023, and $15,696,135 as of March 31, 2023) | 12,173,737 | 15,513,095 | |||||
| Accounts receivable, net of allowance for credit losses of $227,440 as of June 30, 2023, and $15,000 as of March 31, 2023 | 5,397,032 | 6,523,344 | |||||
| Inventories | 6,292,162 | 6,417,010 | |||||
| Prepaid expenses and other assets | 707,175 | 663,459 | |||||
| Total current assets | 26,010,039 | 30,786,804 | |||||
| Fixed assets | |||||||
| Machinery and equipment | 10,488,496 | 10,484,365 | |||||
| Leasehold improvements | 1,956,309 | 1,956,309 | |||||
| 12,444,805 | 12,440,674 | ||||||
| Less accumulated depreciation and amortization | 11,172,258 | 11,095,236 | |||||
| Net fixed assets | 1,272,547 | 1,345,438 | |||||
| Deferred tax assets | 724,773 | 572,038 | |||||
| Marketable securities, long-term (amortized cost of $41,447,065 as of June 30, 2023, and $37,495,846 as of March 31, 2023) | 39,719,369 | 36,125,047 | |||||
| Right-of-use asset - operating lease | 392,370 | 425,843 | |||||
| Total assets | $ | 68,119,098 | $ | 69,255,170 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 159,155 | $ | 281,712 | |||
| Accrued payroll and other | 935,621 | 1,375,250 | |||||
| Operating lease | 176,688 | 175,798 | |||||
| Total current liabilities | 1,271,464 | 1,832,760 | |||||
| Operating lease | 301,866 | 342,908 | |||||
| Total liabilities | 1,573,330 | 2,175,668 | |||||
| Shareholders' equity | |||||||
| Common stock, $0.01 par value, 6,000,000 shares authorized; 4,833,401 issued and outstanding as of June 30, 2023, and 4,830,826 as of March 31, 2023 | 48,334 | 48,308 | |||||
| Additional paid-in capital | 19,423,479 | 19,295,442 | |||||
| Accumulated other comprehensive income | (1,448,559 | ) | (1,213,858 | ) | |||
| Retained earnings | 48,522,514 | 48,949,610 | |||||
| Total shareholders' equity | 66,545,768 | 67,079,502 | |||||
| Total liabilities and shareholders' equity | $ | 68,119,098 | $ | 69,255,170 | |||
