EX-99 2 nve_ex99.htm PRESS RELEASE Press Release

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NVE Corporation Reports First Quarter Results and Announces Quarterly Dividend

 
EDEN PRAIRIE, Minn.—July 17, 2024—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2024.

Total revenue for the first quarter of fiscal 2025 decreased 23% to $6.78 million from $8.83 million for the prior-year quarter. The decrease was due to a 24% decrease in product sales partially offset by a 28% increase in contract research and development revenue. Net income for the first quarter of fiscal 2025 decreased 7% to $4.10 million, or $0.85 per diluted share, compared to $4.40 million, or $0.91 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 30, 2024, to shareholders of record as of July 29, 2024.

“We are pleased to report solid earnings for the quarter despite a challenging industry environment,” 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 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, 2024.

 

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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2024 AND 2023
(Unaudited)
 

 

 

Quarter Ended June 30,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

6,615,859

 

 

$

8,700,092

 

Contract research and development

 

 

167,385

 

 

 

131,322

 

Total revenue

 

 

6,783,244

 

 

 

8,831,414

 

Cost of sales

 

 

975,494

 

 

 

2,079,623

 

Gross profit

 

 

5,807,750

 

 

 

6,751,791

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

878,528

 

 

 

695,992

 

Selling, general, and administrative

 

 

540,404

 

 

 

475,115

 

Credit loss expense

 

 

-

 

 

 

212,440

 

Total expenses

 

 

1,418,932

 

 

 

1,383,547

 

Income from operations

 

 

4,388,818

 

 

 

5,368,244

 

Interest income

 

 

493,959

 

 

 

436,526

 

Income before taxes

 

 

4,882,777

 

 

 

5,804,770

 

Provision for income taxes

 

 

785,190

 

 

 

1,401,040

 

Net income

 

$

4,097,587

 

 

$

4,403,730

 

Net income per share – basic

 

$

0.85

 

 

$

0.91

 

Net income per share – diluted

 

$

0.85

 

 

$

0.91

 

Cash dividends declared per common share

 

$

1.00

 

 

$

1.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,833,676

 

 

 

4,832,166

 

Diluted

 

 

4,838,995

 

 

 

4,840,571

 

 

 

NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2024

 

 

 

 

 

 

(Unaudited)

June 30,
2024

 

 

March 31,
2024

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,005,492

 

 

$

10,283,550

 

Marketable securities, short-term (amortized cost of $16,022,057 as of June 30, 2024,
and $12,283,630 as of March 31, 2024)

 

 

15,670,927

 

 

 

11,917,779

 

Accounts receivable, net of allowance for credit losses of $15,000

 

 

2,100,018

 

 

 

3,144,833

 

Inventories

 

 

7,164,632

 

 

 

7,158,585

 

Prepaid expenses and other assets

 

 

515,383

 

 

 

689,349

 

Total current assets

 

 

31,456,452

 

 

 

33,194,096

 

Fixed assets

 

 

 

 

 

 

 

 

Machinery and equipment

 

 

11,417,730

 

 

 

10,501,096

 

Leasehold improvements

 

 

1,956,309

 

 

 

1,956,309

 

 

 

 

13,374,039

 

 

 

12,457,405

 

Less accumulated depreciation and amortization

 

 

11,478,977

 

 

 

11,403,383

 

Net fixed assets

 

 

1,895,062

 

 

 

1,054,022

 

Deferred tax assets

 

 

1,593,506

 

 

 

1,453,704

 

Marketable securities, long-term (amortized cost of $32,112,822 as of June 30, 2024,
and $31,417,890 as of March 31, 2024)

 

 

31,505,264

 

 

 

30,788,301

 

Right-of-use asset – operating lease

 

 

255,000

 

 

 

289,910

 

Total assets

 

$

66,705,284

 

 

$

66,780,033

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

174,243

 

 

$

127,154

 

Accrued payroll and other

 

 

1,338,811

 

 

 

729,215

 

Operating lease

 

 

180,262

 

 

 

179,372

 

Total current liabilities

 

 

1,693,316

 

 

 

1,035,741

 

Operating lease

 

 

132,388

 

 

 

175,775

 

Total liabilities

 

 

1,825,704

 

 

 

1,211,516

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

 

48,337

 

 

 

48,337

 

Additional paid-in capital

 

 

19,573,254

 

 

 

19,554,812

 

Accumulated other comprehensive loss

 

 

(748,927

)

 

 

(777,637

)

Retained earnings

 

 

46,006,916

 

 

 

46,743,005

 

Total shareholders’ equity

 

 

64,879,580

 

 

 

65,568,517

 

Total liabilities and shareholders’ equity

 

$

66,705,284

 

 

$

66,780,033