EX-99 2 nve_ex99.htm PRESS RELEASE Press Release

 

 

 

NVE Corporation Reports Second Quarter Results and Announces Quarterly Dividend

 
EDEN PRAIRIE, Minn.—October 23, 2024—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended September 30, 2024.

Total revenue for the second quarter of fiscal 2025 decreased 5% to $6.76 million from $7.13 million for the prior-year quarter. The decrease was due to a 14% decrease in product sales partially offset by a 3,950% increase in contract research and development revenue. Net income for the second quarter of fiscal 2025 decreased 15% to $4.03 million, or $0.83 per diluted share, compared to $4.72 million, or $0.98 per share, for the prior-year quarter.


For the first six months of fiscal 2025, total revenue decreased 15% to $13.5 million from $16.0 million for the first six months of the prior year. The decrease was due to a 20% decrease in product sales partially offset by a 457% increase in contract research and development revenue. Net income decreased 11% to $8.12 million, or $1.68 per diluted share, from $9.13 million, or $1.89 per share, for the first half of fiscal 2024.


The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 29, 2024, to shareholders of record as of November 4, 2024.

“We are pleased to report solid earnings for the quarter despite a slow industry recovery,” 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.

 

###

NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Unaudited)
 

 

 

Quarter Ended September 30,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

6,104,433

 

 

$

7,117,122

 

Contract research and development

 

 

654,257

 

 

 

16,154

 

Total revenue

 

 

6,758,690

 

 

 

7,133,276

 

Cost of sales

 

 

947,254

 

 

 

1,599,866

 

Gross profit

 

 

5,811,436

 

 

 

5,533,410

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

847,603

 

 

 

683,208

 

Selling, general, and administrative

 

 

568,241

 

 

 

433,785

 

Recovery of credit losses

 

 

-

 

 

 

(202,926

) 

Total expenses

 

 

1,415,844

 

 

 

914,067

 

Income from operations

 

 

4,395,592

 

 

 

4,619,343

 

Interest income

 

 

464,429

 

 

 

512,092

 

Income before taxes

 

 

4,860,021

 

 

 

5,131,435

 

Provision for income taxes

 

 

833,876

 

 

 

407,869

 

Net income

 

$

4,026,145

 

 

$

4,723,566

 

Net income per share – basic

 

$

0.83

 

 

$

0.98

 

Net income per share – diluted

 

$

0.83

 

 

$

0.98

 

Cash dividends declared per common share

 

$

1.00

 

 

$

1.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,833,855

 

 

 

4,833,401

 

Diluted

 

 

4,839,291

 

 

 

4,840,770

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended September 30,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

12,720,292

 

 

$

15,817,214

 

Contract research and development

 

 

821,642

 

 

 

147,476

 

Total revenue

 

 

13,541,934

 

 

 

15,964,690

 

Cost of sales

 

 

1,922,748

 

 

 

3,679,489

 

Gross profit

 

 

11,619,186

 

 

 

12,285,201

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

1,726,131

 

 

 

1,379,200

 

Selling, general, and administrative

 

 

1,108,645

 

 

 

908,900

 

Provision for credit losses

 

 

-

 

 

 

9,514

 

Total expenses

 

 

2,834,776

 

 

 

2,297,614

 

Income from operations

 

 

8,784,410

 

 

 

9,987,587

 

Interest income

 

 

958,388

 

 

 

948,618

 

Income before taxes

 

 

9,742,798

 

 

 

10,936,205

 

Provision for income taxes

 

 

1,619,066

 

 

 

1,808,909

 

Net income

 

$

8,123,732

 

 

$

9,127,296

 

Net income per share – basic

 

$

1.68

 

 

$

1.89

 

Net income per share – diluted

 

$

1.68

 

 

$

1.89

 

Cash dividends declared per common share

 

$

2.00

 

 

$

2.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,833,766

 

 

 

4,832,786

 

Diluted

 

 

4,839,145

 

 

 

4,840,688

 

 

NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2024

 

 

 

 

 

 

(Unaudited)

September 30,
2024

 

 

March 31,
2024

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,096,179

 

 

$

10,283,550

 

Marketable securities, short-term (amortized cost of $20,002,199 as of September 30, 2024,
and $12,283,630 as of March 31, 2024)

 

 

19,836,293

 

 

 

11,917,779

 

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

 

 

2,952,431

 

 

 

3,144,833

 

Inventories

 

 

7,417,611

 

 

 

7,158,585

 

Prepaid expenses and other assets

 

 

533,233

 

 

 

689,349

 

Total current assets

 

 

33,835,747

 

 

 

33,194,096

 

Fixed assets

 

 

 

 

 

 

 

 

Machinery and equipment

 

 

11,626,533

 

 

 

10,501,096

 

Leasehold improvements

 

 

1,956,309

 

 

 

1,956,309

 

 

 

 

13,582,842

 

 

 

12,457,405

 

Less accumulated depreciation and amortization

 

 

11,560,984

 

 

 

11,403,383

 

Net fixed assets

 

 

2,021,858

 

 

 

1,054,022

 

Deferred tax assets

 

 

1,518,646

 

 

 

1,453,704

 

Marketable securities, long-term (amortized cost of $28,203,595 as of September 30, 2024,
and $31,417,890 as of March 31, 2024)

 

 

28,281,803

 

 

 

30,788,301

 

Right-of-use asset – operating lease

 

 

219,747

 

 

 

289,910

 

Total assets

 

$

65,877,801

 

 

$

66,780,033

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

170,077

 

 

$

127,154

 

Accrued payroll and other

 

 

580,274

 

 

 

729,215

 

Operating lease

 

 

181,159

 

 

 

179,372

 

Total current liabilities

 

 

931,510

 

 

 

1,035,741

 

Operating lease

 

 

88,651

 

 

 

175,775

 

Total liabilities

 

 

1,020,161

 

 

 

1,211,516

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

 

48,340

 

 

 

48,337

 

Additional paid-in capital

 

 

19,678,425

 

 

 

19,554,812

 

Accumulated other comprehensive loss

 

 

(68,510

)

 

 

(777,637

)

Retained earnings

 

 

45,199,385

 

 

 

46,743,005

 

Total shareholders’ equity

 

 

64,857,640

 

 

 

65,568,517

 

Total liabilities and shareholders’ equity

 

$

65,877,801

 

 

$

66,780,033