NVE Corporation Reports Third Quarter Results And Announces ...| MENAFN.COM

Friday, 27 January 2023 07:55 GMT

NVE Corporation Reports Third Quarter Results And Announces Quarterly Dividend


(MENAFN- GlobeNewsWire - Nasdaq)

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




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