NVE Corporation Reports Second Quarter 2024 Results and Announces Quarterly Dividend

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 ENDED SEPTEMBER 30, 2024 AND 2023 (unaudited)
	Quarter Ended Sept. 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

NVE CORPORATION STATEMENTS OF INCOME SIX MONTHS ENDED SEPTEMBER 30, 2024AND 2023 (unaudited)
	Six Months Ended Sept. 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		4,882,777				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
	Sept. 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 income		(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

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