NVEC NVE Corporation

NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended December 31, 2024.

Total revenue for the third quarter of fiscal 2025 decreased 25% to $5.06 million from $6.76 million for the prior-year quarter. The decrease was due to a 22% decrease in product sales and a 74% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2025 decreased 27% to $3.05 million, or $0.63 per diluted share, compared to $4.18 million, or $0.87 per share, for the prior-year quarter.

For the first nine months of fiscal 2025, total revenue decreased 18% to $18.6 million from $22.7 million for the first nine months of the prior year. The decrease was due to a 20% decrease in product sales, partially offset by a 72% increase in contract research and development revenue. Net income decreased 16% to $11.2 million, or $2.31 per diluted share, from $13.3 million, or $2.75 per share, for the first nine months of fiscal 2024.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2025, to shareholders of record as of February 3, 2025.

“We are pleased to report solid earnings for the quarter and first nine months of the fiscal year, despite challenging industry conditions,” 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 NINE MONTHS ENDED DECEMBER 31, 2024 AND 2023 (Unaudited)

 

 

 

Quarter Ended December 31,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

4,960,488

 

 

$

6,366,009

Contract research and development

 

 

102,557

 

 

 

390,251

 

Total revenue

 

 

5,063,045

 

 

 

6,756,260

 

Cost of sales

 

 

797,622

 

 

 

1,355,067

 

Gross profit

 

 

4,265,423

 

 

 

5,401,193

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

869,677

 

 

 

540,895

 

Selling, general, and administrative

 

 

434,783

 

 

 

389,311

 

Total expenses

 

 

1,304,460

 

 

 

930,206

 

Income from operations

 

 

2,960,963

 

 

 

4,470,987

 

Interest income

 

 

474,180

 

 

 

491,671

 

Other income

 

 

135,057

 

 

 

-

 

Income before taxes

 

 

3,570,200

 

 

 

4,962,658

 

Provision for income taxes

 

 

521,790

 

 

 

778,236

 

Net income

 

$

3,048,410

 

 

$

4,184,422

 

Net income per share – basic

 

$

0.63

 

 

$

0.87

 

Net income per share – diluted

 

$

0.63

 

 

$

0.87

 

Cash dividends declared per common share

 

$

1.00

 

 

$

1.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,835,262

 

 

 

4,833,401

 

Diluted

 

 

4,839,124

 

 

 

4,837,230

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Product sales

 

$

17,680,780

 

 

$

22,183,223

 

Contract research and development

 

 

924,199

 

 

 

537,727

 

Total revenue

 

 

18,604,979

 

 

 

22,720,950

 

Cost of sales

 

 

2,720,370

 

 

 

5,034,556

 

Gross profit

 

 

15,884,609

 

 

 

17,686,394

 

Expenses

 

 

 

 

 

 

 

 

Research and development

 

 

2,595,808

 

 

 

1,920,095

 

Selling, general, and administrative

 

 

1,543,428

 

 

 

1,298,211

 

Provision for credit losses

 

 

-

 

 

 

9,514

 

Total expenses

 

 

4,139,236

 

 

 

3,227,820

 

Income from operations

 

 

11,745,373

 

 

 

14,458,574

 

Interest income

 

 

1,432,568

 

 

 

1,440,289

 

Other income

 

 

135,057

 

 

 

-

 

Income before taxes

 

 

13,312,998

 

 

 

15,898,863

 

Provision for income taxes

 

 

2,140,856

 

 

 

2,587,145

 

Net income

 

$

11,172,142

 

 

$

13,311,718

 

Net income per share – basic

 

$

2.31

 

 

$

2.75

 

Net income per share – diluted

 

$

2.31

 

 

$

2.75

 

Cash dividends declared per common share

 

$

3.00

 

 

$

3.00

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

4,834,382

 

 

 

4,832,992

 

Diluted

 

 

4,839,247

 

 

 

4,839,725

 

NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2024

 

 

 

(Unaudited)

December 31, 2024

 

 

March 31, 2024

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,485,684

 

 

$

10,283,550

 

Marketable securities, short-term (amortized cost of $14,993,163 as of December 31, 2024, and $12,283,630 as of March 31, 2024)

 

 

14,907,252

 

 

 

11,917,779

 

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

 

 

1,355,064

 

 

 

3,144,833

 

Inventories

 

 

7,787,624

 

 

 

7,158,585

 

Prepaid expenses and other assets

 

 

736,481

 

 

 

689,349

 

Total current assets

 

 

30,272,105

 

 

 

33,194,096

 

Fixed assets

 

 

 

 

 

 

 

 

Machinery and equipment

 

 

11,663,886

 

 

 

10,501,096

 

Leasehold improvements

 

 

1,956,309

 

 

 

1,956,309

 

 

 

 

13,620,195

 

 

 

12,457,405

 

Less accumulated depreciation and amortization

 

 

11,645,199

 

 

 

11,403,383

 

Net fixed assets

 

 

1,974,996

 

 

 

1,054,022

 

Deferred tax assets

 

 

1,689,207

 

 

 

1,453,704

 

Marketable securities, long-term (amortized cost of $29,996,231 as of December 31, 2024, and $31,417,890 as of March 31, 2024)

 

 

29,704,367

 

 

 

30,788,301

 

Right-of-use asset – operating lease

 

 

947,889

 

 

 

289,910

 

Total assets

 

$

64,588,564

 

 

$

66,780,033

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

154,683

 

 

$

127,154

 

Accrued payroll and other

 

 

511,589

 

 

 

729,215

 

Operating lease

 

 

84,838

 

 

 

179,372

 

Total current liabilities

 

 

751,110

 

 

 

1,035,741

 

Operating lease

 

 

864,966

 

 

 

175,775

 

Total liabilities

 

 

1,616,076

 

 

 

1,211,516

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock

 

 

48,372

 

 

 

48,337

 

Additional paid-in capital

 

 

19,806,845

 

 

 

19,554,812

 

Accumulated other comprehensive loss

 

 

(295,358

)

 

 

(777,637

)

Retained earnings

 

 

43,412,629

 

 

 

46,743,005

 

Total shareholders’ equity

 

 

62,972,488

 

 

 

65,568,517

 

Total liabilities and shareholders’ equity

 

$

64,588,564

 

 

$

66,780,033

 

 

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NVE Investor Relations investor@nve.com