NVE : Press release of NVE Corporation reporting results for the quarter and nine months ended December 31, 2021 and announcing a quarterly dividend - Form 8-K

PRESS RELEASE For immediate release

NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn.-January 19, 2022-NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2021.

Total revenue for the third quarter of fiscal 2022 decreased 4% to $6.29 million from $6.53 million in the prior-year quarter. The decrease was due to a 7% decrease in product sales partially offset by an 86% increase in contract research and development revenue. Net income for the third quarter of fiscal 2022 decreased 12% to $3.47 million, or $0.72 per diluted share, compared to $3.93 million, or $0.81 per share, for the prior-year quarter.

For the first nine months of fiscal 2022, total revenue increased 31% to $20.3 million from $15.5 million for the first nine months of the prior year. The increase was due to a 31% increase in product sales and a 17% increase in contract research and development revenue. Net income increased 25% to $10.7 million, or $2.21 per diluted share, from $8.56 million, or $1.77 per share, for the nine months of fiscal 2021.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2022 to shareholders of record as of January 31, 2022.

"We are pleased to report solid earnings for the quarter despite supply-chain disruptions that delayed product shipments," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "We ended the quarter well-positioned with work-in-process product inventories."

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 the COVID-19 pandemic, 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, 2021 and other reports filed with the SEC.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS ENDED DECMBER 31, 2021 AND 2020 (Unaudited)
Quarter Ended Dec. 31
2021	2020
Revenue
Product sales	$	5,916,790	$	6,332,349
Contract research and development		374,019		201,013
Total revenue		6,290,809		6,533,362
Cost of sales		1,385,006		1,075,048
Gross profit		4,905,803		5,458,314
Expenses
Research and development		596,492		702,216
Selling, general, and administrative		272,159		311,356
Total expenses		868,651		1,013,572
Income from operations		4,037,152		4,444,742
Interest income		283,940		365,498
Income before taxes		4,321,092		4,810,240
Provision for income taxes		855,685		884,531
Net income	$	3,465,407			$	3,925,709
Net income per share - basic	$	0.72			$	0.81
Net income per share - diluted	$	0.72			$	0.81
Cash dividends declared per common share	$	1.00			$	1.00
Weighted average shares outstanding
Basic		4,833,604		4,833,232
Diluted		4,835,770		4,833,261

NVE CORPORATION STATEMENTS OF INCOME NINE MONTHS ENDED DECEMBER 31, 2021 AND 2020 (Unaudited)
Nine Months Ended Dec. 31
2021	2020
Revenue
Product sales	$	19,500,567	$	14,850,157
Contract research and development		766,866		653,252
Total revenue		20,267,433		15,503,409
Cost of sales		4,698,720		2,852,757
Gross profit		15,568,713		12,650,652
Expenses
Research and development		2,112,630		2,399,164
Selling, general, and administrative		1,221,893		1,024,549
Total expenses		3,334,523		3,423,713
Income from operations		12,234,190		9,226,939
Interest income		868,519		1,166,102
Income before taxes		13,102,709		10,393,041
Provision for income taxes		2,411,228		1,833,127
Net income	$	10,691,481			$	8,559,914
Net income per share - basic	$	2.21			$	1.77
Net income per share - diluted	$	2.21			$	1.77
Cash dividends declared per common share	$	3.00			$	3.00
Weighted average shares outstanding
Basic		4,833,356	4,834,324
Diluted		4,835,781	4,834,411

NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2021
(Unaudited) Dec. 31, 2021	March 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	8,967,657			$	10,427,340
Marketable securities, short-term	22,482,494			7,678,957
Accounts receivable, net of allowance for uncollectible accounts of $15,000		3,038,203				1,964,281
Inventories		4,367,675				3,900,777
Prepaid expenses and other assets		921,846				391,278
Total current assets		39,777,875				24,362,633
Fixed assets
Machinery and equipment		9,312,982				9,254,664
Leasehold improvements	1,810,872			1,810,872
	11,123,854				11,065,536
Less accumulated depreciation and amortization	10,886,378			10,728,853
Net fixed assets		237,476				336,683
Deferred tax assets	260,134		73,538
Marketable securities, long-term	27,179,552		47,038,669
Right-of-use asset - operating lease	593,715			689,216
Total assets	$	68,048,752			$	72,500,739
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	111,243			$	336,591
Accrued payroll and other	812,502			540,474
Operating lease	152,807			150,273
Total current liabilities		1,076,552				1,027,338
Operating lease	482,798			581,459
Total liabilities	1,559,350	1,608,797
Shareholders' equity
Common stock		48,337	48,332
Additional paid-in capital		19,411,158		19,338,127
Accumulated other comprehensive income		433,759		1,101,119
Retained earnings	46,596,148		50,404,364
Total shareholders' equity	66,489,402		70,891,942
Total liabilities and shareholders' equity	$	68,048,752		$	72,500,739