NVE Corporation Reports Second-Quarter Results and Announces Quarterly Dividend

Core Viewpoint - NVE Corporation reported a decline in total revenue and net income for the second quarter and the first half of fiscal 2025, primarily due to decreased product sales, although there was a significant increase in contract research and development revenue [1][2]. Financial Performance - Total revenue for Q2 fiscal 2025 decreased by 5% to $6.76 million from $7.13 million in the same quarter of the previous year, driven by a 14% decrease in product sales, partially offset by a 3,950% increase in contract research and development revenue [1]. - For the first six months of fiscal 2025, total revenue decreased by 15% to $13.5 million from $16.0 million in the prior year, with a 20% decrease in product sales and a 457% increase in contract research and development revenue [2]. - Net income for Q2 fiscal 2025 decreased by 15% to $4.03 million, or $0.83 per diluted share, compared to $4.72 million, or $0.98 per share, in the prior-year quarter [1][6]. - Net income for the first half of fiscal 2025 decreased by 11% to $8.12 million, or $1.68 per diluted share, from $9.13 million, or $1.89 per share, in the first half of fiscal 2024 [2][7]. Dividend Announcement - The company declared a quarterly cash dividend of $1.00 per share of common stock, payable on November 29, 2024, to shareholders of record as of November 4, 2024 [2]. Business Overview - NVE Corporation is a leader in the commercialization of spintronics, a nanotechnology that utilizes electron spin for data acquisition, storage, and transmission [3]. - The company manufactures high-performance spintronic products, including sensors and couplers used for data transmission [3]. Revenue Breakdown - For Q2 fiscal 2025, product sales were $6.10 million, down from $7.12 million in the prior year, while contract research and development revenue rose to $654,257 from $16,154 [4]. - For the first six months of fiscal 2025, product sales were $12.72 million, down from $15.82 million, while contract research and development revenue increased to $821,642 from $147,476 [7]. Expense and Profit Analysis - Total expenses for Q2 fiscal 2025 were $1.42 million, compared to $914,067 in the prior year, with research and development expenses increasing to $847,603 from $683,208 [4]. - Gross profit for Q2 fiscal 2025 was $5.81 million, compared to $5.53 million in the prior year [4]. - For the first half of fiscal 2025, total expenses were $2.83 million, up from $2.30 million in the previous year [7]. Balance Sheet Highlights - As of September 30, 2024, total assets were $65.88 million, a decrease from $66.78 million as of March 31, 2024 [8][9]. - Total liabilities were $1.02 million, down from $1.21 million in the previous year [9]. - Shareholders' equity was $64.86 million, compared to $65.57 million in the prior year [9].