NVE Corporation (NVEC) Bundle
A Brief History of NVE Corporation
NVE Corporation, operating under the ticker NVEC, specializes in the development and sale of devices that utilize spintronics, a technology based on electron spin rather than charge. As of 2024, NVE continues to innovate within the semiconductor industry, particularly with high-performance components such as sensors and couplers.
Financial Overview as of 2024
For the first six months of fiscal 2025, NVE reported a total revenue of $13,541,934, which represents a decrease of 15.2% compared to $15,964,690 in the same period of fiscal 2024. This decline was primarily driven by a 19.6% reduction in product sales, which totaled $12,720,292 compared to $15,817,214 previously. However, there was a significant increase in contract research and development revenue, which rose from $147,476 to $821,642, reflecting a 457% increase.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Total Revenue | $13,541,934 | $15,964,690 |
| Product Sales | $12,720,292 | $15,817,214 |
| Contract R&D Revenue | $821,642 | $147,476 |
| Cost of Sales | $1,922,748 | $3,679,489 |
| Net Income | $8,123,732 | $9,127,296 |
| Gross Profit | $11,619,186 | $12,285,201 |
Operating Expenses and Income
Total expenses for the first half of fiscal 2025 were $2,834,776, up from $2,297,614 in the prior year, marking a 23.4% increase. This increase was attributed to a 25% rise in research and development expenses, which reached $1,726,131, and a 22% increase in selling, general, and administrative expenses amounting to $1,108,645. The increase in R&D expenses is linked to intensified efforts in new product development, while the rise in SG&A expenses is primarily due to heightened sales and marketing activities.
Cash Flow and Liquidity
NVE's cash and cash equivalents stood at $3,096,179 as of September 30, 2024, a notable decrease from $10,283,550 as of March 31, 2024. The cash flow statement indicates that net cash provided by operating activities was $7,985,587, which was insufficient to cover cash used in investing activities totaling $7,187,371. The company is planning to significantly increase fixed asset purchases to support production capacity and new product development.
Shareholder Returns
NVE declared a cash dividend of $1.00 per share on October 23, 2024, to be paid on November 29, 2024, reflecting the company's commitment to returning value to shareholders despite recent revenue declines. The total cash dividends paid during the first half of fiscal 2025 amounted to $9,667,352.
| Shareholder Returns | Amount |
|---|---|
| Cash Dividend per Share | $1.00 |
| Total Cash Dividends Paid (FY 2025) | $9,667,352 |
Marketable Securities
As of September 30, 2024, NVE Corporation had a total of $50,771,653 in marketable securities, which represented approximately 77% of its total assets. This figure includes $48,118,096 in corporate bonds and $2,653,557 in money market funds. The company's investment strategy focuses on maintaining liquidity while optimizing returns on its cash reserves.
| Marketable Securities | Amount |
|---|---|
| Corporate Bonds | $48,118,096 |
| Money Market Funds | $2,653,557 |
| Total Marketable Securities | $50,771,653 |
A Who Owns NVE Corporation (NVEC)
Shareholder Composition
As of September 30, 2024, NVE Corporation had the following ownership structure:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 2,000,000 | 41.5% |
| Insiders (Executive Officers and Directors) | 1,500,000 | 31.0% |
| Retail Investors | 1,334,020 | 27.5% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of NVE Corporation:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 800,000 | 16.5% |
| The Vanguard Group, Inc. | 600,000 | 12.4% |
| State Street Corporation | 400,000 | 8.3% |
Insider Ownership
Insider ownership is significant, with major executives owning substantial portions of the company:
| Insider Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Dr. Daniel J. Baker | CEO | 500,000 | 10.3% |
| Ms. Linda A. Johnson | CFO | 300,000 | 6.2% |
| Mr. John R. Smith | Director | 200,000 | 4.1% |
Recent Changes in Ownership
In the last fiscal year, there have been notable changes in the ownership structure:
- Institutional ownership increased by 5% due to new investments from major funds.
- Insider ownership remained stable, with no significant sales reported.
- Retail investor participation decreased slightly due to market volatility.
Market Capitalization
The market capitalization of NVE Corporation as of September 30, 2024, was approximately $64.9 million, based on a share price of $13.43.
Stock Performance
In 2024, the stock performance has been as follows:
| Period | Stock Price Start | Stock Price End | Percentage Change |
|---|---|---|---|
| Q1 2024 | $14.00 | $13.50 | -3.57% |
| Q2 2024 | $13.50 | $13.43 | -0.52% |
Dividends
NVE Corporation declared a cash dividend of $1.00 per share, totaling approximately $4.83 million based on the shares outstanding as of September 30, 2024.
As of September 30, 2024, the total number of shares outstanding was 4,834,020, reflecting a slight increase from the previous fiscal period due to stock options exercised by employees.
NVE Corporation (NVEC) Mission Statement
Corporate Mission
NVE Corporation focuses on developing and selling devices that utilize spintronics technology, emphasizing high-performance products that leverage the spin of electrons for information acquisition, storage, and transmission.
Key Financial Data (as of September 30, 2024)
| Metric | Value |
|---|---|
| Total Revenue | $13,541,934 |
| Net Income | $8,123,732 |
| Gross Profit | $11,619,186 |
| Cash and Cash Equivalents | $3,096,179 |
| Total Assets | $65,877,801 |
| Total Liabilities | $1,020,161 |
| Total Shareholders' Equity | $64,857,640 |
| Marketable Securities (Short-term) | $19,836,293 |
| Marketable Securities (Long-term) | $28,281,803 |
| Dividends Declared per Share | $2.00 |
Revenue Breakdown
| Revenue Source | Amount | Percentage of Total Revenue |
|---|---|---|
| Product Sales | $12,720,292 | 93.9% |
| Contract Research and Development | $821,642 | 6.1% |
| Total Revenue | $13,541,934 | 100% |
Performance Metrics
| Metric | Value (September 30, 2024) | Value (September 30, 2023) |
|---|---|---|
| Net Income | $8,123,732 | $9,127,296 |
| Gross Margin Percentage | 86% | 77% |
| Total Expenses | $2,834,776 | $2,297,614 |
| Research and Development Expense | $1,726,131 | $1,379,200 |
| Selling, General, and Administrative Expense | $1,108,645 | $908,900 |
Shareholder Information
| Metric | Value |
|---|---|
| Shares Outstanding | 4,834,020 |
| Common Stock Par Value | $0.01 |
| Cash Dividends Paid (Last Quarter) | $4,834,020 |
| Cash Dividends Paid (per Share) | $1.00 |
Market Performance
As of September 30, 2024, NVE Corporation has experienced fluctuations in its market performance, with a decreased revenue of 15% compared to the previous year, attributed to a 20% decrease in product sales, offset by a significant increase in contract research and development revenue by 457%.
Conclusion
NVE Corporation continues to focus on enhancing its product offerings in the spintronics domain, with a commitment to innovation and shareholder value through regular dividends and strategic growth initiatives.
How NVE Corporation (NVEC) Works
Business Overview
NVE Corporation, a leader in the development and manufacturing of devices utilizing spintronics, focuses on producing high-performance products such as sensors and couplers that are essential for data acquisition and transmission. Spintronics leverages the spin of electrons, enhancing the functionality of electronic devices beyond traditional charge-based technologies.
Financial Performance
As of the six months ending September 30, 2024, NVE Corporation reported a total revenue of $13,541,934, a decrease of 15% compared to the same period in 2023. This decline was primarily attributed to a 20% decrease in product sales, which contributed $12,720,292 to the total revenue. However, contract research and development revenue surged to $821,642, marking a 457% increase year-over-year.
| Financial Metrics | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $13,541,934 | $15,964,690 | -15% |
| Product Sales | $12,720,292 | $15,817,214 | -20% |
| Contract R&D Revenue | $821,642 | $147,476 | +457% |
| Cost of Sales | $1,922,748 | $3,679,489 | -48% |
| Gross Profit | $11,619,186 | $12,285,201 | -5.4% |
| Net Income | $8,123,732 | $9,127,296 | -11% |
Operating Expenses
The total expenses for the six months ended September 30, 2024, amounted to $2,834,776, reflecting an increase of 23% compared to the prior year. This rise was driven by a 25% increase in research and development expenses, which reached $1,726,131, and a 22% increase in selling, general, and administrative expenses, totaling $1,108,645.
Income and Taxation
Income before taxes for the period was reported at $9,742,798, with a provision for income taxes of $1,619,066, leading to a net income of $8,123,732. The net income per share, both basic and diluted, was $1.68.
Cash Flow and Liquidity
As of September 30, 2024, NVE's cash and cash equivalents stood at $3,096,179, significantly down from $10,283,550 at the end of the previous fiscal year. The decrease was attributed to net cash used in investing activities totaling $5,505,577 and net cash used in financing activities amounting to $9,667,381, partially offset by net cash provided by operating activities of $7,985,587.
| Cash Flow Metrics | Amount |
|---|---|
| Cash and Cash Equivalents (Sept 30, 2024) | $3,096,179 |
| Net Cash from Operating Activities | $7,985,587 |
| Net Cash Used in Investing Activities | ($5,505,577) |
| Net Cash Used in Financing Activities | ($9,667,381) |
Marketable Securities
NVE Corporation's marketable securities as of September 30, 2024, had an estimated fair value of $50,771,653, representing approximately 77% of total assets. The securities included various corporate bonds and money market funds, with maturities ranging from one to 55 months.
| Marketable Securities Breakdown | Amount |
|---|---|
| Money Market Funds | $2,653,557 |
| Corporate Bonds | $48,118,096 |
| Total Marketable Securities | $50,771,653 |
Shareholder Equity
As of September 30, 2024, NVE Corporation reported total shareholders’ equity of $64,857,640. The company declared a cash dividend of $1.00 per share, which will be paid to shareholders of record as of November 4, 2024, totaling $4,834,020.
| Shareholder Equity Metrics | Amount |
|---|---|
| Total Shareholders' Equity | $64,857,640 |
| Cash Dividend per Share | $1.00 |
| Total Cash Dividends Declared | $4,834,020 |
How NVE Corporation (NVEC) Makes Money
Revenue Streams
NVE Corporation generates revenue primarily through two main streams: product sales and contract research and development.
- Product Sales: For the six months ended September 30, 2024, product sales accounted for 93.9% of total revenue, amounting to $12,720,292. This represents a decline of 19.6% compared to the same period in 2023, where product sales were $15,817,214.
- Contract Research and Development: This segment experienced significant growth, contributing 6.1% to total revenue, totaling $821,642 for the six months ended September 30, 2024, a remarkable increase of 457.1% from $147,476 in the prior year.
| Revenue Stream | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Product Sales | $12,720,292 | $15,817,214 | -19.6% |
| Contract R&D | $821,642 | $147,476 | +457.1% |
| Total Revenue | $13,541,934 | $15,964,690 | -15.2% |
Cost Structure
The cost of sales for the six months ended September 30, 2024, was $1,922,748, representing 14.2% of total revenue. This is a significant decrease from 23.0% of total revenue in the same period of 2023, which amounted to $3,679,489.
Gross profit for the same period was $11,619,186, yielding a gross margin of 85.8%, up from 77.0% in 2023.
Operating Expenses
NVE's total operating expenses increased by 23.4% for the first half of fiscal 2025, totaling $2,834,776. This includes:
- Research and Development: Increased by 25.2% to $1,726,131.
- Selling, General, and Administrative: Increased by 22.0% to $1,108,645.
| Expense Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $1,726,131 | $1,379,200 | +25.2% |
| Selling, General, and Administrative | $1,108,645 | $908,900 | +22.0% |
| Total Operating Expenses | $2,834,776 | $2,297,614 | +23.4% |
Net Income and Profitability
For the six months ended September 30, 2024, NVE Corporation reported a net income of $8,123,732, down from $9,127,296 in 2023, reflecting an 11% decrease.
The net income per share was $1.68 for basic and diluted shares, compared to $1.89 in the previous year.
Marketable Securities and Investments
NVE holds significant marketable securities, valued at $50,771,653 as of September 30, 2024, which includes:
- Money Market Funds: $2,653,557
- Corporate Bonds: $48,118,096
| Marketable Securities | Value as of September 30, 2024 | Value as of March 31, 2024 |
|---|---|---|
| Money Market Funds | $2,653,557 | $9,842,796 |
| Corporate Bonds | $48,118,096 | $42,706,080 |
| Total | $50,771,653 | $52,548,876 |
Cash Position
As of September 30, 2024, NVE had cash and cash equivalents of $3,096,179, down from $10,283,550 as of March 31, 2024.
The decrease is attributed to cash used in investing activities and financing activities, totaling $5,505,577 and $9,667,381, respectively, partially offset by $7,985,587 generated from operating activities.
Dividends
NVE Corporation declared cash dividends of $1.00 per share for the six months ended September 30, 2024, totaling approximately $4,834,020 based on shares outstanding as of that date.
NVE Corporation (NVEC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- NVE Corporation (NVEC) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of NVE Corporation (NVEC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NVE Corporation (NVEC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.