 | PRESS RELEASE For immediate release |
NVE Corporation Reports Fourth Quarter and Fiscal Year Results
Net income increases 50 percent for fiscal year
EDEN PRAIRIE, Minn.—May 7, 2008—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2008.
Total revenue for the fourth quarter of fiscal 2008 increased 33% to $6.05 million from $4.57 million in the prior-year quarter. The revenue increase was primarily due to a 35% increase in product sales to $5.67 million for the fourth quarter of fiscal 2008 from $4.19 million in the prior-year quarter. Net income for the fourth quarter of fiscal 2008 increased 45% to $2.25 million, or $0.47 per diluted share, compared to $1.55 million, or $0.33 per diluted share, for the prior-year quarter. Gross margin was 69% of revenue, operating margin 55%, pretax margin 59%, and net margin 37% for the quarter.
For fiscal 2008, total revenue increased 25% to $20.5 million from $16.5 million for the prior year, driven by a 28% increase in product sales to $18.5 million from $14.4 million for fiscal 2007. Net income for fiscal 2008 increased 50% to $7.19 million, or $1.51 per diluted share compared to $4.78 million, or $1.00 per diluted share, for fiscal 2007. For fiscal 2008 gross margin was 67%, operating margin 49%, pretax margin 54%, and net margin 35%.
"We are pleased to report record revenue and net income for the quarter and fiscal year," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Increases in product sales and operating margins drove an extraordinary quarter and fiscal year.
"In the past fiscal year we introduced new world-class spintronic products, expanded our production capacity, and were granted four U.S. patents," said Baker. "We enter fiscal 2009 with products that are in demand, an excellent intellectual property portfolio, and a solid balance sheet."
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. NVE has also licensed its spintronic magnetoresistive random access memory technology, commonly known as MRAM.
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 in continued growth in revenue and profitability, risks associated with our reliance on several large customers, 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 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2008 AND 2007
(Unaudited)
Quarter Ended March 31
2008 2007
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Revenue
Product sales $ 5,674,879 $ 4,192,307
Contract research and development 374,505 372,911
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Total revenue 6,049,384 4,565,218
Cost of sales 1,876,335 1,563,493
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Gross profit 4,173,049 3,001,725
Expenses
Selling, general, and administrative 526,882 529,667
Research and development 318,889 534,967
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Total expenses 845,771 1,064,634
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Income from operations 3,327,278 1,937,091
Interest income 243,747 202,894
Other loss (6,695) --
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Income before taxes 3,564,330 2,139,985
Provision for income taxes 1,311,348 586,032
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Net income $ 2,252,982 $ 1,553,953
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Net income per share - basic $ 0.49 $ 0.34
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Net income per share - diluted $ 0.47 $ 0.33
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Weighted average shares outstanding
Basic 4,638,683 4,627,383
Diluted 4,766,529 4,778,309
Supplemental financial data
Stock-based compensation $ 5,598 $ 8,167
Cash paid for income taxes $ 1,045,000 $ --
Year Ended March 31
2008 2007
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Revenue
Product sales $ 18,505,650 $ 14,425,632
Contract research and development 2,023,162 2,035,198
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Total revenue 20,528,812 16,460,830
Cost of sales 6,833,308 5,787,658
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Gross profit 13,695,504 10,673,172
Expenses
Selling, general, and administrative 2,158,818 1,950,999
Research and development 1,487,907 2,176,604
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Total expenses 3,646,725 4,127,603
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Income from operations 10,048,779 6,545,569
Interest income 974,990 621,577
Interest expense -- (589)
Other income 56,235 25,246
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Income before taxes 11,080,004 7,191,803
Provision for income taxes 3,892,620 2,411,020
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Net income $ 7,187,384 $ 4,780,783
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Net income per share - basic $ 1.55 $ 1.03
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Net income per share - diluted $ 1.51 $ 1.00
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Weighted average shares outstanding
Basic 4,635,470 4,620,371
Diluted 4,763,101 4,771,297
Supplemental financial data
Stock-based compensation $ 169,606 $ 136,370
Cash paid for income taxes $ 3,254,313 $ 44,300 |
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2008 AND 2007
March 31,
2008 2007
------------ ------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 1,885,867 $ 397,423
Marketable securities, short term 795,728 982,415
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,226,027 2,005,005
Inventories 2,456,804 2,016,858
Deferred tax assets 453,405 1,328,106
Prepaid expenses and other assets 529,616 333,587
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Total current assets 9,347,447 7,063,394
Fixed assets
Machinery and equipment 5,205,288 4,458,948
Leasehold improvements 436,794 413,482
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5,642,082 4,872,430
Less accumulated depreciation 4,276,680 3,834,683
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Net fixed assets 1,365,402 1,037,747
Marketable securities, long term 22,055,279 16,909,353
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Total assets $ 32,768,128 $ 25,010,494
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 434,808 $ 502,595
Accrued payroll and other 632,338 590,287
Deferred revenue 187,500 29,357
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Total current liabilities 1,254,646 1,122,239
Shareholders' equity
Common stock 46,387 46,274
Additional paid-in capital 18,539,538 18,289,248
Accumulated other comprehensive
income (loss) 103,158 (84,282)
Retained earnings 12,824,399 5,637,015
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Total shareholders' equity 31,513,482 23,888,255
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Total liabilities and
shareholders' equity $ 32,768,128 $ 25,010,494
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