PRESS RELEASE For immediate release |
NVE Corporation Reports First Quarter Results
EDEN PRAIRIE, Minn.—July 21, 2010—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2010.
Total revenue for the first quarter of fiscal 2011 increased 6% to $7.24 million from $6.83 million in the prior-year quarter. The revenue increase was due to a 12% increase in product sales, partially offset by a 20% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2011 increased 6% to $3.10 million, or $0.64 per diluted share, compared to $2.94 million, or $0.61 per diluted share, for the prior-year quarter.
“We are pleased to report strong product sales and earnings growth for the quarter,” 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. 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 profits, risks related to our ability to renew agreements with large customers, uncertainties related to research and development contract funding, risks of losses on our marketable securities, and uncertainties related to economic environments, 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, 2010 as updated in our Quarterly Report on Form 10-Q for the period ended June 30, 2010 and other reports filed with the SEC.
NVE CORPORATION STATEMENTS OF INCOME QUARTERS ENDED JUNE 30, 2010 AND 2009 (Unaudited) Quarter Ended June 30 2010 2009 ---------- ---------- Revenue Product sales $6,193,876 $5,534,037 Contract research and development 1,047,418 1,300,495 ---------- ---------- Total revenue 7,241,294 6,834,532 Cost of sales 2,075,804 1,891,423 ---------- ---------- Gross profit 5,165,490 4,943,109 Expenses Selling, general, and administrative 628,386 635,723 Research and development 341,663 267,321 ---------- ---------- Total expenses 970,049 903,044 ---------- ---------- Income from operations 4,195,441 4,040,065 Interest income 475,730 370,025 ---------- ---------- Income before taxes 4,671,171 4,410,090 Provision for income taxes 1,570,074 1,471,158 ---------- ---------- Net income $3,101,097 $2,938,932 ========== ========== Net income per share - basic $ 0.66 $ 0.63 ========== ========== Net income per share - diluted $ 0.64 $ 0.61 ========== ========== Weighted average shares outstanding Basic 4,700,583 4,676,209 Diluted 4,861,331 4,855,525 |
NVE CORPORATION BALANCE SHEETS JUNE 30 AND MARCH 31, 2010 (Unaudited) June 30, March 31, 2010 2010 ----------- ----------- ASSETS Current assets Cash and cash equivalents $ 1,654,293 $ 1,389,288 Marketable securities, short term 1,836,026 1,566,666 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,178,771 4,221,564 Inventories 1,848,177 1,706,427 Prepaid expenses and other assets 848,649 781,294 ----------- ----------- Total current assets 9,365,916 9,665,239 Fixed assets Machinery and equipment 5,679,090 5,617,136 Leasehold improvements 450,546 450,546 ----------- ----------- 6,129,636 6,067,682 Less accumulated depreciation 4,947,296 4,857,819 ----------- ----------- Net fixed assets 1,182,340 1,209,863 Marketable securities, long term 51,185,164 46,587,812 ----------- ----------- Total assets $61,733,420 $57,462,914 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 500,120 $ 665,782 Accrued payroll and other 742,957 720,867 Income taxes payable 1,543,822 -- Deferred taxes 53,631 102,138 Deferred revenue -- 20,833 ----------- ----------- Total current liabilities 2,840,530 1,509,620 Shareholders' equity Common stock 47,006 47,006 Additional paid-in capital 20,169,924 20,169,924 Accumulated other comprehensive income 968,225 1,129,726 Retained earnings 37,707,735 34,606,638 ----------- ----------- Total shareholders' equity 58,892,890 55,953,294 ----------- ----------- Total liabilities and shareholders' equity $61,733,420 $57,462,914 =========== =========== |