PRESS RELEASE For immediate release |
NVE Corporation Reports Third Quarter Results
EDEN PRAIRIE, Minn.—January 18, 2012—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2011.
Total revenue for the third quarter of fiscal 2012 decreased 23% to $6.16 million from $7.96 million in the prior-year quarter. The revenue decrease was due to a 19% decrease in product sales and a 40% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2012 decreased 32% to $2.29 million, or $0.47 per diluted share, compared to $3.38 million, or $0.70 per diluted share, for the prior-year quarter.
For the first nine months of fiscal 2012, total revenue decreased 9% to $21.0 million from $23.0 million for the first nine months of the prior year. Product sales decreased 7% and contract research and development revenue decreased 20%. Net income for the first nine months of fiscal 2012 was $8.28 million, or $1.71 per diluted share, compared to $9.69 million, or $2.00 per diluted share, for the first nine months of fiscal 2011.
“We are able to report solid earnings for the quarter despite significant challenges the past two quarters,” 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 of decreased sales, risks related to loss of supply from our packaging vendors, 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, 2011 and other reports filed with the SEC.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2011 AND 2010 (Unaudited) Quarter Ended December 31 2011 2010 ------------- ------------- Revenue Product sales $ 5,394,758 $ 6,686,451 Contract research and development 763,768 1,277,057 ------------- ------------- Total revenue 6,158,526 7,963,508 Cost of sales 2,174,878 2,461,798 ------------- ------------- Gross profit 3,983,648 5,501,710 Expenses Selling, general, and administrative 520,044 638,223 Research and development 718,688 330,681 ------------- ------------- Total expenses 1,238,732 968,904 ------------- ------------- Income from operations 2,744,916 4,532,806 Interest income 591,694 512,203 ------------- ------------- Income before taxes 3,336,610 5,045,009 Provision for income taxes 1,047,519 1,661,090 ------------- ------------- Net income $ 2,289,091 $ 3,383,919 ============= ============= Net income per share -- basic $ 0.48 $ 0.71 ============= ============= Net income per share -- diluted $ 0.47 $ 0.70 ============= ============= Weighted average shares outstanding Basic 4,807,859 4,743,643 Diluted 4,873,429 4,866,617 Nine Months Ended December 31 2011 2010 ------------- ------------- Revenue Product sales $ 17,975,331 $ 19,290,839 Contract research and development 2,995,590 3,723,123 ------------- ------------- Total revenue 20,970,921 23,013,962 Cost of sales 7,048,396 7,142,528 ------------- ------------- Gross profit 13,922,525 15,871,434 Expenses Selling, general, and administrative 1,742,721 1,901,156 Research and development 1,825,159 982,217 ------------- ------------- Total expenses 3,567,880 2,883,373 ------------- ------------- Income from operations 10,354,645 12,988,061 Interest income 1,754,586 1,485,664 ------------- ------------- Income before taxes 12,109,231 14,473,725 Provision for income taxes 3,825,819 4,782,699 ------------- ------------- Net income $ 8,283,412 $ 9,691,026 ============= ============= Net income per share -- basic $ 1.73 $ 2.06 ============= ============= Net income per share -- diluted $ 1.71 $ 2.00 ============= ============= Weighted average shares outstanding Basic 4,786,790 4,714,989 Diluted 4,852,360 4,837,963 |
NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2011 (Unaudited) Dec. 31, March 31, 2011 2011 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 438,332 $ 952,209 Marketable securities, short term 12,090,093 7,970,358 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,456,042 3,596,239 Inventories 3,317,839 3,343,857 Deferred tax assets 282,144 -- Prepaid expenses and other assets 1,171,038 1,185,306 ------------- ------------- Total current assets 20,755,488 17,047,969 Fixed assets Machinery and equipment 6,797,274 6,178,207 Leasehold improvements 693,589 612,682 ------------- ------------- 7,490,863 6,790,889 Less accumulated depreciation 5,558,951 5,259,773 ------------- ------------- Net fixed assets 1,931,912 1,531,116 Marketable securities, long term 56,384,111 53,257,140 ------------- ------------- Total assets $ 79,071,511 $ 71,836,225 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 596,205 $ 731,580 Accrued payroll and other 805,687 987,403 Deferred taxes -- 146,693 ------------- ------------- Total current liabilities 1,401,892 1,865,676 Shareholders' equity Common stock 48,247 47,762 Additional paid-in capital 20,974,477 20,894,766 Accumulated other comprehensive income 395,900 1,060,438 Retained earnings 56,250,995 47,967,583 ------------- ------------- Total shareholders' equity 77,669,619 69,970,549 ------------- ------------- Total liabilities and shareholders' equity $ 79,071,511 $ 71,836,225 ============= ============= |