 | PRESS RELEASE For immediate release |
NVE Corporation Reports Second Quarter Results
EDEN PRAIRIE, Minn.—October 23, 2013—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2013.
Total revenue for the second quarter of fiscal 2014 increased 25% to $7.30 million from $5.82 million in the prior-year quarter. The increase was due to a 38% increase in product sales partially offset by an 88% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2014 increased 32% to $3.23 million, or $0.66 per diluted share, compared to $2.44 million, or $0.50 per share, for the prior-year quarter.
For the first six months of fiscal 2014, total revenue increased 1% to $13.5 million from $13.3 million for the first six months of the prior year. The increase was due to an 8% increase in product sales partially offset by a 73% decrease in contract research and development revenue. Net income was $5.80 million, or $1.19 per diluted share, for the first half of fiscal 2014 compared to $5.82 million, or $1.19 per diluted share, for the first half of fiscal 2013.
“We are pleased to report record product sales and record gross margin as a percentage of revenue 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 of decreased revenues, risks related to interruptions in the Government funding process, risks in the enforcement of our patents, litigation risks, 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, 2013.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2013
AND 2012 (Unaudited)
Quarter Ended September 30
2013 2012
------------- -------------
Revenue
Product sales $ 7,231,149 $ 5,231,332
Contract research
and development 70,031 591,464
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Total revenue 7,301,180 5,822,796
Cost of sales 1,503,546 1,606,913
------------- -------------
Gross profit 5,797,634 4,215,883
Expenses
Selling, general,
and
administrative 660,076 607,694
Research and
development 876,463 612,258
------------- -------------
Total expenses 1,536,539 1,219,952
------------- -------------
Income from
operations 4,261,095 2,995,931
Interest income 520,802 621,950
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Income before taxes 4,781,897 3,617,881
Provision for income
taxes 1,552,246 1,174,998
------------- -------------
Net income $ 3,229,651 $ 2,442,883
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Net income per share
-- basic $ 0.67 $ 0.51
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Net income per share
-- diluted $ 0.66 $ 0.50
============= =============
Weighted average
shares outstanding
Basic 4,852,178 4,825,441
Diluted 4,873,106 4,884,656
Six Months Ended September
30
2013 2012
------------- -------------
Revenue
Product sales $ 13,205,755 $ 12,262,077
Contract research
and development 272,358 1,023,624
------------- -------------
Total revenue 13,478,113 13,285,701
Cost of sales 2,881,901 3,409,266
------------- -------------
Gross profit 10,596,212 9,876,435
Expenses
Selling, general,
and
administrative 1,212,880 1,143,804
Research and
development 1,839,374 1,300,284
------------- -------------
Total expenses 3,052,254 2,444,088
------------- -------------
Income from
operations 7,543,958 7,432,347
Interest income 1,047,141 1,184,568
------------- -------------
Income before taxes 8,591,099 8,616,915
Provision for income
taxes 2,794,623 2,796,374
------------- -------------
Net income $ 5,796,476 $ 5,820,541
============= =============
Net income per share
-- basic $ 1.19 $ 1.21
============= =============
Net income per share
-- diluted $ 1.19 $ 1.19
============= =============
Weighted average
shares outstanding
Basic 4,857,279 4,825,095
Diluted 4,878,599 4,882,524
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NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2013
Sept. 30, March 31,
2013 2013
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 1,561,571 $ 2,509,683
Marketable securities,
short term 8,330,034 9,711,029
Accounts receivable, net
of allowance for
uncollectible accounts of
$15,000 3,031,027 2,521,395
Inventories 3,100,445 3,336,592
Deferred tax assets 256,472 --
Prepaid expenses and other
assets 894,806 958,147
------------- -------------
Total current assets 17,174,355 19,036,846
Fixed assets
Machinery and equipment 8,417,061 8,417,061
Leasehold improvements 1,499,454 1,499,454
------------- -------------
9,916,515 9,916,515
Less accumulated
depreciation 6,608,394 6,228,122
------------- -------------
Net fixed assets 3,308,121 3,688,393
Marketable securities, long
term 79,140,911 73,040,257
------------- -------------
Total assets $ 99,623,387 $ 95,765,496
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 391,640 $ 422,092
Accrued payroll and other 894,282 918,060
Deferred taxes -- 440,736
------------- -------------
Total current liabilities 1,285,922 1,780,888
Long-term deferred tax
liabilities 377,232 --
Shareholders' equity
Common stock 48,370 48,624
Additional paid-in capital 19,990,791 21,200,742
Accumulated other
comprehensive income 947,080 1,557,726
Retained earnings 76,973,992 71,177,516
------------- -------------
Total shareholders' equity 97,960,233 93,984,608
------------- -------------
Total liabilities and
shareholders' equity $ 99,623,387 $ 95,765,496
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