![]() | PRESS RELEASE For immediate release |
NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 18, 2017—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2016.
Total revenue for the third quarter of fiscal 2017 increased 24% to $7.46 million from $6.02 million in the prior-year quarter. The increase was due to a 42% increase in product sales, partially offset by a 65% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2017 increased 35% to $3.48 million, or $0.72 per diluted share, compared to $2.58 million, or $0.53 per share, for the prior-year quarter.
For the first nine months of fiscal 2017, total revenue decreased 1% to $21.5 million from $21.6 million for the first nine months of the prior year. The decrease was due to a 30% decrease in contract research and development revenue, partially offset by a 3% increase in product sales. Net income increased 2% to $9.92 million, or $2.05 per diluted share, for the first nine months of fiscal 2017 compared to $9.69 million, or $2.00 per share, for the first nine months of fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2017 to shareholders of record as of January 30, 2017.
“We are pleased to report strong increases in product sales, total revenue, and net income 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 our reliance on several large customers for a significant percentage of revenue, uncertainties in dividend payments to our shareholders, 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, 2016 and other reports filed with the SEC.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2016 AND 2015 (Unaudited) |
Quarter Ended Dec. 31 | |||||||
2016 | 2015 | ||||||
Revenue | |||||||
Product sales | $ | 7,116,931 | $ | 5,025,041 | |||
Contract research and development | 345,748 | 990,974 | |||||
Total revenue | 7,462,679 | 6,016,015 | |||||
Cost of sales | 1,502,848 | 1,508,361 | |||||
Gross profit | 5,959,831 | 4,507,654 | |||||
Expenses | |||||||
Selling, general, and administrative | 384,322 | 406,676 | |||||
Research and development | 826,816 | 738,657 | |||||
Total expenses | 1,211,138 | 1,145,333 | |||||
Income from operations | 4,748,693 | 3,362,321 | |||||
Interest income | 395,207 | 468,367 | |||||
Income before taxes | 5,143,900 | 3,830,688 | |||||
Provision for income taxes | 1,660,156 | 1,253,237 | |||||
Net income | $ | 3,483,744 | $ | 2,577,451 | |||
Net income per share – basic | $ | 0.72 | $ | 0.53 | |||
Net income per share – diluted | $ | 0.72 | $ | 0.53 | |||
Weighted average shares outstanding | |||||||
Basic | 4,836,336 | 4,844,845 | |||||
Diluted | 4,839,777 | 4,846,970 |
Nine Months Ended Dec. 31 | |||||||
2016 | 2015 | ||||||
Revenue | |||||||
Product sales | $ | 19,782,529 | $ | 19,197,578 | |||
Contract research and development | 1,690,461 | 2,419,113 | |||||
Total revenue | 21,472,990 | 21,616,691 | |||||
Cost of sales | 4,628,840 | 5,146,803 | |||||
Gross profit | 16,844,150 | 16,469,888 | |||||
Expenses | |||||||
Selling, general, and administrative | 1,117,925 | 1,416,071 | |||||
Research and development | 2,353,372 | 2,048,620 | |||||
Total expenses | 3,471,297 | 3,464,691 | |||||
Income from operations | 13,372,853 | 13,005,197 | |||||
Interest income | 1,263,924 | 1,422,696 | |||||
Income before taxes | 14,636,777 | 14,427,893 | |||||
Provision for income taxes | 4,715,291 | 4,736,421 | |||||
Net income | $ | 9,921,486 | $ | 9,691,472 | |||
Net income per share – basic | $ | 2.05 | $ | 2.00 | |||
Net income per share – diluted | $ | 2.05 | $ | 2.00 | |||
Weighted average shares outstanding | |||||||
Basic | 4,835,639 | 4,853,970 | |||||
Diluted | 4,837,815 | 4,857,103 |
NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2016 |
(Unaudited) December 31, 2016 | March 31, 2016 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 3,799,188 | $ | 7,534,593 | |||
Marketable securities, short-term | 24,655,206 | 19,697,384 | |||||
Accounts receivable, net of allowance for uncollectible accounts of $15,000 | 1,461,659 | 2,244,086 | |||||
Inventories | 3,162,478 | 3,205,233 | |||||
Prepaid expenses and other assets | 751,433 | 734,524 | |||||
Total current assets | 33,829,964 | 33,415,820 | |||||
Fixed assets | |||||||
Machinery and equipment | 9,020,726 | 8,840,033 | |||||
Leasehold improvements | 1,559,719 | 1,539,965 | |||||
10,580,445 | 10,379,998 | ||||||
Less accumulated depreciation and amortization | 9,281,531 | 8,688,285 | |||||
Net fixed assets | 1,298,914 | 1,691,713 | |||||
Long-term deferred tax assets | 446,949 | 51,188 | |||||
Marketable securities, long-term | 59,668,735 | 65,695,335 | |||||
Total assets | $ | 95,244,562 | $ | 100,854,056 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 358,530 | $ | 317,990 | |||
Accrued payroll and other | 679,040 | 556,674 | |||||
Deferred revenue | - | 714,805 | |||||
Total current liabilities | 1,037,570 | 1,589,469 | |||||
Shareholders’ equity | |||||||
Common stock | 48,370 | 48,350 | |||||
Additional paid-in capital | 19,319,679 | 19,205,682 | |||||
Accumulated other comprehensive (loss) income | (135,709 | ) | 451,359 | ||||
Retained earnings | 74,974,652 | 79,559,196 | |||||
Total shareholders’ equity | 94,206,992 | 99,264,587 | |||||
Total liabilities and shareholders’ equity | $ | 95,244,562 | $ | 100,854,056 |