 | PRESS RELEASE
For immediate release |
NVE Corporation Reports Fourth Quarter and Fiscal Year Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—May 3, 2017—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2017.
Total revenue for the fourth quarter of fiscal 2017 increased 12% to $6.85 million from $6.10 million in the prior-year quarter. The increase was due to a 23% increase in product sales partially offset by a 49% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2017 increased 16% to $3.03 million, or $0.62 per diluted share, compared to $2.60 million, or $0.54 per share, for the prior-year quarter.
For fiscal 2017, total revenue increased 2% to $28.3 million from $27.7 million for the prior fiscal year. The increase was due to a 7% increase in product sales partially offset by a 35% decrease in contract research and development revenue. Net income for fiscal 2017 increased 5% to $12.9 million, or $2.68 per diluted share, compared to $12.3 million, or $2.53 per share, for fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2017 to shareholders of record as of May 15, 2017.
“We are pleased to report strong increases in product sales, total revenue, and net income for the quarter and fiscal year,” 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 related to our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future contract research and development revenue, uncertainties related to future stock repurchases and dividend payments, 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, 2017 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2017 AND 2016 (Unaudited)
Quarter Ended March 31
2017 2016
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Revenue
Product sales $ 6,399,924 $ 5,212,813
Contract research and development 453,282 887,774
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Total revenue 6,853,206 6,100,587
Cost of sales 1,449,454 1,470,049
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Gross profit 5,403,752 4,630,538
Expenses
Selling, general, and administrative 340,673 336,891
Research and development 990,729 1,012,564
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Total expenses 1,331,402 1,349,455
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Income from operations 4,072,350 3,281,083
Interest income 386,884 468,121
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Income before taxes 4,459,234 3,749,204
Provision for income taxes 1,431,851 1,148,361
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Net income $ 3,027,383 $ 2,600,843
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Net income per share - basic $ 0.63 $ 0.54
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Net income per share - diluted $ 0.62 $ 0.54
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Weighted average shares outstanding
Basic 4,839,543 4,838,843
Diluted 4,844,410 4,840,275
Year Ended March 31
2017 2016
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Revenue
Product sales $ 26,182,453 $ 24,410,391
Contract research and development 2,143,743 3,306,887
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Total revenue 28,326,196 27,717,278
Cost of sales 6,078,294 6,616,852
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Gross profit 22,247,902 21,100,426
Expenses
Selling, general, and administrative 1,458,598 1,752,962
Research and development 3,344,101 3,061,184
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Total expenses 4,802,699 4,814,146
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Income from operations 17,445,203 16,286,280
Interest income 1,650,808 1,890,817
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Income before taxes 19,096,011 18,177,097
Provision for income taxes 6,147,142 5,884,782
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Net income $ 12,948,869 $ 12,292,315
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Net income per share - basic $ 2.68 $ 2.53
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Net income per share - diluted $ 2.68 $ 2.53
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Weighted average shares outstanding
Basic 4,836,602 4,850,209
Diluted 4,838,389 4,852,602
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2017 AND 2016
March 31, 2017 March 31, 2016
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ASSETS
Current assets
Cash and cash equivalents $ 8,199,364 $ 7,534,593
Marketable securities, short term 19,591,833 19,697,384
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,436,802 2,244,086
Inventories 3,358,298 3,205,233
Prepaid expenses and other assets 607,283 734,524
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Total current assets 35,193,580 33,415,820
Fixed assets
Machinery and equipment 9,007,455 8,840,033
Leasehold improvements 1,644,419 1,539,965
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10,651,874 10,379,998
Less accumulated depreciation 9,238,626 8,688,285
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Net fixed assets 1,413,248 1,691,713
Long-term deferred tax assets 357,055 51,188
Marketable securities, long term 56,810,923 65,695,335
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Total assets $ 93,774,806 $ 100,854,056
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 376,275 $ 317,990
Accrued payroll and other 576,313 556,674
Deferred revenue 142,733 714,805
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Total current liabilities 1,095,321 1,589,469
Shareholders' equity
Common stock 48,410 48,350
Additional paid-in capital 19,507,348 19,205,682
Accumulated
other comprehensive (loss) income (38,298) 451,359
Retained earnings 73,162,025 79,559,196
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Total shareholders' equity 92,679,485 99,264,587
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Total liabilities and shareholders' equity $ 93,774,806 $ 100,854,056
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